Opinion ID: 2978639
Heading Depth: 3
Heading Rank: 2

Heading: final administrative action

Text: The next issue is when the claim is considered exhausted. The key inquiry is what constitutes final administrative action in this context. Davis argues that the Board’s decision was not exhausted and, therefore, not final until the request for reconsideration was denied. Courts are split on this issue, and the decisions have varied widely. No. 09-5187 Davis v. United States Page 5 Some courts have found that the statute of limitations is tolled only if the application for reconsideration is filed with the Board within six years. Nivisher, supra, 211 F. Supp. 2d at 129. This approach incorporates the six-year statute of limitations into the administrative process. But, as mentioned above, the regulations which govern the Board only provide a one-year window to petition the Board for reconsideration. See 32 C.F.R. § 581.3(g)(4)(i)-(ii). Adopting an approach that validates a suit so long as the request for reconsideration was filed within six years undermines the plain language of the regulations and would leave the issue up-in-the-air too long. Further, it is unclear what happens if the veteran waits five years and 364 days to file for reconsideration. Does he then only have one day to file a suit in district court if he receives an adverse decision? This is not a good approach. Other courts have held that the statute begins running at the time of the original Board decision, and an application for reconsideration has no effect on the six-year statute of limitations. Soble, supra, 151 F.3d 1033. This approach fails to consider that the regulations explicitly allow for a veteran to file for reconsideration with the Board. The Third Circuit has held that a request for reconsideration could toll the statute of limitations only if the veteran claimed that new facts were the basis for the request. Green, supra, 319 F.3d 560. This approach could lead to unpredictability for the veteran who must risk running afoul of the statute when submitting a request for reconsideration. Further, the regulations speak directly to requests that only contain evidence that was previously in the record. 32 C.F.R. § 581.3(g)(4)(i)-(ii). The regulations direct the Board to return these requests, without opinion, and instruct the veteran to appeal to the court with appropriate jurisdiction. Id. Whether a request contains new facts or law may be a complex question for the Board to decide and does not serve as a clear criterion for tolling. None of the above decisions take into account the regulations outlining the structure and purpose of the Board’s review. As mentioned above, the regulations allow for a veteran to apply for reconsideration within one year of the original Board decision. Id. This means that so long as a veteran petitions the Board for rehearing within one No. 09-5187 Davis v. United States Page 6 year of the date of a prior adverse decision, the veteran is still legitimately pursuing administrative remedies. For this reason, we hold that the statute of limitations is tolled during the processing of a timely request for reconsideration, but we note that this holding does not require a veteran to request reconsideration of the original Board decision in order for his or her claimto be considered exhausted. A claim will be considered exhausted either after the Board’s original decision, if there is no request for reconsideration, or after a denial of a timely request for reconsideration. This choice is in the hands of the veteran, because the regulations allow him both avenues for appeal. Drawing an analogy to habeas corpus review, the time that a prisoner properly spends appealing his conviction in state post-conviction review or any other collateral review does not count toward the one-year statute of limitations for habeas review. We have held that an inmate’s timely motion for rehearing in state court tolls the statute of limitations for habeas review. Sherwood v. Prelesnik, 579 F.3d 581, 587 (6th Cir. 2009) (requiring that the motion be timely in accordance with state rules). We see no reason to apply a different rule here. In sum, so long as a party is properly and in a timely fashion pursuing exhaustion of administrative remedies, the statute of limitations is tolled. The regulations, and consequently this Court, do not require the veteran to request reconsideration. When a veteran chooses to forego reconsideration, the statute runs from the date of the original Board decision. But if the veteran chooses to exercise the regulatory right to bring a timely administrative appeal, then the statute is tolled during that period. Applying the articulated rule to the facts of this case, we hold that Davis’ claim is time-barred. The key fact is that Davis did not apply for reconsideration within the one year required by the regulations. Because Davis did not raise his petition for rehearing to the Board until after the time allotted by the regulations, he was not legitimately still pursuing military administrative remedies. Consequently, the Board reached its final decision on Davis’ appeal on June 3, 1999 – the day that it denied his request to correct his military record. By waiting until February 9, 2006, to institute this No. 09-5187 Davis v. United States Page 7 action, Davis failed to bring suit within the six-year statute of limitations required by 28 U.S.C. § 2401(a). Because Davis’ claim is time-barred, we pretermit other issues. Accordingly, the judgment of the District Court is AFFIRMED.