Barry v. McDonough
U.S. Court of Appeals for the Federal Circuit
Barry v. McDonough, 101 F.4th 1348 (Fed. Cir. 2024)
Barry v. McDonough
Opinion
Case: 22-1747 Document: 44 Page: 1 Filed: 05/16/2024
United States Court of Appeals
for the Federal Circuit
______________________
DANIEL D. BARRY,
Claimant-Appellant
v.
DENIS MCDONOUGH, SECRETARY OF
VETERANS AFFAIRS,
Respondent-Appellee
______________________
2022-1747
______________________
Appeal from the United States Court of Appeals for
Veterans Claims in No. 20-3367, Judge Grant Jaquith,
Judge Joseph L. Falvey, Jr, Judge Michael P. Allen.
______________________
Decided: May 16, 2024
______________________
JINGYUAN LUO, Orrick, Herrington & Sutcliffe LLP,
Menlo Park, CA, argued for claimant-appellant. Also rep-
resented by MELANIE L. BOSTWICK, Washington, DC;
KENNETH DOJAQUEZ, Carpenter Chartered, Topeka, KS.
MARTIN F. HOCKEY, JR., Commercial Litigation Branch,
Civil Division, United States Department of Justice, Wash-
ington, DC, argued for respondent-appellee. Also repre-
sented by SOSUN BAE, BRIAN M. BOYNTON, PATRICIA M.
MCCARTHY; BRIAN D. GRIFFIN, ANDREW J. STEINBERG,
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2 BARRY v. MCDONOUGH
Office of General Counsel, United States Department of
Veterans Affairs, Washington, DC.
______________________
Before LOURIE, PROST, and REYNA, Circuit Judges.
Opinion for the court filed by Circuit Judge PROST.
Dissenting opinion filed by Circuit Judge LOURIE.
PROST, Circuit Judge.
Daniel D. Barry appeals a final decision of the United
States Court of Appeals for Veterans Claims (“Veterans
Court”) limiting his entitlement to additional special
monthly compensation (“SMC”). Barry v. McDonough, 35
Vet. App. 111(2022) (“Decision”). In the underlying pro- ceedings, Mr. Barry argued that the Board of Veterans’ Ap- peals (“Board”) should have considered his entitlement to multiple SMC increases, rather than just one, under38 C.F.R. § 3.350
(f)(3). 1 A majority of the Veterans Court dis-
agreed and interpreted § 3.350(f)(3) to permit only one
SMC increase, regardless of how many qualifying disabili-
ties Mr. Barry could demonstrate. As we explain below,
§ 3.350(f)(3) does not limit how many SMC increases can
be provided; instead, it is a mandatory entitlement that can
apply multiple times, subject to a statutory cap. We thus
reverse and remand.
BACKGROUND
I
The United States recognizes the sacrifices that veter-
ans like Mr. Barry make when they serve our country.
Whenever a veteran has a “disability resulting from per-
sonal injury suffered . . . in line of duty . . . during a period
1 The text of the statutory and relevant regulatory
provisions are set out in the appendix.
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BARRY v. MCDONOUGH 3
of war” the United States “will pay” that veteran. 38 U.S.C.
§ 1110. Congress has outlined these payments in38 U.S.C. § 1114
. The exact amount of compensation for a disabled veteran depends on that veteran’s disability rating. The compensation amount increases as the disability rating in- creases in increments of 10%, with the maximum at a 100%, or total, rating.38 U.S.C. § 1114
(a)–(j).
Congress recognized, however, that veterans may have
additional disabling conditions that warrant extra compen-
sation beyond the compensation for a total disability rat-
ing. It therefore enacted SMC provisions to provide extra
compensation to “exceptionally disabled veterans who are
rated as totally disabled.” Guerra v. Shinseki, 642 F.3d
1046, 1048 (Fed. Cir. 2012). The details of these SMC pro-
visions are listed in § 1114(k)–(t). Demonstrating eligibil-
ity for SMC requires a veteran to show specific disabling
conditions.
It was recognized early on that the specificity of these
provisions could potentially lead to arguable inequities.
For example, while a veteran may not be able to show “the
anatomical loss of both legs with factors that prevent the
use of prosthetic appliances,” as § 1114(n) specifically re-
quires, he may have other disabilities with an equivalent
cumulative impact. Thus, to allow for more flexibility, Con-
gress amended the predecessor to § 1114 in 1945 “to pro-
vide additional rates of compensation or pension and
remedy inequalities as to specific service-incurred disabili-
ties in excess of total disability.” Act of September 20,
1945, Pub. L. No. 79-182,ch. 369, sec. 1,59 Stat. 533
, 533. It did so by adding subsection (p), which at the time stated that, “[i]n the event the disabled person’s service-incurred disabilities exceed the requirements for any of the rates prescribed herein, the Administrator, in his discretion, may allow the next higher rate or an intermediate rate, but in no event in excess of” the statutory cap.Id.
sec. 1, 59
Stat. at 534. This subsection provided the Administrator
(now the Secretary of Veterans Affairs (“Secretary”))
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4 BARRY v. MCDONOUGH
discretion to fairly compensate a veteran for additional dis-
abilities for which Congress did not specifically provide.
Section 1114(p) exists in substantially the same form
today. The relevant portion here provides that, “in the
event the veteran’s service-connected disabilities exceed
the requirements for any of the rates prescribed in this sec-
tion, the Secretary may allow the next higher rate or an
intermediate rate, but in no event in excess of” a statutory
cap. 38 U.S.C. § 1114(p). The intermediate rate in
§ 1114(p) is “the arithmetic mean, rounded down to the
nearest dollar, between the two rates concerned.”
The Secretary has implemented § 1114(p)’s discretion-
ary clause in various provisions of 38 C.F.R. § 3.350(f). Sec-
tion 3.350(f)(3), our focus in this case, provides:
Additional independent 50 percent disabili-
ties. In addition to the statutory rates payable un-
der 38 U.S.C. 1114 (l) through (n) and the
intermediate or next higher rate provisions out-
lined above, additional single permanent disability
or combinations of permanent disabilities inde-
pendently ratable at 50 percent or more will afford
entitlement to the next higher intermediate rate or
if already entitled to an intermediate rate to the next
higher statutory rate under 38 U.S.C. 1114, but not
above the (o) rate. In the application of this sub-
paragraph the disability or disabilities inde-
pendently ratable at 50 percent or more must be
separate and distinct and involve different anatom-
ical segments or bodily systems from the conditions
establishing entitlement under 38 U.S.C. 1114 (l)
through (n) or the intermediate rate provisions out-
lined above. The graduated ratings for arrested tu-
berculosis will not be utilized in this connection,
but the permanent residuals of tuberculosis may be
utilized.
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BARRY v. MCDONOUGH 5
38 C.F.R. § 3.350(f)(3) (first emphasis in original, all other
emphasis added).
II
Mr. Barry served in the Army from July 31, 1969, to
November 18, 1971. He earned a Purple Heart for his ser-
vice after being injured during combat. His resulting inju-
ries were, and are, significant. At the time, they required
an open amputation of his right leg above the knee. He also
suffered an extensive loss of tissue on his left leg that ex-
posed his tibia, had fragment wounds in his right hand and
eye, and received injuries to both ears. In all, Mr. Barry
remained in the hospital for thirteen months until he re-
ceived disability retirement from the military.
