REAVLEY, Circuit Judge:
The sole issue on this appeal is whether the district court has been vested with subject matter jurisdiction to adjudicate a suit filed by Arthur Sheehan against the Army and Air Force Exchange Service (“AAFES”) based upon wrongful discharge from employment. The lower court dismissed for want of subject matter jurisdiction. We reverse and remand because we are persuaded that the lower court did not lack jurisdiction.
I.
The Facts and Procedural Posture
On March 16, 1976, Sheehan was an employee of the AAFES serving as Shopping Center Manager for the Fort Jackson Exchange in South Carolina. On that date, he received advance written notice of separation based upon conduct off the job that allegedly reflected discredit on the AAFES and that rendered his retention incompatible with the best interests of the AAFES. The letter was signed by James Stapleton, General Manager of the Piedmont Area Exchange, but since Sheehan was then serving in a special program identified as the Executive Management Program (“EMP”),
pri- or approval for the dismissal was obtained from the Commander of the AAFES, General Hospelhorn.
Sheehan’s written re
sponse to the March 16, 1976 letter proved ineffective and Stapelton signed a letter of final termination dated April 16, 1976. Sheehan pursued administrative appeal
and convinced the hearing examiner that his conduct had not reflected discredit on the AAFES and that his retention was not contrary to the best interests of the AAFES. However, the Commander of the AAFES, General Hospelhorn, acting in the capacity of Appellate Authority, disagreed with the hearing examiner and denied the appeal. He informed Sheehan that the decision was final and was not subject to further appeal or review. In January of 1978, Sheehan petitioned for reconsideration, but this effort eventually proved barren when the Chairman of the Board of the AAFES denied his appeal.
Relief was sought in the district court. The complaint alleged that Sheehan had been denied a free and impartial appeal, because General Hospelhorn gave prior approval for the discharge and also served as Appellate Authority in deciding Sheehan’s administrative appeal, in derogation of AAFES regulations
and procedural due process. General Hospelhorn’s decision in denying the appeal was also assailed as arbitrary, capricious, unsupported by substantial evidence, an abuse of discretion, in excess of statutory authority, and contrary to Sheehan’s constitutional rights. Shee-han’s prayer for relief sought reinstatement; back pay; other concomitants of employment, including accrued vacation time, sick leave, and retirement benefits; expenses incurred in seeking alternative employment; damages for mental anguish; punitive damages; court costs; and attorney fees.
The district court ruled that it lacked subject matter jurisdiction and granted the AAFES’ motion to dismiss. On appeal, Sheehan argues that the court had jurisdiction under 28 U.S.C. §§ 1331(a), 1346(a)(2), and 1361 (1976). For the reasons stated below, we think the court possessed subject matter jurisdiction.
II.
The Jurisdictional Problem
Subject matter jurisdiction in the federal courts ordinarily involves an examination of the constitutional limitations in Article III and congressional statutory grants of power. When suit is brought against the federal government, however, sovereign immunity, unless waived, operates as a bar to the action in the nature of an additional limitation on the court’s subject matter jurisdiction.
United States v. Testan,
424 U.S. 392, 399, 96 S.Ct. 948, 953, 47 L.Ed.2d 114 (1976);
United States v. Sherwood,
312 U.S. 584, 587-88, 61 S.Ct. 767, 771, 85 L.Ed. 1058 (1941). A suit against the AAFES is considered a suit against the United States because this nonappropriated fund instrumentality
is an “ahn[] of the government deemed by it essential for the performance of govern
mental functions . . . and partake[s] of whatever immunities it may have under the constitution and federal statutes.”
United States v. State Tax Commission of Mississippi,
421 U.S. 599, 606, 95 S.Ct. 1872, 1877, 44 L.Ed.2d 404 (1975);
see Young v. United States,
498 F.2d 1211, 1215 (5th Cir. 1974);
cf. Standard Oil Co. of California v. Johnson,
316 U.S. 481, 485, 62 S.Ct. 1168, 1170, 86 L.Ed. 1611 (1942) (nonappropriated fund post exchanges are arms of the government). Because no constitutional infirmity to the assumption of jurisdiction is implicated here, we turn our attention to statutes which bestow subject matter jurisdiction in the traditional sense and those that waive sovereign immunity.
