Petition — Power v. United States

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oe 1) OCT 26 1979

SUPREME COURT OF THE UNITED PaIES. sat

79-686

LUTHER G. POWER, JUR.,

Petitioner,

V.

THE UNITED STATES,

Respondent.

PETITION FOR WRIT OF CERTIORARI TO THE

UNITED STATES COURT OF CLAIMS

Philip E. McCleery

1200 Alico Building

Waco, Texas 76701

Counsel for Petitioner

Of Counsel:

SHEEHY, LOVELACE & MAYFIELD

1200 Alico Building

Waco, Texas 76701

INDEX

Page

Se a ee ee C

a 2

Questions Presented .....:.220 se ce 3

Statutory Provisions Involved ........ 3

weauemene Gr CMe GOSe Gas. twee ee 5

Reasons for Granting the krit

The decision below is in conflict with

applicable decisions of this Court and

decides Federal questions of substance

not heretofore determined by this Court . 9

a ss £2

Appendix A

Opinion of the United States Court of

Claims, April 18, 1979, Luther G.

Power, Jr. v. The United States ..... Aq-l

Appendix B

Order of the United States Court of

Clainis, June 29, 1979, Luther G.

Power, Ur. v. The United States ..... Eel

Appendix C

Opinion of the United States Court of

Claims, March 17, 1976, Luther CG.

Power, Jr. v. The United States ..... Ce]

Appendix D

Order of the United States Court of

Claims, June 25, 1976, Luther G.

Power, Jr. v. The United States ..... Del

11

Statutes

Appendix £

In the Matter of Luther G. Power, Ur. Page

Board of Appeals and Review Decision,

Atl) Bs LTR se Ce ehh ee eX ie hae S tcS.Gsy SOCtion S508) 6.1 5 aes ees 4

26 Us Seu, SOCCION 1991 4 4 ce te ee ee 3

25 UscSe0a, SOCtiOn T2551) <%s 6 a 2 ee 2

List of Authorities

Ainsworth v. United States, 399 F.2d 1/76

esGls SOG) 6 & @ 2 6 4 OS He OO ~« 10

Curtis Publisnina Company vs. Butts,

Jou Use Lau (SOF) ew tee te ll

Y, Fay v. Noia, 372 UsS. 391 (1963) .« ~ « eo « ll

- Johnson vs. Zerbst, 304 U.S. 458, 464 (1938). 11

New York Shipbuilding Corp. v. United States,

300 Feed 4c/ (CECT. [90s }. 2 & 2 2 e~« we de

Power v. United States, 531 F.2d 505

(eteGle £970) 6 = 6 4 4 ae ae 6

Power v. United States, 210 Ct.Cl. 742 (1976) 7

Schwartz v. United States, 181 F.Supp. 408

(Ct.Cl. 1960) “sak ee & + & 8

United States v. Perkins, 116 U.S. 483 (1886) 10

United States v. Teston, 424 U.S. 392 (1976) 10

! United States v. wickersham, 201 U.S. 290

(1 UO6 in

(1406 ) . . . . . . . . . . . . . + . . . . 1C

rz

IN THE

SUPREME COURT OF THE UNITED STATES

Page

Petitioner,

Respondent.

OR WRIT OF CERTIORARI TO THE

oe

T

4

STATES COURT OF CLAIM

The Petitioner, LUTHER 6. POWER, UR.,

respectfully prays that a krit of Certiorari issue

to review the judgment and Opinion of the United

states Court of Claims entered in this proceeding

on April 18, 1979 and of the Order overruling

Plaintiff's Motion for Rehearing entered in this

proceeding on June 29, 1979,

ite

OPINIONS BELOW

The opinion of the Court of Claims, not yet

reported, appears in Appendix A hereto. The

Opinion of the Court of Claims on Defendant's

Motion and Plaintiff's Cross Motion for Sumniary

Judgment is reported at 531 F.2d 505 (Ct. Cl.

1976). The opinion of the Court of Claims denying

Respondent's Motion for Rehearing is reported at

210 Ct.Cl. 742 (1976).

JURISDICTION

The judgment of the Court of Claims was

entered on April 18, 1979 and the Order overruling

Plaintiff's Motion for Rehearing was entered on

vune 29, 1979, This Petition for Certiorari is

filed within ninety (90) days of that date. This

Court's jurisdiction is invoked under 28 U.S.C.

section 1255(1).

at.

QUESTIONS PRESENTED

Li May an appointed career civil service

employee's right to receive the pay of his office

terminate after a determination by the Court of

Claims that his removal was invalid before he has

been validly removed or retired?

2s May the backpay award to a validly

appointed civil service employee, whose removal

from his position was determined to be invalid, be

reduced by an amount that he might have earned by

seeking other employment without any evidence that

he could have obtained other employment or of the

amount ne would have earned from such employment?

STATUTORY PROVISIONS INVOLVED

28 U.S.C. Section 1491:

“The Court of Claims shall have jurisdiction

to render judgment upon any claim against the

United States founded either upon the Constitution,

Or any Act of Congress, or any regulation of an

executive departinent, or upon any express or

wis

implied contract with the United States, or for

liquidated or unliquidated damages in cases not

sounding in tort.* * * To provide an entire remedy

and to complete the relief afforded by the judg-

ment, the court may, as an incident of and

collateral to any such judgment, issue orders

directing restoration to office or position, place-

ment in appropriate duty or retirement status, and

correction of applicable records, and such orders

may be issued to any appropriate official of the

Unites States.* * * *

5 U.S.C. Section 5596(b):

* * *(b) An employee of an agency who, on the

basis of an administrative determination or a time-

ly appeal, is found by appropriate authority under

applicable law or regulation to have undergone an

unjustified or unwarranted personnel action that

has resulted in the withdrawal or reduction of al]

Or a part of the pay, allowances, or differentials

of the employee --

(1) is entitled, on correction of the

personnel action, to receive for the period

for which the personnel action was in effect

an amount equal to all or any part of the pay,

allowances, or differentials, as applicable,

that the employee normally would have earned

during that period if the personnel action had

not occurred, less any amounts earned by hin

through other employment during that period;

and

(2) for all purposes, is deemed to have

performed service for the egency during that

period, except that the employee may not be

credited, under this section, leave in an

amount that would cause the amount of leave to

uo

his credit to exceed the maximum amount of the

leave authorized for the employee by law or

regulation.* * *"

STATEMENT CF THE CASE

On December 20, 1967, the Petitioner was

appointed to a competitive, career civil service

position in the Department of the Army as an Ammu-

nitions Inspector (Surveillance). His initial

appointment was a Grade CS-5. Ke continued to

serve in this position and continued to receive

promotions and ultimately achieved the: srade of

GS-9, Step 4 on January 9, 1972. He was removed

from his position effective September 18, 1972 upon

allegations relating to the submission of a claim

for allowances in connection with a transfer from

Fort Wingate Army Cepot, Callup, New Mexico to Red

River Army Cepot, Texarkana, Texas. Fol lowing

Petitioner's removal in 1972, he prosecuted = an

administrative appeal.

On April 5, 1974, the Board of Appeals and Review

acting for the Civil Service Commission, upheld

Petitioner's removal.1 Having exhausted his

administrative appeal, the Petitioner filed suit in

the Court of Claims on December 23, 1974 Seeking a

judgment for backpay from September 18, 1972 and

for reinstatement in the position from which he was

involuntarily removed.

On March 17, 1976 the Court entered a judgment

for the Petitioner. The Court held that the

penalty of removal which the Cepartment of the

Army, with the approval of the Civil Service Com-

mission, assessed against the Plaintiff "was so

unconsciounably disproportionate as to be an abuse

of discretion by Defendant".3 The Court further

lin the Matter of Luther G. Power, dr.,

Board of Appeals and Review Decision, April 5,

1974. Appendix —E at E-l.

cPower v. United States, 531 F.2d 505

(Ct.Cl. 1976). Appendix A at A-l.

SIbid., p. 507. Appendix A at A-5.

a, oe

held that "we have determined not to order rein-

Statement in this action in the light of the unus-

ual nature of this case".4 Finally, the Court

remanded this case to the Trial Division for fur-

ther proceedings under Rule 131(c), Court of Ciaims

Rules to cetermine the amount to be awarded Peti-

tioner, consistent with its opinion.

On May 5, 1976, Respondent filed a Motion for

Rehearing in the case and the Court denied the

Respondent's Motion in an Order dated June 25,

1976.9

The Trial Judge recommended a finding that the

Petitioner's right to receive pay terminated on the

date of the Court's derision on March 17, 1976. He

further recommended a finding that Respondent was

SIbid., p. 510. Appendix C at C-16.

SPower v. United States, 210 Ct.Cl. 742

(1976). Appendix D at D-l.

entitled to an offset from the backpay award for

amounts that Petitioner might have earned had he

exerted reasonable effort to obtain other employ-

ment.

The Court of Claims held that Petitioner's

right to receive pay terminated on June 25, 1976,

when the Respondent's Motion for Rehearing was

denied in a “speaking" Order.© The Court con-

Strued the June 25, 1976 Crder of the Court of

Claims to have held that the Petitioner had waived

all further claim to backpay from that date by the

position he had taken and his conduct with respect

to the Respondent's Motion for Rehearing. / The

Court further held that Respondent is entitled to

an offset for the amount that the Petitioner could

©Power v. United States, No.

18, 1979 Order. Appendix A at A-l.

Ibid. Appendix A at p. A-7.

«Qe

have earned by seeking and obtaining employment at

minimum wage for the period from the date that the

administrative appeal of the improper discharge was

final, April 6, 1974, until the date of the Court's

denial of rehearing, June 25, 1976.8

REASONS FOR GRANTING THE WRIT

THE DECISION BELOW IS IN CONFLICT WITH APPLIC-

ABLE DECISIONS OF THIS COURT AND DECIDES FEDERAL

QUESTIONS QF SUBSTANCE NOT HERETOFCRE DETERMINED BY

THIS COURT.

