Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

The case involves veterans' benefits appeals that were erroneously deactivated by the Department of Veterans Affairs (VA) due to a computer program error. The VA operates two adjudicatory systems for benefits claims, and the legacy system is relevant here. Under this system, a claimant must file a Notice of Disagreement and, if unresolved, a Substantive Appeal. The VA's electronic database, VACOLS, automatically closed appeals if no timely Substantive Appeal was noted, leading to approximately 3,000 erroneously closed appeals. This affected U.S. Army veterans J. Roni Freund and Marvin Mathewson, whose successors are the named petitioners in this class action.The United States Court of Appeals for Veterans Claims dismissed the petitions and denied class certification. The court found the case moot as to the individual petitioners after the VA reactivated their appeals. It also held that the petitioners failed to meet the commonality and adequacy requirements for class certification under Rule 23. The court did not address whether the case was moot as to the class or the superiority of class resolution.The United States Court of Appeals for the Federal Circuit reviewed the case and found that the Veterans Court abused its discretion in its commonality and adequacy findings. The Federal Circuit held that the inherently transitory exception to mootness applied, as the VA's practice of reactivating appeals quickly made it likely that individual claims would become moot before class certification could be ruled upon. The court also rejected the Secretary's argument that the class was not ascertainable due to the difficulty in identifying class members.The Federal Circuit vacated the Veterans Court's order denying class certification and remanded the case for further consideration of class certification and appropriate relief. View "FREUND v. MCDONOUGH " on Justia Law

Nevada Health CO-OP, a health insurance provider, received two loans from the Centers for Medicare & Medicaid Services (CMS) under the Affordable Care Act’s CO-OP program. These loans included a start-up loan and a solvency loan. In 2015, Nevada Health faced financial difficulties and was placed into receivership by the Nevada Commissioner of Insurance. CMS subsequently terminated the loan agreement and began offsetting payments owed to Nevada Health against the start-up loan debt.The United States Court of Federal Claims reviewed the case and granted summary judgment in favor of the Nevada Commissioner of Insurance, acting as the receiver for Nevada Health. The court found that the government improperly withheld statutory payments owed to Nevada Health under the ACA. The court also held that the government could not invoke 31 U.S.C. § 3728 to withhold these payments in the future.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed the lower court’s judgment that the government improperly withheld payments owed to Nevada Health. The court held that the loan agreement subordinated the government’s claim to those of policyholders and basic operating expenses, thus precluding the government from asserting offset rights to jump ahead of these senior creditors. However, the appellate court vacated the portion of the lower court’s order that addressed the government’s ability to invoke 31 U.S.C. § 3728, ruling that the lower court exceeded its jurisdiction by addressing this issue, which was not raised by the parties. View "Richardson v. United States" on Justia Law

Eric Mote, a former Captain in the United States Air Force, sought the removal of a Letter of Admonishment (LOA) and a Non-Judicial Punishment (NJP) from his military records, along with back pay for the fine associated with the NJP. The LOA and NJP were issued following Mote's repeated requests for a "White Heritage Month" at Hill Air Force Base, which were denied by his superiors. Mote's subsequent communications, which were deemed disrespectful, led to the LOA and NJP.The United States Court of Federal Claims reviewed Mote's case and granted judgment on the administrative record in favor of the government, upholding the decision of the Air Force Board for Correction of Military Records (AFBCMR). The Claims Court found that the AFBCMR's decision was supported by substantial evidence and was not arbitrary or capricious. The court also held that the LOA and NJP were not illegal reprisals.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Claims Court's decision regarding the NJP, finding that the AFBCMR's conclusions were supported by substantial evidence. However, the appellate court vacated the portion of the Claims Court's decision that reviewed the LOA and remanded the case for a determination of whether the Claims Court had jurisdiction over the LOA claim under the Tucker Act. The appellate court emphasized that the Claims Court's jurisdiction to grant non-monetary relief is limited to cases where such relief is incident to a money judgment. View "MOTE v. US " on Justia Law

