Coutts v. United States

47 Fed. Cl. 118, 2000 U.S. Claims LEXIS 129, 2000 WL 946751
CourtUnited States Court of Federal Claims
DecidedJune 30, 2000
DocketNo. 98-181C
StatusPublished

This text of 47 Fed. Cl. 118 (Coutts 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
Coutts v. United States, 47 Fed. Cl. 118, 2000 U.S. Claims LEXIS 129, 2000 WL 946751 (uscfc 2000).

Opinion

OPINION

MARGOLIS, Senior Judge.

This contract action is before the Court on defendant’s motion for summary judgment or in the alternative, motion to dismiss, and plaintiffs’ cross motion for summary judgment. There are no material facts in dispute. After full briefing and oral argument, plaintiffs’ motion is denied. Defendant’s motion is granted.

FACTS

The following facts are in accordance with a Joint Stipulation of Facts (JSF) filed by the parties October 4,1999.

The complaint and a motion for class certification were filed March 16, 1998, by the following eighteen named plaintiffs: Gayla Barker,1 Jose Bascunana,2 Richard P. Chandler, James S. Clements, Frederick W. Coutts, Arthur H. Fletcher, Stephen L. Hatos, Donald G. Heene, Helen E. Jackson, Warren G. LaHeist, Catherine L. Larsen, Almentha Martin, Carl Nash, Henri A. Richardson, Robert H. Ross, Frank Swant, Wayne Tannahill, and Charles Westphal. They are present and former employees of the National Highway Traffic Safety Administration (NHTSA), an agency of the United States Department of Transportation (DOT). On August 25, 1999, plaintiff Hatos filed an unopposed pro se motion to withdraw from the case. The Court granted the motion September 8,1999. JSF, p.1-2.

Plaintiffs’ motion for class certification was denied November 10,1998. Defendant’s first motion to dismiss, filed January 8, 1999, was heard and denied May 11, 1999. The order was filed May 12,1999.

The complaint asserted claims against the United States on breach of contract and estoppel theories with requests for monetary damages as well as declarative and injunctive relief. On May 11,1999, the Court dismissed plaintiffs’ estoppel claim and requests for declaratory and injunctive relief; only the breach of contract claim remains to be decided here.

Plaintiffs have narrowed their claim from asserting an action based on an implied or express contract to a claim based exclusively on an express contract with the Government. Plaintiffs allege that the Federal Workforce Restructuring Act of 1994, Public Law 103-226 [H.R. 3345], March 30, 1994, (FWRA), gave Executive agencies the authority to offer employees voluntary separation incentive payments, but did not authorize the agency to make the payments (buyouts) conditional. Therefore, plaintiffs argue, any buyout offered to employees created a binding contract. Any conditions stated in the buyouts were not authorized by the legislation and thus could not be an enforceable part of the contract.

The FWRA was proposed as an initiative of Vice President A1 Gore’s National Perfor[120]*120manee Review (NPR) that made recommendations for workforce reductions of civilian non-postal employees in a September 7, 1993 report. JSF, p.4, # 14.

As signed into law, Section 3 of the FWRA provides:

(b) AUTHORITY.—
(1) IN GENERAL. — In order to avoid or minimize the need for voluntary separations due to a reduction in force, reorganization, transfer of function, or other similar action, and subject to paragraph (2), the head of an agency may pay, or authorize the payment of, voluntary separation incentive payments to agency employees—
(A) in any component of the agency;
(B) in any occupation;
(C) in any geographic location; or
(D) on the basis of any combination of factors under subparagraphs (A) through (C).
(2) CONDITION.—
(A) IN GENERAL. — In order to receive an incentive payment, an employee must separate from service with the agency (whether by retirement or resignation) before April 1,1995.
(B) EXCEPTION. — An employee who does not separate from service before the date specified in subparagraph (A) shall be ineligible for an incentive payment under this section unless—
(i) the agency head determines that, in order to ensure the performance of the agency’s mission, it is necessary to delay such employee’s separation; and
(ii) the employee separates after completing any additional period of service required (but not later than March 31, 1997).

Federal Workforce Restructuring Act of 1994, Public Law 103-226, 108 Stat. 111, 113 (March 30,1994) (emphasis added).

Later, in addition to the FWRA legislation, on December 19, 1994, President William Clinton and the then Secretary of Transportation, Frederico Peña, announced a plan to restructure five federal agencies, including DOT, as a step in general Government downsizing in response to public demand. The proposed plan for DOT would have consolidated its ten operating administrations into three agencies, the Federal Aviation Administration, the United States Coast Guard, and the Intermodal Transportation Administration (ITA), which would be responsible for programs administered by six of DOT’s existing operating administrations, including NHTSA.

On December 23, 1994, DOT issued Volume 1, Number 1 of DOT Talk, a biweekly newsletter sent by both electronic mail and in hard copy format to all DOT employees, including plaintiffs, for the stated purpose of keeping them informed of developments resulting from the restructuring plans. A reorganization plan was submitted as a legislative proposal to Congress, but it was never enacted.

On March 30, 1994, Secretary Peña, delegated to the heads of the operating administrations within DOT, including the Administrator of NHTSA, the authority to administer the provisions of the FWRA and to offer buyouts within their organizations. JSF, p.5, # 20; JSF Appendix pp. 9-10.

The operating administration was required to submit a buyout plan to the Deputy Secretary of Transportation for approval. The Deputy Secretary, Mortimer Downey, stated in his memo dated February 28, 1995, that the “[tjentative buyouts may be offered to classes of employees contingent on final determination of departmental restructuring and consolidation.” The Administrator of NHTSA, Dr. Ricardo Martinez, submitted the agency’s delayed buyout plan to the Deputy Secretary on March 6,1995. Jan Karicher, the DOT staff member assigned the responsibility of reviewing agency buyout plans to ensure consistency with the Department’s objectives, verbally informed Herman L. Simms, then NHTSA’s Acting Associate Administrator, that the plan was approved. JSF, pp.6-7; JSF Appendix pp.9-16.

Simms issued a memorandum on March 10, 1995, informing NHTSA employees of three categories of employees to whom delayed buyouts would be offered. All of the plaintiffs held positions covered by category three. The third category included “occupations which may be in excess as a result of [121]*121reorganization or restructuring of the department, and other crosscutting occupations such as legal services, public affairs, Congressional/intergovernmental affairs, policy review and evaluation, correspondence control and employees occupying senior level or supervisory positions.” JSF, p. 8, # 32; JSF Appendix p. 18. None of the category-three buyouts was necessary to accomplish any of the objectives of the NPR nor would they benefit DOT or NHTSA in the absence of departmental restructuring. JSF, p.12, # 54; JSF Appendix pp. 15-16 & 35-36.

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47 Fed. Cl. 118, 2000 U.S. Claims LEXIS 129, 2000 WL 946751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coutts-v-united-states-uscfc-2000.