The Court of Claims decision on the liability

phase of this case dated March 17, 1976, held that

Respondent had abused its discretion in applying a

penalty to the actions it had found Petitioner to

have committed. Therefore, the removal of the

Sibid. Appendix A at p. A-22.

«10.

Petitioner from his position was unlawful, illegal

and ineffective.

Under the applicable decisions of this Court

it is clear and undisputed that an employee who has

been wrongfully removed from his position is en-

titled to the pay of his position until he has been

properly removed. United States v. Teston, 424

U.S. 392 (1976); United States v. hickersham, 201

U.S. 290 (1906); Ainsworth v. United States, 399

F.2d 176 (Ct.Cl. 1968); and United States v.

Perkins, 116 U.S. 483 (1886).

The United States Court of Claims, by its

decision of April 18, 1979, hneld that even though

Petitioner was never properly removed from his

position, his right to pay terminated on June 25,

1976. The Court indicated that it had based its

decision on a purported waiver. The Court stated:

“We construe the statement in the June 25,

1976 Order as a holding by the Court that

plaintiff, by his position and conduct with

respect to the defendant's rehearing motion,

had waived all claim to further backpay (as

elie

well as to reinstatement). The Court did

not, at that time, consider that plaintiff

could recover further backpay even though

he affirmatively rejected reinstatement.

If plaintiff believed that he could, he

should have sought clarification or change

in the Order of June 25, 1976."9

The Supreme Court of the United States in the

case of Fay v. Noia, 372 U.S. 391 (1963) stated

that “the classic definition of waiver enunciated

in Johnson vs. Zerbst, 204 U.S. 458, 464, 82 L.Ed.

1461, 1466, 58 S.Ct. 1019, 146 ALR 357 - ‘an inten-

tional relinquishment or abandonment of a known

right or privilege’ - furnishes the controlling

Standard". The Supreme Court has also held that

“an effective waiver must be one of a known right

or privilege", Curtis Publishing Company vs. Butts,

388 U.S. 130 (1967). "No man can be bound by a

waiver of his rights unless such waiver is dis-

tinctly made, with full knowledge of the rights

II bid. Appendix A at p. A-7.

st

which he intends to waive; and the fact that he

knows his rights and intends to waive them must

plainly appear." 28 Am.Jur.2d 840-841; Section 158

Estoppel and Waiver.

A review of the proceedings in this case in

light of the above definition of waiver clearly

indicates that Petitioner has not waived his right

to receive pay until he has been properly removed.

Petitioner filed this suit seeking reinstatement

and backpay based upon his contention that his

removal was an abuse of discretion. The Respondent

moved for a Summary Judgment of dismissal and Peti-

tioner moved for a Summary Judgment as to liabil-

ity. As set forth above, the Court denied Respond-

ent's motion and granted Petitioner's motion.

However, the Court elected not to exercise its 28

U.S.C. 1491 authority to order Petitioner's rein-

Statement. The Respondent, impliedly recognizing

that under well established law it had continuing

1%

liability to Petitioner for his Pay until he was

validly discharged, filed a Motion for Rehearing.

In Petitioner's response to Defendant's Motion for

Rehearing, Petitioner took the position that under

28 U.S.C. 1491 the Court had the discretion to

affirmatively order reinstatement but that Said

action was not necessarily mandatory. Petitioner

never took the position that the Court's refusal “to

Order reinstatement effectively removed him or

terminated his right to receive the pay of his

position until he was validly removed.

Furthermore, there is no basis for an implied

Waiver as the Order of the Court cites no authority

to support its conclusion and the Court of Claims

has previously held that it will not, without a

proper showing, imply a waiver. New York Ship-

building Corp. v. United States, 385 F.2d 427 (Ct

Cl., 1967)

The Court, in its Order of June 25, 1976 over-

ruling Defendant's Motion for Rehearing, stated:

“In denying rehearing en banc the Court

emphasizes that it deems that plaintiff,

in his opposition to the defendant's

petition en banc and for rehearing, has

rejected the position that he had to be

reinstated, and the Court concludes that

he is content with the relief he has been

accorded. "10

The relief which Petitioner had been accorded was a

Summary Judgment that the Respondent's action in

removing him constituted an abuse of discretion.

Under well established law, that made the Respond-

ent liable to the Petitioner for the pay of his

position until he was validly removed. Therefore,

while Petitioner may have waived his right to an

affirmative Crder of the Court requiring Respondent

to reinstate him, he certainly did not waive his

right to the pay of his position until he was

validly removed.

f) . : 7A

lOpower v. United States, 210 Ct.Cl. 742

(1976). Appendix D at O-1.

{

\

It is also quite significant that in the

Court's Order of June 25, 1976, the Court spoke to

the Petitioner's right to recover backpay indefi-

nitely. The Court said:

“If defendant remains fearful that,

despite plaintiff's position on the

rehearing petition, he will be able

to recover backpay indefinitely, it ’

can always reinstate him voluntarily."

—)

The Court's Order of June 25 did not say that Peti-

tioner's position on the rehearing terminated his

right to pay nor did the Court say that its Order

of March 17, 1976 terminated the Petitioner's right

to receive pay.

Under the above circumstances it certainly

Cannot be said that Petitioner waived his rights.

Likewise, it cannot be said that such waiver was

distinctly made with full knowledge of the rights

which he intended to waive. Finally, it certainly

llibid. Appendix 0 at D-1l.

does not "plainly appear" that Petitioner intended

to waive his right to his pay.

The Court stated in its opinion of April 18,

—"

‘©

“

Oo

that

“We construe the statement in the June

25, 1976 Order as a holding by the Court

that plaintiff, by his position and con-

duct with respect to the defendant's Re-

nearing Motion, had waived all claim to

further backpay (as well as to reinstate-

ment)."

+

It is apparent that the Court has failed to distin-

moO

guish between its discretionary authority under 23

U.S.C. 1491 to affirmatively order the reinstate-

ment and its authority to determine that an employ-

ee's removal was unlawful, thereby subjecting the

Respondent to liability for his pay.

The basis upon which the Respondent is liable

for the employee's pay is that the employee, once

12> ower ve. United States, No. 439-74,

A hi

April 18, 1979 Order. Appendix A at A-7.

4%

appointed to a position, is entitled to the pay of

that position until he is validly removed. He re-

ceives his pay as a result of Statutory entitle-

ment. te does not receive pay for having done work

for the government. On the other hand, an affirma-

tive Order of the Court requiring a particular

person's reinstatement to a particular job presents

Other considerations. In the latter case, the

Court is exercising traditional equitable jurisdic-

tion and, under the facts in a particular case,

such an order may not be appropriate. Therefore, a

finding by the Court that a person's removal was an

abuse of discretion Subyecting the Respondent to

liability for the pay of the position until proper

removal does not necessarily mean or even probably

mean that it would be appropriate, in the eavctes

Of equitable discretion to affirmatively order

reinstatement. Likewise, a decision by the Court

not to affirmatively order reinstatement does not

'

[@9)

'

amount to a termination or a holding that the

government has no further liability for backpay.

Utherwise, the Court would put itself in the posi-

tion of exercising executive discretion. Under

such circumstances, backpay cases would take on the

nature of damage suits.

The question of whether or not the Court of

Claims can effectively remove a government employee

after finding that the agency's removal of him was

an abuse of discretion is a question of first

Impression tefore this Court. Prior to 1972, the

power of reinstatement resided alone in district

courts, and a plaintiff who won backpay in the

Court of Claims had to go to the district court in

a pro forma action to get reinstated. The 1976

amendment to 28 U.S.C. 1491 provided the Court of

Claims with the power to make such a plaintiff

whole by allowing reinstatement and award of back-

pay in one action. The amendment did not provide

al Be

~

the Court of claims with executive discretion to

determine whether or not to remove a validly

appointed employee from his position. The Court of

Claims' decision in effectively removing Petitioner

from his position after determining that the

agency's action in removing him was an abuse of

discretion is inconsistent with and contrary to the

intent of the remand statute. This decision by the

Court usurps executive authority to determine who

should be removed from a position and for what rea-

sons. Accordingly, since the Court determined that

the agency's removal of Petitioner was invalid and

Since the Court of Claims has no jurisdiction to

remove Petitioner, he remains in the position to

which he was appointed. As indicated above, Peti-

tioner has taken no action which could be deemed to

constitute a waiver of his right to receive the pay

of his office. He remains entitled to that Day

until such time as he is validly removed or retired.

-20- ~P

In addition to holding that Petitioner's right “***to receive for the period for which

the personnel action was in effect an

to pay terminated on June 25, 1976, the Court's amount equal to all or any part of the

pay *** that the employee normally would

decision of April 18, 1979 further determined that nave earned during that period if the

personnel action had not occurred, less

Respondent was entitled to an offset. The amount any amounts earned by him through other

employment during that period ***,"

of the offset was the amount that Petitioner might 9 U.S.C. Section 5596(b)(1) (1976)

(emphasis added).

have earned ty seeking and obtaining employment at =

As indicated above, the Court found that Peti-

the applicable minimum wage for the period begin-

tioner did not have any earnings through other

ning on April 6, 1974, the day after his removal |

employment during the applicable period.

from government service became final, until June |

The Court of Claims construed the statutory

25, 1976, the date of the Court of Claim's denial ~ | .

provision to include in the offset the amount that

of Respondent's Motion for Rehearing. This deci- ss

Petitioner might have earned had he exerted a rea-

sion was entered in spite of a specific finding

sonable effort to secure other employment, citing

that Petitioner had no other earnings. _ |

the decision in Schwartz v. United States, 181 F.

The Back Pay Act, 5 U.S.C. Section 5596 (1976),

Supp. 408 (Ct.Cl. 1960), which concerned a statute

provides in part that a government employee who is _

, similar to the Back Pay Act. There is no basis in

found to have undergone an unjustified or. unwar-

this statute for such an implied intent. Further,

ranted personnel action, which has resulted in the . | |

the implied intent as construed by the Court of

withdrawal or reduction of all or a part of his a

Claims places an undue and improper burden upon the

pay, is entitled, on correction of the personnel

action:

Petitioner to disprove his ability to obtain other

employment as the Court required no specific show-

ing by the Respondent that Petitioner woulda have

been able to obtain such employment. Furthermore,

the Respondent was not required to produce any evi-

dence of the amount Petitioner would have earned

from any such employment.

