Citation Nr: 0603319 Decision Date: 02/06/06 Archive Date: 02/15/06 DOCKET NO. 03-24 941A ) DATE ) ) On appeal from the Department of Veterans Affairs Regional Office in Detroit, Michigan THE ISSUE Whether the February 26, 1970 rating decision which reduced the evaluation for service-connected schizophrenic reaction from 100 percent to 70 percent contained clear and unmistakable error (CUE). REPRESENTATION Appellant represented by: Kenneth M. Carpenter, Attorney at Law ATTORNEY FOR THE BOARD Eric S. Leboff, Counsel INTRODUCTION The veteran had active service from April 1966 until July 1968. This matter comes before the Board of Veterans' Appeals (BVA or Board) from a June 2000 rating decision of the Department of Veterans Affairs (VA), Regional Office (RO) in Detroit, Michigan. Historically, in addition to the CUE claim presently on appeal, the veteran had also raised a claim of CUE as to a rating decision dated in June 1988. That June 1988 decision reduced the veteran's disability evaluation for schizophrenic reaction from 100 percent to 70 percent effective September 1, 1988. The RO denied the CUE claim in October 1993 and the veteran initiated an appeal. The matter ultimately came before the Board in December 1996, at which time the CUE claim was rejected. However, the veteran appealed that decision to the United States Court of Appeals for Veterans Claims (Court). In December 1997, the parties filed a Joint Motion to Dismiss. The terms of such dismissal were detailed in an attached Stipulated Agreement. Such agreement reinstated the 100 percent evaluation back to September 1, 1988, effectively reversing the Board's December 1996 decision (though not admitting that any error was committed in the adjudication of the claim). Thus, only the CUE claim as to the February 1970 rating action is presently in appellate status. FINDING OF FACT In reducing the veteran's disability evaluation for schizophrenic reaction from 100 percent to 70 percent effective May 1, 1970, the RO did not apply the correct law as it existed at the time of the February 1970 determination; as a result, the February 1970 rating decision is fatally flawed. CONCLUSION OF LAW The February 1970 rating decision which reduced the veteran's disability evaluation for schizophrenic reaction from 100 percent to 70 percent effective May 1, 1970, contains CUE. 38 U.S.C.A. § 7105 (West 2002); 38 C.F.R. § 3.105 (2005). REASONS AND BASES FOR FINDING AND CONCLUSION As a preliminary matter, the Board notes that effective November 9, 2000, the President signed into law the Veterans Claims Assistance Act of 2000 (VCAA), codified at 38 U.S.C.A. §§ 5100, 5102, 5103, 5103A, 5106, 5107, 5126 (West 2002 & Supp. 2005 ). However, the Board observes that the VCAA is not applicable to the moving party's allegation of CUE. The United States Court of Appeals for Veterans Claims (Court) has determined that CUE claims are not conventional appeals. Rather, such claims are requests for revisions of previous decisions. A claimant alleging CUE is not pursuing a claim for benefits. Instead, that claimant is collaterally attacking a final decision. While CUE, when demonstrated, may result in reversal or revision of a final decision on a claim for benefits, it is not by itself a claim for benefits. See Livesay v. Principi, 15 Vet. App. 165 (2001). Additionally, in view of the Board's favorable disposition in this matter, further development with regard to any VA duty to notify and assist under VCAA would serve no useful purpose. A remand is inappropriate where there is no possibility of any benefit flowing to the veteran. Soyini v. Derwinski, 1 Vet. App. 540 (1991). Legal criteria Previous determinations on which an action was predicated, including decisions of service connection will be accepted as correct in the absence of CUE. Where evidence establishes such error, the prior decision will be reversed or amended. For the purpose of authorizing benefits, the rating or other adjudicative decision which constitutes a reversal of a prior decision on the grounds of CUE has the same effect as if the corrected decision had been made on the date of the reversed decision. 38 C.F.R. § 3.105(a). The CAVC has provided the following guidance with regard to a claim of CUE: In order for there to be a valid claim of 'clear and unmistakable error,' there must have been an error in the prior adjudication of the claim. Either the correct facts, as they were known at the time, were not before the adjudicator or the statutory or regulatory provisions extant at the time were incorrectly applied. The claimant, in short, must assert more than a disagreement as to how the facts were weighed or evaluated. Russell v. Principi, 3 Vet. App. 310, 313 (1992) (en banc). The CAVC in Russell further stated: Errors that would not have changed the outcome are harmless; by definition, such errors do not give rise to the need for revising the previous decision. The words 'clear and unmistakable error' are self- defining. They are errors that are undebatable, so that it can be said that reasonable minds could only conclude that the original decision was fatally flawed at the time it was made. A determination that there was a 'clear and unmistakable error' must be based on the record and the law that existed at the time of the prior AOJ [agency of original jurisdiction] or Board decision. Russell, 3 Vet. App. at 313-314; see also Bustos v. West, 179 F.3d 1378 (Fed. Cir. 1999). In determining whether there is CUE, the doctrine of resolving reasonable doubt in favor of the veteran is not for application, inasmuch as