The Department of Veterans Affairs (“VA”) initially
gave Mr. Barry a 100% disability rating and awarded him
SMC. After receiving several subsequent rating decisions,
Mr. Barry received the rating decision at issue here in De-
cember 2014. His compensated disabling conditions in-
clude the amputation of his right leg above the knee, rated
at 100%, the loss of use of his left foot, the loss of use of his
left leg, and a constellation of other conditions related to
his legs and feet. Based on these ratings, Mr. Barry re-
ceived SMC at the rate specified in 38 U.S.C. § 1114(m) and received an intermediate-rate increase in his SMC under38 C.F.R. § 3.350
(f)(3).
Mr. Barry does not receive SMC, however, for his many
other disabling conditions: post-traumatic stress disorder,
rated at 70%; right shoulder arthritis, rated at 60%; left
shoulder arthritis, rated at 50%; left eye injury with glau-
coma, rated at 30%; left eye disfigurement, rated at 30%;
bilateral hearing loss, rated at 20%; lumbar spine injury,
rated at 10%; right hand injury, rated at 10%; left and right
hip joint disease, rated at 10% each; hypertension, rated at
10%; and tinnitus, rated at 10%.
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6 BARRY v. MCDONOUGH
III
Mr. Barry appealed the 2014 rating decision to the
Board, arguing that he should receive an SMC increase
above what he was already awarded, based on his addi-
tional uncompensated disabilities listed above. The Board
initially denied his appeal, but the Veterans Court re-
manded for further explanation and consideration of poten-
tial additional SMC entitlement. The Board then
concluded that Mr. Barry could not show entitlement to an
SMC increase under 38 C.F.R. § 3.350(f)(4) (a conclusion
we do not address here).
Mr. Barry appealed the Board’s determination to the
Veterans Court. Mr. Barry principally argued that the
Board erred by not considering whether he would be enti-
tled to an additional SMC increase under 38 C.F.R.
§ 3.350(f)(3). Since Mr. Barry had already received one
SMC increase under § 3.350(f)(3), the Veterans Court
framed the question as whether § 3.350(f)(3) entitled a vet-
eran to only one SMC increase or whether a veteran could
increase his SMC under § 3.350(f)(3) more than once. De-
cision, 35 Vet. App. at 122.
In a split decision, the Veterans Court panel majority
concluded that 38 C.F.R. § 3.350(f)(3) could provide for only one SMC increase.Id.
at 120–24. In reaching this conclu- sion, the majority first reasoned that the text of § 3.350(f)(3) contemplated only one increase in SMC. Id. at 122. The majority also determined that the text of38 U.S.C. § 1114
(p), the statutory provision providing author-
ity for § 3.350(f)(3), pointed toward the same interpreta-
tion. Id. Further, the majority compared § 3.350(f)(3) to
other SMC provisions and concluded that the differences in
language indicated that § 3.350(f)(3) provides for only one
increase in SMC. Id. at 122–23. Finally, the majority de-
termined that reading § 3.350(f)(3) to provide for more than
one SMC increase would render another provision,
§ 3.350(f)(4), superfluous. Id. at 123–24.
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BARRY v. MCDONOUGH 7
The dissent disagreed. It first noted that 38 C.F.R.
§ 3.350(f)(3) provides no limits on how many times it may apply.Id. at 129
(Jacquith, J., dissenting in part). Rather,
the dissent concluded, § 3.350(f)(3)’s plain text shows that
it can apply more than once. Id. at 129–30. The dissent
further noted that the majority’s comparison with other
statutory and regulatory SMC provisions did not warrant
the conclusions the majority drew. Id.
Mr. Barry appeals the Veterans Court’s decision.
DISCUSSION
I
We have jurisdiction to review the Veterans Court’s in-
terpretation of regulations. See 38 U.S.C. § 7292(c); Augus- tine v. Principi,343 F.3d 1334, 1337
(Fed. Cir. 2003). On appeal, Mr. Barry presents a pure legal argument about the interpretation of38 C.F.R. § 3.350
(f)(3) relied upon by
the Veterans Court. We thus have jurisdiction to review
his argument here.
II
When interpreting a regulatory provision, we apply the
rules of statutory construction. Goodman v. Shulkin, 870
F.3d 1383, 1386(Fed. Cir. 2017). To this end, we examine the “text, structure, history, and purpose” of a regulation to determine its meaning. Kisor v. Wilkie,139 S. Ct. 2400, 2415
(2019). As always, we first “examine the regulatory language itself to determine its plain meaning.” Hanser v. McDonough,56 F.4th 967, 970
(Fed. Cir. 2022) (quoting Goodman,870 F.3d at 1386
). “If the regulatory language is clear and unambiguous, the inquiry ends with the plain meaning.”Id.
(quoting Goodman,870 F.3d at 1386
). Im- portantly, “the plain meaning that we seek to discern is the plain meaning of the whole statute or regulation, not of iso- lated sentences.” Boeing Co. v. Sec’y of Air Force,983 F.3d 1321, 1327
(Fed. Cir. 2020) (cleaned up).
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8 BARRY v. MCDONOUGH
III
We now turn to the question here: whether 38 C.F.R.
§ 3.350(f)(3) provides for only one increase in SMC or whether it can provide for more than one SMC increase in instances such as this, where the veteran has additional ratings for uncompensated disabilities. We first analyze the text of the provision itself and explain why the isolated text does not decide this issue. We then analyze the statu- tory and regulatory context and explain why it demon- strates that § 3.350(f)(3) unambiguously can provide for more than one SMC increase, subject to a statutory cap on benefits. See38 C.F.R. § 3.350
(f)(3) (“not above the [38 U.S.C. § 1114
](o) rate”).
A
We begin with 38 C.F.R. § 3.350(f)(3)’s text. Both Mr.
Barry and the government offer competing arguments for
why the text of § 3.350(f)(3) alone unambiguously supports
their positions. As we explain, however, § 3.350(f)(3)’s iso-
lated text does not definitively resolve our inquiry.
The government makes two textual arguments. It first
invokes language providing for an increase to “the next
higher intermediate rate” or “the next higher statutory
rate.” 38 C.F.R. § 3.350(f)(3) (emphasis added). The gov-
ernment argues that § 3.350(f)(3)’s use of the singular
“rate” implies that only one intermediate-rate increase is
permitted.
But the text is not so clear. Discerning meaning from
the use of a singular instead of a plural form is a recognized
rule of interpretation. Johnson v. McDonald, 762 F.3d
1362, 1365(Fed. Cir. 2014). But the singular “rate” in § 3.350(f)(3) is consistent with both the government’s inter- pretation and another interpretation—that the use of “the next higher intermediate rate” or “the next higher statu- tory rate” merely specifies the new rate after applying § 3.350(f)(3)’s SMC increase. Under the second Case: 22-1747 Document: 44 Page: 9 Filed: 05/16/2024 BARRY v. MCDONOUGH 9 interpretation, § 3.350(f)(3)’s increase could apply more than once. So while the government’s argument is not un- moored from the text, the singular “rate” is consistent with both competing interpretations here. Thus, the singular “rate” on its own does not determine how many SMC in- creases § 3.350(f)(3) permits. Jones v. United States,526 U.S. 227, 238
(1999) (“But what we make of the singular- plural distinction turns on the circumstances.”); see Sursely v. Peake,551 F.3d 1351, 1356
(Fed. Cir. 2009) (concluding that “it is impossible to determine the proper boundaries of the Secretary’s authority pursuant to § 1162 with reference only to the singular nature of the indefinite article ‘a’”); cf. Pulsifer v. United States,144 S. Ct. 718
, 728–30 (2024)
(concluding that a grammatical rule involving the use of
“and” versus “or” in the First Step Act did not resolve an
interpretive question where that rule was consistent with
two competing interpretations). 2
The government also argues that the use of “or” be-
tween “additional single permanent disability” and “combi-
nations of permanent disabilities” means that only one of
an additional single permanent disability or a combination
of permanent disabilities can provide for an SMC increase
2 We note in passing that, if indeed § 3.350(f)(3) were
intended to clearly provide for just one intermediate-rate
SMC increase, its text makes for an odd choice. Again, it
says that certain “additional single permanent disability or
combinations of permanent disabilities” can provide for its
intermediate-rate SMC increase. 38 C.F.R. § 3.350(f)(3). Not only does it not say “an” “additional . . . disability,” which might have further connoted “just one”; it uses “com- binations” plural, when it very well could have used the singular “combination.” While too thin to definitively pro- vide for multiple intermediate-rate SMC increases, this language further suggests the government reads too much into the singular “rate.” Case: 22-1747 Document: 44 Page: 10 Filed: 05/16/2024 10 BARRY v. MCDONOUGH under38 C.F.R. § 3.350
(f)(3). The government infers from
this that § 3.350(f)(3) can provide for only one SMC in-
crease even where, as here, the veteran may qualify for ad-
ditional SMC increases based on uncompensated
disabilities.
