Castro v. United States

584 F. Supp. 252, 1984 U.S. Dist. LEXIS 17847
District Court, D. Puerto Rico·Decided April 6, 1984·No. Civ. 83-3001(PG)·Published·Cited by 11 cases

Opinion

OPINION AND ORDER

PEREZ-GIMENEZ, District Judge.

This case has a long and convoluted history; the present amended complaint is the tenth in a series of suits, by one or both pro se plaintiffs, against the Federal Deposit Insurance Corporation (“FDIC”). 1 *256 This and all previous actions appear to arise out of the FDIC’s failure to renew plaintiffs’ temporary appointments with the FDIC. Plaintiffs’ amended complaint is based on a variety of disparate. legal theories: The Federal Tort Claims Act; Title VII of the Civil Rights Act of 1964; the Age Discrimination in Employment Act (“ADEA”); 42 U.S.C. § 1983; the Civil Service Reform Act of 1978; 28 U.S.C. § 1331; and the First, Fifth and Fourteenth Amendments to the United States Constitution. Plaintiffs also seek a Declaratory Judgment upon the constitutionality of 5 U.S.C. §§ 3301, 3302, 3304 and 7511. 2

Plaintiffs’ application for a TRO was denied on February 21, 1984, and a hearing was held on plaintiffs’ request for a preliminary injunction of February 24, 1984. That injunction was also denied in our Opinion and Order entered on March 27, 1984. The matter is presently before the Court on defendants’ Motion to Dismiss and plaintiffs’ opposition thereto.

Findings of Fact

1. Defendant FDIC is a corporation chartered under the laws of the United States of America — its chief function being the insurance of bank deposits and the supervision and examination of state-chartered insured banks which are not members of the Federal Reserve System. When appointed by the Comptroller of the Currency or authorized state banking Commissioners, the FDIC also acts as receiver for closed banks. 12 U.S.C. §§ 1811-1831d (1980 & Supp.1982).

2. Both plaintiffs were born in Puerto Rico.

3. Both plaintiffs held a series of successive, finite, long-term, temporary, ex *257 cepted appointments with the FDIC in its San Juan Liquidation Office.

• 4. Plaintiff Castro was employed first as a translator and then as a bond clerk, from August 28, 1978, until the expiration of his last appointment on November 10, 1982.

5. Plaintiff Diaz Diaz was employed as a collector from February 12, 1979, until the expiration of his last appointment on December 12, 1982.

6. The FDIC’s Liquidation Graded positions have been designated by the Office of Personnel Management (“OPM”) as Schedule A in the excepted service pursuant to 5 U.S.C. §§ 3301, 3302 and 5 C.F.R. § 213.-3133.

7. These temporary liquidation appointments do not confer competitive status, nor do they lead to career or career-conditional appointments without some further examination or qualification.

8. Liquidation Graded positions are temporary in nature because the positions are concerned with the work of liquidating the assets of and managing the affairs of closed banks. During an ongoing liquidation staffing needs are frequently reassessed and reductions are periodically necessary.

9. Individuals employed by the FDIC as Liquidation Graded appointees are apprised of their temporary status when initially hired, and the expected duration of their appointments is specifically designated on Standard Form 50.

10. During his last appointment plaintiff Castro was an LG-5 Step 4.

11. During his final appointment plaintiff Diaz Diaz was an LG-11 Step 2.

12. Neither plaintiff qualifies as a preference eligible under 5 U.S.C. § 2108.

13. Plaintiff Castro’s successful completion of a civil service examination does not in and of itself confer competitive status upon him.

Conclusions of Law

With this background in mind, the Court will now consider each of the issues presented by defendants’ Motion to Dismiss.

A. Federal Tort Claims Act

Plaintiffs in this action collectively seek $7,196,000 in damages under the Federal Tort Claims Act (“FTCA”), 28 U.S.C. § 1346(b), 2671-2680, for alleged violations of their statutory and constitutional employment rights. Assuming arguendo that plaintiffs have such statutory and constitutional employment rights, the United States cannot be made liable under the FTCA for claims that arise from a breach of federal law, Birnbaum v. United States, 588 F.2d 319, 322 (2d Cir.1978), (“recovery under the [FTCA can] only be predicated upon ... a state tort cause of action.”), or for constitutional torts. Id. at 327 (“We do not believe that the [FTCA] comprehends federal constitutional torts in its reference to the ‘law of the place’ under § 1346(b).”). Furthermore, since plaintiffs’ employment claims are not cognizable under the FTCA, it is not necessary to reach the issue of whether plaintiffs exhausted their administrative remedies. Steinagel v. Jacobson, 507 F.Supp. 288, 290 (S.D.Ohio 1980); Wham v. United States, 458 F.Supp. 147, 151 (D.S.C.1978); Young v. United States, 498 F.2d 1211, 1218 (5th Cir.1974). The Steinagel court emphatically stated that “it is ‘beyond question’ that claims based upon wrongful discharge under a contract of federal employment are ‘wholy alien’ to the remedy provided for tortious conduct under the [FTCA].” 507 F.Supp. at 290. Rather, claims under the FTCA must be ones recognized by the law of the state in which the claims arose. 28 U.S.C. §§ 1346(b), 2674. Plaintiffs have alleged no state law violations in their amended complaint, and without any allegation of a cognizable tort there can be no relief, and plaintiffs’ FTCA actions are therefore dismissed for lack of subject matter jurisdiction.

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