A federal judge has cleared the decks in a messy legal battle between a Navy veteran and the Department of Veterans Affairs, dismissing a lawsuit over bungled benefits while essentially telling both sides to start over and get their facts straight.
In a memorandum opinion released Friday, U.S. District Judge Loren L. AliKhan dismissed Matthew T. Keese’s complaint without prejudice. The ruling gives Keese 30 days to fix his paperwork after a series of administrative blunders left the court “at a loss” as to what the case was actually about.
A Paperwork Path to Chaos
The trouble started in March 2020 when Keese transferred from the Department of Defense to the VA Medical Center in D.C. According to court records, the VA failed to process the transfer correctly, leading to a cascade of financial hits for the veteran.
Keese alleged the following “just the facts” consequences of the clerical error:
- Loss of Benefits: He lost medical, dental, and vision coverage, forcing him to pay out-of-pocket for healthcare.
- The DFAS Bill: When he tried to get his benefits back, he was hit with a $1,139.10 bill from the Defense Finance and Accounting Service, which he paid in cash.
- TSP Troubles: The VA failed to recognize an existing Thrift Savings Plan (TSP) loan. This caused the loan to be classified as a “hardship withdrawal,” triggering a $10,000 tax hit.
- Job Mismatch: Keese, an Engineering Technician (GS-10), claimed he was forced to perform the duties of a General Engineer (GS-13) without the proper title or pay.
Racial Discrimination Claims
While the lawsuit focused on the transfer errors, Keese’s underlying Equal Employment Opportunity (EEO) filings—which the court reviewed—painted a broader picture. Keese, who is Black, alleged disparate treatment regarding his job duties and the denial of COVID-19 hazard pay in 2021.
The VA’s internal office had previously dismissed several of these claims as “untimely” or as “collateral attacks” on other agencies. However, Judge AliKhan noted that the VA’s legal team might have been “wrong as a matter of law” regarding whether Keese had exhausted his options before coming to court.
“Not a Paragon of Clarity”
The judge didn’t spare either side in her critique. She noted that while Keese’s pro se complaint was confusing, the government’s response was equally problematic.
“When Defendants filed an answer, the court trusted that their counsel—experienced government litigators—understood the scope of the dispute,” AliKhan wrote. “Unfortunately, that has not happened.”
The judge pointed out that the government tried to argue Keese was too late to file his lawsuit, a claim she flatly rejected, noting that Keese had followed federal rules by waiting for an EEOC decision that never came.
What Happens Next
The court has denied the VA’s motion for judgment and Keese’s request for a status conference as moot. Keese has until April 13, 2026, to file an amended complaint that clearly states his legal claims and the specific money or “corrective action” he is seeking.
If he fails to meet the deadline, the case could be closed for good.
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