SUMMARY

It has been the law, as clearly announced by

both this Court and the Court of Claims since 1886

that a validly appointed civil service employee is

entitled to the pay of his office until he is

validily removed. The Court of Claims in this case

has determined that Petitioner's removal was in-

valid. Nevertheless, the Court determined that

Petitioner's right to receive the pay of his posi-

tion terminated on June 25, 1976. In essence, the

Ceurt of Claims removed Petitioner from his position

o230

and, in doing so, exceeded its jurisdiction. The

Court has attempted to justify its action by a

determination that Petitioner waived his right to

Dackpay. However, no action or inaction by Peti-

tioner could be held to constitute a waiver as that

concept has been defined by this Court.

The Court of Claims also awarded Respondent an

offset when the evidence established as a matter of

law that there was nothing to offset.

In the above regard, the Court of Claims has

erred. The Court recognized that Petitioner has

Deen subjected to an abuse of discretion by the

Respondent in punishing him to the extent that it

was unconscionable. This abuse of discretion has

severly damaged Petitioner. The Court of Claims

has recognized Petitioner's right but has left him

without a meaningful remedy. Petitioner must now

seek relief in this Court as his last resort.

hs.

PRAYER

Petitioner prays that a Writ of Certiorari

should issue to review the judgment and opinion of

the United States Court of Claims.

Respectfully submitted,

By:

Philip E. McCleery

1200 Alico Building

waco, Texas /6/01

(817) 756-7231

Counsel for Petitioner

A-]

APPENDIX A

IN THE UNITED STATES COURT OF CLAIMS

No. 439-74

(Decidea April 18, 1979)

LUTHER G. POWER, JR. v. THE UNITED STATES

Philip E. McCleery, attorney of record, for

plaintiff. Sheehy, Lovelace & Mayfield, of counsel.

Donnie Hoover, with whom was Assistant Attor-

ney General Barbara Allen Babcock, for defendant.

Before DAVIS, KASHIWA and SMITH, Judges.

OPINION

PER CURIAM:* This is a Rule 131(c) proceeding

to determine the anount of the plaintiff's recovery

under the court's decision of March 17, 1976, Power

v. United States, 209 Ct. Cl. 126, 531 F.2d 505,

*Except for the section on "Termination of

Right to Pay," this opinion incorporates the

opinion of Trial Judge Mastin G. white, with minor

modifications. The necessary findings of fact are

contained in this opinion and the earlier opinion,

and in the appended supplementary findings.

A-2

which held that the defendant was liable to the

plaintiff and remanded the case to the trial divi-

Sion for a determination of the amount of the

plaintiff's recovery.

Employment

The plaintiff was formerly a civilian employee

of the Department of the Army in the competitive

Civil service. After successfully completing a

é-year period of training at the AMC Ammunition

School, Savanna Army Depot, Savanna, Illinois, the

plaintiff was promoted from GS-7 to GS-9, step l,

effective February 2, 1970, and was assigned to a

position as an ammunition inspector (surveillance)

at the Fort Wingate Army Depot, Gallup, New Mexico.

At Fort Wingate, the plaintiff was advanced to step

2 in grade GS-9 effective December 27, 1970; and

then, because of superior service, he received an

advancement to step 3 in grade GS-9 on January 10,

1971.

On April 9, 1971, the plaintiff was trans-

ferred from the Fort Wingate Army Depot in New

Mexico to the Red River Army Depot, Texarkana,

Texas. In connection with this transfer, the

A-3

plaintiff was entitled to certain travel allowances

for the transportation and Subsistence of himself

and his dependents, and for the Shipment of his

household goods and personal effects. Claims for

Such allowances were Subsequently submitted by the

plaintiff.

While serving at the Red River Army Depot, the

plaintiff was advanced to Step 4 in grade GS-9

effective January 9, 1972.

Removal

On September 18, 1972, the plaintiff was

involuntarily removed from his position at the Red

River Army Uepot. The removal was based upon

Charges which, as ultimately upheld by the Board of

Appeals and Review of the Civil Service Commission

at the end of a series of administrative appeals by

the plaintiff, alleged that the plaintiff, in sub-

mitting a voucher for reimbursement of expenses

incurred as a result of his transfer from the Fort

Wingate Army Depot in New Mexico to the Red River

Army Depot in Texas, had submitted a false document

indicating the expenditure of $175 for temporar y

A-4

lodging, when in fact this expenditure was in the

amount of only $125, and that he had submitted

false documentation indicating expenditures for

meals supposedly eaten by his wife during the move,

althougn in fact the plaintiff's wife did not ac-

company him on the move from New Mexico to Texas.

Judicial Proceedings

Having exhausted the administrative remedies

available to him in connection with his involuntary

separation from the government service, the plain-

tiff instituted the present action in this court on

December 23, 1974. In the petition, the plaintiff

asked for a judgment for back pay from September

18, 1972, and for reinstatement in the position

from which he was involuntarily removed.

On May 27, 1975, the defendant filed a motion

for summary judgment; and the plaintiff thereafter

filed a cross-motion for summary judgment on June

30, 1975.

On March 17, 1976, the court rendered a deci-

sion denying the defendant's motion for summary

judgment, granting the plaintiff's cross-motion,

A-5

entering judgment for tne plantiff on the issue of

liability, and remanding the case to the trial

division for a determination of the amount of the

plaintiff's recovery under Rule 13l(c). Power v.

United States, 209 Ct. Cl. 126, 531 F.2d 505. The

court held that tne penalty of dismissal which the

Department of the Army, with the subsequent ap-

proval of the Civil Service Commission, assessed

against the plaintiff "was so unconscionably dis-

proportionate as to be an abuse of discretion by

defendant." Id. at 129, 531 F.2d at 507. The

court said that the plaintiff was entitled to

recover back pay, but that it had "determined not

to order reinstatement in this action in the light

of the unusual nature of this case" (emphasis in

original). Id. at 135, 531 F.2d at 510.

On May 5, 1976, the defendant filed a motion

for rehearing in the case. This motion was denied

by the court in an order datea June 25, 1976. 210

oe. St. FEZ.

Over a period of months, the parties attempted,

through negotiations, to reach an agreement on the

amount due the plaintiff under the court's decision

of March 17, 1976. Such negotiations ultimately

A-6

proved to be unsuccessful; and, after the parties

nad engaged in discovery procedures, a trial on the

issue of damages was held in Waco, Texas, on Novem-

ber 14, 1977. The customary post-trial procedures

by the parties under tne rules of the court were

conducted thereafter.

Termination of Right to Pay

One of the questions to be decided in the pre-

sent proceeding under Rule 131(c) relates to the

termination date of the plaintiff's right to

receive pay under the court's decision of March i B

1976.

With respect to this question, the defendant

contends that the plaintiff's right to receive pay

terminated on the date of the court's decision,

1.€., on March 17, 1976.

The plaintiff, on the other hand, contends

that he is entitled to receive pay through November

14, 1977, i.e., the date of the trial on the issue

of damages under Rule 13l(c).

The trial judge opted for March 17, 1976, but

the court rejects both of the dates urged by the

A-7

parties and holds that the termination of plain-

tiff's' right to receive pay occurred in this case

on June 25, 1976, when the Government's motion for

rehearing was denied in a "speaking" order. That

order declared in pertinent part:

In denying rehearing en banc the court

emphasizes that it deems that plaintiff,

in his opposition to the defendant's peti-

tion for rehearing en banc and for rehear-

ing, has rejected the position that he

had to be reinstated, and the court con-

cludes that he is content with the relief

he has been accorded. In that situation

reinstatement is certainly not mandatory,

just as it would not be if plaintiff had

failed to ask for reinstatement in his

petition [See Rule 35(g)] or otner papers.

If defendant remains fearful that, despite

plaintiff's position on the rehearing peti-

tion, he will be able to recover back-pay

indefinitely, it can always reinstate him

voluntarily. The court's decision [report-

ed at 209 Ct. Cl. 126, 531 F.2d 505 (1976) ]

does not preclude such action by the Govern-

ment. (Power v. United States, 210 Ct. C1}.

742, 743).

Plaintiff never challenged that statement nor

sought rehearing or modification of it.

We construe the statement in the June 25, 1976

order as a holding by the court that plaintiff, by

his position and conduct with respect to the

A-8&

defendant's rehearing motion, had waived all claim

to further back pay (as well as to the reinstate-

ment). The court did not, at that time, consider

that plaintiff could recover further back-pay even

though he affirmatively rejected reinstatement. If

plaintiff believed that he could,! he should have

sought clarification or change in the order of June

25, 1976.

The parties have stipulated that, if the term-

ination date is June 25, 1976 (as we hold), plain-

tiff is entitled to back-pay of $59,199.36 (includ-

ing a retirement deduction of $3,710.06 and a lump-

sum for annual leave of $6,169.28).2

Level of Pay

The plaintiff argues that the computation of

back pay should take into account a promotion of

the plaintiff from grade GS-9 to grade GS-11 as of

lat the oral argument on the present phase

of the case, plaintiff's counsel asserted the right

to recover back-pay (in a new suit or suits) inde-

finitely or at least up to retirement age.

¢The computation assumes that plaintiff

would have remained in Grade GS-9 but would have

advanced to step 5 of GS-9 on January 6, 1976, and

to step 6 on January 4, 1976.

A-9

October 1, 1972, and subsequent step increases in

grade GS-11 on October 14, 1973, October 14, 1974,

and October 12, 1975. The argument on this issue

1S based upon the plaintiff's testimony in the

record to the effect tnat at about the time of his

transfer from the Fort Wingate Army Depot to the

Ked River Army Depot, he was informed by his super-

iors (not identified by name) that he was slated

for a subsequent transfer Overseas; that at the

time in question, a number of ammunition inspectors

were being transferred by the Department of the

Army to the Far East, principally to Vietnam; and

that he was told such a transfer resulted in a

promotion from GS-9 to GS-11 in accordance with a

then-current Department of the Army policy designed

to encourage service in the Far East (although the

policy was not incorporated in a statute or regula-

tion).

