# Petition for Writ of Certiorari — Kanarek v. United States

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385604_0628%3A1

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1969
- **Citation:** 394 U.S. 1013

## Text

Msi end IEVAAEN |
a SUPREMS COURT. LU &

ed. IN THE
@ "SUPREME COURT OF THE UNI

oe) ié@4 1968

IRVING A. KANAREK,

Petitioner,

vs.

UNITED STATES OF. AMERICA,
Respondent.

PETITION FOR WRIT OF CERTIORARI TO
- ‘THE UNITED STATES COURT OF .
CLAIMS

IRVING A. KANAREK
14416 Victory Boulevard
Van mest Celiforata.

poss ae Le

IN THE
SUPREME COURT OF THE UNITED STATES

October Term, 1968
No.

IRVING A. KANAREK,

Petitioner,

vs.

UNITED STATES OF AMERICA,

Respondent.

PETITION FOR WRIT OF CERTIORARI TO
THE UNITED STATES COURT OF
CLAIMS

IRVING A. KANAREK
14416 Victory Boulevard
Van Nuys, California

Counsel for Petitioner,
Pro Se

-

TOPICAL INDEX

Table of Authorities
CITATION TO OPIN IONS BELOW
JURISDICTION

QUESTIONS PRESENTED .
CONSTITUTIONAL PROVISIONS,
STATUTES, REGULATIONS AND
COURT RULE INVOLVED (See
Appendix '"'C")

STATEMENT

REASONS FOR GRANTING THE
WRIT

CONCLUSION

OPINION OF COURT OF. CLAIMS,
March 6, 1963

OPINION OF COURT OF CLAIMS,
May 10, 1968 i

CONSTITUTIONAL PROVISIONS,

STATUTES, REGULATIONS AND
CUURT RULE INVOLVED.

i.

REPS EEG PO TAT, FO

ii

14.

21

ik et Dae tt a

TABLE OF AUTHORITIES

Cases Page
Dooley v. United States,
182 U.S. 222 15
Dupree v. United States,
141 Fed.Supp. 772,
136 Court of Claims 57 18, 19, 20
Greene v. McElroy,
360 U.S. 474 é, 6, 6, 36,.3%, 18
Parker v. Lester,
227 F.2d 708 19
Peters v. Hobby,
349 U.S. 331 4, 19
Public Utilities Commission v. U.S.,
355 U.S. 534 4
U.S, v. United States Gypsum Co.,
333 U.S. 364 20, 21
Weiman v. Updegraff,
344 U.S. 183 4, 19
Constitution
United States Constitution,
Fifth Amendment 5, 14
Statutes
F.R.C.P. , Rule 44 3, & i¢
28 U.S.C. 1255(1) 3

ii.

GRP TENE RI *

28 U.S.C. 1491 4, 5, 14, 15
28 U.S.C. 1738 3, 5, 17
28 U.S.C. 1739 3, 5, 17

iii.

PO ae TR PIS ee an
} Rees CEES RE AIRES 78 RENT RYE ONES TO eee ee ane eR

FP PTA RTS
PAPVPOS ‘

oan

Soa anneal ee tae

IN THE
SUPREME COURT OF THE UNITED STATES

October Term, 1968
No.

IRVING A. KANADEK,
Petitioner,
vs.
UNITED STATES OF AMERICA,

Respondent.

PETITION FOR WRIT OF CERTIORARI TO
THE UNITED STATES COURT OF
CLAIMS

To the Honorable Chief Justice Ear] Warren, and
to the Honorable Associate Justices of the
Supreme Court of the United States:

Petitione~: petitions that a Writ of
Certiorari issue to review all the action of the
United Ste.es Court of Claims in case 139-58,
as to which the final judgment was entered on
May 10, 1968; a timely Petition for Rehearing
was denied on October 18, 1968; this Honorable

Court has extended the time for docketing the

1.

. ale” hee
EO RRR ee Vy FR er Tete rv pe oe @ eruenee.

Petition for Writ of Certiorari until March 16,
1969; after an interlocutory judgment, and denial
of a timely Petition for Rehearing by the Court
of Claims as to said interlocutory judgment, this
Honorable Court denied Certiorari (379 U.S.
83s).

CITATION TO OPINIONS BELOW

The interlocutory judgment of the afore-
mentioned U.S. Court of Claims was entered on
March 6, 1963; concurrently with the entry of
judgment said Court of Claims filed a written
opinion which is reported at 314 Fed. 2d 802.
The certified record which accompanies this
Petition includes said opinion [R. 146-151].
(See Appendix A, pp. 1-8).

Subsequent to this Honorable Caurt deny-
ing the Petition for Certiorari in connection with
the interlocutory judgment, the U. S. Court of
Claims entered on May 10, 1968 a subsequent
opinion in connection with this case. (See
Appendix B, pp. 1-18).

JURISDICTION

As stated, supra, the interlocutory Court
of Claims judgment was entered with written
opinion, on March 6, 1963, and timely Petition —
for Rehearing was denied on April 17, 1964
without written opinion; on May 10, 1968 a sub-
sequent opinion of the U.S. Court of Claims
was entered and a timely Petition for Rehear-
ing in connection with this second, and

purportedly fimal, decision was denied on
October 18, 1968. The jurisdiction of this
court is invoked under 28 U.S.C. 1255(1).

QUESTIONS PRESENTED

1. Can an ultimate finding of fact and a .
conclusion of law (Appendix B, P- 18) in the U.S...
Court of Claims be predicated upon the purported
testimony over objection, of a purported a
California bepartment of Employment employee,
which testimony was a crucial basis for the _
decision that petitioner was not "ready, willing -
and able to accept suitable employment" “es
(Appendix B, p. 18, paragraph 25), when Said
testimony by ‘he non-percipient employee was
incompetent hearsay (said employee having never
seen the plaintiff and having had nothing.tc do te
whatever with the plaintiff, or any matter per-.
taining to the plaintiff) and in violation of Rule 44
of the Federal Rules of Civil Procedure ?

.2.. May an act of the legislature of the .
State, herein the State of California, be used in
determining and rendering judgment in the U. &.....
Court of Claims notwithstanding that 28 U.S.C.A.
1738, 1739 have not been complied with ?

3. Whether the United States Court of ne
Claims has power to invoke the provisions of '
"The Industrial Personnel Security Review
Regulation" (Department of Defense Directive
5220.6) termed Program "'B" for the sake of .-
convenience in this Petition for a Writ of

3.

RR emenerr ees sernmeemnpees Eras Samer

Sertiorari (set forth in 20 Federal Register
1554), and its antecedent ''The Industrial
Personnel and Facilities Security Clearance
Program, "' termed Program "A" for the sake of
convenience in this Petition for a Writ of
Certiorari, to evaluate the measure of monetary
recovery of petitioner whose security clearance
while employed at North American Aviation,
Inc., was withdrawn without authority by the
United States, wiin the consequent pinning oP
him of a lifetime "BADGE OF INFAMY, "2! in
view of the fact that this Court holds in Greene
v. McElroy, 360 U.S. 474 at page 504, that
Program "A" and Program "'B" constitute an
"elaborate clearance program" which was
unauthorized? Includéd ‘in this question is
whether there was, in fact, any administrative
remedy whatsoever available to petitioner [See
Public Utilities Commission v. Unitec States,
355 U.S. 554 at 539 and R. 121].

4. Whether 28 U.S.C. 1491 provides a
bases for monetary recovery by petitioner due
to the unauthorized withdrawal of petitioner's
security clearance by the United States?
Included in this question is whether the due

y Language used by this Court in Wieman v.
Updegraff, 344 U.S. 183 at 191 (involving a
State Civil Service employee) and Peters v.
Hobby, 349 U.S. 331 at 347 (involving a profes-
sor of medicine employed as a Special
Consultant by the Federal Government).

4.

;
ry
3

i al a a ek Boas IF FETRIIRES, 1S LEELA I NE INLINE SFR EINE 1 a TERI ET SII ERO IIE LRM ERE NOG CRIS t ] he eh

process clause of the Fifth Amendment
constitutes a basis for recovery and/or whether
the just. compensation clause of said Fifth
Amendment constitutes a basis for recovery.

