LOUIS GUIROLA, JR., Chief Judge.
BEFORE THE COURT is the Motion to Dismiss [17] filed by Defendants United States of America, United States Department of Veterans Affairs, Eric K. Shinseki in his official capacity as Secretary of the United States Department of Veterans Affairs, United States Department of Labor, and Hilda L. Solis in her official capacity as Secretary of the United States Department of Labor. Defendants move to dismiss this action for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1). Plaintiff Philip M. King has filed a response [21] in opposition to the motion, and Defendants have filed a reply [23]. The Court has reviewed the parties' briefs and the relevant law. For the reasons discussed below, the motion is granted.
King was injured in Baghdad, Iraq, while serving the United States. He was diagnosed with ruptured discs in his neck and back, radiculopathy, and nerve entrapment in his arms and legs. As a result, the Department of Veterans Affairs (hereinafter "the VA") awarded King a combined disability rating of eighty percent (80%). King sought to have his disability rating increased to one hundred percent (100%), and in the course of doing so, submitted information to the VA about his status as a recipient of social security disability and workers' compensation benefits. Instead of increasing King's disability rating, the VA terminated his benefits "based on an apparent misunderstanding ... regarding the ability to simultaneously receive VA benefits and workman's compensation benefits." (Compl. 4 (¶ 13), ECF No. 1). Then, the VA Collection Department attempted to collect benefits from King that had already been paid to him. His Combat disability payments were also discontinued and terminated.
King sought to have his benefits reinstated by the VA. He provided letters in his support from the Department of Labor and his private insurer. He made multiple phone calls and sent correspondence to both agencies, but was denied any help. King submitted a Freedom of Information Act (FOIA) request relating to his benefits, and he claims that "individuals within the agencies removed certain key documents from his FOIA packet." (Compl. 5 (¶ 21), ECF No. 1).
King's complaint alleges claims pursuant to the Federal Tort Claims Act (FTCA), 28 U.S.C. § 2671 et seq., and 28 U.S.C. § 1346(b)(1), seeking damages for property and personal injuries he alleges were caused by the Defendants. He claims that as a result of the denial of his benefits, and the collection actions taken by Defendants, he suffered financial difficulties as well as personal and marital problems. King alleges that the VA's conduct constitutes abuse of process and interference with contractual rights under Mississippi law, and that under 28 U.S.C. § 2680(h), the United States is liable for damages. He further alleges claims of "common law malice
Defendants have filed a Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1). Defendants' motion makes two arguments: (1) under the Veterans Judicial Review Act, this Court does not have jurisdiction to review King's clams, which challenge the VA's decisions affecting King's veterans benefits, and (2) King's state law tort claims are barred by the doctrine of sovereign immunity under 28 U.S.C. § 2680(h).
King responds that he is not seeking review of his benefits, and therefore he lacks standing to appeal to the Court of Veterans Appeals. (Pl.'s Mem. 9, ECF No. 21). King claims he "is seeking compensation for damages he sustained as a result of individual torts ... in addition to the benefit award already received." (Id. at 3.) King further submits that he alleges state law claims that are properly before this Court, and that "policy espoused by Congress" in the Administrative Procedure Act and the FTCA "clearly require judicial review" when veterans "will be assisted by resolution of the issue." (Id.)
In ruling on a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1), "the district court has the power to dismiss for lack of subject matter jurisdiction on any one of three separate bases: (1) the complaint alone; (2) the complaint supplemented by undisputed facts evidenced in the record; or (3) the complaint supplemented by undisputed facts plus the court's resolution of disputed facts." Williamson v. Tucker, 645 F.2d 404, 413 (5th Cir.1981). The plaintiff, as the party asserting jurisdiction, bears the burden of proof that jurisdiction exists. Ramming v. United States, 281 F.3d 158, 161 (5th Cir. 2001); see also Lowe v. Ingalls Shipbuilding, 723 F.2d 1173, 1177 (5th Cir.1984). "[A] motion to dismiss for lack of subject matter jurisdiction should be granted only if it appears certain that the plaintiff cannot prove any set of facts in support of his claim that would entitle plaintiff to relief." Ramming, 281 F.3d at 161 (citing Home Builders Ass'n of Miss., Inc. v. City of Madison, 143 F.3d 1006, 1010 (5th Cir. 1998)). The Court liberally construes King's complaint in reviewing the Motion to Dismiss.