We reject the government’s reading. “The word ‘or’
simply signifies that either” a single additional disability
or a combination of disabilities “is sufficient to qualify for
the” SMC increase. See Sursely, 551 F.3d at 1357 (empha-
sis in original). “It implies nothing about whether, after
the veteran has been awarded” one SMC increase under
§ 3.350(f)(3), “the veteran can also be considered for” an ad-
ditional SMC increase based on additional uncompensated
disabilities. See id. (emphasis in original); cf. Pulsifer, 144
S. Ct. at 729 (explaining that the conjunction “or” in con-
text did not resolve a dispute over meaning).
Mr. Barry offers the contrary view that the plain text
unambiguously shows that 38 C.F.R. § 3.350(f)(3) can pro-
vide for more than one SMC increase. He argues that, be-
cause § 3.350(f)(3) provides for an SMC increase when a
veteran is “already entitled to an intermediate rate,” the
veteran could have arrived at that intermediate rate under
a previous application of § 3.350(f)(3).
The language he cites, however, does not clearly estab-
lish the meaning he seeks to elicit. Section 3.350(f)(1) and
(2) provide for intermediate-rate SMC increases that are
unrelated to the increase in § 3.350(f)(3). Therefore, the
“already entitled to an intermediate rate” language in
§ 3.350(f)(3) could refer to these other provisions providing
an intermediate-rate SMC increase and not a prior in-
crease under § 3.350(f)(3). The only other pertinent lan-
guage discusses how the disability or disabilities conferring
§ 3.350(f)(3)’s intermediate-rate increase must be “sepa-
rate and distinct” from those giving increases under
§ 3.350(f)(1) or (2). While no language forecloses multiple
SMC increases under § 3.350(f)(3), there is likewise no
Case: 22-1747 Document: 44 Page: 11 Filed: 05/16/2024
BARRY v. MCDONOUGH 11
language unambiguously providing for multiple SMC in-
creases. Mr. Barry’s argument, like the government’s ar-
gument regarding the singular “rate,” does not definitively
resolve the question here.
Therefore, as the Veterans Court majority recognized,
“the plain language of § 3.350(f)(3) standing alone does not
conclusively resolve the issue dividing the parties.” Deci-
sion, 35 Vet. App. at 122. Having elicited all we can from
the isolated text of § 3.350(f)(3), then, we turn to context.
B
1
The broader statutory and regulatory context unam-
biguously shows that 38 C.F.R. § 3.350(f)(3) can provide for
more than one SMC increase.
Consider how 38 U.S.C. § 1114and38 C.F.R. § 3.350
operate in tandem. Congress and the VA have set eligibil- ity requirements for compensation and SMC. To qualify for compensation, a veteran must have a disability with a specified rating.38 U.S.C. § 1114
(a)–(j); see alsoid.
§ 1155
(requiring the Secretary to adopt a schedule of disability
ratings). Showing SMC eligibility requires that a veteran
demonstrate specific disabling conditions, often beyond the
conditions conferring original entitlement to compensa-
tion. Id. § 1114(k)–(t). Section 3.350 reflects these same
SMC eligibility requirements.
Once a veteran demonstrates SMC eligibility, the rele-
vant provisions mandate an SMC award or increase. For
example, 38 U.S.C. § 1114(k) states that “the rate of com- pensation shall be $96 per month for each such loss or loss of use.”Id.
§ 1114(k) (emphasis added). Portions of38 U.S.C. § 1114
(p), separate from its discretionary clause, provide that “the Secretary shall allow the next intermedi- ate rate” or “the next higher rate” when a veteran has cer- tain disabling conditions.Id.
§ 1114(p) (emphasis added). And even the regulatory provision at issue here is Case: 22-1747 Document: 44 Page: 12 Filed: 05/16/2024 12 BARRY v. MCDONOUGH mandatory: it provides that “additional single permanent disability or combinations of permanent disabilities inde- pendently ratable at 50 percent or more will afford entitle- ment to the next higher intermediate rate.”38 C.F.R. § 3.350
(f)(3); see also Augustine,343 F.3d at 1338
(conclud- ing that § 3.350(f)(3) is mandatory). In this situation, the statutory and regulatory provisions “establish[] a baseline rule that, absent some other limitation, the VA must pay a veteran’s benefits.” Rudisill v. McDonough,144 S. Ct. 945
, 954 (2024); see also Sursely,551 F.3d at 1356
n.4 (“Because
the statute speaks in mandatory language, the Secretary is
in fact required to pay multiple clothing allowances to a
veteran who, as determined under the Secretary’s regula-
tions, uses multiple qualifying appliances.”).
The only relevant “other limitation” here comes in the
form of a statutory compensation cap. For example, 38
U.S.C. § 1114(k) provides a $96 increase in SMC for each specified anatomical loss or loss of use, with a cap on com- pensation. And § 1114(p), which provides authority for the intermediate-rate SMC increase in38 C.F.R. § 3.350
(f)(3),
identifies a cap beyond which SMC cannot increase. 3
Taken together, these provisions describe an SMC pro-
gram that has: (1) eligibility requirements to show entitle-
ment to SMC or SMC increases; (2) mandatory SMC
awards or increases; and (3) an SMC cap. At least for 38
U.S.C. § 1114(p), insofar as it relates to our interpretation of38 C.F.R. § 3.350
(f)(3) here, Congress did not add addi- tional limitations or requirements, nor should we. We do not add limitations to the statutory scheme that are not reflected in the text of the law Congress passed. Va. Ura- nium, Inc. v. Warren,139 S. Ct. 1894, 1900
(2019) (“[I]t is
3 Even apart from the authorizing statutory provi-
sion of § 1114(p), the regulatory provision 38 C.F.R.
§ 3.350(f)(3) includes a cap. See, e.g.,38 C.F.R. § 3.350
(f)(3)
(“but not above the [§ 1114](o) rate”).
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BARRY v. MCDONOUGH 13
our duty to respect not only what Congress wrote but, as
importantly, what it didn’t write.”). Likewise, we do not
add terms to a regulatory provision that the Secretary did
not include. Here, that means we will not add a limitation
on how many times § 3.350(f)(3) can provide for an SMC
increase that does not otherwise exist.