III.
The Tucker Act
28 U.S.C. § 1346(a)(2)
confers subject matter jurisdiction on the district courts in civil actions against the United States, where the amount claimed does not exceed $10,000,
and that,
inter alia,
are founded upon an express or implied contract with the federal government. The 1970 amendment to this statute provides that for purposes of the statute, express or implied contracts with certain nonappropri-ated fund instrumentalities, including the AAFES, are considered to be express or implied contracts with the United States. This section also operates as a waiver of sovereign immunity for the enumerated genre of suits.
A. L. Rowan & Son, General Contractors, Inc. v. Department of Housing and Urban Development,
611 F.2d 997, 999 (5th Cir. 1980).
Sheehan argues that an implied contract of employment existed between the AAFES and himself. The AAFES counters with the argument that governing regulations
establish beyond cavil that he served as an appointed employee and did not toil pursuant to contract. We note that although the complaint does not, by its terms, refer to an implied contract, it does charge that the administrative appellate procedure afforded Sheehan, subsequent to his discharge, did not comport with applicable regulations.
Even if the regulations label the
commencement
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REAVLEY, Circuit Judge:
The sole issue on this appeal is whether the district court has been vested with subject matter jurisdiction to adjudicate a suit filed by Arthur Sheehan against the Army and Air Force Exchange Service (“AAFES”) based upon wrongful discharge from employment. The lower court dismissed for want of subject matter jurisdiction. We reverse and remand because we are persuaded that the lower court did not lack jurisdiction.
I.
The Facts and Procedural Posture
On March 16, 1976, Sheehan was an employee of the AAFES serving as Shopping Center Manager for the Fort Jackson Exchange in South Carolina. On that date, he received advance written notice of separation based upon conduct off the job that allegedly reflected discredit on the AAFES and that rendered his retention incompatible with the best interests of the AAFES. The letter was signed by James Stapleton, General Manager of the Piedmont Area Exchange, but since Sheehan was then serving in a special program identified as the Executive Management Program (“EMP”),
pri- or approval for the dismissal was obtained from the Commander of the AAFES, General Hospelhorn.
Sheehan’s written re
sponse to the March 16, 1976 letter proved ineffective and Stapelton signed a letter of final termination dated April 16, 1976. Sheehan pursued administrative appeal
and convinced the hearing examiner that his conduct had not reflected discredit on the AAFES and that his retention was not contrary to the best interests of the AAFES. However, the Commander of the AAFES, General Hospelhorn, acting in the capacity of Appellate Authority, disagreed with the hearing examiner and denied the appeal. He informed Sheehan that the decision was final and was not subject to further appeal or review. In January of 1978, Sheehan petitioned for reconsideration, but this effort eventually proved barren when the Chairman of the Board of the AAFES denied his appeal.
Relief was sought in the district court. The complaint alleged that Sheehan had been denied a free and impartial appeal, because General Hospelhorn gave prior approval for the discharge and also served as Appellate Authority in deciding Sheehan’s administrative appeal, in derogation of AAFES regulations
and procedural due process. General Hospelhorn’s decision in denying the appeal was also assailed as arbitrary, capricious, unsupported by substantial evidence, an abuse of discretion, in excess of statutory authority, and contrary to Sheehan’s constitutional rights. Shee-han’s prayer for relief sought reinstatement; back pay; other concomitants of employment, including accrued vacation time, sick leave, and retirement benefits; expenses incurred in seeking alternative employment; damages for mental anguish; punitive damages; court costs; and attorney fees.
The district court ruled that it lacked subject matter jurisdiction and granted the AAFES’ motion to dismiss. On appeal, Sheehan argues that the court had jurisdiction under 28 U.S.C. §§ 1331(a), 1346(a)(2), and 1361 (1976). For the reasons stated below, we think the court possessed subject matter jurisdiction.
II.
The Jurisdictional Problem
Subject matter jurisdiction in the federal courts ordinarily involves an examination of the constitutional limitations in Article III and congressional statutory grants of power. When suit is brought against the federal government, however, sovereign immunity, unless waived, operates as a bar to the action in the nature of an additional limitation on the court’s subject matter jurisdiction.