The Veterans Judicial Review Act (VJRA) provides "a specific appellate review mechanism" for claims related to veterans' benefits. Hicks v. Veterans Admin., 961 F.2d 1367, 1369 (8th Cir. 1992). Enacted in 1988, the VJRA "provided veterans with their day in court." Bates v. Nicholson, 398 F.3d 1355, 1363 (2005) (citing Forshey v. Principi, 284 F.3d 1335, 1344-45 (Fed.Cir.2002) (en banc) (additional citation omitted)). While the VJRA "continued to broadly bar judicial review of benefits decisions" under § 511(a),
Under the statutory scheme of the VJRA, a veteran may appeal the Secretary's initial decision to the Board of Veterans' Appeals, and from there to the United States Court of Appeals for Veterans Claims ("CVA"), and then to the United States Court of Appeals for the Federal Circuit. Hicks, 961 F.2d at 1369. See also Larrabee by Jones v. Derwinski, 968 F.2d 1497 (2nd Cir.1992) (discussing legislative history of the VJRA).
In their Motion to Dismiss, Defendants assert that while King couches his complaint in terms of tort violations, he essentially seeks review of the agency's decisions regarding his benefits, and therefore his claims are not properly in this Court. They argue that "the gravamen of [King's] Complaint is that he was wrongfully denied veterans' benefits for a period of time," and this Court is precluded from reviewing the VA's determinations under 38 U.S.C. § 511(a). (Defs.' Mem. 9, ECF No. 18).
The crux of King's complaint is that he was injured, financially and otherwise, when his benefits were terminated, and that he continued to be injured by the VA's subsequent refusal to reinstate those benefits, and again when the VA Collection Department sought to recover benefits already paid to him. He alleges that these actions were a result of either the negligence — or worse, malice — of the federal employees who were reviewing his claim or otherwise making decisions regarding his benefits. Taking the allegations in King's complaint as true, the Plaintiff vividly describes a frustrating, and at times, torturous administrative ordeal. However, based on the language of 38 U.S.C. § 511(a), the authorities cited in the parties' briefs, and additional case law reviewed by the Court, the Court finds that it lacks subject matter jurisdiction.
Judicial review of the VA's determinations with respect to veterans' benefits is limited by 38 U.S.C. § 511(a). That statute provides:
38 U.S.C. § 511(a) (emphasis added).
The Court finds that § 511(a) forecloses it from exercising jurisdiction over King's claims in this action "because underlying [King's] claim[s] is an allegation that the VA unjustifiably denied him a veterans' benefit." See Price v. United States, 228 F.3d 420, 421 (D.C.Cir.2000). See also
King maintains that § 511(a) is not a bar to his claims, and that his claims are properly outside the VJRA process. He argues that he "cannot appeal his benefits decision because the VA has already awarded him full benefits of 100%, back pay and interest." (Pl's. Mem. 3, ECF No. 21). The VA's reinstatement of King's benefits with back pay and interest indicates that the agency determined, presumably, that King had been entitled to benefits all along. As King admits, he has been "made whole" with respect to his veterans' benefits. (Pl.'s Mem. 9 n. 14, ECF No. 21). But the damages King seeks to collect in this action are nevertheless based on hardships he suffered as a result of the agency's decision to terminate his benefits, and its refusal to reinstate the same. Based on the facts alleged, the Court could not find that the Defendants' conduct constitutes a tort, and issue a judgment awarding damages to King, without being required to engage in some review of the judiciousness of the VA's determination to terminate his benefits in the first place. According to his complaint, it was that determination that triggered the subsequent chain of events that King alleges caused his damages.