Other veterans-benefits regulations confirm our con-
clusion here. “[I]t is a common tool of statutory construc-
tion to consider what words or phrases mean in nearby
statute sections or related regulations.” Palm Beach Cnty.
v. Fed. Aviation Admin., 53 F.4th 1318, 1335(11th Cir. 2022); see also Hanser,56 F.4th at 970
(“Regulatory inter- pretation, like statutory interpretation, ‘is a holistic en- deavor that requires consideration of a [regulatory] scheme in its entirety.’” (alteration in original) (quoting Meeks v. West,216 F.3d 1363, 1366
(Fed. Cir. 2000))). The VA has issued regulations specifying that certain benefits cannot be obtained more than once. E.g.,38 C.F.R. § 21.7143
(b) (“The individual may choose to receive benefits under 38 U.S.C. chapter 33 at any time, but not more than once dur- ing a certified term, quarter, or semester.”); see also Urban v. Shinseki,452 F. App’x 980, 983
(Fed. Cir. 2011) (non- precedential) (“At the time of Mr. Urban’s death, regula- tions established that the assistance available under sec- tion 2101 would ‘not be available to any veteran more than once.’” (quoting38 C.F.R. §§ 3.809
, 3.809a (1997))). The ab- sence of any similar limit in38 C.F.R. § 3.350
(f)(3) confirms
our conclusion that this provision permits more than one
SMC increase.
In sum, as long as Mr. Barry is entitled to an interme-
diate-rate SMC increase under 38 C.F.R. § 3.350(f)(3), he
shall receive it, subject to the explicit cap. Thus,
§ 3.350(f)(3), in the context of other statutory and regula-
tory provisions, unambiguously allows for more than one
intermediate-rate SMC increase. We decline the govern-
ment’s invitation to read in new requirements that Con-
gress and the Secretary did not create.
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14 BARRY v. MCDONOUGH
2
The government offers multiple structural arguments
involving other statutory and regulatory language that it
contends support the opposite conclusion. The first set of
arguments involves an intrastatutory comparison between
38 U.S.C. § 1114(k) and (p) and an intraregulatory compar- ison between38 C.F.R. § 3.350
(a) and (f)(3). Section
1114(k) provides for a specified SMC increase “for each
such loss or loss of use” of enumerated organs and bodily
functions, § 1114(k) (emphasis added), and section
3.350(a), which implements § 1114(k), mirrors § 1114(k)’s
text for the purposes here. Section 1114(p)’s discretionary
clause, on the other hand, provides that “in the event the
veteran’s service-connected disabilities exceed the require-
ments for any of the rates prescribed in this section, the
Secretary may allow the next higher rate or an intermediate
rate.” § 1114(p) (emphasis added). And § 3.350(f)(3), which
gets its authority from § 1114(p), provides that additional
disabilities (or combinations) independently rated at 50%
or more “will afford entitlement to the next higher interme-
diate rate.” The government argues that, because
§ 1114(k) and § 3.350(a) give SMC increases “for each”
listed condition, and because § 1114(p) and § 3.350(f)(3) do
not say “for each,” we should infer—and conclude—that the
latter two provisions do not provide for an SMC increase
for each qualifying 50%-or-more disability (or combina-
tion).
In advancing this argument, the government relies on
the well-recognized principle, sometimes called the mean-
ingful-variation canon, that “[w]here Congress includes
particular language in one section of a statute but omits it
in another section of the same Act, it is generally presumed
that Congress acts intentionally and purposely in the dis-
parate inclusion or exclusion.” Russello v. United States,
464 U.S. 16, 23(1983) (cleaned up). As the Supreme Court has recently recognized, however, “[t]he principle is mostly applied to terms with some heft and distinctiveness, whose Case: 22-1747 Document: 44 Page: 15 Filed: 05/16/2024 BARRY v. MCDONOUGH 15 use drafters are likely to keep track of and standardize.” Pulsifer, 144 S. Ct. at 735. In Pulsifer, the Court distin- guished terms like “principal activity” and “money remu- neration,” which were terms with the “heft” to warrant applying the meaningful-variation canon, from the ordi- nary conjunctions “and” and “or,” which were “ubiquitous” and “sometimes context-dependent” words such that the meaningful-variation canon might not apply. Id. This pre- sumption of meaningful variation also “grows weaker with each difference in the formulation of the provisions under inspection.” City of Columbus v. Ours Garage & Wrecker Serv., Inc.,536 U.S. 424, 436
(2002).
These limitations on the meaningful-variation canon
undermine the strength that the government’s intrastatu-
tory and intraregulatory comparisons might have in a vac-
uum. To start, the words “for each” lack the “heft and
distinctiveness” to warrant the application of the meaning-
ful-variation canon in this circumstance. See Pulsifer, 144
S. Ct. at 735. Far from terms like “principal activity” or
“money remuneration,” they are instead common words
with a “sometimes context-dependent” meaning, and we
have no reason to expect that Congress (or the Secretary)
would ensure consistent usage of the common phrase “for
each” throughout a statute (or regulation). See id.
The operational differences between § 1114(k) and (p)
also undermine the strength of the meaningful-variation
canon here. Section 1114(k) enumerates several different
disabling conditions that give a relatively minor SMC in-
crease. Because this section provides a small SMC increase
per condition, its operation could be undermined without
specifying that each condition independently confers an in-
crease in SMC. Without “for each,” § 1114(k) could be read
to give just one single SMC increase for any number of the
enumerated disabling conditions connected by the disjunc-
tive “or.” So “for each” merely clarifies the common-sense
operation intended by the text: if a veteran has several of
the listed conditions, he gets several minor SMC increases.
Case: 22-1747 Document: 44 Page: 16 Filed: 05/16/2024
16 BARRY v. MCDONOUGH
Section 1114(p)’s discretionary clause, in contrast,
gives the Secretary discretion to determine when a veteran
may receive an intermediate-rate SMC increase. By dele-
gating to the Secretary discretion to determine how many
intermediate-rate SMC increases a veteran may receive,
Congress expressed its choice not to cabin the number of
possible intermediate-rate SMC increases in § 1114(p)’s
discretionary clause. Specific limitations on how many in-
termediate-rate SMC increases a veteran may receive
would instead come from the relevant regulatory provi-
sions, other non-regulatory determinations by the Secre-
tary), or the broader SMC statutory and regulatory
structure. Cf. Augustine, 343 F.3d at 1338(concluding that38 C.F.R. § 3.350
(f)(3) is mandatory even though38 U.S.C. § 1114
(p) is discretionary). The operational differences be- tween38 U.S.C. § 1114
(k) and (p) mean that the presence of “for each” in § 1114(k), and their absence in § 1114(p), does not provide much information about whether these linguistic differences reflect a congressional choice to limit § 1114(p)’s discretionary clause to providing one intermedi- ate-rate SMC increase. See City of Columbus,536 U.S. at 436
.
We similarly conclude that the operational differences
between 38 C.F.R. § 3.350(a) and (f)(3) undermine the force of the meaningful-variation canon here. Section 3.350(a) specifies that it provides for an SMC increase “for each” enumerated condition to clarify that it provides for multi- ple such SMC increases, as we explained above regarding38 U.S.C. § 1114
(k). Section 3.350(f)(3) works differently. It provides for an intermediate-rate SMC increase “[i]n ad- dition to the statutory rates payable” under § 1114(l)–(n).38 C.F.R. § 3.350
(f)(3). By its terms, § 3.350(f)(3) applies in a narrower set of circumstances than § 3.350(a), which can provide its SMC increase in addition to the rates estab- lished in38 U.S.C. § 1114
(a)–(n) and (s). Moreover, unlike
§ 3.350(a), § 3.350(f)(3) does not enumerate the disability
or combination of disabilities that can confer its
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BARRY v. MCDONOUGH 17
intermediate-rate SMC increase; instead, it provides for an
increase for any disability or combination of disabilities
“independently ratable at 50 percent or more” that is “sep-
arate and distinct and involve[s] different anatomical seg-
ments or bodily systems” from those already conferring
SMC under § 1114(l)–(n) or the other intermediate-rate
SMC increases in § 3.350(f). Since § 3.350(f)(3) does not
enumerate the universe of disabling conditions (or combi-
nations thereof) that can confer its SMC increase, it lacks
§ 3.350(a)’s need to clarify that it is not limited to one single
application. Put simply, the two regulatory provisions op-
erate too differently to place much weight on the meaning-
ful-variation canon.
