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Supreme Court Expands CRSC Retroactive Payment Eligibility

SOTO vs United States

In a landmark decision, the U.S. Supreme Court has ruled in favor of Simon Soto, a Marine Corps veteran, affirming that Combat-Related Special Compensation (CRSC) payments should not be limited by the Barring Act’s six-year limitation period. This ruling marks a major victory for veterans, ensuring that they are not unfairly restricted in claiming retroactive benefits that they are entitled to due to their combat-related disabilities.

The case, Soto v. United States, dealt with Soto’s battle to secure retroactive CRSC payments dating back to 2008. Soto had been medically retired in 2006 with less than 20 years of service and became eligible for CRSC in 2009 when he received his disability rating. However, when Soto applied for benefits in 2016, the Navy applied a six-year limitation on his payments, citing the Barring Act (31 U.S.C. §3702). Soto argued that the CRSC statute, which governs retroactive payments for combat-disabled veterans, should determine how far back he could claim payments, not the Barring Act.

A Victory for Veterans

The U.S. Supreme Court sided with Soto, overturning the previous decision by the Federal Circuit. The Court ruled that the CRSC statute created its own settlement mechanism for veteran claims, thereby displacing the six-year limit set by the Barring Act. The Court clarified that the CRSC statute grants the Secretary of Defense the authority to determine both the validity of CRSC claims and the amount owed, making the Barring Act’s limitation inapplicable.

By finding that the CRSC statute had its own system for handling claims, the Court emphasized that it provided sufficient authority for the Secretary to settle claims independently of the Barring Act’s provisions. This decision significantly benefits veterans who were eligible for CRSC benefits but faced administrative hurdles in accessing retroactive payments.

Key Legal Issues in the Case

The Court focused on whether the CRSC statute created an independent framework for claims, overriding the Barring Act’s six-year limit. While the Barring Act imposes a general six-year limitation on government claims, the CRSC statute outlines specific eligibility and payment processes without a defined time frame. The issue was whether the CRSC statute provided sufficient authority for the Secretary of Defense to settle claims outside of the Barring Act’s provisions.

The Barring Act vs. The CRSC Statute

The central issue in the case was whether the CRSC statute created a separate legal framework for settling claims, overriding the Barring Act’s six-year limitation. The Barring Act provides a six-year limitations period for claims against the U.S. government, unless another law explicitly provides settlement authority. In this case, the question was whether the CRSC statute, which governs retroactive payments to combat-disabled veterans, conferred such authority.

Authority to Settle Claims

The Supreme Court found that the CRSC statute did, in fact, grant the Secretary of Defense the necessary authority to determine the validity of claims and the amounts owed. The Court held that this made the CRSC statute an independent settlement mechanism, separate from the limitations imposed by the Barring Act. The decision underscores the importance of ensuring that veterans’ benefits are paid in full, based on the statute governing those benefits.

No Need for Specific Language

The Federal Circuit had previously ruled that the CRSC statute did not grant settlement authority because it lacked specific language, such as the term “settle” or a defined statute of limitations. However, the Supreme Court disagreed with this interpretation, stating that Congress does not need to use specific terminology to grant settlement authority. The Court highlighted that the structure and text of the CRSC statute clearly empowered the Secretary to handle the validation and calculation of claims, even without explicit language.

Implications for Veterans and Future Claims

The ruling in Soto v. United States is a significant victory for veterans seeking retroactive CRSC payments. It ensures that veterans who became eligible for CRSC benefits due to their combat-related disabilities will not be limited by the Barring Act’s six-year window, but rather, can claim payments going back to the date the CRSC eligibility was expanded—January 1, 2008.

This decision also establishes a precedent that supports a pro-veteran interpretation of statutes, ensuring that veterans receive the benefits they are entitled to without unnecessary restrictions. The ruling will have lasting effects on future veterans’ claims, ensuring a more equitable process for those seeking compensation for service-connected disabilities.

A Pro-Veteran Ruling

The Soto v. United States decision strengthens the rights of veterans, reinforcing the idea that combat-related benefits should be accessible without arbitrary limitations. The ruling highlights the Court’s recognition of the importance of ensuring that veterans are not unfairly restricted in seeking the compensation they deserve. With this decision, veterans can now rely on the CRSC statute as the primary source of authority for retroactive payments, ensuring they are compensated fully for their service to the nation.

This case also underscores the importance of advocacy and legal support for veterans navigating the complexities of VA benefits. Veterans Guide continues to stand by veterans, providing the necessary resources and legal guidance to help them receive the benefits they are rightfully owed. If you need help raising your VA disability rating, appealing a denied claim, or navigating the claims process, contact us today to see how we can help.

Do you know what you need to obtain maximum VA benefits?

Learn more about what financial and medical benefits are available to Veterans and what a 100% VA Disability Rating requires.

Do you know what you need to obtain maximum VA benefits?

Learn more about what financial and medical benefits are available to Veterans and what a 100% VA Disability Rating requires.

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Matt is a VA-accredited attorney who co-founded NAVDA in 2023. Matt has helped veterans with the VA disability appeals process since he became accredited in 2021.