The Court is also persuaded by Hicks v. Small, 842 F.Supp. 407 (D.Nev.1993), aff'd 69 F.3d 967 (9th Cir.1995), in which the district court concluded that plaintiff's claim of outrage, or intentional infliction of emotional distress, under state law "essentially challenge[d] a reduction of Plaintiff's benefits." 842 F.Supp. at 413. The plaintiff filed a complaint against the VA alleging that his VA doctor reduced his benefits in retaliation for the plaintiff's complaints about the doctor and the VA medical center. The court found that if the plaintiff were to proceed with his tort claim, "it would be necessary to consider issues of law and fact involving the decision to reduce Plaintiff's benefits." Id. To do so "would involve judicial review of a decision of the Secretary of the Department of Veterans Affairs regarding Plaintiff's benefits as a veteran." Id. at 414. The court therefore dismissed the plaintiff's state law tort claims on the grounds that § 511(a) barred jurisdiction. The United States Court of Appeals for the Ninth Circuit affirmed. See Hicks v. Small, 69 F.3d 967, 970 (9th Cir.1995) ("We also agree with the district court that determination of Hicks' tort claims would necessitate a `consider[ation of] issues of law and fact in involving the decision to reduce [Hicks'] benefits,' a review specifically precluded by 38 U.S.C. § 511."). Likewise, a determination of King's tort claims would require this Court to consider issues of law and fact involved in the VA's decision to terminate King's benefits. This would be improper under the language of § 511(a). See Weaver v. United States, 98 F.3d 518, 520 (10th Cir.1996) (where plaintiff challenged denial of benefits and alleged various torts, including conspiracy to lose his records and fraud and misrepresentation, plaintiff's claims were barred under 38 U.S.C. § 511(a) because "without exception, they [sought] review of actions taken in connection with the denial of [plaintiff's] administrative claim for benefits"), See also Zuspann v. Brown, 60 F.3d 1156,
Finally, King's brief in opposition to the Motion to Dismiss maintains that he has exhausted his administrative remedies, and he lacks standing to appeal through the procedure set forth in the VJRA. But whether King could successfully appeal through the administrative process is not the issue before this Court. The only question presented to this Court is whether this the District Court can exercise jurisdiction over King's claims. The Court finds that under the language of § 511(a), it may not. The provisions of the VJRA preclude this Court from hearing King's claims in this action. Accordingly, Defendants' motion to dismiss will be granted on this basis.
Defendants also argue that King's tort claims against the United States are barred by the doctrine of sovereign immunity. The Court will briefly address this issue.
The FTCA provides that a suit against the United States shall be the exclusive remedy for persons with claims for damages resulting from the negligent or wrongful acts or omissions of federal employees while acting within the scope of their office or employment. 28 U.S.C. § 2679(b)(1). State law is "the source of substantive liability under the FTCA." FDIC v. Meyer, 510 U.S. 471, 478, 114 S.Ct. 996, 127 L.Ed.2d 308 (1994). However, "the United States is immune from suit unless it has waived its immunity and consented to suit." Price v. United States, 69 F.3d 46, 49 (5th Cir.1995). Federal courts are without subject matter jurisdiction to hear suits against the United States unless there has been a waiver of sovereign immunity. United States v. Sherwood, 312 U.S. 584, 591, 61 S.Ct. 767, 85 L.Ed. 1058 (1941). Waivers of sovereign immunity are construed strictly in favor of the sovereign. Life Partners Inc. v. United States, 650 F.3d 1026, 1032 (5th Cir.2011). "Sovereign immunity cannot be avoided by suing individual Federal departments, such as the VA." Helfgott v. United States, 891 F.Supp. 327, 329 (S.D.Miss.1994).
Because this is an action under the FTCA in which King complains of actions taken by the Defendants in their official capacities, the United States is the proper defendant, not the agencies or individual persons.
King's complaint asserts that "Defendants' malicious interference and/or gross negligence with [his] contractual right to ... [b]enefits amounts to an abuse of process as contemplated within 28 U.S.C. [§] 2680(h)." (Compl. 4 (¶ 19), ECF No. 1). Five of the eight counts in his complaint consist of allegations of violations of 28 U.S.C. § 2680, abuse of process, and interference with contractual rights. (Compl. 5-9 (¶¶ 24-34, ¶¶ 43-50), ECF No. 1). In his response to the Motion to Dismiss, King asserts that his complaint alleges "Abuse of Process, Libel, Misrepresentation, Deceit, Interference
28 U.S.C. § 2680 (emphasis added).
This Court lacks subject matter jurisdiction over the claims alleged in King's complaint. Accordingly, Defendants' Motion to Dismiss is granted.
38 U.S.C. § 211(a) (quoted in Johnson v. Robison, 415 U.S. 361, 365 n. 5, 94 S.Ct. 1160, 39 L.Ed.2d 389 (1974)).