The U.S. Department of Veterans Affairs escaped court-ordered sanctions on Monday after a federal appellate panel signed off on the department's plan to remedy harm to veterans caused by a 2011 rule eliminating certain appellate rights before the agency's Board of Veterans' Appeals.

"Today's ruling is a significant victory for veterans," said Roman Martinez of Latham & Watkins, who argued the case on behalf of the National Organization of Veterans' Advocates (NOVA). "The decision will ensure that any veterans who suffered harm as a result of the VA's unlawful conduct will be able to obtain the benefits they have earned. NOVA looks forward to working with the VA to implement their plan."