VA Proposes Settlement in Class Action Lawsuit Over VA Claim Appeals
The Department of Veterans Affairs has proposed a settlement in the case of Freund v. Collins, a class action lawsuit brought on behalf of veterans who experienced failures in their VA claim appeals within the legacy VA benefits system.
VA Proposes Settlement in Class Action Lawsuit Over VA Claim Appeals
The proposed settlement, if approved, would resolve allegations that the Department of Veterans Affairs improperly closed benefits appeals and failed to recognize timely filings. These filings are the final step required to move a disagreement from a local VA claims office to the Board of Veterans’ Appeals.
The class action lawsuit claimed the agency’s automated systems or manual processes erroneously marked these documents as late, and that some filings were never recorded.
Under the terms of the proposed agreement, the agency would review closed files to identify valid appeals that were never advanced to a judge. If the court grants final approval, people whose cases were terminated without a final decision on the merits may see their claims reactivated.
Definition of a Class Member
Do you have a stake in this proposed settlement? It requires meeting specific criteria based on timing and the nature of the case closure.
You are likely a member if your VA benefits case had an initial decision prior to February 19, 2019, and must have been based on the grounds that you did not file a timely substantive appeal. The claim must remain in a closed status today. The settlement is restricted to cases handled under the “legacy” system.
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Inclusion of Substitute Claimants
The settlement specifically includes “substitute claimants” such as military spouses, children, or dependent parents who assumed the legal role of a claimant after a veteran passed away.
In some cases, the Department of Veterans Affairs closed these claims because the veteran died before they could respond to a Statement of the Case. If the veteran actually filed a timely substantive appeal before their death, the surviving spouse or dependent may still have the right to seek accrued benefits.
Understanding the Legacy Appeals Process
Before the modernization of the VA claims process in 2019, a claimant had to begin the appeals process by filing a Notice of Disagreement. The agency then provided a Statement of the Case that summarized the evidence and the laws supporting the denial.
To continue the appeal, the veteran or their representative had to file a formal substantive appeal with a deadline generally one year from the date of the initial decision or 60 days from the mailing of the Statement of the Case, whichever date came later. The litigation focused on cases where people met these deadlines and the VA failed to acknowledge the filing.
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Rights of Class Members
The VA claims most people included in the automated review group do not need to take immediate action, but it is best to be proactive no matter what the VA says in their press releases. The agency claims it will use its own internal records to trigger the review. However, the settlement provides specific rights to those who believe they were excluded.
If you believe your case was wrongly closed and you do not receive a notice, you may need to contact the agency after the court grants final approval. You have the legal right to object to the settlement terms, and if you believe the agreement is unfair, you can appeal via a written objection for a limited time. The court will consider these objections during a final fairness hearing.
Affect on Current Benefits
This proposed settlement does not affect the modern Appeals Modernization Act process. It only applies to the older legacy system. If you currently receive monthly disability compensation, this notice will not reduce your payments. The goal of the settlement is to give people a chance to win retroactive pay for periods when benefits were wrongly withheld due to a procedural error.
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Notification Procedures
The agency will send letters to the veteran’s last known address on file or to the substitute claimant. Because many of these cases date back to the 1990s, the agency acknowledges that many addresses will be outdated. If you have moved since your case was closed, you must ensure your current contact information is updated with the Department of Veterans Affairs.
The VA claims it will locate appeal files that show evidence of a potential timely filing in its internal management systems.
Department employees will conduct a manual review of these files, and when they find a timely substantive appeal that was not processed, they are meant to reactivate the case and move it forward in the appeals process. That said, it’s best not to wait for the VA to take action if you believe you are affected by this proposed settlement.
Read More: Military Allowances Guide
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