5. What are the criteria which must
be used to- evaluate the extent of petitioner's
nonetary recovery for the damage resulting to
him from.the unauthsrizec withdrawal of security
clearance by the United States ? 7 ,

CONSTITUTIONAL PROVISIONS,
STATUTES , REGULATIONS AND
COURT RULE INVOLVED (See
Appendix "C"')

A. The Constitutional provisions involved
are the due process and. just compensation
clauses of the Fifth Amendment.

- B. Statutes involved are 28 U.8.C,
1491; 28 U.S.C, 1738 and 28 U.S.C. 1739.

'C. . The regulations involved are |

‘1. Industrial Personnel and Security
Clearance Program [R. 42-60],
held unauthorized in Greene v.
McElroy, 360 U.S. 474,

2. Industrial Personnel Security
Review Regulations, Department
' of Defense Directive No, 5220.6,
held unauthorized in Greene v, :

De

RIEL LOOSE ELIE ts) SRW ERE NONA UNC The Bae LEN ALG TRO NINTH

McElroy, 360 U.S. 474, [Ex. 2
attached to ''Defendant's Reply to
Plaintiff's Objections to Defen-
dant's Motion to Dismiss" and
referred to at R. 68].

(In this Petition for a Writ of Certiorari
1, supra, is termed Program "A", and 2, supra,
is termed Program ''B"; the purported Monetary
Restitution provisions of these two progiams are
set forth in Appendix C).

D. Rule 44 of Federal Rules of Civil
Procedure.

STATEMENT

On April 1, 1958, petitioner filed a timely
Petition with the United States Court of Claims
[R. 1-6]. This Petition has a Court of Claims
Docket Number 139-58. The jurisdiction of the
Court of Claims was invoked because the security
clearance of petitioner was revoked by the
purported.authority of Program "A", a regula-
tion promulgated by the Secretaries of the Army,
Navy and Airforce on May 4, 1953 [R. 42-60].

Prior to and including July 12, 1954,
petitioner was employed at Los Angeles, Calif.
‘by North American Aviation, Inc., hereinafter
referred to for convenience as North American,
as a Research Engineer. Prior to and including
July 12, 1954, petitioner was possessed ofa .
security clearance authorizing petitioner to have

6..

SPELL PIL STF LE PPE AN ONE IEA NET ETA RTT SNE. TENT EO HN PORE TENE PYRITE Or . 4

ON Nd a eal PE Rieti SB I ss

; OL OE DONS TION PRELIM *) Sa eee
re Sie aati "7 :

access to classified security information up to
and including material and information classified
as Top Secret.

‘On or about July 12, 1954, petitioner and
North American were informed by the Screening
Division of the Western Industrial Personnel
Security Board, purportedly an agency of the
Department of Defense of the United States
Government, that the granting of clearance to
petitioner of access to classified security infor-
mation was not clearly consistent with the
interests of national security. Petitioner was
suspended without pay on or about July 12, 1954
by North American as a result of said action of
Said Screening Division. Petitioner's Salary
at the time of said Suspension was $710.00 per
month.

After a hearing before the Appeal _
Division of the Western Industrial Personnel |
Security Board, petitioner and North American
were informed on or about September 29, 1954, |
that granting petitioner access to classified |
information was-not-clearly consistent with the
interests of national ‘security.

__ On or about September 6, 1955 the
Industrial Personnel Security Review Board
determined that the granting to petitioner of
clearance for access to classified information
was clearly consistent with the interests of.

national security. This Board was purportedly

operating under Department of Defense _
Directive No. 5220.6 (termed Program "'B" —

a

Uprkbes a

ee oe a ee es

herein), [Referred to as Ex. 2 at R. 68], the

S effective date of which was April 3, 1955. , The.
aforementioned Directive purportedly super-
seded the Industrial Personnel and Facility —
Security Program (termed Program "A" herein).
Both of these Programs were found to be un-, |
authorized by this Court in Greene v. McElroy, .
supra. Notwithstanding the determination of the.
Industrial Personnel Security Review Board (on —
or about September 6, 1955), that the granting: .
to petitioner of clearance for access to classified
information was clearly consistent with Bes
interests of national security, petitioner was not |
regranted access to information classified as. _
Secret until on or about February 7, 1958 while
employed at Radioplane Co.

Due to the fact of the withd rawal of
security clearance petitione. was completely
deprived of employment utilizing his technical
skills from July 12, 1954 to April 9, 1956. |
During the period September 21, 1955 to April
9, 1956 petitioner had no earnings.

puring the period April 9, 1956 to -
January 21, 1956 petitioner was employed at
Lockheed Aircraft Corp.;, Missile Systems _
Division, but notwithstanding the action of the
Industrial Personnel Security Review Board of
on or about September 6, 1955, and the letter
of September i5, 1955 seat to the Headquarters ©
Air Materiel Command [R. 127], the United
States did not regrant petitioner Secret clearance.
while he, petitioner, was employed at Lockheed.

a

Due to the fact of withdrawal of security
clearance on or about July 12, 1954 and the fact
that petitioner was not successful in obtaining
re-grant of security clearance to the Secret level
(at North American petitioner had a Top Secret _
security clearance) until on or about February 7,
1958, petitioner has been extensively and
permanently damaged due to withdrawal of his
security clearance. Due to the fact of with-
drawal of security clearance on or about July 12,
1954 and the fact that petitioner was not succes-
sful in getting the re-grant of security clearance
to the Secret level until on or about February 7,
1958, petitioner has lost forever irreplaceable -
experience-time in the field of rocket propul-
sion research in which field he had been engaged.
The withdrawal of security clearance disloged
petitioner from the field of rocket pr spulsion
research and the entire field of rocket propul- . .
sion, research and otherwise, with consequent
extensive and permanent damege to him.

Petitioner is co-inventor of a patent
(No. 2, 760, 845) entitled "Stabilized Fuming
Nitric Acid, " a material now extensively used
as a propellant (oxidizer) by the United States
Government in jet propulsion driven vehicles,
such as vehicles driven by certain rocket
engines. This invention also has non-jet
propulsion uses. Petitioner is inventor of a
patent (No. 2, 930, 684) entitled ''Propellant
Combination Including Liquid Fluorite and
Liquid Oxide Oxidizer.'' Since these inventions -
occurred during the course of research work
while petitioner was at North American,

petitioner's interests in said patents were assigned
to North American. Nevertheless, North
American has had a policy of making certain -
monetary awards to each inventor in con.ection
with each of his inventions provided the inventor

is on the payroll at the time of the issuance of the
patent. The "Stabilized Fuming Nitric Acid"
patent referred to, supra, was issued on August
28, 1956; the "Propellant Combination Including

Liqu'd Fluorine and Liquid Oxide Oxidizer" patent

refer.«# to, sypra, was issued on March 29,
1960. ther patent disclosures both classified
and unclassifieés were made to North American
by petitioner. At least two of said cisclosures
have resulted in the issuance of Secrecy Orders
by the United States Patent Office. (Said Secrecy
Orders are themselves not classified. They are
transmitted by ordinary mail and are not labled
as classified matter. -“‘No patent can issue from
a disclosure covered by a Secrecy Order, regard-
less of the patentability of the subject matter,
until the Secrecy Order is lifted. )

The fact of withdrawal of security clear-
ance imposed, and still imposes, a ''badge of
infamy'' «pon petitioner. By way of illustration,- '
reference is made to a paper which was presented
to the American Rocket Society atits fall. -— :
meeting, September 18-21, 1955, at Los Angeles,’
California, by North American personnel. This
paper, entitled "Generalized Solution of the .
Theoretical Specific Thrust of a Rocket Motor for
the C-H-N-O-F Atomic System," did not include
petitioner as a co-author because of the fact of
the withdrawal of his security clearance. |

10;

rm mo SPT OE SOMPLO ba Bs Tae SET TY ICL TS SREY CEO

2 RAE TF

P ewe
Si Ds oh Mert A Ate MN I lg eh Sp alg kb nee

ment, professional, and other Opportunities for

petitioner have been permanently and extensively
damaged and limited, Petitioner did not

the Ramo- Wooldridge Corporation and its
affiliates, and the Douglas Aircraft Cumpany,
Inc., have been permanently and extensively

compense in both. Scientific and non-scientific
activity consistent with his unique and highly : .
Specialized training, abilities, and experience,
whether said activity requires security clear-
ance or not. . me

Petitioner alleges that he has been McElroy,
found the security programs which were applied
to petitioner to be without authorization. This

18.

