The Department of Defense (DOD) has long argued that medically retired service members had to file a claim for combat-related special compensation within six years of receiving a disability rating.

Yet in a major reversal, the Supreme Court unanimously decided this past week to throw out that requirement.

Case filed by Marine Corps veteran

According to Military.com, America's highest judicial body ruled on Thursday in favor of former Marine Corps Cpl. Simon Soto, who joined the service in August of 2000.

Soto was subsequently deployed twice to Iraq where he developed post-traumatic stress disorder and was medically retired in 2006.

The Department of Veterans Affairs (VA) awarded Soto disability compensation for his condition in 2009 but he applied in 2016 for Combat-Related Special Compensation (CRSC).

As the VA's website explains, CRSC is available to former service members who are retired, have a VA disability rating of at least 10%, and currently have their retirement payments reduced by the amount of their VA disability payments.

CRSC claims not bound by 6-year time limit

Soto's application was approved yet his backpay was only updated to 2010 based on the government's interpretation of the Barring Act, a law which imposes time restrictions on claims against the U.S.

While government attorneys maintained that the legislation puts a six-year deadline on the submission of claims, the Supreme Court found that this does not apply to CRSC.

"The Federal Circuit erred by imposing undue requirements on Congress' ability to confer settlement authority and by disregarding the [combat-related special compensation] statute's plain text," Justice Clarence Thomas said when writing for the majority.

As a result, Soto is entitled to two additional years of payments dating from January of 2008 when Congress extended CRSC to individuals who served fewer than 20 years.

Decision will affect thousands of veterans

Renee Burbank serves as director of litigation at National Veterans Legal Services Program, and he told Military.com that the decision will affect thousands of veterans.

"If you do a back-of-the-envelope estimate ... if the average amount of money each class member was entitled to is $5,000, and let's say there's about 10,000 people in both classes at this point, because, obviously, time has moved on, that's about $50 million," Burbank said was quoted as saying.

"It's not huge for the government, but it's meaningful for the class members," he continued before adding, "There is not wiggle room for the government to say, 'Well, actually, here's why these folks don't get paid.'"

"And also, because it's a class action, this relief should be going directly to all of the class members. It's not one case," Burbank stressed.