Northville, Michigan – Thousands of combat-wounded veterans may now be eligible for additional retroactive compensation following a decision by the U.S. Supreme Court in a case that had been pending since last fall. In a unanimous ruling, the Court struck down the federal government’s practice of limiting back pay for Combat-Related Special Compensation (CRSC) to six years, stating that the cap was not supported by statute.

The class-action lawsuit, Soto v. United States, was brought by Marine Corps veteran Simon Soto, who served two tours in Iraq before being medically retired due to post-traumatic stress disorder. After applying for CRSC in 2016, Soto received only six years of retroactive pay despite being entitled to a larger amount. The Navy cited the Barring Act, which sets a six-year limit for filing a claim against the government after receiving a VA disability rating. However, the Supreme Court ruled that the 2008 statute authorizing CRSC does not impose a time limit and therefore takes precedence over the Barring Act.

“This decision is a major win for veterans who have already given so much and were then shortchanged by a narrow interpretation of the law,” said attorney Jim Fausone of Legal Help for Veterans, PLLC. “Former service members who have faced similar denials and limitations can now finally receive the full compensation they earned in service.”

The ruling could benefit more than 9,000 veterans nationwide. The Supreme Court’s opinion emphasized that Congress intended the CRSC program to help a narrow group of veterans with combat-related injuries and did not include a statute of limitations.

CRSC is a non-taxable payment available to military retirees with combat-related disabilities. Unlike VA disability compensation, it is designed to reimburse veterans for retirement pay that they were required to forfeit in order to receive VA benefits. The ruling means that veterans whose backpay was previously capped at six years can now seek full retroactive payments without that restriction.

Legal Help for Veterans encourages veterans who were approved for CRSC but received limited retroactive pay to seek legal guidance. “It’s important that veterans take action to determine if they qualify for additional compensation,” Fausone said. “This decision has the potential to put thousands of dollars back in the hands of veterans who qualify for combat-related special compensation.”