⚖️ TDIU Application Was Supplemental Claim for Which Attorney Was Entitled to Fees
In Chisholm v. Collins, No. 22-7028 (Vet. App. Mar. 13, 2025), the U.S. Court of Appeals for Veterans Claims addressed two pivotal issues: the validity of attorney fee eligibility in the context of VA's claims processing and the procedural requirements for filing supplemental claims.
Attorney Robert V. Chisholm represented a veteran who, in November 2019, sought increased ratings for service-connected tinea pedis and right lower extremity radiculopathy. The VA denied these claims in February 2020. Chisholm filed a Higher-Level Review (HLR), which was also denied in April 2021. Subsequently, within a year, the veteran submitted a VA Form 21-8940, applying for Total Disability based on Individual Unemployability (TDIU), citing the same disabilities. In April 2022, the VA awarded higher ratings for the disabilities and granted TDIU.
Chisholm sought attorney fees based on the past-due benefits resulting from the April 2022 decision. The Board of Veterans' Appeals denied the fee request, reasoning that the TDIU application constituted a new claim, separate from the earlier increased rating claims, and thus did not entitle Chisholm to fees.
The Court disagreed, holding that the TDIU application was a supplemental claim related to the previously denied increased rating claims. It emphasized that while supplemental claims must be filed on a form prescribed by the Secretary, they are not restricted to a specific form, such as VA Form 20-0995. Therefore, the VA Form 21-8940 submitted by the veteran sufficed as a supplemental claim.
🧰 Key Takeaways for Claims Advocates
1. TDIU Applications Can Serve as Supplemental Claims
A TDIU application submitted after the denial of increased rating claims for the same disabilities can be considered a supplemental claim. This interpretation allows for continuity in the claims process and potential eligibility for attorney fees based on past-due benefits.
2. Flexibility in Prescribed Forms for Supplemental Claims
The Court clarified that while the VA requires supplemental claims to be filed on a form prescribed by the Secretary, it does not mandate a specific form. Thus, forms like VA Form 21-8940 can fulfill the requirement for a supplemental claim, provided they pertain to the same or similar benefits previously denied.
3. Importance of Accurate VA Accounting in Attorney Fee Determinations
The case highlights the necessity for the VA to accurately associate attorney fees with the correct claims and benefits. Misattributions can lead to disputes and necessitate legal intervention to resolve fee entitlements appropriately.
For a more detailed understanding, you can access the full opinion here: Chisholm v. Collins, No. 22-7028 (Vet. App. Mar. 13, 2025).(law.justia.com)
Soto v. United States, 92 F.4th 1094 (Fed. Cir. 2024)
The U.S. Court of Appeals for the Federal Circuit addressed whether the Combat-Related Special Compensation (CRSC) statute, 10 U.S.C. § 1413a, provides a settlement mechanism that displaces the default procedures and limitations set forth in the Barring Act, 31 U.S.C. § 3702.(naag.org)
Background:
Simon Soto, a Marine Corps veteran medically retired in 2006, became eligible for CRSC in 2008 due to a combat-related disability. However, he did not apply for these benefits until 2016. Upon approval, the Navy limited his retroactive payments to six years prior to his application date, citing the Barring Act's six-year statute of limitations. Soto filed a class-action lawsuit, arguing that the CRSC statute's specific provisions should govern the settlement of such claims, thereby displacing the Barring Act's limitations.(ballotpedia.org, patentlyo.com)
District Court Decision:
The district court agreed with Soto, holding that the CRSC statute is more specific and thus supersedes the Barring Act. The court applied the pro-veteran canon of statutory interpretation, resolving any ambiguity in favor of the veterans.(ballotpedia.org)
Federal Circuit Holding:
On appeal, the Federal Circuit reversed the district court's decision. The court held that the CRSC statute does not contain its own settlement mechanism and therefore does not displace the Barring Act. Specifically, the court noted that the CRSC statute lacks explicit language granting an agency the authority to settle claims, such as the term "settle," and does not specify a statute of limitations. Consequently, the Barring Act's six-year statute of limitations applies to CRSC claims.(supremecourt.gov, cafc.uscourts.gov, fedcircuitblog.com)
Supreme Court Review:
The U.S. Supreme Court granted certiorari on January 17, 2025, to address the question:
"Given the Federal Circuit's holding that a claim for compensation under 10 U.S.C. § 1413a is a claim 'involving ... retired pay' under 31 U.S.C. § 3702(a)(1)(A), does 10 U.S.C. § 1413a provide a settlement mechanism that displaces the default procedures and limitations set forth in the Barring Act?"(scotusblog.com)
Oral arguments were heard on April 28, 2025. As of now, the Supreme Court's decision is pending.(fedcircuitblog.com)
Implications:
The outcome of this case will significantly impact thousands of medically retired combat veterans seeking full retroactive CRSC payments. A decision affirming the Federal Circuit's ruling would maintain the six-year limitation, potentially reducing the compensation for many veterans. Conversely, a reversal could allow eligible veterans to receive full retroactive payments dating back to their eligibility date, irrespective of when they applied for benefits.(fedcircuitblog.com)
For more detailed information, you can refer to the Federal Circuit's opinion and the Supreme Court docket.