Sika ds ta 3

NE el ep ny a ee”

Court should grant certiorari in the instant case
in view of the fact that without such grant there is
no appellate review possible of the Court of
Claims' decision in the instant case, and thelaw,
and novel premise, would be settled, without
judicial review, that unauthorized regulations
can purportedly be used to determine the criteria
for recovery [Bottom of R. 149 to top of R. 150,
and note 2 at the bottom of R. 68; also, see.
Appendix A, p. 6]; such procedure offends due
process under the Fifth Amendment as did the un-
authorized withdrawal of security clearance; not-
withstanding the statements in Dupree [R. 148
and Appendix A, pp. 3-4], petitioner contends that
the right to follow a lawful calling is Constitu+
tionally protected and hence his claim is one
founded upon the Constitution. This is borne out
by Parker v. Lester, 227 F.2d 708 at 717 where
the Court states, referring to privately employed
merchant seamen, that the liberty to follow their
chosen employment
"is no doubt a right more clearly

entitled to Constitutional protection

than the right of a Government

employee to obtain or retain his job."

Thus, there is a fundamental conflict between the
Court of Appeals for the Ninth Circuit and the
Court of Claims; furthermore, it is urged that
the position of the Court of Claims is inconsis-
tent with that of this Court in Wieman v.
Updegraff, 344 U.S. 183, and Peters v. Hobby,
349 U.S. 331 (see footnote at bottom of p. 2,
supra), in that, as stated by Mr. Justice Douglas

in his concurring opinion in Peters v. Hobby,
supra, at 351,

19.

"We deal here with the:reputation
of men and their right to work --
things more precious than property
itself."

The Court of Claims in its first decision in the
instant case, quoting from its own decision in
Dupree, supra (Appendix A, p. 4) asks the
question

"did plaintiff lose his means of live-
lihood because of the alleged
violation of his constitutional rights ?"'

In the case of petitioner the answer must be
"yes" since, except for the violation of due
process by way of the unauthorized withdrawal
of the security clearance vested in him,
petitioner. would not have been severed from
North American and dislodged from the rocket-
propulsion field.

Petitioner, unlike a litigant in the State
Courts or a Federal District Court, has no
appellate review from the Court of Claims
except that granted by this Court in his struggle
to obtain redress for the at least $163, 381 .
damages done him which redress the Honorable
Court of Claims below has seen fit to evaluate
at $4,677.52. Petitioner urges this Court to
grant certiorari so that it may review,.inter
alia, the findings of fact and conclusions of law
below and reverse. This Court has the power
so to do (U.S. v. United States Gypsum Co.,
333 U.S. 364 at 395) when the trial court's

20.

finding (or findings) is "clearly erroneous. '"
Thus, in the instant case there is no question
but what ''a mistake has been committed" (U.S.
v. United States Gypsum Co. » Supra, at 395),
for insiance, by the Honorable Court below in
its using the purported evidence advanced by
Mr. Zack of the California Department of
Employment.

CONCLUSION

For the foregoing reasons, this petition
for a writ of certiorari should be granted.

Respectfully submitted,
IRVING A. KANAREK

Counsel for Petitioner,
Pro Se

21.

APPENDIX “A”,
Opinion of the United States Court of Claims.

In the United States Court of Claims.
No. 139-58
(Decided March 6, 1963)

Irving A. Kanarek v. The United States.
Rex M. Minter for plaintiff.

Lawrence S. Smith, with whom was Acting Assistant
Attorney General Joseph D. Guilfoyle, for defendant.

Before Jones, Chief Judge; Whitaker, Judge; Lara-
more, Judge; Durfee, Judge; and Davis, Judge.
On Defendant’s Motion to Dismiss Plaintiff’s Peti-
tion 7

Laramore, Judge, delivered the opinion of the court:

This case originally came before the court on defend-
ant’s motion to dismiss. The court, at that time,
suspended the proceedings until plaintiff had exhausted
his administrative remedy through the Department of
the Air Force. ©

Plaintiff thereafter pursued said remedy, and the
Secretary of the Air Force approved the claim in
the amount of $4,677.52.

On Juiy 23, 1962, plaintiff moved that the suspension
of proceedings be lifted and that the court set the
matter down for argument. This motion was premise
on the contention that more money is due plaintiff
and the administrative recommendation of $4,677.52
was unacceptable to him. By order of court, this
motion was allowed and, after filing” of certain addi-

A —2—

tional exihibits by defendant,’ the case was assigned
for argument on the validity of plaintiff's claim.

Thus the case now before us calls for a determination
of the entire claim of plaintiff as alleged in his
petition.

It is plaintiff’s claim that in addition to loss of wages
during the period his security clearance was withdrawn,
he is entitled to a much greater sum representing dam-
ages suffered because of lost merit raises and general
increases, damages based on a linear increase in earning
power, loss of experience in the field of rocket pro-
pulsion research, loss of a bonus resulting from an
invention of plaintiff, damages because of certain patent
disclosures by North American Aviation, Inc., and for
damages occasioned by loss of employment opportunities.

Plaintiff alleges his action arises under Article II
of the Constitution of the United States, the Fifth
Amendment thereto, and section 1491, Title 28 US&.,
the general jurisdictional act relating to the Court
of Claims.

The facts are these: On July 12, 1954, while
employed as a research engineer for North American
Aviation, Inc., plaintiff's Goverament clearance for
access to classified security information was with-
drawn. On September 21, 1955 it was restored.

North American Aviation, Inc., was a Government
contractor and had, on April 6, 1953, entered into
a written security agreement with the Government,
containing various provisions for the safeguarding of

1Tnasmuch as the defendant filed exhikits to support its motion
to dismiss, we now treat the Governmcnt’s motion as @ mouon
for summary judgment. Rule 16(b) of the Rules of this court.

RR A REINA CLM LEI NE TE ETE, TT EE TS ST TT ST TE
A—3—

Classified security data that would come into its posses-
sion in the course of its performance of Government
Contracts. One of these provisions was that the Govern-
ment agreed, upon application of the contractor, to
designate employees of the contractor who could have
access to certain types of classified security information.

With the exception of plaintiff’s claim for loss of
wages, we are of the opinion that plaintiff’s claims
are unfounded, and we will dispose of such claims at
the outset,

not an employee of the contractor as plaintiff argues.
Furthermore, it is apparent that there was no privity
between plaintiff and the Government, and since his
alleged injuries were the result of dealings between the
United States and the sontractor, there is no basis for
& contract implied or in fact between plaintiff and the
United States.

Nor can plaintiff base a claim upon the due process
clause of the Constitution. It was so held by this
court in Dupree v. United States, 136 Ct. Cl. 57.
in this case the court stated, at page 61:

We are, nevertheless, of opinion that his petition
is insufficient to state a case as one founded on
the Constitution. If it is possible at all in a

A-A—

case such as this to state a case founded on the
Constitution, it would, at least, be necessary to
allege facts to show that, except for this violation ~
of his constitutional rights, the certificate would
have been granted him, and he would have been
permitted to follow his vocation and would have
earned the wages for which he sues.

It is hardly conceivable that such a case could
‘be stated, and, even if it could be done, we seriously
doubt the right of a citizen to recover a money
judgment in such a case. But, assuming such a
case could be stated, the question is, did plaintiff
lose his means of livelihood because of the alleged
violation of his constitutional rights? Otherwise
stated, is it necessarily true that the certificate
would have been issued to him if his alleged
constitutional rights had been respected, that is,
had he been confronted by his accusers.

How can we know? Suppose he had been con-
fronted by his accusers and they had testified to
the things alleged * * *; and that after these
witnesses had been subjected to cross-examination,
the Commandant had still believed their testimony,
under these circumstances must he have granted
the certificate? If this does not follow, plaintiff
has not stated a case. Plainly it does not follow.

The Dupree case and this case are strikingly similar.
Dupree’s security clearance was withheld; plaintiff’s
security clearance was withheld. Here, as in the Dupree
case, nothing is present, alleged or proved, to convince us
that under any circumstances plaintiff’s certificate
would not have been removed or would have been

a

granted him so that he would have been permitted to
follow his vocation. Having failed to allege and prove
the necessary allegations under the criteria of the
Dupree case, supra, plaintiff cannot recover under the
due process clause of the Constitution.

Nor has plaintiff stated a case under the just
compensation clause of the Fifth Amendment of the
Constitution. The action taken was simply the issuance
of a regulation designed to protect the United States
and action taken thereunder to withhold the security
clearance. Its purpose was not to take property for
public use, nor was property taken for public use which
is essential to a Fifth Amendment taking.

