The court of appeals affirmed a judgment. The court held that the Veterans’ Benefits Act, when considered in conjunction with the regulations pertinent thereto, allowed a portion of a military veteran’s benefits to be applied to the cost of his care in a state hospital.

Miltary veteran Paul Gossett was a committed inmate at Napa State Hospital. Hospital trust officer Al Czech allegedly took a portion of Gossett’s Department of Veterans Affairs (VA) benefits each month and applied the money to partially defray the cost of Gossett’s care at the hospital. Gossett sued, arguing that this reimbursement violated 38 U.S.C. §5301(a)(1), which makes benefits earned by United States military veterans “exempt from the claims of creditors.”