In the absence of conflicting evidence, the

plaintiff's testimony, together with the excellent

record that he had made in the performance of his

duties as an ammunition inspector, warrants the

inference that if the plaintiff had continued in

the service after September 18, 1972, he might well

A-10

have been transferred to the Far East within a rea-

sonable period of time and, in connection with such

transfer, might well have received a promotion from

grade GS-9 to GS-11.

Tne possibility or mere Probability of promo-

tion, however, is not sufficient for this factor to

receive consideration in connection with a determi-

nation as to the level of pay on which the Dlain-

tiff's recovery is to be computed.

There are numerous decisions by this court an-

nouncing the general rule that a civilian employee

of the Government, or a member of the Armed Forces,

is entitled only to the rights and Salary of the

position to which such person has been administra-

tively appointed. £.g., Bielec v. United States,

197 Ct. Cl. 550, 560, 456 F.2d 690, 696 (1972);

Peters v. United States, 208 Ct. Cl. 373, 377, 534

F.2d 232, 234 (1975). In order to recover on the

basis of the salary of a higher position than that

to which a claimant has actually been appointed,

the claimant must normally show a legal entitlement

to the pay of the higher position. Selman v. United

states, 204 Ct. Cl. 675, 684, 498 F.2d 1354, 1358

(1974); Doggett v. United States, 207 Ct. Cl. 478,

A-11

482 (1975). Possibly the Federal Personnel Manual

Supplement 999-2 may qualify this requirement some-

wnat when it provides for back-pay on the basis of

a higher grade if it is "clearly established" that

the promotion would have occurred but for the im-

Proper personnel action.3

The plaintiff in the Dresent case does not

contend that the Department of the Army would have

been under a mandatory duty to promote him to grade

GS-11 as of October 1, 1972 -- or at any other time

-- if he had continued in the Service after Septem-

ber 18, 1972. Nor is it "clearly established" that

he would have been Promoted. His claim to the

Salary of the higher grade is based only upon hope,

and perhaps reasonable expectation. Consequently,

under all the authorities, this claim must be

rejected.

It follows, therefore, that the amount of the

Plaintiff's entitlement to back Pay is $59,199.36,

3The Manual Provides for such back pay "if

it is clearly established by appropriate authority

that, under applicable law, Executive Order, regu-

lation, or collective bargaining agreement, the em-

ployee would have been selected for the promotion,

but for the unjustified or unwarranted personnel

action." FEDERAL PERSONNEL MANUAL SUPP. 990-2,

Book 550, Subch. 8, §8-4(b)(2) (1977) (emphasis in

original).

A-12

Dased upon tne salary of the position to which he

nad been administratively appointed and which he

was occupying at the time of his involuntary sepa-

ration from the service, as affected by the step

increases that he would have received between the

date of his separation from the government service

and the date of the court's decision.

Expenses

The plaintiff claims -- and the defendant con-

cedes -- that the plaintiff is entitled to recover

in the present action:

(1) reimbursement in the amount of $378.00

for travel expenses incurred by the plaintiff in

connection with the prosecution of his appeals at

the administrative level from the adverse action

that was taken against him by the Department of the

Army; and

(2) reimbursement in the amount of $1,635.08

as the allowable travel expenses incurred by the

plaintiff in connection with his move from the Fort

Wingate Army Depot to the Red River Army depot in

1971.

A-13

The plaintiff also asserts a claim -- which

the defendant opposes -- for reimbursement in the

amount of $257.08 to cover travel expenses which

the plaintiff's attorney incurred, and which the

plaintiff defrayed, on a trip from Waco, Texas, to

Washington, 0.C., and return, in connection with

the successful conduct of the present litigation.

The plaintiff's argument in support of this

claim is based upon the portion of the Federal

Personnel Manual Supplement 990-2, Book 550, Subch.

8, §8-6(11), which provides for the payment of a

government employee's travel expenses incurred in

suctessfully prosecuting an administrative appeal

from an adverse administrative action. Although

the Federal Personnel Manual does not refer to

travel expenses incurred by such an employee's

attorney, the plaintiff states in his brief that

"Clearly Plaintiff is entitled to be represented in

the Court of Claims by counsel and counsel's

expenses are made necessary for the successful

prosecution of Plaintiff's appeal," and that the

plaintiff "should be entitled to recover this

amount".

This court, in rendering judgment for a claim-

ant in a case involving the taking of property by a

A-14

government agency, is authorized by 42 U.S.C. §4654

(c) (1976) to include an amount for reasonable

litigation expenses incurred by the claimant in

prosecuting the case. The court, however, is not

authorized to make an award for litigation expenses

incurred by a claimant in successfully prosecuting

a civilian pay case, such as the present one.

Accordingly, the plaintiff's claim in the

amount of $257.08, relating to litigation expenses,

must be rejected.

Offset

Tne defendant contends that it is entitled to

an offset against the amount awarded to the plain-

tiff, because (according to the defendant) the

plaintiff failed to mitigate damages by making a

reasonable effort to obtain other employment after

his involuntary separation from the government ser-

vice.

In support of this argument, the defendant

refers to the Back Pay Act, 5 U.S.C. §5596 (1976),

which provides in part that a government employee

who is found to have undergone an unjustified or

A-15

unwarranted personnel action, which has resulted in

the withdrawal or reduction of all or a part of his

pay, is entitled, on correction of the personne!

action:

*x*x* to receive for the period for wnich

the personnel action was in effect an a-

mount equal to all or any part of the

pay *** that the employee normally would

have earned during that period if the per-

Sonnel action had not occurred, less any

amounts earned by him through other employ-

ment during that period ***. 5 U.S.C. §5596

(b)(L) (1976) (empnasis added)

The evidence in the record shows that the

plaintiff did not have any earnings through other

employment during the period between the date of

his involuntary separation from the government ser-

vice and the date of tne court's decision or the

date of the denial of rehearing. His entire income

during that period consisted of his retirement pay

from the Navy. (The plaintiff retired from the

Navy as a Chief Petty Officer, E-7, in 1970, after

serving on active naval duty from 1939 until 1960

and then remaining in the Fieet Reserve from 1960

to 1970.)

Although the portion of the Back Pay Act prev-

iously quoted refers only to the deduction of "any

A-16

amounts earned *** through other employment" during

a period when the pay of a government employee has

been improperly withdrawn or reduced, the defendant

cites this court's decision in Schwartz v. United

States, 149 Ct. Cl. 145, 181 F. Supp. 408 (1960),

which construed a statutory provision similar to

the current Back Pay Act. In that decision, the

court said (among other things) that:

*xkxthe clearest implication that can pos-

sibly be drawn from the language used, is

that it was contemplated that the claim-

ant would make a reasonable effort to se-

cure other employment and that the amount

which the claimant earned, or with reason-

able effort might have earned, be deducted

from the total amount of compensation that

would otherwise be paid under the statute.

zee 149 Ct. Cl. at 147, 181 F.Supp. at 410

(emphasis supplied).

The defendant argues that the plaintiff in the

present case, with reasonable effort, could have

obtained employment paying at least the applicable

minimum wage, and thus could have earned at least

$9,908.80 during the period beginning 1 year after

the date of his involuntary separation from the

government service and extending through the date

of the court's decision holding that his removal

from his position was unlawful; and that this sum

A-17

Should be offset against the amount which the plain-

tiff would otherwise be entitled to recover in the

present action.

The defendant, in explaining its concession

that it is not entitled to any offset because of the

plaintiff's failure to seek other employment during

the l-year period immediately following his separa-

tion from the government service, quotes from a reg-

ulation of the Civil Service Commission, 5 C.F.R. §

550.804(f) (1977), which stated in part as follows:

(f) In computing the amount of back

pay due an employee under *** [the Back

Pay Act], if the employee has been re-

Stored within 1 year after his errone-

Ous separation, the agency may not delete

any period from computation on the basis

that the employee was under obligation to

make an effort to secure other employment

during the period covered by the unjusti-

fied or unwarranted personnel action.4

4This regulation was amended effective March

25, 1977. The amended regulation does not contain

any one-year exclusion of setoffs for other employ-

ment; it merely states that "*** the agency shal]

deduct the amounts earned by the employee from other

employment during the period covered by the correc-

ted personnel action." 41 Fed.Req. 16,127, 16,128

(1977), codified in 5 C.F.R. §550.804(e) (1978).

Because defendant has not actively contested before

this court the beginning date for computation of the

offset, see note 5, infra, we have no occasion to

consider the impact, if any, of the amended regula-

tion.

A-]

©

It seems to be the defendant's view that the

quoted regulation, by necessary implication, gives

the defendant a right of offset after the expira-

tion of the l-year period immediately following the

plaintiff's separation from the government service,

because of the plaintiff's subsequent failure to

make a reasonably diligent effort (in the defend-

ant's opinion) to obtain other employment. This

View that the plaintiff was under an obligation to

begin to seek other employment immediately after

the expiration of an arbitrarily fixed 1-year

period following his separation from the government

service should not be accepted, in our opinion.

Rather, the plaintiff's specific situation should

be taken into account.

In September 1973, at the end of the l-year

period following his removal from his position with

the Department of the Army, the plaintiff was

awaiting, and preparing for, a hearing before a

representative of the Dallas Regional Office of the

Civil Service Commission on the plaintiff's initial

appeal to the Commission. Furthermore, he was

entitled to appeal to the Board of Appeals and

Review of the Commission if the decision of the

A-19

Dallas Regional Office should turn out to be ad-

verse to him. Under the circumstances, it would be

unfair to hold that the plaintiff was under an ob-

ligation at that time to begin a diligent effort to

obtain other employment, when he was pursuing his

administrative remedies in an effort to overturn

the action of the Department of the Army.

