Adler v. United States

129 Ct. Cl. 150, 1954 U.S. Ct. Cl. LEXIS 79, 1954 WL 6085
CourtUnited States Court of Claims
DecidedJuly 13, 1954
DocketNo. 266-53; No. 465-53; No. 522-53
StatusPublished
Cited by16 cases

This text of 129 Ct. Cl. 150 (Adler v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adler v. United States, 129 Ct. Cl. 150, 1954 U.S. Ct. Cl. LEXIS 79, 1954 WL 6085 (cc 1954).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

Plaintiffs were supervisory employees in the New York Naval Shipyard. After the war the force was reduced by the discharge of a number of employees in non-supervisory positions. This resulted in an excess number of employees in supervisory positions, which made it necessary either to discharge or to demote plaintiffs, who held supervisory positions. They were demoted.

[152]*152The Civil Service Commission at first affirmed the action of tbe Navy Department. Thereafter a similar employee by the name of Reynolds brought an action in the District Court for the District of Columbia seeking a mandamus to require his restoration to his former position. The District Court denied the relief requested, but the Court of Appeals granted it, holding that section 12 of the Veterans’ Preference Act, infra, required that plaintiff should not be demoted so long as there was retained in his grade and rank non-preference employees. Reynolds v. Lovett, 201 F. 2d 181; cert. den. sub nom. Wilson v. Reynolds, 845 U. S. 926.

Following this decision the Civil Service Commission amended its regulations to conform to the holding of the Court of Appeals and reopened and reconsidered the appeal by the plaintiffs in this case and, based on its amended-regulations, it issued an order requiring the Navy Yard to restore them to their former positions, to be effective on the date of their respective demotions.

Plaintiffs have been restored, but for the period between their demotions and their restorations to their former positions they have not been paid the difference between the salary of their original positions and the positions to which they were demoted. They sue for this difference.

Their right to recover is governed by section 14 of the Veterans’ Preference Act or by section 12 thereof, whichever is applicable.

Section 14 of the Veterans’ Preference Act of 1944 (58 Stat. 387, 390) provides:

No permanent or indefinite preference eligible, * * * shall be discharged, suspended for more than thirty days, furloughed without pay, reduced in rank or compensation, or debarred for future appointment except for such cause as will promote the efficiency of the service and for reasons given in writing * * *.

The provisions of this section were fully complied with.1. The Navy Department determined that it would promote [153]*153the efficiency of the service to retain in supervisory positions certain non-preference employees and to demote to a non-supervisory position the plaintiffs, who were preference employees. As stated, the action of the Navy Department was approved by the Civil Service Commission.

However, the Court of Appeals for the District of Columbia, in an action for mandamus brought by an employee similarly situated (Reynolds v. Lovett, supra), held:

We think that appellees’ [the Secretary of National Defense and others] view that when personnel is reduced the head of an agency may select employees to be retained in any classification on the basis of individual merit and without giving effect to section 12 of the Veterans’ Preference Act is erroneous.

Thus, the Court of Appeals was of opinion that wherever the demotion was an incident of a reduction in force, the provisions of section 12 must be complied with. Section 12 provides:

In any reduction in personnel in any civilian service of any Federal agency, competing employees shall be released in accordance with Civil Service Commission regulations, which shall give due effect to tenure of employment, military preference, length of service, and efficiency ratings; * * * Provided, further, That preference employees whose efficiency ratings are “good”or better shall be retained in preference to all other competing employees. * * *

Plaintiffs were preference eligibles, their ratings were “good” or better, and they come within the provisions of section 12, provided that section is applicable to a demotion in the circumstances of this case.

This exact question has not been presented to us before. In Gregory v. United States, 123 C. Cls. 794, we held that an employee improperly demoted was not entitled to recover back pay under the Act of June 10, 1948 (62 Stat. 354), because that act referred only to persons “discharged, suspended, or furloughed without pay” and did not refer to persons demoted.2

[154]*154In Goodwin v. United States, 127 C. Cls. 417, and in Theodore Smith v. United States, 127 C. Cls. 706, we held that where an employee had been wrongfully demoted, and had been ordered restored, retroactively, to his former position, he was entitled to recover the difference in salary between the position from which and that to which he had been demoted; but it does not appear from the opinions in either of those cases that they involved a demotion incident to a reduction in force.

In Schweizer v. United States, 128 C. Cls. 456, we had before us the case of an employee who did not come within any of the preferred classes mentioned in section 2 of the Veterans’ Preference Act of 1944 (58 Stat. 387), but who claimed that he was entitled to the benefits of the Act of 1912 (37 Stat. 413) which provided that “* * * in the event of reductions being made in the force in any of the executive departments no honorably discharged soldier or sailor whose record in said department is rated good shall be discharged or dropped, or reduced in rank or salary.” We held that he was entitled to the benefits of this act and since he had been demoted in violation of its provisions, he was entitled to recover the salary of the office from which he had been wrongfully demoted.

While plaintiff in that case was not claiming under section 12 of the Veterans’ Preference Act of 1944, we indicated the opinion that demotions incident to a reduction in force come within its orbit.

In the case at bar, we are finally confronted with the question of whether or not demotions, pursuant to a reduction in force, come within the provisions of section 12 of the Veterans’ Preference Act of 1944.

Clearly, section 14, which is the only section expressly dealing with demotions, provides as the only condition that the demotion should be “for such cause as will promote the efficiency of the service,” and says nothing about retaining a preference employee over a non-preference employee. Looking at that section alone, the head of a department is privileged to demote a preference employee instead of a non-preference employee if in his opinion such action would promote the efficiency of the service. Section 12 does not [155]*155mention' demotions, but only the “release” of an employee incident to a reduction in force. In such case Federal agencies are required to accord to preference employees the retention rights conferred by section 12.

Had the Navy Department decided to release, that is to say, to discharge, some of its supervisory employees, in order to reduce its force, it would have been obliged by section 12 to retain the preference employees instead of the non-preference ones, even, though the Department head might have thought that it was better for the efficiency of the service to retain the non-preference employees.

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Cite This Page — Counsel Stack

Bluebook (online)
129 Ct. Cl. 150, 1954 U.S. Ct. Cl. LEXIS 79, 1954 WL 6085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adler-v-united-states-cc-1954.