Since there can be no recovery in this case under any
article or amendment of the Constitution of the United
States, and absent a contract between plaintiff and the
United States, plaintiff’s only alternative for recovery,
with the exception noted earlier relating to loss of wages,
would be under a statute, or a regulation, or for liqui-
dated or unliquidated damages for cases not sounding
in tort. 28 U.S.C. § 1491.

No statute or regulation is called to our attention
and we know of none which could form the basis of
plaintiff’s claim. Consequently, plaintiff must also
fail on this aspect of the case.

Respecting the portion of the statute which permits
suits for liquidated or unliquidated damages for cases
not sounding in tort, two decisions of the Court of
Appeals for the Third Circuit? are significant. The
facts of the above cases are very similar to the facts

*Dupree v. United States, 247 F. 2d 819; Dupree v. United
States, 264 F. 2d 140.

A—6--

in this case, and the court therein clearly recognized
and treated the alleged actionable conduct of the de-
fendant as a tort. Recovery was denied because the
Federal Tort Claims Act specifically precludes recovery
for this particular category of torts. We can see no
distinction between the two above cited cases and the
case at bar. If it was a tort in the case of Dupree,
it is a tort in the instant case, and since the statute
specifically exludes tort claims from our jurisdiction,
plaintiff cannot recover under this court’s general
jurisdictional act, supra.

This brings us to plaintiff's claim for wages lost
by reason of the withholding of his security clearance.
Paragraph 26, Industrial Personnel Security Review
Regulation, Department of Defense Directive 5220.6,
dated February 2, 1955, as amended, authorized the
secretary of the department concerned to settle reim-
bursement claims in appropriate cases resulting from
the suspension of a contractor employee’s clearance.

As noted earlier, plaintiff’s security clearance was
restored September 21, 1955. Pursuant to this court’s
order, plaintiff pursued his administrative remedy and
the Secretary of the Air Force approved the claim in
the amount of $4,677.52, covering the period July 12,
1954 to January 29, 1955, less outside earnings. He
did not grant the claim for the balance of the period
January °30, 1955 to September 21, 1955, because
plaintiff failed to furnish satisfactory evidence to
reasonably demonstrate a deligent interest in securing

a ¥ Ch i ah a i a i eS tines
meeeeemiemaial
‘

employment and availability therefor. It was pointed
out to plaintiff in the letter allowing his claim in part
that he drew unemployment compensation benefits from
the State of California up to January 29, 1955, but
they were terminated on that date, presumably because
he failed to qualify for them under the unemployment
code of that state, and that he did not contest or
otherwise dispute such action. This was the only
evidence concerning plaintiff’s efforts to obtain em-
ployment during this period.

At the time of oral argument plaintiff was granted
the opportunity to file an affidavit concerning his ef-
forts to obtain employment and he thereafter did
file such an affidavit. In his affidavit he avers that
while he is now unable to state with precision the
particular times, he did make efforts to secure employ-
ment and he lists the names of certain organizations
to which he applied. He also avers that his efforts were
to no avail. He also avers that menial employment, such
as dishwashing as suggested by the Department of Em-
ployment of the State of California, was not sought,
and that he was always ready, willing and able to work
after July 12, 1954.

We are of the opinion that a person with the scientific
background of plaintiff should not be forced to take
jobs so far below his level of intelligence and level
of his former employment in order to avoid the impli-
cation of failure to seek employment. We are further
of the opinion that in consequence of his affidavit, a

A—8—

question of fact now exists which cannot be disposed
of except by a trial before a commissioner cf this court.

Consequently, we now remand the case to a commis-
sioner for a determination of the unresolved question
of whether or not plaintiff actually did attempt to
obtain employment in the period January 30, 1955 to
September 21, 1955.°

On all other phases of the case, defendant’s motion
for summary judgment is granted, and plaintiff's
petition with respect thereto is dismissed.

8If plaintiff prevails, he, of course, would be entitled to recover
loss of wages for this period in addition to the administrative de-
termination of $4,677.52.

APPENDIX B

Gn the Waited States Gourt of Gains

No. 139-58
(Decided May 10, 1968)

IRVING A. KANAREK v. THE UNITED STATES

Irving A. Kanarek, pro se.
Lawrence S. Smith, with whom was Assistant Attorney
General Edwin L. Weisl, Jr., for defendant.

Before Cowen, Chief Judge, Lazamore, Dorrez, Davis,
Cottins, SKELTON, and Nicuo1s, Judges.

OPINION

Per Curtam: This case was referred to Trial Commis-
sioner Saul Richard Gamer with directions to make findings
of fact and recommendation for conclusions of law under
the order of reference and Rule 57(a). The commissioner
has done so in an opinion and report filed on February 21,
1967. Exceptions to the commissioner’s opinion, findings of
fact and recommended conclusion of law were filed by
plaintiff and the case has been submitted to the court on the
briefs of the parties and oral argument of plaintiff, pro se,
and counsel for defendant. Since the court is in agreement
with the commissioner’s opinion, findings and recommended
conclusion of law, as hereinafter set forth, it hereby adopts
the same as the basis for its judgment in this case. Therefore,
plaintiff is entitled to recover and judgment is entered for
plaintiff in the sum of $4,677.52.

297-755—68

SPR commennn cn ereeremarens NISL ENNIO OM GME SEE WT SE IRS NE POSES OG RN Ie PON F

ene

B-2
OPINION OF COMMISSIONER

Gamur, Commissioner: By its decision of March 6, 1963 *
on defendant’s motion to dismiss (which was treated by the
court as @ motion for summary judgment), the court held
thet plaintiff was entitled, in accordance with the determi-
nation of the administrative agency (the Department of the
Air Force), to recover the sum of $4,677.52, being the net
amount of back salary plaintiff lost during the period July
12, 1954, when plaintiff's security clearance was suspended,
to January 29, 1955, when plaintiff’s eligibility to receive
further unemployment compensation payments was with-
dravn by the State of California Department of Employ-
ment. The administrative agency denied the balance of
plaintiff's back salary claim in the amount of $5,291.87 cov-
ering the period January 30, 1955 to September 21, 1955, the
date plaintiff was notified that favorable action had been
taken on his appeal and that the suspension of his security

clearance had been lifted. The agency determined that, for
such latter period, plaintiff had failed to make a satisfactory
showing that he was ready, willing, and able to take suitable
employment.

By said decision, the court granted defendant’s motion
and dismissed all of plaintiff’s claims set forth in his peti-
tion, totaling $163,831, except as to said amount of $4,677.52,
to which it held plaintiff to be entitled, and said balance of
$5,291.37, upon which it reserved judgment. As to plain-
tiff’s entitlement to said balance, the court remanded “the case
to a commissioner for a determination of the unresolved
question of whether or not plaintiff actually did attempt to
obtain employment in the period January 30, 1955 to Sep-
tember 21, 1955.” (161 Ct. Cl. at 43-44.)

For the reasons set forth in the following detailed and
ultimate findings of fact and conclusions of law, it is con-
cluded that, considering all the facts and circumstances based
upon a full review of the record, the administrative agency’s
action was fair and reasonable and should be sustained, that

1161 Ct. Cl 87, G14 F. 24 802; plaintif’s motion for reconsideration denied
April 17, 1964; plaintiff's petition for a writ of certiorari denied October 12,
1964 (879 U.8. 888).

a SE SO ee SRP LSNSOR A, SILL MO EEL INO LE INO SLL EI ODL IED IO GOL GE Eg ELE SE I

B-3

plaintiff has failed to sustain his burden of proving entitle-
ment to recovery for the period January 30, 1955 to Septem-
ber 21, 1955, and that judgment should ke entered for plain-
tiff in the net amount of $4,677.52, representing gross lost
wages of $4,752.52 during the period July 12, 1954 to Janu-
ary 29, 1955, less the amount of $75 earned in other employ-
ment during such period.

Finpines or Faor

1. On July 12, 1954, the Department of the Air Force, by
the action of the Screening Division of its Western Indus-
trial Personnel Security Board, withdrew plaintiff's authori-
zation for access to Government classified information. As
& consequence, the employment of plaintiff, a research engi-
neer, with North American Aviation, Inc. an Air Force
contractor, was suspended, the contractor having previously
executed a “Security Agreement” with the Department of
the Air Force, acting for the Department of Defense, which
required it to take such action under such circumstances. By
letter dated September 29, 1954, plaintiff was notified that
the Screening Division’s action had been affirmed by the
Appeal Division of said Board.