We further note that the meaningful-variation canon
points both ways in this case. As we referenced above,
other VA regulations addressing different benefits explic-
itly restrict a veteran to receiving those benefits only once.
The inconsistency with how Congress and the VA have spo-
ken to the issue of how many times a veterans-benefits pro-
vision can apply further undermines the informative power
of the meaningful-variation canon here.
Additionally, the implications of the government’s in-
trastatutory comparison are in tension with how 38 C.F.R.
§ 3.350(f)(3) operates. According to the government,38 U.S.C. § 1114
(p)’s discretionary clause permits only one in- termediate-rate SMC increase. But38 C.F.R. § 3.350
(f)(3)’s intermediate-rate SMC increase contem- plates the possibility of a prior intermediate-rate SMC in- crease under § 3.350(f)(1) or (2). Many of the intermediate- rate SMC increases in § 3.350(f)(1) and (2) receive their au- thority from38 U.S.C. § 1114
(p)’s discretionary clause. The government’s reading of § 1114(p)’s discretionary clause seems to prohibit multiple intermediate-rate SMC increases and might prevent, for example, an intermediate- rate increase under38 C.F.R. § 3.350
(f)(1) and a subse-
quent intermediate-rate increase under § 3.350(f)(3). The
inconsistency between the government’s argument and the
Case: 22-1747 Document: 44 Page: 18 Filed: 05/16/2024
18 BARRY v. MCDONOUGH
operation of § 3.350(f)(3) is another reason that we find the
government’s meaningful-variation argument unpersua-
sive.
On the whole, and in view of our analysis of a statutory
and regulatory scheme mandating intermediate-rate SMC
increases, the presence of “for each” in 38 U.S.C. § 1114(k) and38 C.F.R. § 3.350
(a), and their absence in38 U.S.C. § 1114
(p) and38 C.F.R. § 3.350
(f)(3), does not persuade us
to infer a limitation on the number of SMC increases pro-
vided for by § 3.350(f)(3) that is simply not there.
The government second argues that reading 38 C.F.R.
§ 3.350(f)(3) to provide for multiple SMC increases renders
§ 3.350(f)(4) superfluous. Section 3.350(f)(4) provides for
an increase to the next statutory rate, or the next interme-
diate rate if already entitled to an intermediate rate, based
on “additional single permanent disability independently
ratable at 100 percent”; in other words, § 3.350(f)(4) gives
what equates to two intermediate-rate increases (com-
pared to § 3.350(f)(3)’s single intermediate-rate increase).
Section 3.350(f)(4) has a stricter eligibility requirement
than § 3.350(f)(3). According to the government, “[i]f a vet-
eran cannot meet the criteria in subsection (f)(4) for a full-
step increase, it would be odd indeed to allow a veteran to
qualify for a full-step increase or even more through multi-
ple half-step increases via subsection (f)(3).” Appellee’s Br.
24. But this is not odd at all. The disability or combination
of disabilities providing an intermediate-rate SMC in-
crease under § 3.350(f)(3) must be “separate and distinct
and involve different anatomical segments or bodily sys-
tems” from the disabling condition(s) providing a previous
SMC increase. It is entirely plausible that a veteran with
two distinct and additional disabilities, in two different an-
atomical segments or bodily systems, rated at 50% or
greater warrants a higher SMC rate than a veteran with
one distinct and additional disability rated at 100%. We
thus reject the government’s surplusage argument.
Case: 22-1747 Document: 44 Page: 19 Filed: 05/16/2024
BARRY v. MCDONOUGH 19
CONCLUSION
Section 3.350(f)(3), read in the context of other statu-
tory and regulatory provisions, unambiguously permits
multiple intermediate-rate SMC increases. The Veterans
Court’s contrary interpretation cannot stand. We thus re-
verse and remand for further proceedings, including the
calculation of the number of intermediate-rate SMC in-
creases Mr. Barry should receive.
REVERSED AND REMANDED
COSTS
Costs to Mr. Barry.
Case: 22-1747 Document: 44 Page: 20 Filed: 05/16/2024
20 BARRY v. MCDONOUGH
APPENDIX
38 U.S.C. § 1114 – Rates of wartime disability com-
pensation
For the purposes of section 1110 of this title—
(a) if and while the disability is rated 10 percent the
monthly compensation shall be $123;
(b) if and while the disability is rated 20 percent the
monthly compensation shall be $243;
(c) if and while the disability is rated 30 percent the
monthly compensation shall be $376;
(d) if and while the disability is rated 40 percent the
monthly compensation shall be $541;
(e) if and while the disability is rated 50 percent the
monthly compensation shall be $770;
(f) if and while the disability is rated 60 percent the
monthly compensation shall be $974;
(g) if and while the disability is rated 70 percent the
monthly compensation shall be $1,228;
(h) if and while the disability is rated 80 percent the
monthly compensation shall be $1,427;
(i) if and while the disability is rated 90 percent the
monthly compensation shall be $1,604;
(j) if and while the disability is rated as total the
monthly compensation shall be $2,673;
(k) if the veteran, as the result of service-connected dis-
ability, has suffered the anatomical loss or loss of use of one
or more creative organs, or one foot, or one hand, or both
buttocks, or blindness of one eye, having only light percep-
tion, has suffered complete organic aphonia with constant
inability to communicate by speech, or deafness of both
ears, having absence of air and bone conduction, or, in the
Case: 22-1747 Document: 44 Page: 21 Filed: 05/16/2024
BARRY v. MCDONOUGH 21
case of a woman veteran, has suffered the anatomical loss
of 25 percent or more of tissue from a single breast or both
breasts in combination (including loss by mastectomy or
partial mastectomy) or has received radiation treatment of
breast tissue, the rate of compensation therefor shall be
$96 per month for each such loss or loss of use independent
of any other compensation provided in subsections (a)
through (j) or subsection (s) of this section but in no event
to exceed $3,327 per month; and in the event the veteran
has suffered one or more of the disabilities heretofore spec-
ified in this subsection, in addition to the requirement for
any of the rates specified in subsections (l) through (n) of
this section, the rate of compensation shall be increased by
$96 per month for each such loss or loss of use, but in no
event to exceed $4,667 per month;
(l) if the veteran, as the result of service-connected dis-
ability, has suffered the anatomical loss or loss of use of
both feet, or of one hand and one foot, or is blind in both
eyes, with 5/200 visual acuity or less, or is permanently
bedridden or with such significant disabilities as to be in
need of regular aid and attendance, the monthly compen-
sation shall be $3,327;
(m) if the veteran, as the result of service-connected
disability, has suffered the anatomical loss or loss of use of
both hands, or of both legs with factors preventing natural
knee action with prostheses in place, or of one arm and one
leg with factors preventing natural elbow and knee action
with prostheses in place, or has suffered blindness in both
eyes having only light perception, or has suffered blindness
in both eyes, rendering such veteran so significantly disa-
bled as to be in need of regular aid and attendance, the
monthly compensation shall be $3,671;
(n) if the veteran, as the result of service-connected dis-
ability, has suffered the anatomical loss or loss of use of
both arms with factors preventing natural elbow action
with prostheses in place, has suffered the anatomical loss
Case: 22-1747 Document: 44 Page: 22 Filed: 05/16/2024
22 BARRY v. MCDONOUGH
of both legs with factors that prevent the use of prosthetic
appliances, or has suffered the anatomical loss of one arm
and one leg with factors that prevent the use of prosthetic
appliances, or has suffered the anatomical loss of both eyes,
or has suffered blindness without light perception in both
eyes, the monthly compensation shall be $4,176;
(o) if the veteran, as the result of service-connected dis-
ability, has suffered disability under conditions which