Norah R. Lewis, Sr., a U.S. Army veteran, had his disability rating for PTSD increased from 30 percent to 70 percent in 2009. However, in 2016, the VA Regional Office (RO) reduced his rating back to 30 percent, citing evidence from a 2015 VA examination and outpatient treatment records. Mr. Lewis appealed this decision, arguing that the reduction was improper.The Board of Veterans’ Appeals initially sustained the RO's decision in 2018, but the Veterans Court vacated and remanded the case, requiring the Board to address favorable evidence. The Board issued a second decision in 2019, which was again vacated and remanded by the Veterans Court for failing to comply with the prior remand order. On the second remand, Mr. Lewis argued that the 2016 rating decision was void ab initio because the RO did not make a required finding under 38 C.F.R. § 3.344(a) that the improvement in his condition would be maintained under ordinary conditions of life.The United States Court of Appeals for Veterans Claims affirmed the Board's March 2021 decision, which had found that Mr. Lewis’s PTSD had materially improved and that the improvement was likely to be maintained under ordinary conditions of life. The Veterans Court held that the RO was not required to make specific findings in its initial decision, as long as the Board made the necessary findings on appeal.The United States Court of Appeals for the Federal Circuit affirmed the Veterans Court's decision. The Federal Circuit held that while the RO failed to make the required findings under 38 C.F.R. § 3.344(a) in its initial decision, the Board's subsequent findings cured this deficiency. The Board's de novo review and ultimate decision on Mr. Lewis’s disability rating were consistent with its role in the statutory scheme, satisfying the VA’s duty to follow procedural protections for rating reductions. View "LEWIS v. MCDONOUGH " on Justia Law

Sean Ravin, an attorney, sought fees for representing Curtis D. Skogsbergh, a veteran claiming disability benefits. The Department of Veterans Affairs (VA) initially granted Skogsbergh a 10% disability rating, later increased to 20%. Skogsbergh, acting pro se, appealed for a higher rating and submitted a claim for total disability based on individual unemployability (TDIU). The VA denied TDIU, and the Board of Veterans’ Appeals (Board) did not address it in their decision. Skogsbergh retained Ravin, who represented him in an appeal to the Court of Appeals for Veterans Claims (Veterans Court), which vacated the Board’s decision for not addressing TDIU.The Board later remanded the TDIU claim, and the VA granted TDIU with past-due benefits. However, the VA denied Ravin’s attorney fees, leading him to appeal to the Board, which found the fee agreement valid but denied fees, stating the Board’s decision was not final. Ravin appealed to the Veterans Court, which vacated the Board’s decision, finding the Board’s interpretation of finality incorrect but remanding for clarification on whether all fee award requirements were met.The United States Court of Appeals for the Federal Circuit reviewed the case and determined that the Veterans Court’s decision was non-final, as it remanded the case for further proceedings. The Federal Circuit dismissed the appeal, holding that the remand did not meet the criteria for a final decision and that the Veterans Court was within its authority to remand for clarification. View "RAVIN v. MCDONOUGH " on Justia Law

The case involves a dispute over the distribution of interest associated with antidumping and countervailing duties under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA). Plaintiffs, who are affected domestic producers, argued that the United States Customs and Border Protection (Customs) unlawfully excluded delinquency interest from the distributions they were entitled to receive under the CDSOA. Customs had been distributing only interest charged on antidumping and countervailing duties at liquidation, as specified by 19 U.S.C. § 1677g, and not delinquency interest assessed under 19 U.S.C. § 1505(d).The United States Court of International Trade (CIT) initially dismissed claims related to distributions made more than two years before the complaints were filed, citing the statute of limitations. The CIT found that the Final Rule published by Customs in 2001 provided adequate notice of its decision to exclude delinquency interest. The CIT also denied plaintiffs' motions for reconsideration, maintaining that the Final Rule sufficiently informed the public of Customs' decision. Finally, the CIT denied plaintiffs' motions for judgment on the agency record, holding that the CDSOA did not require Customs to distribute delinquency interest.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the CIT's decisions. The Federal Circuit held that the Final Rule provided adequate notice of Customs' decision to exclude delinquency interest, thus supporting the CIT's dismissal of claims outside the two-year statutory period. The court also concluded that the CDSOA unambiguously excludes delinquency interest from distributions to affected producers. Therefore, the court affirmed the CIT's judgment in favor of the government, upholding Customs' practice of excluding delinquency interest from CDSOA distributions. View "ADEE HONEY FARMS v. US " on Justia Law

The case revolves around Ravi Teja, an Indian citizen, who paid thousands of dollars to enroll at the "University of Farmington," expecting to take classes. Unbeknownst to him, the University was a fictitious entity created by the Department of Homeland Security (DHS) as part of an undercover operation to target fraud involving student visas. When the operation came to light, the government neither provided the education Ravi had paid for nor refunded his money. Ravi filed a lawsuit against the United States in the United States Court of Federal Claims, alleging a breach of contract and an accompanying breach of the implied covenant of good faith and fair dealing.The United States Court of Federal Claims dismissed Ravi's complaint for lack of subject-matter jurisdiction, without addressing other issues. The court reasoned that its jurisdiction under the Tucker Act does not extend to contracts entered into by the government when acting as a sovereign unless those contracts unmistakably subject the government to damages in the event of breach. The court concluded that the government was acting in its sovereign capacity as it entered into the alleged contract in furtherance of an undercover law-enforcement operation, and that the alleged contract did not unmistakably subject the government to damages in the event of breach.On appeal, the United States Court of Appeals for the Federal Circuit reversed the Claims Court’s dismissal and remanded the case for further proceedings. The Appeals Court concluded that the Claims Court had jurisdiction pursuant to the Tucker Act over the agreement alleged by Ravi. The court disagreed with the Claims Court's interpretation of the Tucker Act, stating that the contract in question did not concern what was promised to happen or not to happen in a different proceeding in another adjudicatory forum, and thus did not fall into the narrow exception carved out by precedent. The court remanded the case for further proceedings, noting that other grounds not reached by the Claims Court but raised by the government as alternative bases to affirm warranted further exploration. View "RAVI v. US " on Justia Law

