Arellano v. McDonough

	Arellano v. McDonough
	Term: 2022
	Important Dates
	Argued: October 4, 2022; Decided: January 23, 2023
	Outcome
	Affirmed
	Vote
	9-0

Arellano v. McDonough is a case that was decided by the Supreme Court of the United States on January 23, 2023, during the court's October 2022-2023 term. The case was argued before the court on October 4, 2022. The court affirmed the decision of the United States Court of Appeals for the Federal Circuit in a 9-0 ruling, holding that equitable tolling does not apply to §5110(b)(1). ^[1] Click here for more information about the ruling.

HIGHLIGHTS

The case: Under 38 U.S.C. § 5110, disability benefits can be awarded retroactively to the date of discharge if a veteran applies within one year of that date. Service-disabled veteran Adolfo Arellano was discharged from the U.S. Navy in October 1981. Approximately 30 years later, he applied for disability compensation benefits. Arellano challenged the effective date of his benefits, arguing the one-year deadline should have been ed, or paused, because his disability prevented him from applying for benefits earlier. The Board of Veterans’ Appeals rejected the argument. Arellano appealed his case until it reached the U.S. Court of Appeals for the Federal Circuit. This court held in a divided 6-6 opinion that Arellano's effective date was the date his application was received (June 2011), not retroactive to his date of discharge (October 1981). Click here to learn more about the case's background.

The issue: The case concerned 38 U.S.C. § 5110 and the doctrine of equitable ing.

The questions presented: Under an equitable tolling theory, in which the clock stops, does an award for disability compensation on an application received more than one year after a veteran's discharge date qualify for compensation retroactive to the date of discharge?^[2]

The outcome: The court the decision of the United States Court of Appeals for Veterans Claims, holding that equitable tolling does not apply to §5110(b)(1).^[1]

The case came on a writ of certiorari to the United States Court of Appeals for the Federal Circuit. To review the lower court's opinion, click here.

Timeline

The following timeline details key events in this case:

January 23, 2023: The U.S. Supreme Court affirmed the U.S. Court of Appeals for the Federal Circuit's ruling.
October 4, 2022: The U.S. Supreme Court heard oral argument.
February 22, 2022: The U.S. Supreme Court agreed to hear the case.
September 17, 2021: Adolfo Arellano, the petitioner, appealed to the U.S. Supreme Court.
June 17, 2021: The U.S. Court of Appeals for the Federal Circuit affirmed the judgment of the U.S. Court of Appeals for Veterans Claims.

Definitions

Service-disabled veteran

A veteran who is discharged from military service with a disability that was incurred during his or her active military service is known as a service-disabled veteran.^[3]

Equitable tolling

As presented by the Federal Circuit, the "equitable-tolling doctrine, as traditionally understood, 'permits a court to pause a statutory time limit "when a litigant has pursued his rights diligently but some extraordinary circumstance prevents him from bringing a timely action."'"^[2]

Background

Under 38 U.S.C. § 1110, service-disabled veterans may receive monetary benefits, also known as awards. The amount received depends on the effective date of the award. 38 U.S.C. § 5110 determines the effective date of the benefits. Veterans have one year to file an application for the effective date of awards to begin on the date of their discharge from military service. If a veteran files more than one year after their date of discharge, the effective date for monetary benefits begins on the day the U.S. Department of Veterans Affairs receives the application.^[2]^[4]

Adolfo Arellano served in the U.S. Navy from November 1977 until October 1981. After his discharge, the U.S. Department of Veterans Affairs (VA) determined Arellano suffered from mental health issues related to his service in the Navy.^[4] On June 3, 2011, the VA received an application from Arellano claiming disability benefits for service-disabled veterans. The effective date of his award was the date his claim was received—June 3, 2011.^[2]

Arellano appealed his effective date, arguing his disability had prevented him from applying earlier for the benefits. He argued that he should qualify for an effective date retroactive to the day after his discharge from the U.S. Navy, approximately 30 years earlier. In his argument, Arellano said that Section 5110's one-year deadline should be equitably tolled, or paused. In this way, he would qualify for the retroactive effective date.^[2] The Board of Veterans’ Appeals ("Board") rejected the argument. Arellano then appealed to the U.S. Court of Veterans Claims, which upheld the Board's decision.^[2]

Arellano then appealed to the U.S. Court of Appeals for the Federal Circuit. Sitting en banc, the Federal Circuit affirmed the Court of Veterans Claims in a divided 6-6 opinion. The court held that military veterans are unable to stop the clock in cases where they have a one-year deadline to apply for an award of disability compensation, even if the veteran in question is unable to apply for the award because of a service-related physical or mental impairment.^[4]

Six judges held that the Federal Circuit had correctly decided a 2003 decision in Andrews v. Principi, which said equitable tolling did not apply under Section 5110(b)(1). This interpretation of the law would result in a benefits effective date of June 3, 2011, for Arellano.^[2] The other six Federal Circuit judges affirmed the lower court's ruling, finding Arellano's case did not justify a retroactive effective date. However, they disagreed with their six colleagues on the interpretation of the law.^[4]

Arellano petitioned the U.S. Supreme Court, arguing that the Federal Circuit "has exclusive jurisdiction for reviewing any challenge to the interpretation" of 38 U.S.C. § 5110(b)(1) and that "no other circuit is likely to address or critique the Federal Circuit's 6-6 decision ... In other words, this is not a situation where a majority view will eventually emerge among the circuits given enough time."^[4]

38 U.S.C. § 5110(b)(1)

Under 38 U.S.C. § 5110(b)(1), titled "Effective dates of awards," service-disabled veterans who are discharged from active military service have one year to file an application for disability benefits retroactive to the date of discharge. If the veteran does not file an application within the one-year deadline, the disability award is not retroactive to the date of discharge. Instead, it is effective on the date of receipt of the application.^[4]

Questions presented

The petitioner presented the following questions to the court:^[5]

Questions presented:

“

(1) Does Irwin's rebuttable presumption of equitable tolling apply to the one-year statutory deadline in 38 U.S.C. § 5110(b)(1) for seeking retroactive disability benefits, and, if so, has the Government rebutted that presumption?

(2) If 38 U.S.C. § 5110(b)(1) is amenable to equitable tolling, should this case be remanded so the agency can consider the particular facts and circumstances in the first instance? ^[6]

”

Oral argument

Audio

Audio of oral argument:^[7]

Transcript

Transcript of oral argument:^[8]

Outcome

The court affirmed the decision of the United States Court of Appeals for the Federal Circuit in a 9-0 ruling, holding that equitable tolling does not apply to §5110(b)(1). Justice Amy Coney Barrett delivered the opinion of the court.^[1]

Opinion

In the court's majority opinion, Justice Amy Barret wrote:^[1]

“

We need not address the Secretary’s first argument because the second is straightforward. The presumption is rebutted if “there [is] good reason to believe that Congress did not want the equitable tolling doctrine to apply.” United States v. Brockamp, 519 U. S. 347, 350 (1997). In this case, there is very good reason to draw that conclusion. Section 5110 contains detailed instructions for when a veteran’s claim for benefits may enjoy an effective date earlier than the one provided by the default rule. It would be inconsistent with this comprehensive scheme for an adjudicator to extend effective dates still further through the doctrine of equitable tolling.

^[6]

”

Text of the opinion

Read the full opinion here.

October term 2022-2023

See also: Supreme Court cases, October term 2022-2023

The Supreme Court began hearing cases for the term on October 3, 2022. The court's yearly term begins on the first Monday in October and lasts until the first Monday in October the following year. The court generally releases the majority of its decisions in mid-June.^[9]