Conservative Caucus, Inc. v. United States

650 F.2d 1206, 228 Ct. Cl. 45, 1981 U.S. Ct. Cl. LEXIS 325
CourtUnited States Court of Claims
DecidedJune 3, 1981
DocketNo. 120-79C
StatusPublished
Cited by13 cases

This text of 650 F.2d 1206 (Conservative Caucus, Inc. 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
Conservative Caucus, Inc. v. United States, 650 F.2d 1206, 228 Ct. Cl. 45, 1981 U.S. Ct. Cl. LEXIS 325 (cc 1981).

Opinion

COWEN, Senior Judge,

delivered the opinion of the court:

The plaintiff in this case is a nonprofit, educational organization which has been granted a permit by the United States Postal Service (USPS) to mail at the special bulk third-class rate. This is a subsidized rate which is available only to certain nonprofit organizations. During the time plaintiffs application for the permit was pending, a period of nearly 1 year, plaintiff made several mass mailings; it deposited the letters at post offices other than the one at which it had filed its application, and paid either first-class postage rates or the regular bulk rates available to the general public. This suit is for a refund of the difference between the rates plaintiff paid for these mailings and the rates which would have been due under the special bulk third-class rates.

When the claim was presented to USPS, it was denied on the grounds that plaintiff did not overpay the applicable postage rates for these mailings, because it did not comply with the regulations which would have entitled plaintiff to a retroactive application of the special rate. Since the applicable statutes and regulations granted USPS broad discretion concerning postal refunds, the agency decision is entitled to finality, because it was not clearly wrong nor contrary to law. Moreover, we find that there was a rational basis for the agency’s interpretation of validly promulgated regulations and that the decision should be sustained on that ground. Accordingly, we grant defendant’s motion for summary judgment.

I.

The material facts in this case are not in controversy.

On March 23,1977, plaintiff applied for a permit to make bulk mailings at a special bulk third-class rate. The application stated that plaintiff was a nonprofit organization whose primary purpose was educational; it was submit[47]*47ted, along with a copy of plaintiffs constitution and bylaws, to the post office in Falls Church, Virginia. On May 2,1977, the manager of the USPS Sectional Mail Center for Northern Virginia denied the permit on the grounds that the evidence submitted did not establish that education was plaintiffs primary purpose. Plaintiff appealed this decision to the National Rates and Classification Department, but the denial was upheld in a letter signed by the Acting General Manager of the Domestic Mail Division on July 27, 1977.

Four days later, plaintiff submitted additional information. On January 19, 1978, 6 months later, plaintiff requested reconsideration and presented additional evidence, including copies of publications, recordings, conference programs, and other materials prepared in the normal course of plaintiffs operations, which established to USPS’s satisfaction that plaintiff was entitled to the permit. The permit was issued on March 3,1978.

Plaintiff mailed almost 6 million pieces of mail during the time the application was pending. Some of this mail was deposited at the Washington, D. C. post office, and some was deposited at the Waldorf, Maryland post office. Of these mailings, 1,526,479 pieces were mailed at the first-class rate and 4,428,285 pieces were mailed at the regular third-class bulk rate. None of the mailings at issue here were submitted to the Falls Church, Virginia post office where plaintiff had applied for the permit, and there is no indication that plaintiff made any effort to send these items at the special bulk third-class rate at the post offices where the mail was deposited.

On June 5, 1978, plaintiff wrote to the manager of the Northern Virginia Sectional Center, requesting a refund of $414,113.15, which it claimed as the difference between the amount it paid in postage for these mailings and the amount it would have paid had the postage been calculated using the special rate. The claim was denied by the Northern Virginia officials, primarily on the ground that refund requests would have to be sent to the post office where the mailings were made (in this case, Washington, D. C. and Waldorf, Maryland). The letter also stated that [48]*48matter mailed at the first-class rate would not qualify for a refund.

On September 8, 1978, plaintiff wrote the Postmaster, Washington, D. C., requesting a refund of $198,655.18 for both first-class and third-class mailings at that office. This request was denied September 21, 1978, on the ground that no refund was due, since plaintiff had not filed a special rate application at the Washington, D. C. post office. On October 11,1978, plaintiff requested that its refund application be forwarded to the Manager, Domestic Mail Classification Division, Rates and Classification Department. This was done and on February 14, 1978, USPS issued its final decision denying plaintiffs application for refund. The decision read in pertinent part as follows:

The file shows that on March 23, 1977 Conservative Caucus Research, Analysis and Education Foundation, Inc., applied on Form 3624 to mail at special bulk third-class rates at Falls Church, Virginia. The application was approved on April 8, 1977.* The filing requirements in section 134.541, Postal Service Manual, clearly state that an application must be filed at the post office where mailings will be deposited. This also appears on the application itself. Yet it is not apparent that your client applied and received approval to mail at the special rates at any other post office besides Falls Church. The rules governing these applications were adopted under the general powers ascribed to the Postal Service by the provisions of Title 39, United States Code, section 401(2) which were carried forward from former Title 39, United States Code, section 501.
The postal regulation governing refunds (section 147.211, Postal Service Manual) states that when postage and special or retail service fees have been paid, and no service is rendered, or when the amount collected was in excess of the lawful rate, a refund may be made. There is no indication that your client received no service on any of the mailings in question. Indeed service is not at issue here. In view of the postal regulations governing applications to mail at the special rates, and your client’s failure to apply and receive approval to mail at those rates at the Washington, DC and Northern Virginia Sectional Center Facility [sic] post office, postage payment at those offices by your client was not in excess of the legal rate. Therefore, the refund requests are hereby denied.
*Note: The correct date is March 3,1978.

[49]*49II.

With the passage of the Postal Reorganization Act of 1970, Pub. L. 91-375, 84 Stat. 719 (August 12,1970), codified as title 39 of the United States Code, USPS was created, replacing the Post Office Department. Although it was called "an independent establishment of the executive branch of the Government” (39 U.S.C. sec. 201), we have held that we have jurisdiction to award judgment against the United States on Tucker Act claims involving the USPS. Butz Engineering Corp. v. United States, 204 Ct. Cl. 561, 571, 499 F.2d 619, 624 (1974).

Congress granted USPS the power "to adopt, amend, and repeal such rules and regulations as it deems necessary to accomplish the objectives of this title.” (39 U.S.C. sec. 401(2)).

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650 F.2d 1206, 228 Ct. Cl. 45, 1981 U.S. Ct. Cl. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conservative-caucus-inc-v-united-states-cc-1981.