Kisor v. Wilkie
Facts
Kisor, a Vietnam War veteran, originally sought VA disability benefits for PTSD in 1982, but the VA denied the claim after finding he did not suffer from PTSD. In 2006, he moved to reopen the claim, and the VA granted benefits based on a new psychiatric report, but only from the reopening date rather than from 1982. A VA regulation allowed retroactive benefits if the agency later found previously unconsidered 'relevant official service department records.' Kisor produced two new service records confirming his participation in Operation Harvest Moon, but the Board concluded they were not 'relevant' because they did not address the original ground for denial: lack of a PTSD diagnosis.
Issue
Should the Court overrule Auer and Seminole Rock deference to agencies' reasonable interpretations of their own genuinely ambiguous regulations? If not, under what limits may a court defer to an agency's interpretation of its own regulation, and did the Federal Circuit apply those limits correctly here?
Rule
Auer deference remains valid, but it applies only in limited circumstances. A court may defer to an agency's interpretation of its own regulation only if the regulation is genuinely ambiguous after the court exhausts all traditional tools of construction; the agency's interpretation is reasonable and within the zone of ambiguity; and the interpretation is the agency's authoritative or official position, implicates the agency's substantive expertise, and reflects its fair and considered judgment without creating unfair surprise to regulated parties.
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