Under the portion of this court's decision in

the Schwartz case, supra, dealing with the question

of wnen the obligation of the claimant in that case

to seek other employment began, 149 Ct. Cl. at 148,

181 F.Supp. at 410, the proper view seems to be

that a government employee who has been improperly

removed from his position is not required to seek

Other employemnt while appellate administrative

proceedings are in progress and the employee is

endeavoring to obtain reinstatement; but that the

obligation to seek other employment does arise when

the adverse action removing him from his position

becomes final at the administrative level. In the

present case, the plaintiff's removal from his

position actually did not become final until the

Board of Appeals and Review of the Civil Service

Commission rendered the final administrative

A-20

decision on April 5, 1974, upholding the plaintiff's

removal and finally concluding the series of admini-

Strative appeals to which the plaintiff was entitled.

Consequently, the defendant is not properly

entitled to any reduction in the award to the plain-

tiff because of nis failure (if any) to make a dili-

gent effort to obtain other employment during the

period from the date of his involuntary separation

from the government service and the date (April 5,

1974) when his efforts at the administrative level

to obtain reinstatement came to an end with the

final decision of the Board of Appeals and Review of

the Civil Service Commission. Perhaps it should be

Stated at this point that, during the period just

mentioned, the plaintiff devoted much of his time,

efforts, and thoughts to the endeavor to obtain re-

instatement in the position from wnich he had been

improperly removed.°

A different situation obtains, however, with

respect to the period beginning April 6, 1974, and

extending through June 25, 1976, the date of the

court's denial of rehearing. The plaintiff's

SBefore the judges, defendant did not contest

the trial judge's conclusion that no offset was

allowable for the period prior to April 6, 1974.

A-21

removal had become final at this time; and the evi-

dence indicates clearly that the plaintiff did not

make a reasonably diligent effort to obtain other

employment.

The supplementary findings of fact relate in

some detail the rather half-hearted efforts that

the plaintiff made to obtain other employment after

he was removed from his position by the Department

of the Army on September 18, 1972. Insofar as such

efforts can be definitely fixed as to the time,

they occurred during the period while the plain-

tiff's appeals at the administrative level were

still in progress and while the plaintiff was still

hoping and expecting to obtain reinstatement in his

position -- i.e., during the period when the plain-

tiff actually was not under an obligation to seek

other employment. As for the period after April 5,

1974, when the plaintiff's removal from his posi-

tion became final, there is no clear evidence in

the record that the plaintiff made any effort what-

ever to obtain other employment. Presumably, his

retirement pay from tne Navy and the earnings of

his wife, who was working, were deemed adequate to

meet the family's financial needs.

A-22

During the period which began on April 6,

1974, and extended through June 25, 1976, the

plaintiff's age was in the 52-54 range; he was

pnysically and mentally capable of working; he was

a competent person; ne was an experienced aviation

mechanic (having performed that type of work during

his last 12 years of active naval duty); and he was

experienced in the field of ammunition and explo-

sives by virtue of his work for the Department of

the Army. It is only reasonable to infer, and to

find, that if the plaintiff had made a reasonably

diligent effort to obtain employment, he could have

found work at wages that would have been at least

equal to the applicable minimum wage at tne time,

in view of the plaintiff's age, experience, and

competency. It is our view, therefore, that the

defendant is entitled to offset, against the award

otherwise due the plaintiff, the sum of $9,284.00,

representing the amount that the plaintiff could

have earned by seeking and obtaining employment at

the applicable minimum wage during the period that

began on April 6, 1974 (the day after his removal

from the government service became final) and

A-23

extended through June 25, 1976 (tne date of the

court's denial of rehearing.)

Conclusion

The plaintiff is entitled to a judgment in the

net amount of $51,928.44, consisting of $59,199.36

(including $3,710.06 for retirement) for back pay,

$378.00 as reimbursement for travel expenses

incurred by the plaintiff in connection with the

prosecution administratively of his adverse-action

appeals, and $1,635.08 as reimbursement for allow-

able travel expenses incurred by the plaintiff dur-

ing his move from the Fort Wingate Army Depot in

New Mexico to the Red River Army Depot in Texas,

less an offset of $9,284.00 to which the defendant

is entitled.

SUPPLEMENTARY FINDINGS OF FACT

The court makes the following supplementary

findings of fact:

6The figure of $9,284.00 is derived from a

stipulation of the parties (with a slight correc-

tion in plaintiff's favor for a legal holiday which

would not have been worked).

A-24

i (a) In September 1972, shortly after he

was removed from his position at the Red River Army

Depot, the plaintiff submitted an application for

employment to the Texarkana, Texas, branch office

of the Texas State Employment Commission. At the

time, he was not offered a position by that office.

(b) When he moved from Texarkana to

Waco, Texas, the plaintiff informed the Texarkana

branch office of the Texas State Employment Commis-

sion regarding his change of address. However, he

never heard anything from the Texarkana branch

office, and he did not communicate with that branch

office again.

és There is a branch office of the Texas

State Employment Commission located in Waco, Texas,

where the plaintiff has been living since the fall

of 1972. The plaintiff did not at any time, how-

ever, confer with the Waco branch office regard ing

the possibility of obtaining employment.

ae In McGregor, Texas, a town that is loca-

ted fairly close to Waco, Texas, there is a plant

of the Rocketdyne Company that makes rockets ( among

other things), mainly under government contracts.

Sometime in 1973, the— plaintiff went to the

A-25

Rocketdyne plant and spoke to the Personnel Direc-

tor about the possibility of obtaining employment,

but the company was not doing any hiring at that

time. During the course of the interview, the

plaintiff told the Personnal Director about his

Army job, and stated that he expected to be rein-

stated at any time. The Personnel Director indi-

cated that the matter of the plaintiff's reinstate-

ment in his Army job ought to be resolved before

the plaintiff submitted a formal application to

Rocketdyne.

4, On one occasion, the plaintiff inter-

viewed the owner of an apartment house (presumably

located in Waco, Texas) about a job as apartment

house manager. When the plaintiff, in order to be

forthright, informed the man that he was awaiting

reinstatement in his Army job, the man indicated

that he was not interested in employing the plain-

tiff because of the uncertainty as to the length of

the plaintiff's tenure, if employed.

5. The plaintiff (at a time not disclosed by

the record) submitted applications to the District

Offices of the Civil Service Commission in Houston,

Texas, and in Dallas, Texas, for a mid-level posi-

tion. However, he was never offered a position.

D

1

ho

Loa)

CONCLUSION OF LAW

On the court's decision of March 17, 1976 (209

Ct. Cl. 126, 531 F.2d 505), the order of June 25.

1976, denying rehearing (210 Ct. Cl. 742), the sup-

plementary findings, and the foregoing opinion, the

court concludes as a matter of law that the plain-

tiff is entitled to recover the net sum of Fifty-

One thousand nine hundred and twenty-eight dollars

and forty-four cents ($51,928.44), which includes a

retirement deduction of $3,710.06 to be credited to

plaintiff, and judgment is entered for the plain-

tiff in that amount.

B-1

APPENDIX B

IN THE UNITED STATES COURT OF CLAIMS

No. 439-74

LUTHER G. POWER, UR.

Vv.

THE UNITED STATES

Before DAVIS, Judge, Presiding, KASHIWA and

SMITH, Judges.

ORDER

This case comes before the court on plain-

tiff's motion, filed May 7, 1979, for rehearing en

banc pursuant to Rules 7(d) and 151(b), with refer-

ence to the slip opinion entered herein on April 18,

1979, granting judgment for plaintiff. Upon consi-

deration thereof, together with the response in

Opposition thereto, without oral argument, by the

seven active Judges of the court as to the sugqes-

tion for rehearing en banc under Rule 7(d), which

Suggestion is denied, and further having been so

considered by the panel listed above as to the

motion for rehearing under Rule 151(b).

IT IS ORDERED that plaintiff's said motion for

rehearing be and the same is denied.

BY THE COURT

/s/ Oscar H. Davis

Judge, Presiding

June 29, 1979

C-1

APPENDIX C

IN THE UNITED STATES COURT OF CLAIMS

No. 439-74

(becided March 17, 1976)

LUTHER G. POWER, JR. v. THE UNITED STATES

Philip E. McCleery, attorney of record, for

plaintiff. Sheehy, Lovelace & Mayfield, of counsel.

Donnie Hoover, with whom was Assistant Attor-

ney General Rex E. Lee, for defendant.

Before COWEN, Chief Judge, DURFEE, Senior

Judge, and KUNZIG, Judge.

ON DEFENDANT'S MOTION AND PLAINTIFF'S CROSS MOTION

FOR SUMMARY JUDGMENT

KUNZIG, Judge, delivered the opinion of the

court:

In this civilian pay case plaintiff, formerly

employed as an Army Ammunition inspector, contests

his dismissal seeking reinstatement and back pay.

C-2

Tne Army removed Power because he allegedly sub-

mitted false information in connection with a claim

for travel expense reimbursement. We find the dis-

missal penalty so out of Proportion to plaintiff's

Proven conduct that it constitutes an abuse of dis-

cretion by defendant. Accordingly, plaintiff is

entitled to recover back pay.

The instant case stems from Plaintiff's April

1971 transfer from Fort Wingate Army Depot in New

Mexico to Red River Army Depot (Red River) at

Texarkana, Texas. On June 4, 1971, following his

transfer, plaintiff submitted a claim for travel

expenses at the Red River Finance and Account ing

Office. This claim included requests for reim-

bursement of household goods cartage payments,

temporary rent costs and meal expenses. It is un-

disputed that plaintiff did not personally fill out

the claim voucher. Instead, pursuant to Red River

practice, he provided Supporting documents to Mrs.

Mary A. Goodman, a clerk at the ed River Finance

and Accounting Office. Mrs. Goodman "filled out"

the voucher.

After its preparation, Mrs. Goodman gave the

voucher and supporting documents to her Supervisor

C-3

wno noted that certain “weight tickets" for the

household good cartage had apparently been altered.

Believing that plaintiff had altered the documents

in an attempt to defraud the Government, the super-

visor triggered an investigation by the CID and the

FBI into plaintiff's claim.

One year later, on July 17, 1972, the Army

issued a notice of proposed removal. Defendant

accused plaintiff of submitting false information

in connection with the claims. The Charges related

to claims for (1) cartage, (2) rent, and (3) meals.