United States v. Testan,
424 U.S. 392, 399, 96 S.Ct. 948, 953, 47 L.Ed.2d 114 (1976);
United States v. Sherwood,
312 U.S. 584, 587-88, 61 S.Ct. 767, 771, 85 L.Ed. 1058 (1941). A suit against the AAFES is considered a suit against the United States because this nonappropriated fund instrumentality
is an “ahn[] of the government deemed by it essential for the performance of govern
mental functions . . . and partake[s] of whatever immunities it may have under the constitution and federal statutes.”
United States v. State Tax Commission of Mississippi,
421 U.S. 599, 606, 95 S.Ct. 1872, 1877, 44 L.Ed.2d 404 (1975);
see Young v. United States,
498 F.2d 1211, 1215 (5th Cir. 1974);
cf. Standard Oil Co. of California v. Johnson,
316 U.S. 481, 485, 62 S.Ct. 1168, 1170, 86 L.Ed. 1611 (1942) (nonappropriated fund post exchanges are arms of the government). Because no constitutional infirmity to the assumption of jurisdiction is implicated here, we turn our attention to statutes which bestow subject matter jurisdiction in the traditional sense and those that waive sovereign immunity.
III.
The Tucker Act
28 U.S.C. § 1346(a)(2)
confers subject matter jurisdiction on the district courts in civil actions against the United States, where the amount claimed does not exceed $10,000,
and that,
inter alia,
are founded upon an express or implied contract with the federal government. The 1970 amendment to this statute provides that for purposes of the statute, express or implied contracts with certain nonappropri-ated fund instrumentalities, including the AAFES, are considered to be express or implied contracts with the United States. This section also operates as a waiver of sovereign immunity for the enumerated genre of suits.
A. L. Rowan & Son, General Contractors, Inc. v. Department of Housing and Urban Development,
611 F.2d 997, 999 (5th Cir. 1980).
Sheehan argues that an implied contract of employment existed between the AAFES and himself. The AAFES counters with the argument that governing regulations
establish beyond cavil that he served as an appointed employee and did not toil pursuant to contract. We note that although the complaint does not, by its terms, refer to an implied contract, it does charge that the administrative appellate procedure afforded Sheehan, subsequent to his discharge, did not comport with applicable regulations.
Even if the regulations label the
commencement
of Sheehan’s employment as pursuant to “appointment,” we do not think that ends the inquiry. Other regulatidns provide that an AAFES employee
may be separated for cause only under certain conditions and provide for administrative appeal from the separation decision.
These latter regulations manifest the understanding of the parties concerning discharge procedures while Sheehan
continued
in AAFES employment. Accordingly, the regulations were part of a collateral implied in-fact contract between Sheehan and the AAFES that the AAFES would adhere to the regulations in its dealings with him.
See Aycock-Lindsey Corp. v. United States,
171 F.2d 518, 520-21 (5th Cir. 1948);
cf. Bodek v. Department of Treasury,
532 F.2d 277, 279 n.7 (2d Cir.) (per curiam),
cert. denied,
429 U.S. 849, 97 S.Ct. 137, 50 L.Ed.2d 122 (1976) (validly enacted regulations are implied part of an express contract). A contract implied-in-fact is one “founded upon a meeting of minds, which, although not embodied in an express contract, is inferred, as a fact, from conduct of the parties showing, in the light of their surrounding circumstances, their tacit understanding.”
Porter v. United States,
496 F.2d 583, 590, 204 Ct.Cl. 355 (1974),
cert. denied,
420 U.S. 1004, 95 S.Ct. 1446, 43 L.Ed.2d 761 (1975). That understanding was reinforced by the well-established legal principle that a federal agency is bound to follow its regulations where the rights of individuals are affected.
E. g. Morton v. Ruiz,
415 U.S. 199, 235, 94 S.Ct. 1055, 1074, 39 L.Ed.2d 270 (1974);
Vitarelli v. Seaton,
359 U.S. 535, 539-10, 79 S.Ct. 968, 972-73, 3 L.Ed.2d 1012 (1959).
The allegation that the discharge violated controlling regulations was, therefore, equivalent to an allegation of breach of an implied-in-fact contract. ■ Such a claim is sufficient to avoid dismissal on jurisdictional grounds.