2. On November 11, 1954, plaintiff established an “unem-
ployment insurance” claim in the office of the State of Cali-
fornia Department of Employment and thereafter drew
weekly unemployment compensation from such date to Jan-
uary 29, 1955 in the total amount of $270. The record does
not indicate why. plaintiff waited until November before
establishing such aclaim. On the latter date, such payments
were terminated. No appeal proceedings were instituted by
plaintiff with respect to such cessation.

3. On plaintiff’s request, his case was reviewed by the De-
partment of Defense Industrial Personnel Security Review
Board which determined that the granting of clearance to
plaintiff for access to classified information was clearly con-
sistent with the interests of national security. North Ameri-
can Aviation was so notified by a letter dated September 15,
1955 from the Director of the Department of Defense Office
of Industrial Personnel Security Review. On September 21,
1955, plaintiff was also so notified by the receipt of such a
letter dated September 16, 1955.

B-4

4. (a) Department of Defense Directive No. 5220.6 of
February 2, 1955, entitled “Industrial Personnel Security
Review Regulation”, provided in paragraph 26, headed
“Monetary Restitution”, that where, in such cases, there was
a final determination favorable to an employee of a Depart-
ment of Defense contractor, the particular Department con-
cerned would reimburse the employee “in an equitable amount
for any loss of earnings during the interim resulting directly
from a suspension of clearance”, such amount not to “exceed
the difference between the amount the contractor employee
would have earned at the rate he was receiving on the date of
suspension and the amount of his interim net earnings.”

(b) By letter of October 31, 1955, plaintiff inquired of
the Director of the Office of Industrial Personnel Security
Review how he could obtain the restitution provided by the
directive.

5. Following receipt of information from the Department
of Defense as to how to proceed, plaintiff, on December 27,

_ 1955, submitted to the Department of the Air Force, on the

required Department of Defense form entitled “Claim for
Loss of Wages”, a claim in the amount of $9,698.89 for net
lost wages from July 12, 1954, the date his security clearance
was withdrawn, to September 21, 1955, which plaintiff set
forth as the date of the reinstatement of such clearance.
Plaintiff listed the total lost wages during the period of the
suspension of his security clearance as $10,258.89. In re-
sponse to a specific inquiry on the form concerning the
“A mount of Unemployment Compensation Benefit Payments
Received or Due for Period of Your Suspension”, plaintiff
inserted the figure of $270, and deducted such amount from
the total of lost wages, as well as, in response to another ques-
tion on the form, the amount of $290 in earnings during such
interim suspension period, making a net claim of $9,698.89.

6. The California Unemployment Insurance Code in effect
at that time (West’s Annotated California Codes, Unemploy-
ment Insurance §§ 1253, 1256-1258) provided, among other
things, that to be eligible to receive weekly unemployment
compensation benefits, the claimant must register for work;
continue to report to the appropriate public employment
office; be able to, and be available for, work; and attempt to

LO BREIL RE IE TINT Te a a ele NE ah i ¢ LIER APR ENE PEE LOIRE YETI CALE TITLE iy BN MERON RE Ml NY IEA

tts

B-5

seek work on his own behalf. Among the causes for dis-
qualification were leaving work voluntarily and without good
cause, a discharge for misconduct, refusing to accept suitable
employment, or failing to apply for such suitable employ-
ment when notified by a public employment office. “Suitable
employment” was defined as “work in the individual’s usual
occupation or for which he is reasonably fitted * * *.” For
the latter, the risk to health and safety had to be considered,
as well as, among other things, the applicant’s physical fit-
ness, training, and experience. The Department’s regula-

1 Pertinent parts of sald sections of the Code, in effect in 1954 and 1955,
are as follows:

““§ 1258. Bligibility for partioular week. An unemployed individual is ell-
gible to receive unemployment compensation benefits with respect to any week
only if the director finde that:

(a) A claim for benefits with respect to that week has been made in accord-
ance with authorized regulations.

(b) He has registered for work, and thereafter continued to report, at a
public employment office or such other place as the director may approve.
Either or both of the requirements of this subdivision may be waived or
altered by authorized regulation as to partially employed individuals attached
to regular jobs. ’

(c) He was able to work and available for work for that week, and had
made such effort to seek work on his own behalf as may be required in accord-
ance with such regulations as the director sha‘l prescribe.

(4) He has been unemployed for a waiting poriod of one week as defined in
Section 1254, © © ©

* o « aa . e a

§ 1256. Disqualification ; voluntarily quitting; presumption of discharge ;
rebuttal of presumption. An individual is disqualified for unemployment
compensation benefits if the director finds that he left his most recent work
voluntarily without good cause or that he has been discharged for misconduct
connected with his most recent work.

An individual is presumed to have been discharged for reasons other than
misconduct in connection with his work and not to have voluntarily left his
work without good cause unless his employer has given written notice to the
contrary to the director within five days after the termination of service,
setting forth facts sufficient to overcome the presumption. If the employer
files such notice, the question shall immediately be determined in the same
manner as benefit claims. * * #

§ 1257. Disqualification; falsification; refusal of employment. An indi-
vidual is also disqualified for unemployment compensation benefits if:

(a) He wilfully made a false statement or represeatation or wilfully failed
to report a material fact to obtain any unemployment compensation benefits
under this division. :

(b) He, without good cause, refused to accept suitable employment when
offered to him, or failed to apply for suitable employment when notified by a
public employment office. * * ¢

$1258. Suitable employment. ‘Suitable employment’ means work in the
individual’s usual occupation or for which he is reasonably fitted, regardless
of whether or not it is subject to this division.

In determining whether the work is work for which the individual is reason-
ably fitted, the director shall consider the degree of risk involved to his
health, safety, and morals, his physical fitness and prior training, his expe-
rience and prior earnings, his length of unemployment and prospects for

a a a ee Re eee ee eee ee ‘ ne EPR EN

. 4

B-6
tzons defined in detail the action tiat would be considered
as constituting reasonable efforts by a claimant t» eek work

on his own behalf."

Department of Employment to discontinus bene

At no time was it the policy or authesized practice of che
£ts to an applicant who refused to accept employment far

California

below his educational background level, treining, or

Saf iptaT?
nea
bts h 1
ry 1k 8 §4
pagel
tlealin 2h
hE | geal :
Ls ae
ay
aH

Hy

ie it
ra

t
Ht i

i

ef

ee

j He
itil

TH: Hire

employment of a permanent

8. Plaintiff did not obtain

type antil

he was employed by the Lock-

April 9, 1956, when

heed Aircraft

security
with

time he was gi

given
lower

clearance, &

clearance than he had held

of

type

Reddy
HE
AHE
isle]
full
THE
qh

passage of evveral letters between the parties,

Despite the

in which the

unemployment

reitarated its

Air Force

employment, plainti#® refused te

HIE
aad a
fi HAY
a ae a
Hi ay eee
raehy ae tf fd
parte ui tof ti
i Ht
ini BUDE

tf
HH
3

HF
ot
Hf

44411
Se

Hit
il

LA

Ht

| He

apply to claimants applying for deaedits

of thie section do not

of partial enemployment.”

:

-

ie as

B-8

queries in the July 18 letter are not pertinent to the adjudica-
tion of my claim”. Among other things, plaintiff relied on
the case of Mendes v. United States, 119 Ct. Cl. 845, 96 F.
Supp. 826 (1951), stating that such decision “is not con-
cerned with nor even makes mention at all relative to Mr.
Mendez’s attempts to obtain employment during this period.”
Plaintiff stated that unless he received the claimed $9,698.89,
he would sue in the Court of Claims for “alZ the damages
suffered by me as a proximate result of the withdrawal of
my security clearance * * *.” [Emphasis in original.]*

10. By letter dated February 26, 1957, the Office of the
Judge Advocate General of the Air Force advised plaintiff
that, in view of his persistent refusal to answer the questions
which the Air Force felt were necessary for a proper adju-
dication of plaintiff’s claim, “the long period during which
this claim has been under consideration, and the rather
considerable amount of correspondence in the interval, this
office has decided to set March 15, 1957 as the latest date
upon which administrative processing of our final recommen-
dation to the Secretary of the Air Force will be undertaken.
If you elect to answer our previous propounded questions,
we shall be pleased to include them in our recommendation.”
However, plaintiff did not, by March 15, 1957, answer the
questions.

11. (a) Because the Air Force concluded that replies to
its previous queries were essential to an equitable disposition
of plaintiff’s claim, no adjudicatory action was taken with
respect thereto, the claim being held in a so-called “open”
status.