Specifically, the Army contended that plaintiff had

moved only 1280 pounds of household goods, but

altered the weight tickets in an attempt to obtain

reimbursement for 5200 pounds. Further, defendant

accused Power of claiming $175 for temporary lodg-

ing in May 1971 when in fact he had paid only $125.

Finally, the Army claimed that Power had attempted

to collect for meals taken by his wife during the

move although he was not entitled to such reim-

bursement .1

Ithus the rent error could be as much as $50.

The record fails to show the amount plaintiff spe-

cifically spent for meals for his wife. Nor did

defendant correct this deficiency. A fair estimate

might be about $200.00. See note 4, infra.

C-4

On September 18, 1972, the Army removed plain-

tiff on the basis of these charges.

During the course of subsequent administrative

proceedings, various facts emerged. The Civil Ser-

vice Commission (CSC) hearing examiner determined

that defendant failed to prove any alteration of

the weight tickets and found for plaintiff on the

Substantial cartage charge. However, he held that

the rent claim contained an error of $50 and, fur-

tner, that Power's request for reimbursement for

his wife's meals was improper.2 Concluding that

plaintiff had submitted false information in con-

nection with the claims for rent and meals, the

examiner upheld the Army's decision to remove

plaintiff. The CSC Dallas Region appeals examiner

and the CSC Board of Appeals and Review affirmed

the hearing examiner.

2Plaintiff had claimed reimbursement for

meals taken by his wife at times when she was not

specifically with him. Since under the examiner's

interpretation of the regulations an employee may

only obtain reimbursement for a dependent's meals

when the dependent accompanies the spouse, the

examiner concluded that Power had improperly at-

tempted to obtain payment for certain of his wife's

meals.

C-5

Plaintiff Subsequently brought the present

action to contest the administrative determina-

tions. He attacks his removal primarily on two

levels. First, contends plaintiff, defendant

failed to establish guilt based on the offenses

Charged. Second, even if the charges were substan-

tiated, the penalty of dismissal was unduly harsh.

Given the unique facts of this case, we hold

the penalty was so unconscionably disproportionate

as to be an abuse of discretion by defendant. We

therefore find for plaintiff.

Power's first attack, that defendant has not

established guilt, must fail.

It is well settled that our review of admini-

Strative determinations is limited to a finding of

substantial evidence supporting the decision.

Peters v. United States, 187 Ct. Cl. 63, 408 F.2d

719 (1969); Powers v. United States, 169 Ct. Cl.

626 (1965); Harrington v. United States, 174 Ct.

Cl. 1110 (1966); Greenway v. United States, 163 Ct.

Cl. 72 (1963). In the instant case, there is

Sufficient evidence to uphold the administrative

determination of guilt despite some doubts raised

C-6

Dy various facts in the record. Thus plaintiff's

removal cannot be upset based on defendant's

alleged failure to prove quilt.

Plaintiff's second argument, that his penalty

was too severe, stands on different footing.

The departure point for our inquiry into the

propriety of plaintiff's penalty is an analysis of

tne standard for review. The administrative con-

clusions in this case were founded on the premise

that removal was appropriate in view of the offen-

ses alleged. Plaintiff contends otherwise.

As a general rule, a penalty for employee mis-

conduct is a matter left to the discretion of the

executive agency. Birnholz v. United States, 199

Ct. Cl. 532 (1972); Cook v. United States, 164 Ct.

Cl. 438 (1964); Dulcy v. United States, 149 Ct.

Cl. 153, 284 F. 2d 687 (1960). However, in two

Situations courts will not uphold the punishment

imposed by the agency. The first test for an

invalid penalty is whether or not the sanction

exceeds the range of permissible punishment speci-

fied by statute or regulation. Daub v. United

States, 154 Ct. Cl. 434, 292 F.2d 895 (1961);

C-7

Cuiffo v. United States, 131 Ct. Cl. 60, 68, 137

F. Supp. 944, 950 (1955). Under the second test,

courts disapprove discipline which is so harsh and

unconscionably disproportionate to the offense that

it amounts to an abuse of discretion y the agency.

It is only where the transgression is

SO minor, and a discharge based there-

on so ‘unduly harsh and unwarranted,

that the dismissal could be considered

as constituting an abuse of discretion

*** that demands redress by this court

*x*,' (Heffron v. United States, 186

Ct. Cl. 474, 484, 405 F.2d 1307, 1312

(1969)]. (emphasis added).

Recently this philosophy was reaffirmed by Judge

Skelton, speaking for the court in a Situation

Similar to the case at bar.

In any event, we agree with plaintiff

that his discharge on Count I after

22 years of satisfactory government

service was too harsh and out of al]

Proportion to the offense Charged.

We have held that a dismissal under

such circumstances is an abuse of

discretion, is illegal, and demands

redress by this court ***,

[Jacobowitz v. United States, 191 Ct.

Cl. 444, 458-59, 424 F. 2d 555, 563

(1970)].

The same test has been used in Heffron v. United

States, 186 Ct. Cl. 474, 485, 405 F.2d 1307, 1312-

13 (1969); Liotta v. United States, 174 Ct. Cl. 91

(1966), and De Nigris v. United States, 169 Ct. Cl.

619, 625 (1965).

C-8

The usual test for abuse of discretion in

evaluating a penalty necessitates "a showing by

plaintiff that the penalty is so harsh that there

is an ‘inherent disproportion between the offense

and punishment.'" Grover v. United States, 200 Ct.

Cl. 337, 353 (1973). Further, if an abuse of dis-

cretion is demonstrated, the court will set aside

the penalty even wnere it lies within the range of

penalties permitted by statute or regulation. Id.

Having determined the standard of review, we

turn to the facts presented in the instant case.

Clearly, if plaintiff submitted false information

in support of his claim for reimbursement, his

dismissal was permitted by regulation. 3 If plain-

tiff is successfully to attack the validity of his

dismissal, he must focus on the second standard

discussed above; that it was an abuse of discretion

for defendant to impose the maximum penalty permit-

ted when he only committed a de minimis offense.

SIR 690-3(730), App. VII, Figure 1: Table

of Standard Penalties. For “false statements, mis-

representation or fraud of a substantial nature ***

in the matter of *** entitlements in official rec-

ords" the minimum penalty is a ten-day suspension;

the maximum penalty, removal.

C-9

we agree with plaintiff that such is the case in

the instant fact situation.

At each of tne administrative appeal levels,

it was conclusively established that defendant

failed to prove the accusations relating to altera-

tion of weight tickets. The case for plaintiff's

removal thus rested on the two remaining minor

charges: the rent discrepancy and the meals com-

Dlaint.

It can be argued that the voucher was in error

because plaintiff paid only $125 for rent in May

1971 rather than the $175 listed on the rental

receipt. However, plaintiff's submissions through

Mrs. Goodman, the Red River clerk, were valid in a

manner of speaking. He had paid out $175 for rent,

but apparently $50 of the payment was for a return-

able deposit. Yet plaintiff was required to submit

covering receipts, and the $175 receipt was the

only proof he had. Whether or not plaintiff was

only entitled to a $125 reimbursement, the fact

remains there is no evidence in the record pertain-

ing to his motives for submitting the $175 receipt.

We cannot tell from the record if plaintiff acted

C-10

accidentally, willfully or in any way fraudulently.

Thus, the entire $50 incident remains somewhat in

doubt.

It can also be argued that plaintiff claimed

reimbursement for some meals taken by his wife

during May 1971 for which he was technically not

entitled to reimbursement. The hearing examiner

interpreted the applicable regulations to the

effect that an employee may only claim meal expense

incurred by a dependent if the dependent travels

with the employee. See note 2. supra. In the

instant case, plaintiff's wife remained in Waco,

Texas, during the month in question and only joined

her husband on weekends. It thus appears that

Power's claim for meals for his wife's entire

month's meal expenses included amounts to which he

was not entitled. Again, there is a paucity of

evidence in the record as to whether Power sub-

mitted the erroneous meal claims willingly and

knowingly. It is not clear whether plaintiff

understood the interpretation at the time he sub-

mitted his claim. The record does not indicate

that the Red River clerk or anyone else ever

C-11

explained it to plaintiff. Again, there is doubt

whether plaintiff knew he may have “padded" his

reimbursement claim.

Moreover, the de minimis nature of the rent

and meal discrepancies casts even more doubt on any

possible "willfulness" on plaintiff's part.

Defendant caught the discrepancies in its investi-

gation process. Plaintiff was never paia the extra

amounts. In any event, plaintiff could never have

received the $50 "extra." He was entitled to a

maximum reimbursement of $677.08 for rent and meals

during his move. Plaintiff's reimburseable rent

and meal expenses other than the $50 amounted to

Significantly more than this maximum. Therefore,

at no time did the $50 error ever portend a loss to

the Government. Against this background, it be-

comes even more difficult to believe Power submit-

ted the erroneous rent claim willfully.

Plaintiff's claim for his wife's meal expenses

becomes similarly de minimis. Once again, we can-

not determine from the facts in the record precise-

ly how much plaintiff improperly claimed for his

wife's meals. We can, for purposes of evaluating

tne seriousness of plaintiff's alleged misconduct,

derive an estimate of his wife's meals claim.4

Again, it would appear that any excessive meal

claims made by plaintiff were minor.5

In short, the cumulative doubts expressed

above suggest that the maximum penaity imposed on

plaintiff is clearly too harsh and out of all pro-

portion.

The doubt becomes even more significant given

other key facts in this case. Defendant delayed

over a year in bringing the charges against plain-

tiff. During this time, it “fine tooth combed"

plaintiff's submissions. While we cannot say that

“Plaintiff claimed $620.04 for meals for

himself and his wife. If we assume that the meal

costs were fairly equal for both, the wife's May

1971 meals cost $310.02. If she spent weekends and

holidays with plaintiff, she would have spent

roughly one-third of May with him. Power could

have claimed $103.34 for her meals. His actual

claim would then be excessive by some $206.68.