United States v. Hopkins,
427 U.S. 123, 130, 96 S.Ct. 2508, 2512, 49 L.Ed.2d 361 (1976). Accordingly, the lower court should not have dismissed the suit; it had power to hear the dispute and to award monetary relief pursuant to section 1346(a)(2).
Section 1346(a)(2) does not, however, confer subject matter jurisdiction on the district court to award nonmonetary cure.
E. g., Lee v. Thornton,
420 U.S. 139, 95 S.Ct. 853, 43 L.Ed.2d 85 (1975);
Jones v. Alexander,
609 F.2d 778, 781 (5th Cir. 1980).
The source of that power must be found in other statutes.
IV.
General Federal Question Jurisdiction
28 U.S.C. § 1331(a) (1976)
confers subject matter jurisdiction on the district courts for actions which arise under the Constitution and laws of the United States. Ordinarily, at least $10,000 must be at stake, but after the 1976 amendment to this statute, the monetary limitation does not pertain to suits against an agency of the federal government. Although the complaint did not specify this provision as a basis of jurisdiction, if the facts alleged meet the limitations, the lower court had jurisdiction notwithstanding the omission.
Andrus
v.
Charlestone Stone Products Co.,
436 U.S. 604, 607, 98 S.Ct. 2002, 2005 n.6, 56 L.Ed.2d 570 (1978);
Schlesinger v. Councilman,
420 U.S. 738, 744 n.9, 95 S.Ct. 1300, 1306, 43 L.Ed.2d 591 (1975).
Sheehan’s complaint alleged procedural due process violations, arbitrary and capricious action constituting an abuse of discretion (presumably in contravention of substantive due process), and that Hospelhorn’s denial of the appeal infringed other constitutional and statutory protections. The charge that appellate review by Hospelhorn violated governing regulations also arises under the “laws” of the United States.
Chasse v. Chasen,
595 F.2d 59, 61 (1st Cir. 1979);
Spencer v. Laird,
442 F.2d 904, 906 (2d Cir. 1971);
Farmer v. Philadelphia Electric Co.,
329 F.2d 3, 7-8 (3d Cir. 1964). Federal question jurisdiction under section 1331(a) is triggered by these allegations because they are not
“so patently without merit
as to justify . . . the court’s dismissal for want of jurisdiction.”
Duke Power Co. v. Carolina Environmental Study Group, Inc.,
438 U.S. 59, 70, 98 S.Ct. 2620, 2629, 57 L.Ed.2d 595 (1978),
quoting, Hagans v. Lavine,
415 U.S. 528, 542-43, 94 S.Ct. 1372, 1381-82, 39 L.Ed.2d 577 (1974) (emphasis in the original).
Nevertheless, section 1331(a) is not a waiver of sovereign immunity.
Beale v. Blount,
461 F.2d 1133, 1138 (5th Cir. 1972). Sheehan must look to 5 U.S.C. § 702 (1976)
for the waiver. The 1976 amendment to that statute waives sovereign immunity for actions against federal government agencies, seeking nonmonetary relief, if the agency conduct is otherwise subject to judicial review.
We are cognizant of the fact that the Second Circuit has recently held that section 702 does not waive the bar of sovereign immunity for nonstatutory review of agency action under section 1331.
Estate of Watson v. Blumenthal,
586 F.2d 925, 932 (2d Cir. 1978). Nevertheless, we find the illumination of the legislative history of section 702 by the Third Circuit in
Jaffee v. United States,
592 F.2d 712, 718-19 (3d Cir.),
cert. denied,
441 U.S. 961, 99 S.Ct. 2406, 60 L.Ed.2d 1066 (1979), cogent. We too must respectfully part with the Second Circuit and hold that Congress did intend to waive the defense of sovereign immunity for nonstatutory review under section 1331.