In this exchange of letters, plaintiff, araong other thingy, (a) asserted a
statutory basis for his claim, as against the Department's contrary assertion,
and (b) complained about a delay in the delivery of a letter to him.

Also plaintiff had enrolled in the Loyola University School of Law on Sep-
tember 29, 1952 and graduated on June 10, 1956. In the aforesaid letters, the
Air Force also inquired of plaintiff? whether he had removed himself from ths
labor market by attending school during the period of his suspension, but
plaintiff satisfactorily answered certain of the Department's questiong on this
subject, advising that his attundance, except for one course of two credit units
during the summer quarter of 1955 (June 20-September 1, 1955) was as a
part-time evening student, an activity he had undertaken while he had had
full-time employment with North American. The Department verifiec this
information by direct inquiry of the law school.

B-9

(b) On April 1, 1958, plaintiff instituted his suit herein
seeking damages totaling $163,831.

12. On August 1, 1958, defendant filed a motion to dis-
miss the petition, which plaintiff, by objections filed Novem-
ber 19, 1958, opposed. In defendant’s reply to plaintiff's
objections, filed October 14, 1959, defendant made the addi-
tional contention that plaintiff, by having refused to furnish
the Air Force with the pertinent data concerning his un-
employment compensation, had frustrated agency action and
had therefore failed to exhaust his administrative remedy,
warranting the dismissal of the petition. In the alternative,
defendant requested that the suit be suspended and plaintiff
directed to pursue his administrative remedy and, in con-
nection therewith, to submit to the Air Force the data it had
previously requested. Over plaintiff’s objection, and after
oral argument, the court, by order dated June 30, 1961,
ordered that “further proceedings, including action with
regard to defendant’s motion to dismiss, be and the same are
suspended pending plaintiff’s pursuit and completion of the
administrative remedy available through the Department of
the Air Force which proceedings are to be instituted and
completed within a reasonable time.”

13. (a) Upon receipt of the court’s order, the Office of
the Judge Advocate General, Department of the Air Force,
by letter of July 12, 1961, advised plaintiff that, in accordance
with the court order, the Air Force would continue to process
plaintiff's claim upon receipt of the information previously
requested. It again set forth the specific questions it de-
sired answered, including the reason for the termination of
the unemployment benefits on J anuary 29, 1955. However,
by letter of August 1, 1961, plaintiff failed to furnish the
data requested. Plaintiff took the position that the court’s
order “made no mention” of the claim he had previously filed,
and that his claim row consisted of the full damages that he
was claiming in his court suit.

(b) By letter of August 4, 1961, the Air Force replied that
it had, under the aforesaid directive, authority to consider
only a claim for back wages and not for other consequential
damages arising from the suspension. It stated that it could
therefore only take action, under the court order, on the

297-755—68——-2

——eEEEEyEE—————E

B-10

original $9,698.89 claim which plaintiff had filed, and that, if
plaintiff did not submit the information requested by Sep-
tember 15, 1961, “your claim will be considered on the merits
upon the basis of available facts.” The specific questions to
which it desired answers were again set forth.

14, By letter of September 18, 1961, plaintiff did furnish
answers to some of the questions. He stated he had been
informed by the California Department of Employment “that
compensation was terminated”, but could rot then, because
of the lapse of time and his failure to remember, give any
further information on this matter, the records pertaining
to old claims having been destroyed. He stated, however,
that “I do recall that it was suggested that I take dishwash-
ing employment.” Specifically as to the reason for the
termination of his unemployment benefits on January 29,
1955, plaintiff stated he was, “because of the long passage of
tims” unable to state the reason. He further stated that:
“In any even, it is suggested, that whatever reason might
have been stated for the termination of said unemployment
benefits was probably different from, and perhaps even un-
related, to the true reason.” Plaintiff listed the names of a
number of companies with which he had sought employment
and stated that “Menial employment such as, for instance,
dishwashing was not sought.” In answer to the question
whether unemployment benefits were ever withdrawn be-
cause he refused to accept suitable employment when offered
or failed to apply for such employment, plaintiff again re-
sponded that “because of the long passage of time, these
questions cannot be answered by me with precision” but:
“It is suggested that whatever the reason stated may have
been for the termination of unemployment compensation
payment, the real reason was something else wherein the real
reason or alleged real reason was a reflection of the atmos-
phere at that time. * * * In any event, the alleged reason for
termination of unemployment compensation payments would
be rank hearsay on the part of an individual, it is suggested,
who was influenced by the hysteria and atmosphere at the
time. * * * Regardless of the termination of the unemploy-
ment compensation payments, I was available for work and
able to work at the time said termination occurred. The
problem was, it is suggested, that no suitable employment

B-11

was offered me; as I recall, the only employment actually
offered was, as aforesaid, menial in nature such as dishwash-
ing. Furthermore, although much time has passed, I know
that when I was notified by the California Department of
Employment that there was a possibility for suitable employ-
ment, I followed up such possibility.”

15. (a) By letter of September 25, 1961, the Office of the
Judge. Advocate General advised plaintiff that “According
to the California Unemployment Insurance Code, it fully
appears that your benefits were terminated on 29 January
1955 by the State of California for the reason that you had
failed to make a reasonable effort to secure employment in
your own behalf.” The Office therefore felt that it was
necessary for plaintiff to furnish further information con-
cerning his efforts to secure employment during his suspen-
sion period, and requested that, in support of plaintiff’s
assertions that he attempted to secure such employment,
plaintiff furnish some supporting “definitive proof”, such
as any copies of applications he submitted, résumés, or
correspondence.

(b) By letter of February i2, 1962, plaintiff responded
that the “definitive proof” which the Air Force requested
“is simply not obtainable * * * either with the organize-
tions from whom employment was unsuccessfully sought or
with myself * * * .” He also advised that the California
Department of Employment no longer had any records
concerning the matter. He suggested that the Department
make its own inquiries of such sources. Plaintiff again,
however, sought payment of his claim in the amount of
$163,831.

16. (a) On April 16, 1962, the Air Force Judge Advocate
General recommended to the Secretary of the Air Force that
consideration be given only to that part of plaintiff’s
$163,831 claim which related to back wages, i.e., plaintiff's
original claim of $9,698.89. He stated, among other
things, that “* * * it fully appears that claimant’s
[unemployment] benefits were terminaied because he had
removed himself from the labor market by failing to dili-
gently seek employment.” He noted plaintiff’s failure to
appeal the State’s action in removing plaintiff from the

B-12

unemployment compensation rolls and his attendance of law
school during such period. Despite plaintiff’s contention
that “he was unable to secure satisfactory employment
commensurate with his abilities during this period and that
he remained ready and willing at all times to accept em-
ployment of a suitable nature”, he concluded that “it appears
from all of the information available that claimant was not
actively seeking employment subsequent to 29 January 1955
* * * when he became ineligible for unemployment benefits.”
He therefore recommended to the Secretary that any re-
imbursement after such date be denied. For the period
July 12, 1954 to January 29, 1955, plaintiff's salary would
have been $4,752.52. During such period plaintiff had
received $75 in other earnings, making a net amount due of
$4,677.52. Since California required repayment, where back
wages were awarded, of unemployment benefits during the
period involved, the $270 plaintiff received was not added
to the deductions, Accordingly, it was recommended that
plaintiff be awarded the net amount of $4,677.52, and that
the balance of plaintiff’s claim, in the amount of $5,291.87,
be denied.‘

(b) On April 19, 1962, the Secretary of the Air Force
approved payment of said amount of $4,677.52 “subject to
acceptance by the claimant in full satisfaction and final
settlement.” By letter of the same date, plaintiff was so
advised. The letter stated that “After considering all the
facts, it was determined that your entitlement to reimburse-
ment should be limited to the period from 12 July 1954 to
29 January 1955”, it being concluded “that any entitlement
for the period thereafter should be disapproved since you
had failed to furnish satisfactory evidence to reasonably
demonstrate a diligent interest in securing employment and
availability therefor.” The letter further stated that “* * *
it was considéred significant that your unemployment bene-
fits were terminated by the State of California on 29 January
1955 ostensibly for the reason that you had failed to qualify

‘4 The agency treated plaintiff’s claim as $270 more than he actually claimed
because it did not, as did plaintiff, deduct the unemployment compensation
payments he received. ‘hus, the total lost wages for the period involved was
$10,258.89. Deducting the $290 outside earnings made a net claim of $9,968.89.
The amount awarded was $4,677.52, leaving a balance cf $5,201.87.