would entitle such veteran to two or more of the rates pro-
vided in one or more subsections (l) through (n) of this sec-
tion, no condition being considered twice in the
determination, or if the veteran has suffered bilateral deaf-
ness (and the hearing impairment in either one or both
ears is service connected) rated at 60 percent or more disa-
bling and the veteran has also suffered service-connected
total blindness with 20/200 visual acuity or less, or if the
veteran has suffered service-connected total deafness in
one ear or bilateral deafness (and the hearing impairment
in either one or both ears is service connected) rated at 40
percent or more disabling and the veteran has also suffered
service-connected blindness having only light perception or
less, or if the veteran has suffered the anatomical loss of
both arms with factors that prevent the use of prosthetic
appliances, the monthly compensation shall be $4,667;
(p) in the event the veteran’s service-connected disabil-
ities exceed the requirements for any of the rates pre-
scribed in this section, the Secretary may allow the next
higher rate or an intermediate rate, but in no event in ex-
cess of $4,667. In the event the veteran has suffered ser-
vice-connected blindness with 5/200 visual acuity or less
and (1) has also suffered bilateral deafness (and the hear-
ing impairment in either one or both ears is service con-
nected) rated at no less than 30 percent disabling, the
Secretary shall allow the next higher rate, or (2) has also
suffered service-connected total deafness in one ear or ser-
vice-connected anatomical loss or loss of use of one hand or
one foot, the Secretary shall allow the next intermediate
Case: 22-1747 Document: 44 Page: 23 Filed: 05/16/2024
BARRY v. MCDONOUGH 23
rate, but in no event in excess of $4,667. In the event the
veteran has suffered service-connected blindness, having
only light perception or less, and has also suffered bilateral
deafness (and the hearing impairment in either one or both
ears is service connected) rated at 10 or 20 percent disa-
bling, the Secretary shall allow the next intermediate rate,
but in no event in excess of $4,667. In the event the veteran
has suffered the anatomical loss or loss of use, or a combi-
nation of anatomical loss and loss of use, of three extremi-
ties, the Secretary shall allow the next higher rate or
intermediate rate, but in no event in excess of $4,667. Any
intermediate rate under this subsection shall be estab-
lished at the arithmetic mean, rounded down to the nearest
dollar, between the two rates concerned.
[(q) Repealed. Pub. L. 90–493, § 4(a), Aug. 19, 1968, 82
Stat. 809.]
(r) Subject to section 5503(c) of this title, if any veteran,
otherwise entitled to compensation authorized under sub-
section (o) of this section, at the maximum rate authorized
under subsection (p) of this section, or at the intermediate
rate authorized between the rates authorized under sub-
sections (n) and (o) of this section and at the rate author-
ized under subsection (k) of this section, is in need of
regular aid and attendance, then, in addition to such com-
pensation—
(1) the veteran shall be paid a monthly aid and at-
tendance allowance at the rate of $2,002; or
(2) if the veteran, in addition to such need for reg-
ular aid and attendance, is in need of a higher level
of care, such veteran shall be paid a monthly aid
and attendance allowance at the rate of $2,983, in
lieu of the allowance authorized in clause (1) of this
subsection, if the Secretary finds that the veteran,
in the absence of the provision of such care, would
require hospitalization, nursing home care, or
other residential institutional care.
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24 BARRY v. MCDONOUGH
For the purposes of clause (2) of this subsection,
need for a higher level of care shall be considered
to be need for personal health-care services pro-
vided on a daily basis in the veteran’s home by a
person who is licensed to provide such services or
who provides such services under the regular su-
pervision of a licensed health-care professional.
The existence of the need for such care shall be de-
termined by a physician employed by the Depart-
ment or, in areas where no such physician is
available, by a physician carrying out such function
under contract or fee arrangement based on an ex-
amination by such physician. For the purposes of
section 1134 of this title, such allowance shall be
considered as additional compensation payable for
disability.
(s) If the veteran has a service-connected disability
rated as total, and (1) has additional service-connected dis-
ability or disabilities independently ratable at 60 percent
or more, or, (2) by reason of such veteran’s service-con-
nected disability or disabilities, is permanently house-
bound, then the monthly compensation shall be $2,993. For
the purpose of this subsection, the requirement of “perma-
nently housebound” will be considered to have been met
when the veteran is substantially confined to such vet-
eran’s house (ward or clinical areas, if institutionalized) or
immediate premises due to a service-connected disability
or disabilities which it is reasonably certain will remain
throughout such veteran’s lifetime.
(t) Subject to section 5503(c) of this title, if any veteran,
as the result of service-connected disability, is in need of
regular aid and attendance for the residuals of traumatic
brain injury, is not eligible for compensation under subsec-
tion (r)(2), and in the absence of such regular aid and at-
tendance would require hospitalization, nursing home
care, or other residential institutional care, the veteran
shall be paid, in addition to any other compensation under
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BARRY v. MCDONOUGH 25
this section, a monthly aid and attendance allowance equal
to the rate described in subsection (r)(2), which for pur-
poses of section 1134 of this title shall be considered as ad-
ditional compensation payable for disability. An allowance
authorized under this subsection shall be paid in lieu of any
allowance authorized by subsection (r)(1).
38 C.F.R. § 3.350 Special monthly compensation rat-
ings.
The rates of special monthly compensation stated in this
section are those provided under 38 U.S.C. 1114.
(a) Ratings under 38 U.S.C. 1114(k). Special
monthly compensation under 38 U.S.C. 1114(k) is payable
for each anatomical loss or loss of use of one hand, one foot,
both buttocks, one or more creative organs, blindness of one
eye having only light perception, deafness of both ears,
having absence of air and bone conduction, complete or-
ganic aphonia with constant inability to communicate by
speech or, in the case of a woman veteran, loss of 25% or
more of tissue from a single breast or both breasts in com-
bination (including loss by mastectomy or partial mastec-
tomy), or following receipt of radiation treatment of breast
tissue. This special compensation is payable in addition to
the basic rate of compensation otherwise payable on the
basis of degree of disability, provided that the combined
rate of compensation does not exceed the monthly rate set
forth in 38 U.S.C. 1114(l) when authorized in conjunction
with any of the provisions of 38 U.S.C. 1114 (a) through (j)
or (s). When there is entitlement under 38 U.S.C. 1114 (l)
through (n) or an intermediate rate under (p) such addi-
tional allowance is payable for each such anatomical loss
or loss of use existing in addition to the requirements for
the basic rates, provided the total does not exceed the
monthly rate set forth in 38 U.S.C. 1114(o). The limitations
on the maximum compensation payable under this para-
graph are independent of and do not preclude payment of
Case: 22-1747 Document: 44 Page: 26 Filed: 05/16/2024
26 BARRY v. MCDONOUGH
additional compensation for dependents under 38 U.S.C.
1115, or the special allowance for aid and attendance pro-
vided by 38 U.S.C. 1114(r).
* * *
(f) Intermediate or next higher rate. An interme-
diate rate authorized by this paragraph shall be estab-
lished at the arithmetic mean, rounded to the nearest
dollar, between the two rates concerned.
(Authority: 38 U.S.C. 1114 (p))
(1) Extremities.