SPlaintiff's actual claim ($867.29) was

$190.21 over his maximum allowable re imbur sement

under the law ($677.08). If the excessive claim

for the wife was $206.68, the meal error could only

have cost defendant $16.47 in actual dollars lost.

The rent and meat errors combined, thus would have

totaled $66.47.

C-13

the delay in and of itself "taints" the present

Proceedings against plaintiff, it certainly is a

factor which should have been cons idered at the

time defendant imposed the penalty.

Even more serious is the defendant's manner of

Proceeding in the present case. Defendant joined

two relatively minor charges (rent and meals) with

a serious and significant accusation (the cartage

alteration). After failing to sustain the serious

charge, the Government continued to advocate dis-

missal on the basis of the two relatively insignif-

icant charges. Perhaps defendant really wanted to

remove plaintiff for the serious offense, but when

it found that the facts would not so allow, it

achieved the same result by use of the two de

minimis allegations. In other words, plaintiff's

punishment for tne two minor offenses might well

have been based upon defendant's unsupported, con-

tinuing belief that he was guilty of the serious

offense. Although defendant's motive for its

manner of proceeding is not readily provable, cer-

tainly the specific facts of the case at bar raise

Substantial questions.

C-14

In Jacobowitz, supra, we were confronted with

a similar problem. There, an IRS agent was removed

on three charges: (1) negligent failure to process

taxpayers' checks; (2) falsification of time

Sheets; and (3) failure to make efficient use of

his time. The IRS itself dropped charge number

(3), but continued to press for dismissal on the

Otner two. We found insufficient evidence in the

record to support the serious charge (falsification

of records) and concluded that discharge on the de

minimis remaining charge (negligent failure to pro-

cess checks) was "to (sic) harsh and all out of

Proportion with the offense charged." Id., 191 Ct.

Cl. at 458-59, 424 F.2d at 563. The instant situa-

tion is equivalent or even worse, since the strong

Charge was already rejected below.

Finally, defendant brings forth one last argu-

ment. It attempts to justify plaintiff's removal

as necessary to deter other expense account "pad-

ders." At oral argument, defense counsel stated

that the Government seeks to "make an example" of

Power. We have no quarrel with defendant's goal.

Deterrence can be an effective method of preventing

C-15

fraud upon the Government. However, at some point

an unduly harsh penalty can effectively ruin

defendant's goal of deterrence. Such a point has

been reached here. Moreover, if the penalty is so

harsh as to constitute an abuse, rather than an

exercise of discretion, it cannot be allowed to

Stand. Clark, supra; Jacobowitz, supra. Even for

a reason otherwise "virtuous." Plaintiff's conduct

in no way justified removal. "The punishment does

not fit the crime."

In summary, we are confronted with a case in

which the penalty is so unconscionably dispropor-

tionate tnat it becomes an abuse of discretion.

A plaintiff with an unblemished record of twenty-

five years of Government service has been removed

for submitting allegedly false information in con-

nection with claims for travel expense reimburse-

ment. Defendant failed to susbtantiate a serious

Charge of alteration of weight tickets, but con-

tinued to advocate dismissal based on two minor

discrepancies. There is some doubt whether plain-

tiff actually filed false information, and there is

even greater doubt that plaintiff submitted the de

C-16

minimis claims knowingly, intentionally and with

the purpose to aefraud the Government. The year's

delay in bringing about plaintiff's removal poses

yet another question concerning the fairness of the

overly harsh penalty. Finally, defendant wishes to

deter others from "padding" their expense accounts,

Dut we doubt that “throwing the book" at plaintiff

would have the desired effect.

we reemphasize that this suit is unique be-

cause of its particular facts. Tne general rule

remains that the penalty imposed by the agency wil]

be viewed as a matter within agency discretion un-

less such discretion is abused. Such discretion

has been abused in the case at bar.

Accordingly, defendant's motion for summary

judgment is denied and plaintiff's cross-motion is

granted. Having carefully considered plaintiff's

prayer for judgment, defendant's answer thereto,

briefs, oral argument and the reinstatement power

vested in us under Pub. L. 92-415, we have deter-

mined not to order reinstatement in this action in

the light of the unusual nature of this case.

Judgment is therefore entered for plaintiff, and

the cause is remanded to the Trial Division for

further proceedings under Rule 13l(c) to determine

the amount to be awarded plaintiff, consistent with

this opinion.

0-1

APPENDIX D

IN THE UNITED STATES COURT OF CLAIMS

No. 439-74

LUTHER G. POWER, UR.

Vv.

THE UNITED STATES

Before COWEN, Chief Judge, DURFEE, Senior

Judge, and KUNZIG, Judge.

ORDER

This case comes before the court on defend-

ant's suggestion and motion, filed May 5, 1976, for

rehearing en banc pursuant to Rules 7(d) and 151.

Upon consideration thereof, together with the

response in oppositon thereto, without oral argu-

ment, by the seven active Judges of the court as to

the suggestion for rehearing en banc under Rule

7(d), such suggestion is denied. In denying re-

hearing en banc the court emphasizes that it deems

that plaintiff, in his opposition to the defend-

ant's petition for rehearing en banc and for re-

hearing, has rejected the position that he had to

be reinstated, and the court concludes that he is

D-2

content with the relief he has been accorded. In

tnat situation reinstatement is certainly not

mandatory, just as it would not be if plaintiff had

failed to ask for reinstatement in his petition

[See Rule 34{g)] or otner papers. If defendant

remains fearful that, despite plaintiff's position

on the rehearing petition, he will be able to

recover Dack-pay indefinitely, it can always rein-

state him voluntarily. The court's decision does

not preclude such action by the Government.

The case having been further so considered by

the panel listed above as to the motion for rehear-

ing under Rule 151.

IT IS ORDERED that defendant's said motion for

rehearing be and the same is denied.

BY THE COURT

/s/ Chief Judge

June 25, 1976

BENNETT, Judge, dissenting, with whom SKELTON,

Judge, joins:

I respectfully dissent from the action of the

majority in refusing an en banc rehearing, limited,

however, to the narrow ground of its refusal to re-

instate plaintiff to his position as he requested

in paragraphs I and VIII of his petition. The

court has held that plaintiff is entitled to back

D-3

pay because his discharge was illegal since in the

court's opinion it was an excessive penalty for his

offenses. In declining to reinstate plaintiff, the

opinion of the court explains it only by saying "we

have determined not to order reinstatement in this

action in the light of the unusual nature of this

case." [Emphasis in text.] The action of the

court not to reinstate is implicitly based upon the

language of the remand and reinstatement statute,

Pub. L. 92-415, August 29, 1972, 86 Stat. 652, 28

U.S.C. §1491 (Supp. III, 1970), which states, in

pertinent part:

*** To provide an entire remedy and to

complete the relief afforded by the judg-

ment, the court may, as an incident of

and collateral to any such judgment, issue

orders directing restoration to office or

position, ***, [Emphasis supplied. ]

A literal reading of the statutory language sug-

gests that it is permissive, not mandatory. But,

" *k* federal courts have allowed the expressed

intention of Congress *** to prevail over the

alleged plain-meaning of a statute." International

Telephone and Telegraph Corp. v. United States,

Ct. Cl. No. 263-73, decided June 16, 1976, slip op.

1-2. This statute cannot be read literally as the

majority reads it because the legislative history

of the provision and the Supreme Court clearly tell

us that the statute "does not extend the classes of

D-4

cases over which the Court of Claims has jurisdic-

tion." H.R. REP. NO. 92-1023, 92d Cong., 2d Sess.

3 (1972); S. REP. NO. 92-1066, 92d Cong., 2d Sess.

(1972); 118 CONG. REC. H3769 (May 1, 1972); Unitea

States v. Testan, 0.5. (Sup. Ct.

No. 74-753), decided March 2, 1976). The Court of

Claims has never had authority to determine who

shall be appointed to government jobs under Civil

Service, who shall be promoted, or who shall be

fired. This is so well established as scarcely to

need citation of authority. "The power of removal

from office in the executive branch of the Federal]

Government, absent some specific provision to the

contrary, is incident to the power of appointment.

Keim v. United States, 177 U.S. 290, 293 (1900)."

Morelli _v. United States. 177 Ct. Cl. 848, 858

(1966); Sampson v. Murray, 415 U.S. 61, 70 n. 17

(1974). Thus, notwithstanding the fact that the

court cannot discharge plaintiff, since the remand

Statute brought about no change in the law that

makes discharges discretionary solely with the

executive, limited only by the proper exercise of

that discretion in accordance with the procedures

established therefor, the court has in fact dis-

charged plaintiff by refusing to reinstate him.

Wnen a plaintiff is awarded back pay it is

because he has been found not to have been legally

separated from the payroll. Crocker v. United

States, 130 Ct. Cl. 567 (1955). So, by what logic

D-5

and upon what grounds can it be held that plaintiff

will not be reinstated when the court holds that he

nas never been legally discharged in the first

place? To so hold is to say that the court can

exercise the discretion of the executive and dis-

Charge plaintiff. Here the court does not even say

why it removes him. It does not have such removal

authority. On the contrary, as shown above, it has

never claimed heretofore to nave such authority,

which is denied to it. Under the Back Pay Act, 5

U.S.C. §5596 (1970), the court can review an ad-

verse action, such as here, and award back pay for

an illegal removal from position. But, nowhere is

the court given any authority to fashion its own

remedy in addition thereto, except reinstatement to

make plaintiff whole because of the wrong done to

him. We thus have here a case of first impression

On the proposition of whether or not the court can

construct relief short of reinstatement under Pub.

L. 92-415. The testimony in support of the remand

and reinstatement act, and the committee reports

thereon, make it plain that not only was the juris-

diction of the court not being increased or changed

thereby but that the purpose of the legislation was

to enable the court when it awards back pay to make

a plaintiff whole by reinstating him to his job.

Prior to 1972 the power of reinstatement resided

alone in the district courts and a plaintiff who

won back pay in the Court of Claims then had to go

0-6

to the district court in a pro forma action to get

reinstated. Tnis was unwise so the Congress said

that in such circumstances the Court of Claims may

make him wnole Dy reinstatement, al! in one action.