B-13_

to deny any reimbursement claimed for the period 30 Janu-
ary 1955 to 21 September 1955.” Plaintiff was advised that
if he accepted the amount of $4,677.52 in full satisfaction and
final settlement of his claim, a check in such amount would
be issued. 3

(c) By letter of May 17, 1962, plaintiff rejected the offer
of $4,677.52, and reasserted his claim in the amount of
$163,831.

17. On July 23, 1962, plaintiff moved that, since the amount
found due to him administratively was unacceptable to him,
the suspension of the proceedings on defendant’s motion to
dismiss be lifted and that the motion be calendared for fur-
ther argument. By order of August 3, 1962, the motion was
allowed. At the second oral argument, plaintiff was given
permission to file an affidavit concerning his efforts to obtain
employment. Such an affidavit was filed on February 5,
1963, in which plaintiff listed various companies with which
he sought employment during the neriod J uly 12, 1954 until
April 9, 1956, when he secured employment with Lockheed.
He further stated that he was “informed and believes” that
the reason he was denied unemployment: benefits after Janu-
ary 29, 1955 “was because of his refusal to tak menial labor,
such as dishwashing * * *,” which the Department suggested
he take, the Department personnel having “equated the with-
drawal of Security Clearance with one being a Communist
and a disloyal American.”

18. By decision of March 6, 1968 (161 Ct. Cl. 37, 814 F. 2d
802), the court ruled that plaintitf was entitled to recover
$4,677.52, constituting lost wages for the period July 12, 1954
to January 29, 1955, as allowed by the administrative deter-
mination, but that, asa result of plaintiff's affidavit submitted
after the oral argument, a question of fact existed concerning
whether plaintiff actually did attempt to obtain employment
during the period January 30, 1955 to September 21, 1955.
The court remanded the issue to a commissioner for the
determination of such “unresolved question.” The court
further’ stated that plaintiff’s claim was not to be prejudiced
by his failure to accept or seek menial employment, such as

AE A aE NTN NE LE LE IE SELES EERE AEA SE NE: PREP TE LEBER EEL I ERE Ss Tb Sl,

B-14

dishwashing. In all other respects, plaintiff’s petition was
dismissed. Plaintiff's motion for reconsideration was denied
on April 17, 1964, and his petition for certiorari on October
12, 1964 (879 U.S. 888).

19. At the trial held in Los Angeles, California, on July
7, 1965, plaintiff himself was the only witness in his behalf.
He did testify that he had, during the period in question,
sought employment commensurate with his educational
background and experience. However, the testimony was
otherwise unsupported. No documents or exhibits, such as
copies of letters or applications for employment, were
introduced. Plaintiff testified he retained no such copies.
He did not enlighten the court with respect to the “unresolved
question” in any respect that added to the affidavit he had
filed with the court on February 5, 1963. Actually, plaintiff's
case at the trial in effect consisted only of such affidavit,
which plaintiff adopted as his testimony and his proof.
(Tr. 17-20; 51.)

Defendant’s evidence consisted of a witness from the
California Department of Employment. He testified that
as a matter of policy, case records are retained only three
years sfter the expiration of the benefit year, so that
plaintiff's records are no longer in existence. He further
testified that as a matter of policy and practice, the Depart-
ment at no time required a man to take work far below his
educational background level ; that the suspension of security
clearance in no way affected an applicant’s eligibility to draw
compensation (although it might affect his availability for
employment); and that benefits could not be terminated
without cause.

Uurmmate Finprngs anp CONCLUSIONS

20. Plaintiff’s conduct before the agency in effect frus-
trated the administrative process. In 1955, when he first
applied to the agency for the restitution of his lost wages, a
remedy which the agency had the power to provide (finding
4) and for which he now sues in this court, as weil as in 1956
when the agency was processing his claim (findings 7, 9),
plaintiff took the position that the reason the State of Cali-
fornia terminated his unemployment compensation payments

om oe eo te aR IES eR ; NR: <TR RT PONIES POP LE RN, My FER OD SD I RAN IM PE

ey UEP IIES «1

B-15

was not pertinent or relevant to the issue of his right to receive
back salary (finding 9). His contention apparently was
that there was no legal obligation on anyone in his position
even to attempt to obtain employment, and relied on the
Mendez case, supra (finding 9), for this proposition, stating
that that case “is not concerned with nor even makes mention
at all relative to Mr. Mendez’s attempts to obtain employ-
ment” (fincing 9). At that time, although plaintiff well knew
the reasons why the State had removed him from the compen-
sation rolls, he refused to inform the agency, daspite the
agency's numerous specific requests therefor. The agency
itself found it was unable, because of confidentiality require-
ments, to obtain the information directly from the State’s
Department of Employment.

21. (a) Plaintiff erred when he contended the agency’s
questions as to why he was removed from the unemployment
compensation rolls were not pertinent or relevant to the issue.
The basic statutory reasons for the removal of applicants
from the compensation rolls were their refusal or failure to
make a reasonable effort to seek work on their own or to
accept or attempt to obtain suitable employment to which
they were referred by the Department of Employment (find-
ing 6). Under the Department of Employment’s regulations,
a claimant, in order to remain eligible, had to show that he
had “followed a course of action which is reasonably de-
signed to result in his prompt re-employment in suitable work,
considering the customary methods of obtaining work in his
usual occupation or for which he is reasonably suited, and
the current condition of the labor market.” Applicants could
not arbitrarily be removed from the compensation rolls
without cause, the bases for such removal being spelled out
in detail. The fair inference is that plaintiff had taken some
voluntary action to disqualify himself by, in effect, remcving
himself from the labor market. The inference is fortified by
plaintiff's failure to appeal or otherwise contest the action
of the State in terminating the payments. At the least,
plaintiff owed the administrative agency an explanation,
which he could have easily given since he was then in full
possession of the facts. And the Department of Employ-
ment’s records were then in existence if resort to them was
necessary.

Se VS ag eS oROne

en
B-16

The restitution directive provides for payment of loss
of earnings “resulting directly from a suspension of clear-
ance” (finding 4(a)). It directs that interim net earnings
be deducted from the award. One who takes voluntary
action which prevents employment and the accrual of outside
earnings obviously does not qualify. A showing that one
is ready, willing, and able to work at suitable employment
during the interim period is normally a prerequisite to a
back salary award. Graves v. United States, 176 Ct. Cl.
68 (1966); Armand v. United States, 186 Ct. Cl. 339
(195%). In conformity with the rule applicable to dis-
charged employees generally, one suspended for security
reasons must also attempt to mitigate damages by making a
reasonable effort to secure other employment, Schwarts v.
United States, 149 Ct. Cl. 145, 181 F. Supp. 408 (1960), the
rule being particularly applicable where the back pay com-
pensation provisions specifically require, as they do here,
a deduction of interim earnings. Jd.

Accordingly, the questions asked by the administrative
agency were relevant and proper and plaintiff’s refusal to
supply the information amounted to a frustration of the
administrative process. |

(b) The Mendez case upon which plaintiff relied is not
to the contrary. No question was raised in that case such
as is here involved. The issue there was only whether
Mendez’s removal was “unjustified or unwarranted” within
the meaning of a statute allowing back pay compensation
for such removals.

22. In the exhaustion of his administrative remedy, plain-
tiff had a duty to cooperate fully with the agency so that it
would be in a position to make a rational disposition of his
claim and thus possibly avoid burdening the courts with
unnecessary litigation. When the court, by its order of
June 30, 1961, suspended proceedings on defendant’s motion
to dismiss and directed plaintiff to exhaust his administrative
remedy (finding 12), it must have similarly concluded,
despite its decision to give plaintiff another chance. How-
ever, on his return to the agency pursuant to the court’s order,
plaintiff now claimed that, due to the passage of time, he
could not remember the reason for his removal from the rolls

— B-17

in January 1955 (finding 14). By that time, the Department
of Employment had, in normal routine, destroyed the records
in plaintiff's case. Plaintiff “suggested” that whatever reason
the Department then offered was not the real reason anyway,
but instead was grounded on the hysteria of the times,
Plaintiff stated that the Department of Employment sug-
gested he take dishwashing employment but that he refused
to seek such menial employment. The pertinent California
statutes, and the State Department of Emplcyment’s imple-
menting regulations, negate this suggestion. The reguls-
tions specifically provide that “[mJaking + »plication with
such employer who may reasonably be expected to have
openings suitable to the claimant” would be considered by
the Department as making a reasonable effort to obtain
employment, and thus to constitute sufficient compliance to
assure continuance of entitlement to benefits.

