In Re: Estate of Jerry West v. U.S. Dep't of Veterans Affairs
Opinion of the Court
*433The Department of Veterans Affairs and the Estate of Jerry West, a Vietnam veteran, dispute whether certain benefits owed to West at the time of his death should be paid to the Estate. The district court remanded that dispute to Kentucky probate court, but the government contends the dispute can be litigated only pursuant to the procedure set forth in the Veterans' Judicial Review Act. We agree with the government and reverse the district court's remand order, albeit with some concerns about the government's expropriation of the Estate's funds without any advance notice or process.
I.
Jerry West was an Army veteran who served in Vietnam during the early 1970s. In June 2013, he applied to the VA for disability benefits. On November 26, 2013, the VA determined that West was eligible for a disability pension. But two days later West died. Four days after that-without knowing that West had died-the government sent West a check for $8,660, which was the amount of his pension benefit retroactive to June 2013.
In March 2014, a Kentucky probate court appointed West's ex-wife, Brenda West, as the Executor of his estate. In that capacity, Brenda endorsed the VA check-which was the Estate's only cash asset-and deposited the $8,660 into an escrow account for the Estate.
There the funds sat for the next three months, until the VA determined that West's estate was not entitled to the benefits owed to him at the time of his death. See
More than eighteen months later, the Estate moved in the Kentucky probate court for an order requiring the government to return the funds. The probate court granted the motion. The government then removed the matter to the district court. See
*434II.
As an initial matter, the Estate argues that we lack jurisdiction over the government's appeal of the district court's order remanding this matter to the probate court. A remand order generally is not appealable. See
We review the district court's remand order de novo. See Mays v. City of Flint ,
A.
The government argues that the district court should have dismissed this case rather than remanded it. Specifically, the government says that the Estate's entitlement to the $8,660 is reviewable only pursuant to the process described in the Veterans' Judicial Review Act ("Review Act" or "Act"), 102 Stat 4105 (1988). That process begins with a decision by the Secretary of Veterans Affairs as to whether a veteran or his "dependents or survivors" are entitled to benefits.
The Secretary's determination here was that West's estate was not entitled to the benefits owed to him at the time of his death. See
The district court instead remanded the case under the so-called "probate exception" to federal-court jurisdiction-a hoary, judge-made rule under which a federal court declines to exercise jurisdiction over an asset (i.e. , a res ) that is also subject to the jurisdiction of a state probate court. See Marshall v. Marshall ,
*435B.
That leaves the Estate's argument that the government violated the Fifth Amendment's guarantee of procedural due process when the government took $8,660 from the Estate's bank account without any advance notice or hearing for the Estate. Although the government seems to take for granted the constitutionality of that action, we do not. "The point is straightforward: the Due Process Clause provides that certain substantive rights-life, liberty, and property-cannot be deprived except pursuant to constitutionally adequate procedures." Cleveland Bd. of Educ. v. Loudermill ,
Yet in this case the Treasury Department-pursuant to its "reclamation" authority, see
The government says we should not reach this issue because in its view the Estate waived the issue below. That may overstate matters, since in the district court the government did not reveal that it took the Estate's funds by means of the reclamation process set forth in § 3712. Yet the fact remains that the record on this issue is undeveloped here. We therefore choose not to reach it, though the Estate should be free to raise it in future litigation.
* * *
We offer some final observations about our disposition of the case, which is to dismiss rather than remand it. None of the courts to consider this case-the state probate court, the district court, and now this court-have jurisdiction to revisit the Secretary's determination as to the Estate's entitlement to benefits. In that circumstance a remand to state court would be pointless, and we should simply dismiss the case. See, e.g., *436Evans v. Greenfield Banking Co. ,
We therefore reverse the district court's remand order, and ourselves dismiss the case for lack of subject-matter jurisdiction. Given that disposition, the Estate's appeal of the district court's order denying its motion for attorneys' fees is moot.
DISSENT
Dissenting Opinion
I agree with the majority that this case turns on a decision "affect[ing] the provision of benefits by the Secretary to veterans or the dependents or survivors of veterans" and therefore
We also take note ... of the literal words of § 1447(c), which, on their face, give ... no discretion to dismiss rather than remand an action.... The statute declares that, where subject matter jurisdiction is lacking, the removed case "shall be remanded."28 U.S.C. § 1447 (c) (emphasis added). We therefore reverse the decision of the Court of Appeals and remand the case to the District Court with instructions that the case be remanded to the Civil District Court for the Parish of Orleans, Louisiana.
Int'l Primate Prot. League v. Admins. of Tulane Educ. Fund ,
The plain language of the statute is clear; indeed, it could not be clearer. And "[i]f the language of the statute is clear, *437the court applies the statute as written." In re Corrin ,
Reference
- Full Case Name
- In Re: ESTATE OF Jerry WEST, Deceased, Plaintiff-Appellee/Cross-Appellant, v. UNITED STATES DEPARTMENT OF VETERANS AFFAIRS, Defendant-Appellant/Cross-Appellee.
- Cited By
- 7 cases
- Status
- Published