error, if it exists, is undebatable, or there was no error within the meaning of 38 C.F.R. § 3.105(a). Russell, 3 Vet. App. at 314; see also Yates v. West, 213 F.3d 1372 (2000). The Board wishes to emphasize that the CAVC has consistently stressed the rigorous nature of the concept of CUE. "Clear and unmistakable error is an administrative failure to apply the correct statutory and regulatory provisions to the correct and relevant facts; it is not mere misinterpretation of facts." Oppenheimer v. Derwinski, 1 Vet. App. 370, 372 (1991). "'Clear and unmistakable error' requires that error, otherwise prejudicial, must appear undebatably." Akins v. Derwinski, 1 Vet. App. 228, 231 (1991). "It must always be remembered that clear and unmistakable error is a very specific and rare kind of 'error'." Fugo v. Brown, 6 Vet. App. 40, 43 (1993). In Russell, Fugo and other decisions, the CAVC has emphasized that merely to aver that there was CUE in a rating decision is not sufficient to raise the issue. The CAVC has further held that simply to claim CUE on the basis that previous adjudications had improperly weighed the evidence can never rise to the stringent definition of CUE. The determination regarding CUE must be made based on the record and the law that existed at the time the decision was made. Damrel v. Brown, 6 Vet. App. 242, 245 (1994); Russell at 314. Evidence that was not of record at the time of the decision cannot be used to determine if CUE occurred. See Porter v. Brown, 5 Vet. App. 233 (1993). Analysis In June 1968, the veteran was granted service connection for schizophrenic reaction and a 30 percent evaluation was assigned. In a subsequent July 1969 rating action, the RO increased the rating to 100 percent, effective July 3, 1968. Then, in February 1970, the RO reduced the veteran's rating to 70 percent disabling, effective May 1, 1970. Such rating resulted in an actual reduction in the veteran's combined disability evaluation and payment of compensation benefits. The veteran did not appeal that determination and it became final. See 38 U.S.C.A. § 7105 (West 2002). The veteran now claims that the February 1970 rating decision contains CUE, entitling him to reinstatement of the 100 percent rating from May 1, 1970. In asserting that CUE was committed by the RO in February 1970, the veteran and his accredited representative argue that the RO failed to issue appropriate notice prior to reducing the veteran's disability evaluation. In this vein, 38 C.F.R. § 3.105(e), as in effect today and at the time of the February 1970 rating decision, provides that where a reduction in an evaluation of a service-connected disability is considered warranted and the lower evaluation would result in a reduction or discontinuance of compensation payments currently being made, a rating proposing the reduction or discontinuance must be prepared setting forth all material facts and reasons. In addition, the RO must notify the veteran that he has 60 days to present additional evidence showing that compensation should be continued at the present level. 38 C.F.R. § 3.105(e). The Board has reviewed the claims file and finds no evidence demonstrating that the procedures outlined under 38 C.F.R. § 3.105(e) were properly carried out. A VA Form 20-822, Control Document and Award Letter dated March 6, 1970, shows that the veteran received notice of his new payment amounts subsequent to the rating reduction. A VA Form 21-6798 also reflects notice of the disability award (in this case, the reduction). However, that Form was dated February 26, 1970, the same day as the rating decision reducing the veteran's benefits. The claims file fails to contain a notice of proposed reduction issued not less than 60 days prior to the rating decision which effectuated the reduction in benefits, as mandated under 38 C.F.R. § 3.105(e). The Board agrees that the RO's failure to apply the rules of 38 C.F.R. § 3.105(e) prior to reducing the veteran's disability evaluation in February 1970 constitutes clear and unmistakable error. Indeed, it is obvious that the regulatory provisions in effect at the time of that determination were incorrectly applied. As such, this is more than a mere disagreement as to how the facts were weighed or evaluated. See Russell, 310, 313 (1992). Instead, this is a case in which the decision was fatally flawed at the time it was made as the veteran had not been afforded his right to have 60 days following notice of a proposed reduction to present argument and evidence to show that the monetary allowance should be continued at the present level. For the reasons discussed above, the February 1970 rating decision is found to contain CUE. As such, it is reversed and the veteran's 100 percent evaluation is reinstated as of May 1, 1970. Such 100 percent rating remains in effect until December 1, 1971, at which time a 70 percent evaluation was again effectuated until September 19, 1973, from which time the veteran's schizophrenia has been rated as 100 percent disabling. In conclusion, the February 26, 1970, rating decision which reduced the veteran's disability evaluation from 100 percent to 70 percent for schizophrenic reaction contains CUE and is hereby reversed. A 100 percent rating is reinstated as of May 1, 1970 and remains in effect until December 1, 1971. ORDER CUE having been found in the February 26, 1970, rating decision, a 100 percent evaluation is reinstated from May 1, 1970, until December 1, 1971. ____________________________________________ U. R. POWELL Veterans Law Judge, Board of Veterans' Appeals Department of Veterans Affairs