Accord, Collyard v. Washington Capitals,
477 F.Supp. 1247, 12521-53 (D.Minn.1979).
However, the AAFES argues that the 1970 amendment to 28 U.S.C. § 1346 (1976), which provided that express or implied contracts with the AAFES are to be considered as contracts with the United States, impliedly prohibits jurisdiction under 28 U.S.C. § 1331(a) (1976) and 5 U.S.C. § 702 (1976). It argues that in enacting that amendment, Congress believed that it was extending the sole vehicle for suit against the AAFES. Reliance is then placed on
Brown v. General Services Administration,
425 U.S. 820, 828-29, 96 S.Ct. 1961, 1965-66, 48 L.Ed.2d 402 (1976), and other cases, for the proposition that this belief, even if erroneous, impliedly prohibits relief under clause (2) in section 702.
We do not find this argument persuasive. The AAFES has not pointed us to any authority that indicates that Congress’ purpose in enacting the 1970 amendment was to provide the only method for suing the AAFES. Indeed,
Hopkins,
427 U.S. at 125, 96 S.Ct. at 2510, states that the purpose was to clarify that the fact that the government has not assumed the obligations of the enu
merated nonappropriated fund instrumen-talities does not prevent suit against them from being suits against the United States. Thus, after
Hopkins
it was clear that actions for breaches of contract seeking monetary relief were to be cognizable in the Court of Claims (and in the district courts if the sum involved did not exceed $10,000). But, we have no indicia of congressional belief regarding the maintainability of suits against AAFES for
nonmonetary
relief at the time the amendment was before Congress. Consequently, we do not find the enactment to be preclusive under a
Brown
syllogism.
It is clear that the legislative history to section 702 indicates that Congress did not intend to expand the waiver of sovereign immunity in the Tucker Act.
When suit is premised solely on that Act, section 702 cannot expand the jurisdiction and waiver under 28 U.S.C. § 1346(a)(2) to permit the award of nonmonetary relief in the district court. Conversely, when suit is brought under statutes other than the Tucker Act seeking a nonmonetary remedy for violation of the national Constitution and laws, the limited grant of jurisdiction and waiver of sovereign immunity found in that Act' does not expressly or impliedly prohibit the suit.
See Neal v. Secretary of Navy,
472 F.Supp. 763, 773-75 (E.D.Pa. 1979).
In this instance, nonmonetary relief is available under a jurisdictional grant in 28 U.S.C. § 1331(a), and that statute is not a waiver of sovereign immunity and contains no express or implied interdiction against nonmonetary relief.
V.
Mandamus
28 U.S.C. § 1361 (1976)
confers subject matter jurisdiction for actions in the nature of mandamus to compel a federal agency to perform a duty owed to the plaintiff. The statute is also a waiver of sovereign immunity.
Huffstutler v. Bergland,
607 F.2d 1090, 1092 (5th Cir. 1979) (per curiam);
Beale,
461 F.2d at 1138.
Three elements must exist, however, before mandamus is appropriately ex
ercised: (1) the plaintiff must have a clear right to the relief, (2) the defendant must have a clear duty to act, and (3) no other adequate remedy must be available.
Jones,
609 F.2d at 781;
Winningham v. United States Department of Housing and Urban Development,
512 F.2d 617, 620 (5th Cir. 1975). With regard to this final factor, the alternative remedy must be capable of affording full relief as to the subject matter in question.
Carter v. Seamans,
411 F.2d 767, 773 (5th Cir. 1969),
cert. denied,
397 U.S. 941, 90 S.Ct. 953, 25 L.Ed.2d 121 (1970). Since we hold that Sheehan can maintain his suit for both monetary and nonmonetary relief under alternative statutes, the lower court did not possess mandamus jurisdiction.
VI.
Summary
We have concluded that the district court possesses subject matter jurisdiction to decide this controversy. Power to provide monetary relief is found in the Tucker Act, 28 U.S.C. § 1346(a)(2), and authority to award nonmonetary compensation flows from the confluence of 28 U.S.C. § 1331(a) and 5 U.S.C. § 702. This holding precludes the existence of mandamus jurisdiction in the district court. We travel no further and should not be understood to intimate any opinion on the merits.
REVERSED and REMANDED.