Anderson v. Spellings

20 F. Supp. 3d 42, 2013 WL 5429274, 2013 U.S. Dist. LEXIS 140490
CourtDistrict Court, District of Columbia
DecidedSeptember 30, 2013
DocketCivil Action No. 2006-1565
StatusPublished
Cited by18 cases

This text of 20 F. Supp. 3d 42 (Anderson v. Spellings) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Spellings, 20 F. Supp. 3d 42, 2013 WL 5429274, 2013 U.S. Dist. LEXIS 140490 (D.D.C. 2013).

Opinion

MEMORANDUM OPINION

ROSEMARY M. COLLYER, United States District Judge

This protracted litigation presents two novel legal issues concerning application of the Rehabilitation Act and the Age Discrimination in Employment Act to a federal employer. Over seven years ago, the regional offices of the Rehabilitation Services Administration, a division within the Department of Education, were defunded by the White House budget for fiscal year 2006, which led to office closings and consolidation into the Department’s Washington, D.C., headquarters. Disabled and older employees in the regional offices lost their jobs and sued. The subsequent litigation resulted in lengthy discovery, and now, cross-motions for partial summary judgment on Plaintiffs’ disparate impact theories of liability. Plaintiffs single out the decision to defund the regional offices, claiming that it constituted age and disability discrimination because of its disparate impact on older and disabled employees. In doing so, Plaintiffs challenge a management decision by officials in the Executive Branch that was designed to achieve a centralized organizational structure, direct supervision, and cost savings, and accordingly is protected by the “business necessity” test. Partial summary *45 judgment will be entered in favor of the Secretary of Education.

I. FACTS

Eighteen current and former employees of the Rehabilitation Services Administration (RSA), a division of the Department of Education’s Office of Special Education and Rehabilitative Services (OSERS), filed this suit against Secretary Margaret Spellings in her official capacity. 1 See Compl. [Dkt. 1], Richard Anderson, Bryan Bashin, Joseph Cordova, Loerance Deaver, Michael Evans, Joseph Farrell, Marian Fuller, Martha Garber, Diana Koreski, Seymour Levy, Jeffrey Mitchell, John Nelson, Kathleen Niemi, Noel Nightingale, Ralph Pacinelli, Bruce Rose, Janette Shell, and Jacquelyn Tellier (collectively, Plaintiffs) 2 assert various claims against the Secretary in connection with the decision to cut funding for RSA’s regional offices. Id. ¶¶ 1-12. The cross-motions for partial summary judgment address one of Plaintiffs’ theories of liability as to the Secretary’s alleged discrimination on the basis of disability, in violation of the Rehabilitation Act of 1973 as amended (Rehab Act), 29 U.S.C. §§ 701 et seq., and on the basis of age, in violation of the Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621 et seq. The relevant material facts are undisputed.

A. Organizational Structure of RSA

The Department of Education (Department) is a multilayered agency comprised of several principal offices and nine program offices. OSERS is a program office charged with implementing programs that support individuals with disabilities. OS-ERS has three components, of which RSA is one. See Def.’s Reply [Dkt. 88], Ex. 22 [Dkt. 89-5] at 1-2.

As its name implies, Congress established RSA to implement statutory provisions relating to individuals with disabilities. Def.’s Mot. Summ. J. [Dkt. 75], Ex. 6 [Dkt. 76-7] at Attach. C. With the stated mission of “providing] leadership and resources to assist state and other agencies in providing vocational rehabilitation ..., independent .living ... and other services to individuals with disabilities to maximize their employment, independence, and integration into the community and the competitive labor market,” Pis.’ Mot. Summ. J. [Dkt. 74-1], Ex. 2 [Dkt. 74-5]' at 1, RSA oversees grant programs to state agencies that provide direct vocational rehabilitation services to individuals, id., Ex. 1 [Dkt. 74-4] at 1. Prior to October 1, 2005, RSA maintained ten regional offices. See id., Ex. 6 [Dkt. 74-9]. No other division within ' OSERS operated regional offices. Def.’s Mot. Summ. J. ¶¶ 24-25. Today, only the Department’s Office of the Inspector General, Office of Civil Rights, and Office of Federal Student Aid maintain regional offices. Def.’s Reply ¶ 3.

B. Decision to Defund RSA Regional Offices

In February 2005, President George W. Bush released his fiscal year 2006 budget proposal (FY06 budget) for the federal government. With respect to the Department, the FY06 budget reflected a slight decrease in funding for full-time equivalent (FTE) positions. Def.’s Mot. Summ. J., Ex. 1 [Dkt. 76-2] at X-2. The reduction in *46 FTE stemmed from changes in several of the Department’s principal offices, including OSERS. The FY06 budget specified that OSERS would achieve a net decrease of 66 FTE through the consolidation of RSA regional offices into headquarters. Id. at X-3.

Reorganizing RSA by ending funding for regional offices and consolidating them into headquarters was not a novel idea. Regional offices for other programs in the Department had been eliminated in the past, and prior administrations had considered consolidating RSA. 3 Pis.’ Mot. Summ. J., Ex. 29 (Dep. of Edward Anthony, delegated authority to perform functions of RSA Commissioner) [Dkt. 74-32] at 43; Def.’s Reply, Ex. 27 [Dkt. 89-10] at 2. Within the Bush Administration, the idea was considered as early as 2001 by Troy Justesen 4 and C. Todd Jones, who at that time were both assigned to the White House Task Force on Special Education. Pis.’ Mot. Summ. J ¶ 37; id., Ex. 27 (Dep. of Troy Justesen) [Dkt. 74-30] at 59-60.

In 2004, the idea picked up steam. Mr. Justesen was then serving as the Deputy Commissioner of RSA and Acting Deputy Assistant Secretary for OSERS. Pis.’ Opp’n [Dkt. 82] ¶ 10. He presented the idea to the White House Domestic Policy Council, which included future ’ Secretary Spellings, as a way to achieve efficiency through centralization in accord with how the Bush Administration managed other programs. M; Def.’s Mot. Summ. J. ¶5; id., Ex. 2 (Dep. of David Dunn, senior education advisor to President Bush) [Dkt. 76-3] at 22, 26-28; id., Ex. 3 (Dep. of Secretary Spellings) [Dkt. 76-4] at 51. At some point, the idea was “vetted by the Secretary’s office” and presented to the Office of Management and Budget (OMB) during an October 2004 meeting concerning the Department’s preliminary budget for fiscal year 2006. Justesen Dep. at 105-06. At the suggestion of Mr. Jones, who was then serving as the Department’s Associate Deputy Secretary for Budget, id. at 108; Pis.’ Mot. Summ. J. ¶ 38, Mr. Justesen suggested to OMB that closing RSA regional offices would result in savings that could fund other programmatic initiatives, id., Ex. 28 (Dep. of Carol Ci-chowski, official with Department’s Budget Service) [Dkt. 74-31] at 38-39. 5

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Cite This Page — Counsel Stack

Bluebook (online)
20 F. Supp. 3d 42, 2013 WL 5429274, 2013 U.S. Dist. LEXIS 140490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-spellings-dcd-2013.