(i) Anatomical loss or loss of use of one foot with
anatomical loss or loss of use of one leg at a level,
or with complications preventing natural knee ac-
tion with prosthesis in place, shall entitle to the
rate between 38 U.S.C. 1114(l) and (m).
(ii) Anatomical loss or loss of use of one foot with
anatomical loss of one leg so near the hip as to pre-
vent use of prosthetic appliance shall entitle to the
rate under 38 U.S.C. 1114(m).
(iii) Anatomical loss or loss of use of one foot with
anatomical loss or loss of use of one arm at a level,
or with complications, preventing natural elbow ac-
tion with prosthesis in place, shall entitle to the
rate between 38 U.S.C. 1114(l) and (m).
(iv) Anatomical loss or loss of use of one foot with
anatomical loss or loss of use of one arm so near the
shoulder as to prevent use of a prosthetic appliance
shall entitle to the rate under 38 U.S.C. 1114(m).
(v) Anatomical loss or loss of use of one leg at a
level, or with complications, preventing natural
knee action with prosthesis in place with anatomi-
cal loss of one leg so near the hip as to prevent use
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BARRY v. MCDONOUGH 27
of a prosthetic appliance, shall entitle to the rate
between 38 U.S.C. 1114(m) and (n).
(vi) Anatomical loss or loss of use of one leg at a
level, or with complications, preventing natural
knee action with prosthesis in place with anatomi-
cal loss or loss of use of one hand, shall entitle to
the rate between 38 U.S.C. 1114 (l) and (m).
(vii) Anatomical loss or loss of use of one leg at a
level, or with complications, preventing natural
knee action with prosthesis in place with anatomi-
cal loss of one arm so near the shoulder as to pre-
vent use of a prosthetic appliance, shall entitle to
the rate between 38 U.S.C. 1114 (m) and (n).
(viii) Anatomical loss of one leg so near the hip as
to prevent use of a prosthetic appliance with ana-
tomical loss or loss of use of one hand shall entitle
to the rate under 38 U.S.C. 1114(m).
(ix) Anatomical loss of one leg so near the hip as to
prevent use of a prosthetic appliance with anatom-
ical loss or loss of use of one arm at a level, or with
complications, preventing natural elbow action
with prosthesis in place, shall entitle to the rate be-
tween 38 U.S.C. 1114 (m) and (n).
(x) Anatomical loss or loss of use of one hand with
anatomical loss or loss of use of one arm at a level,
or with complications, preventing natural elbow ac-
tion with prosthesis in place, shall entitle to the
rate between 38 U.S.C. 1114 (m) and (n).
(xi) Anatomical loss or loss of use of one hand with
anatomical loss of one arm so near the shoulder as
to prevent use of a prosthetic appliance shall enti-
tle to the rate under 38 U.S.C. 1114(n).
(xii) Anatomical loss or loss of use of one arm at a
level, or with complications, preventing natural
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28 BARRY v. MCDONOUGH
elbow action with prosthesis in place with anatom-
ical loss of one arm so near the shoulder as to pre-
vent use of a prosthetic appliance, shall entitle to
the rate between 38 U.S.C. 1114 (n) and (o).
(2) Eyes, bilateral, and blindness in connection
with deafness and/or loss or loss of use of a hand or
foot.
(i) Blindness of one eye with 5/200 visual acuity or
less and blindness of the other eye having only light
perception will entitle to the rate between 38
U.S.C. 1114 (l) and (m).
(ii) Blindness of one eye with 5/200 visual acuity or
less and anatomical loss of, or blindness having no
light perception in the other eye, will entitle to a
rate equal to 38 U.S.C. 1114(m).
(iii) Blindness of one eye having only light percep-
tion and anatomical loss of, or blindness having no
light perception in the other eye, will entitle to a
rate between 38 U.S.C. 1114 (m) and (n).
(iv) Blindness in both eyes with visual acuity of
5/200 or less, or blindness in both eyes rated under
subparagraph (2) (i) or (ii) of this paragraph, when
accompanied by service-connected total deafness in
one ear, will afford entitlement to the next higher
intermediate rate of if the veteran is already enti-
tled to an intermediate rate, to the next higher
statutory rate under 38 U.S.C. 1114, but in no
event higher than the rate for (o).
(v) Blindness in both eyes having only light percep-
tion or less, or rated under subparagraph (2)(iii) of
this paragraph, when accompanied by bilateral
deafness (and the hearing impairment in either one
or both ears is service-connected) rated at 10 or 20
percent disabling, will afford entitlement to the
next higher intermediate rate, or if the veteran is
Case: 22-1747 Document: 44 Page: 29 Filed: 05/16/2024
BARRY v. MCDONOUGH 29
already entitled to an intermediate rate, to the next
higher statutory rate under 38 U.S.C. 1114, but in
no event higher than the rate for (o).
(Authority: Sec. 112, Pub. L. 98-223)
(vi) Blindness in both eyes rated under 38 U.S.C.
1114 (l), (m) or (n), or rated under subparagraphs
(2)(i), (ii) or (iii) of this paragraph, when accompa-
nied by bilaterial deafness rated at no less than 30
percent, and the hearing impairment in one or both
ears is service-connected, will afford entitlement to
the next higher statutory rate under 38 U.S.C.
1114, or if the veteran is already entitled to an in-
termediate rate, to the next higher intermediate
rate, but in no event higher than the rate for (o).
(Authority: 38 U.S.C. 1114(p))
(vii) Blindness in both eyes rated under 38 U.S.C.
1114 (l), (m), or (n), or under the intermediate or
next higher rate provisions of this subparagraph,
when accompanied by:
(A) Service-connected loss or loss of use of
one hand, will afford entitlement to the
next higher statutory rate under 38 U.S.C.
1114 or, if the veteran is already entitled to
an intermediate rate, to the next higher in-
termediate rate, but in no event higher
than the rate for (o); or
(B) Service-connected loss or loss of use of
one foot which by itself or in combination
with another compensable disability would
be ratable at 50 percent or more, will afford
entitlement to the next higher statutory
rate under 38 U.S.C. 1114 or, if the veteran
is already entitled to an intermediate rate,
to the next higher intermediate rate, but in
no event higher than the rate for (o); or
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30 BARRY v. MCDONOUGH
(C) Service-connected loss or loss of use of
one foot which is ratable at less than 50
percent and which is the only compensable
disability other than bilateral blindness,
will afford entitlement to the next higher
intermediate rate or, if the veteran is al-
ready entitled to an intermediate rate, to
the next higher statutory rate under 38
U.S.C. 1114, but in no event higher than
the rate for (o).
(Authority: 38 U.S.C. 1114(p))
(3) Additional independent 50 percent disabili-
ties. In addition to the statutory rates payable under 38
U.S.C. 1114 (l) through (n) and the intermediate or next
higher rate provisions outlined above, additional single
permanent disability or combinations of permanent disa-
bilities independently ratable at 50 percent or more will af-
ford entitlement to the next higher intermediate rate or if
already entitled to an intermediate rate to the next higher
statutory rate under 38 U.S.C. 1114, but not above the (o)
rate. In the application of this subparagraph the disability
or disabilities independently ratable at 50 percent or more
must be separate and distinct and involve different ana-
tomical segments or bodily systems from the conditions es-
tablishing entitlement under 38 U.S.C. 1114 (l) through (n)
or the intermediate rate provisions outlined above. The
graduated ratings for arrested tuberculosis will not be uti-
lized in this connection, but the permanent residuals of tu-
berculosis may be utilized.
(4) Additional independent 100 percent ratings.
In addition to the statutory rates payable under 38 U.S.C.
