United States v. Atkinson

Background

The dispute concerns a former service member who sued under a converted war-risk government insurance policy after losing hearing in both ears. The policy contained a clause saying permanent loss of hearing in both ears counts as total disability. A jury found for the insured, and the Court of Appeals for the Fifth Circuit upheld that verdict, saying the Veterans’ Administration regulation and statute allowed the definition.

Reasoning

The Supreme Court focused on what issues were preserved for appeal. The Government argued the hearing-loss clause lacked statutory authority, but the trial record shows no objection or requested instruction on that point. The trial judge told the jury the insured could win either by proving actual permanent disability that prevented work or by showing permanent loss of hearing in both ears as the policy defined it. The Government did not challenge those instructions at trial and moved for a directed verdict only on other grounds. The Court explained that appellate courts normally will not reverse a jury verdict for errors not called to the trial court’s attention, and that no exceptional circumstance justified ignoring this rule here. Because the Government failed to preserve the claimed error, the Court would not consider it.

Real world impact

The decision leaves the jury’s award in place and does not decide whether the statute and regulation actually authorize the hearing-loss definition. Practically, it shows that parties — including the Government — must clearly object at trial to preserve legal arguments for appeal. Similar statutory questions can remain unresolved when they are not preserved in the trial court.