Under the circumstances, the administrative agency was
justified in refusing to accept such suggested reason for
plaintiff's removal from the compensation rolls and in
awarding plaintiff back salary only up to J anuary 29, 1955,
the date he was so removed. ~

23. On the basis of the entire record, it is concluded that
plaintiff was not removed from the unemployment compen-
sation rolls because of any suggestions or insistence by the
California Department of Employment that he seek or take
such menial employment as dishwashing.

24. When the court ordered the “unresolved question” of
plaintiff's efforts to obtain employment during the period
January 30, 1955-September 21, 1955, to trial (finding 18),
it must have concluded that the affidavit plaintiff had sub-
mitted to it on February 5, 1963 after the second oral argu-
ment on defendant’s motion to dismiss (finding 17), including
the general, unsupported, self-serving statements contained
therein to the effect that he had sought employment during
such period, was an insufficient basis upon which to predicate
a judgment for back wages for such period. However, at
the trial, plaintiff merely rested his case on such affidavit
(finding 19). Thus plaintiff’s case is in no different posture
now than it was when it was submitted to the court on

B-18

defendant’s motion to dismiss. Pisintiff is no more entitled
to a judgment for such period now than he was then.

Although plaintiff's feelings are, considering the devastat-
ing effects of his experience, quite understandable, neveithe-
less plaintiff in effect delivered an ultimatum to the agency
to pay his back wage claim without asking any questions
else he would sue, in a far greater amount, for “all” his

“damages”, And now that the court has dismissed all claims
asserted other than his back wage claim, the pertinent quee-
tions the agency asked over 10 years ago still remain, due to
plaintiffs original attitude, unanswered.

25. Plaintiff has failed to carry his burden of proving
that he was, during the period January 380, 1955 to Sep-
tember 21, 1955, ready, willing, and able to accept suitable
employment.

26. The administrative agency acted reasonably and was
justified in limiting plaintiff's award of back salarv to
$4,677.52 (finding 16).

27. Such amourt of $4,677.52, to which the court by its
decision of March 6, 1963, held plaintiff to be entitled, is the
total amount plaintiff is entitled to recover.

Conciusion or Law

Upon the foregoing findings of fact and conclusions of law,
which are adopted by the court and made a part of the
judgment herein, the court concludes as a matter of law that
plaintiff ig entitled to recover in the amount of four thovu-
sand six hundred seventy-seven dollars and fifty-two cants
($4,677.52), and judgment is entered for plaintiff in this
amount.

U.S. GOVERNMENT PRINTING OFFICE, 1968

APPENDIX C

CONSTITUTIONAL PROVISIONS, STATUTES,
REGULATIONS AND COURT RULE INVOLVED.

Due Process Clause of Fifth Amendment

nor shall any person

"be deprived of life, liberty, or property,
without due process of law;"

Just Compensation Clause of Fifth Amendment

"nor shall private property be taken for public
use, without just compensation".

Portion of 82 U.S.C. 491 pertinent in the instant case

"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 department, or upon any express or
implied contract with the United States, or for
liquidated or unliquidated darhages in cases not
sounding in tort. "'

Purported Monetary Restitution Provisions of Regula-
tions Held Unauthorized in Greene v. McEvoy, 360
U.S. 474.

"Industrial Personnel and Security Clearance
Program" (referred to as Program "A" in this
Petition for Writ of Certiorari.)

"23. Monetary Restitution: In cases where
a final determination is favorable to a 7
contractor-employee (but nct a contractor),
the Appeal Division will instruct the Executive

C-1

Secretary to recommend to the Department whose
agency originally referred the case that the
contractor-employee be reimbursed for any loss
of earnings resulting directly from the denial or
revocation of clearance during the interim in an
amount not to exceed the difference between the
amount he would have earned at the rate he was
receiving upon the date of the initial denial or
revocation of clearance and the amount of his
interim net earnings. "'

"Industrial Personnel Security Review Regulation
(Department of Defense Directive No. 5220.6)
referred to as Program "B" in this Petition for
Writ of Certiorari. )

"26. Monetary Rewtitution: In cases where
a final determination is favorable to a con-
tractor employee, the department whose activity
originaliy forwarded the case to the Director
will reimburse the contractor employee in an
equitable amount for any loss of earnings dur-
ing the interim resulting directly from a
suspension of clearance. Such amount shall
not exceed the difference between the amount
the contractor employee would have earned at
the rate he was receiving on the date of sus~
pension and the amount of his interim net
earnings. No contractor employee shall be
compensated for any increase in his loss of
earnings caused by his voluntary action in
unduly delaying the processing of his case
under this regulation."

2 ‘ RF RET MESENTERY I SE TANARIS PRN

1738. State and Territorial statutes and
judicia! proceedings—full faith and credit.—
The Acts of legislature of any Stete, Terri-
tory, or Possession of the United States, or
copies thereof, shall be authenticated by affix-
ing the seal of such State, Territory or Posses-
“ts eae d judicial proccedings of

© records and judic any
court of any such State, Territory or Posses-
sion, or copies thereof, shall be proved or
admitted in other courts within the United
States and its Territories and Possessions by
the attestation of the clerk and Seal of the
court annexed, if a seal exists, together with
& certificate of a judge of the court that the
said attestation is in proper form.

Such Acts, records and judicial proceedings
or copies thereof, so authenticated, shal! have

Revisory committee note.—This section was based
on § 687 of former Title 28 (R. 8. $908).

stud for of any county subect toa Joa
or “ coun subjec °
tion of the United States".

te “or ae” were added = three
Statutes and judicial reese under § of

Words “and its Territories and Possessions” were

two

this tle uniform, the basic section of the
book, aving provided that nonjudicial records or
books of any te, Territory, or “county subject to
the jurisdiction of the United States” should ad-

revuru, see tue WRLM) VA bars a2 curaas atunse -= we
cases, proof Rule 27

* Criminal of official recerd, see

of the Federal Rules of Criminal Procedure.

Trending in action on ju ent, see Rule 9(e) of
Rules of thea,

so as to make this section and —

SIMS ENG

addi a

CAPRIS AEA PE FHL TET #

1739. State and Territorial nonjudicial rec-
erds—Fuill faith and credit.—All nonjudicial
records or books kept in any public office of
any State, Territory, or Possession of the
United States, or copies thereof, shall be proved
or admitted in any court or office in any other
State, Territory, or Possession by the attesta-
tion of the custodian of such records or books,
and the seal of his office annexed, if there be
a seal, together with a certificate of a judge
of a court of record of the county, parish, or
district in which such office may be kept, or of
the Governor, or secretary of state, the chan-
cellor or keeper of the great seal, of the State,
Territory. or Possession that the said attesta-
tier. is in due form and by the proper offices.

If the certificate is given by a judge, it
shall be further authenticated by the clerk
or prothonotary of the court, who shall certify,
under his hand and the seal of his office, that
such judge is duly commissioned and qualified;
or, if given by such Governor, secretary, chan-
cellor, or keeper of the great seal, it shall be
under the great seal of the State, Territory,
or ossession in which it is made.

Such records or books, or copies thereof, so
authenticated, shall have the same full faith
and credit in every court and office within the
United Stats and its Territories and Posses-

Revisory committee note.—This section was based
on § 688 of former Title 28 (R. S. § 906).

Words “Possession of the United States” were
substituted for “or any country subject to the juris-
diction of the United States.”
ous hers teen Ce m5. " and

ve n prove
beoks under § 688 of former Title 28, and the addition
these words clarifies the former implied meaning

references. Authentication of copy of official
es of Civil

i

Criminal cases, of . Rule 27
of the Federal Rules of Crimina) Procedure.

es

ae EEE ae Bec E55 ag
i soup edge ratdlatetlt <j i
eel cee alee (a
MME OHSS op
a apes, geaganggatesg 25rs teats

ase rp ia pit sai TT A
sant fis8ya8s 325

8g dl :

il: laid abe eye ie ai its? tah:

rtificate above
that.
cz contain no such

adinissi

)

ble as evidence

4

is
bhe recotds

of his

i
3

fi

C-5

ES NE Se

— TRIRTGS AURA we “4

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385604_0628%3A1. Public record. Not legal advice.