The case involves Hahnenkamm, LLC and the United States Forest Service. Hahnenkamm sold a parcel of land to the Forest Service. The purchase price was based on an appraisal that was supposed to comply with the Uniform Appraisal Standards for Federal Land Acquisitions, also known as the Yellow Book. Hahnenkamm later sued the Forest Service, claiming that the appraisal did not comply with the Yellow Book and was not independent, thus breaching the purchase agreement.The United States Court of Federal Claims found in favor of Hahnenkamm, ruling that the Forest Service had breached the agreement by not supporting the purchase price with an independent, Yellow Book-compliant appraisal. The court rejected the government's defenses of waiver and equitable estoppel and awarded damages to Hahnenkamm.The United States Court of Appeals for the Federal Circuit partially reversed the lower court's decision. The appellate court found that Hahnenkamm could not have reasonably relied on the contractual representation that the appraisal was independent. However, the court remanded the case back to the lower court for further proceedings to determine whether Hahnenkamm reasonably relied on the representation that the appraisal was Yellow Book-compliant. The court also remanded the lower court's rejection of the equitable estoppel defense.On cross-appeal, Hahnenkamm argued that the lower court erred in its damages determination. The appellate court affirmed the lower court's damages determination, finding no abuse of discretion in its analysis. View "HAHNENKAMM, LLC v. US " on Justia Law

The case involves an appeal by Marmen Inc., Marmen Énergie Inc., Marmen Energy Co., the Government of Québec, and the Government of Canada against a decision by the U.S. Department of Commerce. The Department of Commerce had imposed countervailing duties on imports of certain utility scale wind towers from Canada, arguing that the Canadian government had provided illegal subsidies to the producers and exporters of these towers.The case was initially reviewed by the United States Court of International Trade, which upheld the Department of Commerce's decision. The appellants then appealed to the United States Court of Appeals for the Federal Circuit.The appellants argued that the Department of Commerce had erred in its assessment of three government programs and its computation of the sales denominator used to calculate the subsidy rate. They contended that the subsidy rate should have been de minimis, meaning it was too trivial or minor to merit consideration.The Court of Appeals for the Federal Circuit affirmed the judgment of the U.S. Court of International Trade, ruling that the Department of Commerce's determination was supported by substantial evidence and was in accordance with the law. The court rejected the appellants' arguments, finding that the Department of Commerce had reasonably determined that the auditor's adjustment was unreliable, and that the three subsidy programs at issue did provide countervailable subsidies. View "GOVERNMENT OF QUEBEC v. US " on Justia Law

The case involves Dr. Deborah A. Perlick, who was employed by the Department of Veterans Affairs (VA) as a Research Health Science Specialist. During her tenure, she discovered approximately $78,000 missing from a study's funding and reported this to VA officials. Subsequently, she was terminated from her position. Perlick filed a complaint under the Whistleblower Protection Act (WPA), and the Merit Systems Protection Board (the Board) granted her request for corrective action, awarding her back pay through March 31, 2020. However, Perlick also sought consequential and compensatory damages, including future lost earnings, which the Board denied.The Board found that Perlick had established her claim of protected whistleblowing disclosures. However, it denied her request for consequential damages, stating that such damages are limited to out-of-pocket costs and do not include non-pecuniary damages. The Board also denied Perlick's request for future lost earnings, arguing that she had no guarantees of future employment beyond the completion date of her final project with the VA.The United States Court of Appeals for the Federal Circuit vacated the Board's decision and remanded the case for further proceedings. The court held that future lost earnings are recoverable as compensatory damages under the Whistleblower Protection Enhancement Act of 2012. The court found that the Board erred by improperly raising the burden for Perlick to establish these damages, requiring her to "guarantee" future employment to recover future lost earnings. The court instructed the Board to determine under the preponderance of the evidence standard whether Perlick met her burden to prove entitlement to pecuniary compensatory damages in the form of future lost earnings. View "PERLICK v. DVA " on Justia Law