1114 (l) through (n) and the intermediate or next higher
rate provisions outlined above additional single permanent
disability independently ratable at 100 percent apart from
any consideration of individual unemployability will afford
entitlement to the next higher statutory rate under 38
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BARRY v. MCDONOUGH 31
U.S.C. 1114 or if already entitled to an intermediate rate
to the next higher intermediate rate, but in no event higher
than the rate for (o). In the application of this subpara-
graph the single permanent disability independently rata-
ble at 100 percent must be separate and distinct and
involve different anatomical segments or bodily systems
from the conditions establishing entitlement under 38
U.S.C. 1114 (l) through (n) or the intermediate rate provi-
sions outlined above.
(i) Where the multiple loss or loss of use entitle-
ment to a statutory or intermediate rate between
38 U.S.C. 1114 (l) and (o) is caused by the same eti-
ological disease or injury, that disease or injury
may not serve as the basis for the independent 50
percent or 100 percent unless it is so rated without
regard to the loss or loss of use.
(ii) The graduated ratings for arrested tuberculosis
will not be utilized in this connection, but the per-
manent residuals of tuberculosis may be utilized.
(5) Three extremities. Anatomical loss or loss of use,
or a combination of anatomical loss and loss of use, of three
extremities shall entitle a veteran to the next higher rate
without regard to whether that rate is a statutory rate or
an intermediate rate. The maximum monthly payment un-
der this provision may not exceed the amount stated in 38
U.S.C. 1114(p).
Case: 22-1747 Document: 44 Page: 32 Filed: 05/16/2024
United States Court of Appeals
for the Federal Circuit
______________________
DANIEL D. BARRY,
Claimant-Appellant
v.
DENIS MCDONOUGH, SECRETARY OF
VETERANS AFFAIRS,
Respondent-Appellee
______________________
2022-1747
______________________
Appeal from the United States Court of Appeals for
Veterans Claims in No. 20-3367, Judge Grant Jaquith,
Judge Joseph L. Falvey, Jr, Judge Michael P. Allen.
______________________
LOURIE, Circuit Judge, dissenting.
I respectfully dissent. I do so because 38 C.F.R.
§ 3.350(f)(3), when examined in the context of the regula-
tion’s surrounding subsections and the statute that they
implement, has only a single reasonable meaning: that a
veteran is limited to a single half-step increase in SMC
benefits, irrespective of how many additional single ser-
vice-connected disabilities or combinations of service-con-
nected disabilities the veteran may have that are
independently ratable at 50 percent or higher.
In construing regulations, plain language is para-
mount. Goodman v. Shulkin, 870 F.3d 1383, 1386(Fed. Cir. 2017). “If the regulatory language is clear and Case: 22-1747 Document: 44 Page: 33 Filed: 05/16/2024 2 BARRY v. MCDONOUGH unambiguous, the inquiry ends with the plain meaning.”Id.
As the Veterans Court properly recognized, under § 3.350(f)(3), an “additional single permanent disability or combinations of permanent disabilities independently rat- able at 50 percent or more” will afford entitlement to “the next higher intermediate rate” or “the next higher statutory rate.”38 C.F.R. § 3.350
(f)(3) (emphases added); see Deci-
sion, 35 Vet. App. at 122–24. The singular and specific
terms “the” and “rate” indicate that veterans are afforded
only a single-half step increase in an SMC rate. Even were
that language alone not entirely dispositive, a more thor-
ough consideration of the regulation as a whole, along with
the statute that it implements, provides meaningful con-
text.
As the majority points out, § 3.350(f)(3) implements 38
U.S.C. § 1114(p), which recites, in part: “in the event the veteran’s service-connected disabilities exceed the require- ments for any of the rates prescribed in this section, the Secretary may allow the next higher rate or an intermedi- ate rate, but in no event in excess of $4,667.”38 U.S.C. § 1114
(p) (emphases added).
The language of 38 U.S.C. § 1114(p) indicates that only a single rate increase should be available, regardless of the number of “disabilities” that exceed the rate requirements. As such, § 1114(p) provides a limit to the benefits a veteran may receive under this statutory provision, a single rate increase, and further evidences that its implementing reg- ulation, § 3.350(f)(3), limits veterans to receiving only a single half-step increase for any number of “additional sin- gle permanent disability or combinations of permanent dis- abilities independently ratable at 50 percent or more.” See United States v. Vogel Fertilizer Co.,455 U.S. 16, 25
(1982)
(“We consider first whether the Regulation harmonizes
with the statutory language.”).
That construction is reinforced by an examination of
the neighboring subsections of § 1114 and § 3.350,
Case: 22-1747 Document: 44 Page: 34 Filed: 05/16/2024
BARRY v. MCDONOUGH 3
specifically § 1114(k) and its implementing regulation
§ 3.350(a). Section 3.350(a) implements 38 U.S.C.
§ 1114(k) just as § 3.350(f) implements 38 U.S.C. 1114 (p). Section 1114(k) expressly affords veterans multiple in- creases in SMC benefits on a per-disability basis, stating that “the rate of compensation shall be increased by $96 per month for each such loss or loss of use, but in no event to exceed $4,667 per month.”38 U.S.C. § 1114
(k) (empha- sis added). The statute’s implementing regulation,38 C.F.R. § 3.350
(a), likewise explicitly states that “[s]pecial monthly compensation under 1114(k) is payable for each anatomical loss” and further explains that “such additional allowance is payable for each such anatomical loss.”38 C.F.R. § 3.350
(a) (emphases added). That language stands
in contrast to the language in § 1114(p) and § 3.350(f)(3).
Congress could have expressly allowed for multiple half-
step increases under § 1114(p) had it chosen to.
The majority attempts to discount that comparison on
the basis that “for each” lacks the “heft and distinctiveness”
to warrant a meaningful distinction; however, the majority
fails to explain how “for each” is so “ubiquitous” or pos-
sesses “sometimes context-dependent” meaning that would
warrant disregarding the meaningful distinction it pro-
vides for each of the relevant provisions. See Maj. Op. at
15–16 (citing Pulsifer, 144 S. Ct. at 735). In fact, the ma-
jority goes on to explain the importance of the “for each”
language to the understanding of § 1114(k). Id. But I con-
sider it illogical to find that the “for each” language in
§ 1114(k) is meaningful to the understanding of that stat-
utory provision while the lack of it is meaningless to the
understanding of § 1114(p). Both of those provisions are
found in the same statute, and both provisions afford vet-
erans increases to their SMC benefits based on certain
types of disabilities. I therefore disagree with the major-
ity’s discounting of that comparison.
Furthermore, the majority’s interpretation of
§ 3.350(f)(3) undermines its neighboring subsection
Case: 22-1747 Document: 44 Page: 35 Filed: 05/16/2024
4 BARRY v. MCDONOUGH
§ 3.350(f)(4), which affords a veteran a full-step increase if
he or she possesses an additional single permanent disabil-
ity independently ratable at 100 percent. The majority’s
interpretation of § 3.350(f)(3) results in an illogical appli-
cation, as a veteran may be able to obtain higher benefits
by using multiple half-step increases under § 3.350(f)(3)
than by meeting the more restrictive requirements for a
full-step increase under § 3.350(f)(4). See Decision, 35 Vet.
App. at 123–24.
In this case, the tools of regulatory construction indi-
cate that there is a single reasonable meaning of
§ 3.350(f)(3): that a veteran is limited to a single half-step
increase in SMC benefits, irrespective of how many addi-
tional single service-connected disabilities or combinations
of service-connected disabilities are independently ratable
at 50 percent or higher.
Accordingly, I would affirm the decision of the Veterans
Court, which affirmed the decision of the Board, which fol-
lowed the decision of the regional office.
Reference
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