Bates v. United States

453 F.2d 1382, 197 Ct. Cl. 35, 1972 U.S. Ct. Cl. LEXIS 8
CourtUnited States Court of Claims
DecidedJanuary 21, 1972
DocketNo. 483-71
StatusPublished
Cited by13 cases

This text of 453 F.2d 1382 (Bates 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
Bates v. United States, 453 F.2d 1382, 197 Ct. Cl. 35, 1972 U.S. Ct. Cl. LEXIS 8 (cc 1972).

Opinion

ColliNS, Judge,

delivered the opinion of the court:

This military pay case is before the court on defendant’s motion to dismiss and plaintiff’s motion for summary judgment.

As a result of the correction of his military service record plaintiff seeks recovery of active duty pay in the amount of $3,220.80. For the reasons hereinafter set forth the court has decided that plaintiff is entitled to recover and, therefore, his motion for summary judgment will be granted.

Plaintiff enlisted in the Regular Air Force on February 23, 1965, for a period of 4 years. He served overseas in Vietnam until May 12, 1968, at which time he was returned to the continental United States and took up residence in Joliet, Illinois, at his “leave address” and apparently his hometown, pursuant to a permanent change of station order. However, [37]*37neither this order, nor any subsequent orders, assigned plaintiff to a new duty station.

Upon return to the United States, plaintiff awaited further orders, and he made inquiries in an effort to obtain such orders regarding a new assignment. In response to these inquiries plaintiff received the following letter, dated September 18, 1968, from the Air Force:

We have just received your letter and your future assignment is as much a mystery as ever. We would appreciate any information you give us on the situation. If you have orders cancelling your previous assignment, we will require at least sis copies, along with DD Form 1299 (if you are located near a base) before we can transfer your hold baggage.

Eventually it was ascertained that, for some unknown reason, the Air Force had carried plaintiff on an excess leave status from June 17, 1968, to April 14,1969.

On May 12,1969, by special order of the Air Force, plaintiff was relieved of active duty and transferred to the Air Force Reserve.

By order of the Secretary of the Air Force, dated September 25,1970, plaintiff’s military record was corrected to show that he had not been charged with excess leave from June 17, 1968, to April 14, 1969, but rather that he had served on active duty during this period.1

[38]*38During the period from June 1968 to April 1969, which included the time when plaintiff’s “future assignment [was] as much a mystery as ever,” plaintiff did not receive active duty pay. Consequently, plaintiff was forced to find civilian employment in order to support his wife and family. As a result he earned $3,784.35.

On the basis of plaintiff’s corrected record the Air Force Accounting and Finance Center determined that, after the appropriate deductions, $3,220.80 in active duty pay had been wrongfully withheld from plaintiff. However, in computing the net amount to which plaintiff was entitled to receive, the Accounting and Finance Center deducted, or offset, the amount of plaintiff’s civilian earnings. Since plaintiff’s civilian earnings ($3,784.35) exceeded the amount otherwise due ($3,220.80), plaintiff was informed that he was not entitled to receive anything in settlement for his wrongfully withheld active duty pay. The basis for the deduction of civilian earnings was Air Force Regulation 31-3, paragraph 26a, which provides:

26. Settlement Provisions :
a. Basis for Settlement. Settlement of claims shall be based on the decision of the Secretary of the Air Force. Computations of amounts due shah be made by the Comptroller of the Air Force, HQ USAF, or his representative, according to applicable law and regulations. In no case will the amount found due exceed the amount which would otherwise have 'been paid or become due had no error or injustice occurred. Earnings received from, civilian employment during any period for which active duty pay and allowances are payable may be deducted from the settlement. Amounts found due may be reduced by the amount of any existing indebtedness to the Government, arising from military service. [Emphasis added.]

Regulation 31-3 was promulgated under the authority of 10 U.S.C. § 1552, supra note 1, and its effective date was October 21,1970. This regulation was in full force and effect on December 23,1970, the date on which the Accounting and Finance Center computed the amount of active duty pay to which plaintiff was entitled. Notwithstanding, however, the regulation 'was not in effect during the time period affected [39]*39by the correction of plaintiff’s record, i.e., June 17, 1968, to April 14,1969. Also, it was not in effect on the date when the correction in plaintiff’s record was ordered and effectuated by the Secretary, i.e., September 25,1970. ‘In fact, regulation 31-3’s predecessor had no offset clause, and, as defendant conceded during oral argument, the prior Air Force rule or practice in this type of situation was not to make a 'deduction or offset.

The issue which the court must decide is whether or not the Accounting and Finance Center, in implementing the effect of the corrected record, acted properly in the computation of the net amount of active duty pay due plaintiff. Stated differently, the question is whether plaintiff is entitled to active duty pay as computed under the regulations in effect at the time (1) when the computation by the Accounting and Finance Center was actually made, or (2) when, according to the corrected record, the active duty pay accrued, but was wrongfully withheld.

The court finds it unreasonable to believe that, when the Secretary corrected plaintiff’s record thereby entitling plaintiff to recover active duty pay, the Secretary intended to retroactively apply the offset provisions of regulation 31-3. Such an application of the regulation, in the instant case, appears wholly unauthorized, unwarranted, unjustified, and not in consonance with the remedial spirit of the correction statute, supra note 1. This conclusion is buttressed by the fact that regulation 31-3 was not in effect on the date plaintiff’s record was in fact corrected. As stated previously, plaintiff’s activé duty pay, according to the corrected record, accrued from June 17, 1968, to April 14, 1969. His record was corrected on September 25,1970. Subsequently, on October 21,1970, regulation 31-3 became effective. Therefore, the court holds that the Accounting and Finance Center incorrectly deducted or offset plaintiff’s civilian earnings. Plaintiff was, and is, entitled to receive his active duty pay as computed under the Air Force regulations in force and effect at the time when, according to the corrected record, plaintiff’s active duty pay accrued.

Defeiidant has argued that, even if the court finds, as we [40]*40have, that the offset provision of regulation 31-3 is inapplicable in the present case, the deduction of “outside” earnings is supported by decisions of this court involving similar circumstances. See, e.g., Middleton v. United States, 175 Ct. Cl. 786 (1966) ; Motto v. United States, 175 Ct. Cl. 862, 360 F. 2d 643 (1966) ; Clackum v. United States, 161 Ct. Cl. 34 (1963). The court is well aware of the precedent in this court for the deduction of civilian earnings; however, defendant’s contention that these cases are dispositive of the issue in the present case is misplaced.

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453 F.2d 1382, 197 Ct. Cl. 35, 1972 U.S. Ct. Cl. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-united-states-cc-1972.