Bornholdt v. Brady

869 F.2d 57, 1989 U.S. App. LEXIS 1959, 49 Empl. Prac. Dec. (CCH) 38,770, 54 Fair Empl. Prac. Cas. (BNA) 987, 1989 WL 13272
CourtCourt of Appeals for the Second Circuit
DecidedFebruary 16, 1989
DocketNo. 189, Docket 88-6057
StatusPublished
Cited by98 cases

This text of 869 F.2d 57 (Bornholdt v. Brady) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Bornholdt v. Brady, 869 F.2d 57, 1989 U.S. App. LEXIS 1959, 49 Empl. Prac. Dec. (CCH) 38,770, 54 Fair Empl. Prac. Cas. (BNA) 987, 1989 WL 13272 (2d Cir. 1989).

Opinion

KEARSE, Circuit Judge:

Plaintiff Frank B. Bornholdt, a former employee of the Internal Revenue Service (“IRS”), appeals from a final judgment of the United States District Court for the Southern District of New York, Louis L. Stanton, Judge, dismissing his complaint seeking declaratory, injunctive, and monetary relief against IRS and the Department of the Treasury (collectively the “Government”) for (1) employment discrimination on the basis of age, in violation of the Age Discrimination in Employment Act, 29 U.S. C. § 621 et seq. (1982 & Supp. IV 1986) (“ADEA” or the “Act”), and (2) termination of his employment as reprisal for presenting his age-discrimination claim to an administrative agency, in violation of the ADEA, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. (1982) (“Title VII”), and the Civil Service Reform Act of 1978, 5 U.S.C. § 2302(b) (1982). The district court summarily dismissed the complaint as time-barred because it was not filed within 30 days after Bornholdt received notice of final administrative action on his claims. On appeal, Bornholdt con[59]*59tends principally (1) that his claims were not governed by a 30-day limitations period, (2) that even if a 30-day period is applicable, principles of equitable tolling or equitable estoppel should be applied to extend the period, and (3) that in any event, the present suit is timely because it relates back to an earlier lawsuit. For the reasons below, we affirm the judgment insofar as it dismissed the claim of reprisal but vacate and remand for further proceedings on the claim of age discrimination.

I. BACKGROUND

Bornholdt was employed by IRS as a revenue officer from 1966 until April 1983. On March 15, 1982, his 62nd birthday, he became eligible for retirement. He contends that in June 1981, IRS commenced discriminating against him because of his age and that it has retaliated against him for complaining of age discrimination. These contentions have been the subject of numerous administrative and judicial complaints.

A. The First Administrative Filings

In May 1982, Bornholdt filed a complaint with the IRS Equal Employment Opportunity Office (“IRSEEO”), charging that between June 1981 and April 1982, IRS had engaged in a series of acts designed to coerce him to retire. These included the issuance of a 60-day “notice of disciplinary action” stating that his job performance was inadequate. Bornholdt contended that the notice was disingenuous and was designed to mask IRS discrimination against him because of his age (the “age-discrimination claim”).

In July and October of 1982 and in March and April of 1983, Bornholdt filed four additional claims with IRSEEO. Each claim alleged that IRS had taken an unlawful action against him in reprisal for his having filed the May 1982 age-discrimination complaint (the “reprisal claims”). The last such reprisal claim asserted that IRS had terminated Bornholdt’s employment effective April 15, 1983. The claims filed by Bornholdt with IRSEEO in 1982 and 1983 were not quickly decided.

In May 1983, Bornholdt filed a petition with the Merit Systems Protection Board (“MSPB”), seeking to appeal IRS’s April 1983 decision to terminate his employment on the ground that the termination was the result of age discrimination and unlawful reprisal. MSPB dismissed the petition for lack of jurisdiction, ruling that because Bornholdt had filed the same claim with IRSEEO, MSPB had no power to entertain the claim unless IRSEEO had rendered a decision or 120 days had elapsed without a decision. Since neither condition was fulfilled, MSPB dismissed Bornholdt’s petition without prejudice.

B. The First Lawsuit and the First IR-SEEO Decision

In June 1983, after giving the Equal Employment Opportunity Commission (“EEOC”) notice of his intent to sue, Born-holdt commenced a federal civil suit in the Southern District of New York against the Department of the Treasury, IRS, and Bornholdt’s supervisor at IRS, pursuing his claims of age discrimination and reprisals if Bornholdt I”). In September 1983, the defendants moved to dismiss on the ground, inter alia, that no final administrative action had been taken on these claims. In July 1984, the court dismissed the action on the ground that IRSEEO had not rendered a final decision on Bomholdt’s claims and that Bornholdt thus had not exhausted his administrative remedies. Bornholdt v. Department of Treasury, 83 Civ. 4596 (S.D.N.Y. July 20, 1984) (Gagliardi, J.).

Unbeknownst to Bornholdt and the court, however, prior to the dismissal of Bornholdt I, IRSEEO had in fact finally decided Bornholdt’s age-discrimination claim. In November 1983, IRSEEO had issued a “proposed disposition” concluding that this claim was not supported by the evidence. This preliminary decision, which made no mention of the reprisal claims, apparently was received by Bornholdt during the pendency of Bornholdt I and was disclosed to the court. See id. at 6 n. 4. IRSEEO proceeded to adopt its proposed disposition as its final decision in March [60]*601984. However, IRSEEO did not inform Bomholdt of this final decision for nearly two years. Nor did defendants IRS and the Department of the Treasury, of which IRSEEO was part, disclose the existence of this March 1984 decision to the court. As a result, Judge Gagliardi dismissed Bom-holdt I in July 1984, believing that “the agency has yet to make a final determination on the matter.” Id.

C. Additional Administrative and Judicial Filings

While Bomholdt I was pending, Bom-holdt filed two additional appeals with MSPB. Both were dismissed without prejudice pending resolution of the court litigation. Following the district court’s dismissal, Bomholdt renewed his MSPB appeal challenging his termination by IRS. A hearing was held, at the conclusion of which the MSPB hearing officer ruled orally that Bomholdt had “failed to prove that the agency had committed harmful error requiring reversal.” Bornholdt v. Department of the Treasury, Case No. NY07528510115 (MSPB Initial Decision, Feb. 11, 1985). Upon the announcement of this ruling, however, Bomholdt moved to withdraw his appeal with prejudice. His motion was granted, and in February 1985, MSPB accordingly dismissed his appeal with prejudice. Id.

In May 1985, still unaware that IRSEEO had finally denied his age-discrimination claim in March 1984, Bomholdt returned to the district court, this time seeking a writ of mandamus to compel IRSEEO to decide his age-discrimination and reprisal claims (“Bomholdt II”). In response, the Department of the Treasury apparently informed the court that IRSEEO had in fact already decided the age-discrimination claim, as the court stated as follows:

Plaintiff has received a final agency decision with respect to his first complaint [age discrimination]. The Court notes that while plaintiff’s subsequent complaints have been pending before the IRS for over two years, there is no statutory time limit within which the IRS must issue final decisions.

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869 F.2d 57, 1989 U.S. App. LEXIS 1959, 49 Empl. Prac. Dec. (CCH) 38,770, 54 Fair Empl. Prac. Cas. (BNA) 987, 1989 WL 13272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bornholdt-v-brady-ca2-1989.