Peake v. Sanders
Issues
Is a failure to give required notice to a veteran claiming disability benefits presumptively prejudicial?
Woodrow Sanders and Patricia Simmons are U.S. military veterans who did not receive notice regarding who was responsible for obtaining evidence for their disability claims as is required by the Veterans Claims Assistance Act of 2000. At issue in this consolidated case is whether the Department of Veterans Affairs (“VA”) presumptively bears the burden of proving that a notice error in such benefits claims was harmless. The veterans argue that the language of 38 U.S.C. § 7261(b)(2) and the pro-claimant structure of the veterans benefits system create a presumptive burden on the VA. The VA argues that the Supreme Court should interpret the statute according to the prejudicial error rule of the Administrative Procedure Act, 5 U.S.C. § 706; this interpretation would require a claimant to prove that a VA notice error actually harmed the outcome of his or her claim. A Supreme Court ruling in favor of the veterans would bolster the pro-claimant system, making it easier for veterans to successfully bring claims. A decision for the veterans, however, could slow down the processing of deserving claims because the VA would have to defend its denial of claims where there was a notice error, but where the claimant did not suffer any harm from the error.
Questions as Framed for the Court by the Parties
The Veterans Claims Assistance Act of 2000 (VCAA), Pub. L. No. 106-475, 114 Stat. 2096, requires the Department of Veterans Affairs (VA) to provide a notice to benefits claimants. Under 38 U.S.C. 7261(b)(2) (Supp. V 2005), review of administrative decisions resolving claims for veterans benefits must “take due account of the rule of prejudicial error.” The question presented is: Whether the court of appeals erred in holding that a failure of the VA to give the notice required by the VCAA must be presumed to be prejudicial.
This case involves two consolidated decisions issued by the Federal Circuit Court of Appeals, which has exclusive jurisdiction over appeals of the decision of the U.S. Court of Appeals for Veterans Claims. See 38 U.S.C.