It did not say that his partial relief in this

court should be continued as before the remand and

reinstatement statute. To do so would have render-

ed that statute meaningless. Nor did Congress say

that the court should have new authority to decide

whether he should be separated when he is granted

back pay because he should not have been separated.

It would be strange indeed if the court's view is

correct that we have authority to say plaintiff

should be separated from the payroll! at the same

time we give him back pay because we find he should

not nave been separated. This is inconsistent and

contrary to the intent of the remand statute, and

frustrates it. Also, it usurps executive authority

in determining who should be fired, and for subjec-

tive reasons different from those which say he

should not have been fired and is entitled to back

pay. It is just as wrong to do this as for the

court to say who should be appointed or promoted

when no regulation or statute has been violated.

Discretion to hire, fire, and promote is not a

judicial function.

The opinion of the court presents still an-

other difficulty. Although the petition demands

reinstatement, plaintiff's response to defendant's

D-7

motion for rehearing does not emphasize it, yet

does not repudiate the petition. The court seizes

upon this as amounting to waiver. It is defendant

here who reminds tne court that it has always been

held that once there is an award of back pay there

exists a continuing liability to award back pay un-

til the individual is reinstated and properly dis-

charged. The court in Ainsworth v. United States,

185 Ct. Cl. 110, 399 F.2d 176 (1968), quoted with

approval the language of a dissent describing the

result in McGuire v. United States, 145 Ct. Cl. 17,

24-25 (1959), that the plaintiff “gets judgment now

for the pay he would have earned to date, and the

next year he can bring another suit for his pay for

that year, and so on until he is formally rein-

Stated and discharged according to law." Recently

tne Supreme Court, in discussing cases of wrongful

discharge or suspension said: "*** at least since

the Civil Service Act of 1883, the employee is en-

titled to the emoluments of his position until he

has been legally disqualified." United States v.

Testan, supra, slip op. 10. See also, United

States v. Wickersham, 201 U.S. 390 (1906), affirm-

ing the rule announced in Lellman v. United States,

37 Ct. Cl. 128 (1902); United States v. Perkins,

116 U.S. 483 (1886); Simon v. United States, 113

Ct. Cl. 182, 198 (1949); Borak v. United States,

110 Ct. Cl. 236, 78 F. Supp. 123, cert. denied, 335

U.S. 821 (1948). Under the precedents, all that

0-8

could bar plaintiff from getting other judgments

for his back pay, based on what the court has held

to be an illegal discharge, would be to hold he

waived it in his response to defendant's motion (as

the order of the court does here), or if he waited

too long to claim such pay and was barred by

laches. Plaintiff will otherwise be able to re-

cover his salary from now on by bringing successive

Suits to recover on his continuing claim without

performing any service. This is not in the public

interest. It would be better to reinstate him in

nis position and if he is an incompetent or dishon-

est employee the agency can find a way to discharge

him according to law. If the court does not follow

this course, it is répudiating its precedents on

the theory of back pay, and it is misconstruing the

intent and purpose of the remand and reinstatement

Statute which was designed to make a wronged

government employee "whole" in his remedy. It is

restricting his rights and giving him half a loaf.

I agree that a plaintiff snould not be reinstated

unless he asks for it, as his petition does here.

I do not agree that a waiver of such demand is

implied here. The order of the court cites no

authority to support its conclusion. On the con-

trary, the court has previously held that it will

not, without a proper showing, imply a waiver. New

York Snipbuilding Corp. v. United States, 180 Ct.

Cl. 446, 385 F.2d 427 (1967). The court also#holds

D-9

that just because it does not reinstate him is no

bar to the agency doing so if it fears another suit

for back pay. If the court is not going to insist

upon making plaintiff wnole, his agency is unlikely

to feel under any compulsion to do so. True, the

court does not order that plaintiff not be rein-

Stated, but why should the agency reinstate him

when the court indicates that it holds the belief

plaintiff has waived his claim to reinstatement?

Wnat the court has failed to ao here is to face up

to what the reinstatement and remand statute means

wnen it awards Dack pay in a case where plaintiff

has also asked for reinstatement. It is not enti-

tled to anticipate a waiver in such a case in a

potential proceeding subsequent to its judgment.

Having sought unsuccessfully to extend the remand

and reinstatement statute into areas where it had

no jurisdiction in Testan, supra, the court is

overreacting in not employing the statute where it

clearly has authority and, I think, a compelling

duty to do so. "A court must be particularly cog-

nizant of the implications of a given case in the

Situation where it is confronted with clear evi-

dence of legislative intent and must formulate an

application of the statute which furthers such

Congressional purpose." First Nat'l City Bank v.

United States, Ct. Cl. No. 9-75, decided June 16,

1976, slip op. 25.

E=-1

APPENDIX E

UNITED STATES CIVIL SERVICE COMMISSION

BOARD OF APPEALS AND REVIEW

Washington, D.C. 20415

DECISION

IN THE MATTER OF

) TYPE CASE: Removal

)

)

Mr. Luther G. Power, Jr.

INTRODUCTION

The appellant appealed from the November 19, 1973,

decision of the Commission's Dallas Regional

Office, sustaining the agency's action removing the

appellant effective September 18, 1972. At the

time of the appellant's removal he was employed at

the Red River Army Depot, Texarkana, Texas, in the

position of Ammunition Inspector (Surveillance),

GS-9.

STATEMENT OF THE CASE

By letter dated July 17, 1972, the agency informed

the appellant that it was proposed to remove him

based upon the charge of submitting false informa-

tion for reimbursement of expenses incurred during

an official transfer from Fort Wingate Army Depot,

E-2

Gallup, New Mexico, to ked River Army Depot, Tex-

arkana, Texas. Four specifications (a through d)

Outlined the specifics of the infractions in Sup-

port of the basic reason for tne adverse action.

The appellant replied to the notice of proposed

adverse action in a letter dated August 9, 1972.

Additionally, the appellant made an oral reply on

August 31, 1972. By letter dated September 15,

1972, the appellant was advised that a decision had

been reached to remove him from the service and

tnat tnat decision was based upon the reason con-

tained in the notice of proposed adverse action.

As a result of the foregoing decision the appellant

was removed from his position effective September

18, 1972.

The appellant filed an appeal with the Department

of the Army wnich resulted in an agency hearing on

November 28, 1972. By letter dated February 21,

1973, the Commander, Red River Army Depot, Texar-

kana, Texas, issued his decision which sustained

the appellant's removal. The appellant appealed

that decision to the Commission's Dallas Regional

Office.

FIRST LEVEL DECISION

The Regional Office found that the agency had com-

plied with the procedural requirements of Part 752,

Subpart B, of the Civil Service regulations in ef-

fecting tne removal of the appellant. As to the

E-3

merits, the Regional Office found that the appel-

lant's removal was for such cause as to improve the

efficiency of tne service and affirmed tne action

of the agency.

REPRESENTATIONS TO THE BOARD OF APPEALS AND REVIEW

On appeal to the Board the appellant raised a

variety of contentions which depicted the agency's

action as one which did not take into account his

training and expertise which had cost the agency

over $20,000; that the agency refused to let him

withdraw his expense voucher after the investiga-

tion began; that tne information appearing on the

travel voucher was an administrative error; and

that much of his representations had been left out

or distorted.

The appellant continued his representations by mak-

ing point by point objections to tne Commission's

Regional Office decision and offered a voluminous

amount of additional information which he alleged

had a bearing on the action taken. All represent-

ations submitted by appellant were exchanged with

the agency and no rebuttals were forthcoming as a

result of that exchange. The Board has carefully

considered all of the appellant's contentions in

adjudicating his appeal notwitnstanding the fact

that many of his observations were foreign to the

issues on appeal.

E-4

ANALYSIS AND FINDINGS

The Board finds, as aid: the Regional Office, that

tne agency complied with the law and the Civil

Service regulations in effecting the removal of the

appellant. As to the merits, the Board is concerned

about the appellant's obvious desire to mitigate

the seriousness of the charges levied against him

through unsubstantiated innuendoes which were not

dealt with in detail in the Regional Office deci-

sion. In the Board's opinion the Regional Office

function with respect to the appellant's appeal was

to weigh the relevancy of the evidence presented

and to reach a conclusion as to whether the reasons

relied on by the agency were sufficient to support

its action by substantia! evidence. This is not to

Say that the resume submitted by appellant, which

took exception to the Commission's hearing, was not

considered; rather, it indicated that the relevancy

of that information was found not to be of suffi-

cient substance to warrant its inclusion in the

Regional Office summary of the hearing or its find-

ings and recommendations.

The Board has reviewed the appellant's resume of

the Civil Service Commissioner's hearing and finds

that the appellant objected to the appeals exam-

iner's rulings which denied him opportunities to

include or duplicate information which he felt was

relevant to the issue in his case. The Board is

not convinced tnat this information and otner alle-

gations raised in appellant's resume are matters

which could be considered as a valid defense.

The evidence of record establishes that appellant

submitted an expense voucher containing information

which could not be substantiated. The record fur-

ther shows that the agency's investigation produced

overwhelming and substantial evidence to establish

tnat the travel voucher was knowingly submitted by

appellant containing false entries.

The Board finds that the foregoing is the central

issue in this case and the fact that appellant was

not allowed to correct his voucher based upon the

contention that the false information was the re-

Sult of an administrative error is not controlling.

Further, the Board has determined that the other

issues and contentions raised by appellant on ap-

peal either have no merit or were disposed of in

tne Regional Office decision.

In view of the above, the Board concurs in the

findings of the Regional Office which affirmed the

removal action of the agency. The record has

established that falsification did take place as

alleged by the agency and the Board finds that the

appellant's statements and allegations do not show

facts and circumstances which would serve to excuse

the act for which he was charged. The Board

further finds that the agency's action was not

but was for

sucn cause as will promote the

@

tficiency of the

The decision of the Regional Office is hereby

affirmed.

AS provided in Section 772.307(c) of the Civi)

service regulations, the decision of the Boara is

final and there is no further right of administra-

tive appeal.

For the Commissioners:

/S/ William P. Berzak

Chairman

April 5, 1974

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