Cooley v. United States

76 Fed. Cl. 549, 2007 U.S. Claims LEXIS 157, 2007 WL 1529460
CourtUnited States Court of Federal Claims
DecidedMay 25, 2007
DocketNo. 06-284C
StatusPublished
Cited by10 cases

This text of 76 Fed. Cl. 549 (Cooley v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooley v. United States, 76 Fed. Cl. 549, 2007 U.S. Claims LEXIS 157, 2007 WL 1529460 (uscfc 2007).

Opinion

OPINION AND ORDER

LETTOW, Judge.

Mr. Ronald Cooley claims that the United States breached an implied-in-fact contract that allegedly arose when Mr. Cooley’s employer, the Social Security Administration (“SSA”), adopted suggestions that he made through the agency’s Employee Suggestion Program (“ESP”). Among other things, Mr. Cooley challenges a decision of the Director of the Office of Personnel Management (“OPM”) in October 2005 to reject the SSA Commissioner’s request that OPM approve for forwarding to the President a recommendation for an award of $32,819 for Mr. Cooley’s suggestions. The suggestions were made in 1994, 1999, and 2000, and related to an SSA'computer system that screens beneficiaries of the need-based program of Social Supplemental Security Income for the Aged, Blind, and Disabled, to ensure that they have met their statutory obligation to apply for any benefits for which they are eligible under another benefits program, that for Federal Old-Age, Survivors, and Disability Insurance. Two of Mr. Cooley’s suggestions were adopted by SSA between 1997 to 2002, and a third was adopted in 2002. For his suggestions, SSA granted Mr. Cooley two cash awards of $1,300 and $24,450 and recommended him for a third — the $32,819 award rejected by OPM.1

The government has moved to dismiss Mr. Cooley’s complaint under Rules 12(b)(1) and 12(b)(6) of the Rules of the Court of Federal Claims (“RCFC”), arguing that this court lacks subject matter jurisdiction over Mr. Cooley’s claims and that, in the alternative, Mr. Cooley has failed to state a claim upon which relief could be granted. In short, the government argues that Mr. Cooley has no statutory entitlement to an award greater than $25,000. This court held a hearing on the government’s motion on April 3, 2007. As a consequence of that hearing, the court requested that Mr. Cooley file a supplemental submission to delineate his contentions. Mr. Cooley then filed a cross-motion for remand and provided additional materials, including correspondence and communications with and within SSA. The government responded on May 10, 2007, in essence acquiescing in Mr. Cooley’s cross-motion to remand, subject to limitations. With this supplementation in -hand, the case is now ready for disposition, and for the reasons set forth below, the court vacates OPM’s rejection of the SSA Commissioner’s request for favorable action on an enhanced award and grants Mr. Cooley’s motion to remand to SSA for further proceedings in accord with this decision.

FACTS

Pursuant to 5 U.S.C. §§ 4501-4513, SSA administers an ESP under which employees may be granted awards for providing suggestions that SSA adopts. Compl., Ex. 2 (SSA [551]*551Personnel Manual For Supervisors) (“SSA Personnel Manual”), Subchapter 3 at 2, 15. The SSA Personnel Manual details the procedures for submitting and evaluating a suggestion, granting awards, and seeking reconsideration of SSA’s decision respecting an employee’s suggestion. Id., Ex. 2 (SSA Personnel Manual), Subchapter 3 at 9-12,15-17, 19. Awards may include cash awards, which are based on the tangible savings or intangible benefits that result from a suggestion, and the manual includes a specific monetary scale of awards for levels of tangible savings and intangible benefits. Id., Ex. 2 (SSA Personnel Manual) Subchapter 3 at 15, 27-28. Mr. Cooley made his suggestions under the auspices of the ESP program.

A. KZ Diary Suggestion

On December 20,1994, Mr. Cooley submitted to SSA on Form HHS-170 an official employee suggestion (“KZ diary suggestion”).2 Compl., Ex. 1 (Form HHS-170) at 7-8. Mr. Cooley’s suggestion, assigned Suggestion No. 9501003, was intended to remedy certain programming errors in the SSA mainframe computer system pertaining to eligibility determinations for the program that provides Social Supplemental Security Income for the Aged, Blind, and Disabled (“SSI” or “Title XVI”). See id. 1111, Ex. 1 (Form HHS-170) at 7, 9-11; Social Security Act, Pub.L. No. 74-271, §§ 201, 1601, 1602, 49 Stat. 620 (Aug. 14, 1935) (codified as amended at 42 U.S.C. §§ 401, 1381, 1381a). The SSI program is need-based. See 42 U.S.C. § 1382. Eligibility is determined by an individual’s income and resources and is subject to a statutory requirement that the individual, if eligible for benefits under the program of Federal Old-Age, Survivors, and Disability Insurance (“OASDI” or “Title II”), must apply for those benefits. 42 U.S.C. §§ 1382(a), (e)(2), 1382a(a)(2)(B).3 Title II benefits would decrease or perhaps even eliminate an individual’s benefits under the SSI program. See 42 U.S.C. §§ 1382(a), 1382a(a)(2)(B).

SSA’s mainframe computer system employed the so-called KZ diary system to identify SSI beneficiaries who were eligible for Title II benefits. Compl. 1112, Ex. 1 (Form HHS-170) at 9.4 Mr. Cooley’s suggestion recommended four “related, ... [but] independent],” solutions to two problems with the KZ diary system: (1) the system failed to identify SSI beneficiaries who became eligible for Title II benefits after their initial application — for example, because they had reached the age of 62 or had met the prerequisites for earnings history under the Title II program, and (2) the system was not designed to detect previous erroneous determinations by SSA — made at the time of an SSI beneficiary’s initial application — that the beneficiary was ineligible for Title II benefits. Id. 1112, Ex. 1 (Form HHS-170) at 9-10; 42 U.S.C. § 402(a)(2), 414(a). In his KZ diary suggestion, Mr. Cooley noted the benefits his suggestion would bring to the government— improved compliance with statutory requirements, increased benefits for eligible Title II recipients, and a reduction in the SSI rolls. Compl., Ex. 1 (Form HHS-170) at 12.

SSA rejected the KZ diary suggestion on July 10, 1995, Compl. II14; Pl.’s Cross-Mot. to Remand (“Pl.’s Cross-Mot.”), Ex. 1 at 10-[552]*55212 (Letter from Grant Sheehan, SSA, Director, Division of Assistance Program Pos-teligibility Quality, to Cooley (July 10, 1995)),5 and Mr. Cooley sought formal reconsideration of that decision on May 23, 1996. Id., Ex. 1 at 1-2 (Mem. from Cooley to Central Suggestion Team (May 23, 1996)). Mr. Cooley’s suggestion was rejected on reconsideration, id., Ex. 1 at 119-120 (Mem. from Dan Bergerson, SSA, Chief, Payment Quality Branch, Division of Payment Policy, Office of Program Benefits Policy, to Cooley (Sept. 17, 1996)), and again rejected on further review. Id., Ex. 1 at 121-23 (Letter from Bergerson to Cooley (Jan. 23, 1997)). Ultimately, however, on November 12, 1997, SSA adopted a portion of the KZ diary suggestion — Mr. Cooley’s recommended changes to the KZ diary system that would prospectively identify SSI beneficiaries who were eligible for Title II benefits. See id. at 11-12 & Ex.

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Bluebook (online)
76 Fed. Cl. 549, 2007 U.S. Claims LEXIS 157, 2007 WL 1529460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooley-v-united-states-uscfc-2007.