George v. McDonough

In George v. McDonough, veteran Kevin George sought to reopen his 1975 denial of disability benefits for schizophrenia, arguing it was based on a clear and unmistakable error (CUE). The Department of Veterans Affairs had denied his claim under a then-valid regulatory interpretation that schizophrenia was not a chronic disease eligible for a presumptive service connection. Decades later, a federal circuit court overturned that statutory interpretation. George contended that this judicial shift proved the original decision was erroneous. The VA and lower courts rejected his claim, finding no CUE because the decision was legally correct when made. The U.S. Supreme Court affirmed, ruling that a subsequent change in judicial interpretation of a statute does not constitute a CUE in an otherwise final VA benefits decision.

The Supreme Court ruled 6-3 in favor of McDonough, holding that a subsequent change in a court's statutory interpretation does not retroactively render a final VA decision clearly and unmistakably erroneous. The judgment of the United States Court of Appeals for the Federal Circuit was affirmed.

Whether a change in the judicial interpretation of a statute after a VA benefits decision becomes final can establish a "clear and unmistakable error" that allows the veteran to reopen the decades-old claim.

The ruling significantly limited the ability of veterans to challenge long-finalized benefits denials based on evolving judicial interpretations of law. While it reinforced the principle of administrative finality and government reliance on settled law, it drew criticism from veterans' advocates who argued it unjustly closes the door for claimants relying on subsequent legal clarifications.