Cunningham v. United States

108 Fed. Cl. 208, 2012 U.S. Claims LEXIS 1635, 2012 WL 6720428
CourtUnited States Court of Federal Claims
DecidedDecember 20, 2012
DocketNo. 10-111 C
StatusPublished
Cited by2 cases

This text of 108 Fed. Cl. 208 (Cunningham 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
Cunningham v. United States, 108 Fed. Cl. 208, 2012 U.S. Claims LEXIS 1635, 2012 WL 6720428 (uscfc 2012).

Opinion

Breach of Settlement Agreement; Civil Service Reform Act of 1978, Pub.L. No. 95-454, 92 Stat. 1111; Tucker Act, 28 U.S.C. § 1491(a)(1) (2006); Subject Matter Jurisdiction, RCFC 12(b)(1); Res Judicata; Failure to State a Claim, RCFC 12(b)(6).

OPINION

BUSH, Judge.

Now pending before the court is defendant’s motion to dismiss, which has been [210]*210fully briefed and is ripe for a decision by the court. Because the court concludes that it has subject matter jurisdiction over the breach of contract claim set forth in the complaint, defendant’s motion to dismiss the complaint pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (RCFC) cannot be granted on that basis. The court further holds, however, that the complaint fails to state a claim upon which relief can be granted and must be dismissed under RCFC 12(b)(6). For that reason, defendant’s motion to dismiss is hereby granted.

BACKGROUND1

I. Factual History

Plaintiff Eric D. Cunningham was employed as a criminal investigator in the Office of the Inspector General within the Office of Personnel Management (OPM) from February 23, 2004 until his termination on January 22, 2005. Compl. ¶¶ 5-6. Mr. Cunningham was notified of his proposed termination in a letter dated December 20, 2004. Id. ¶ 9. Plaintiff was terminated during his initial one-year probationary period and never progressed beyond GS-11, step 1, the level at which he was first hired by OPM. Id. ¶¶ 5-6.

Plaintiff then filed a timely appeal of his termination with the United States Merit Systems Protection Board (MSPB).2 Id. ¶ 7. On October 27, 2005, during the second day of the administrative hearing on his appeal, plaintiff entered into a settlement agreement with OPM, under which he agreed to withdraw his MSPB appeal with prejudice. Id. ¶ 8, Ex. 1 ¶ 3. One of the signatories to the agreement was Timothy C. Watkins, counsel to the Inspector General at OPM. Id. Ex. 1 at 3.

Under the settlement agreement, OPM agreed to replace Mr. Cunningham’s original Standard Form (SF) 50, which stated that he had been terminated, with a new SF-50 stating that he had resigned. Id. ¶ 9. OPM also agreed to remove the December 2004 termination letter, and Mr. Cunningham’s response to that letter, from his personnel folder. Id. The settlement agreement designated the Director of Human Resources at OPM as the sole agency contact for all employment inquiries and references related to Mr. Cunningham’s employment as a criminal investigator at OPM. Id. ¶ 10. Under the agreement, the Director of Human Resources was required to limit his responses to employment inquiries to Mr. Cunningham’s date of employment and years of federal service. Id. The agreement further stated that “[t]he OPM agree[s] that [it] will keep the terms, amount, and facts of this Agreement completely confidential, except to the extent disclosure may be required by law, regulation, subpoena or court order.” Id. Ex. 1 ¶ 10. Finally, the government made a one-time payment of $50,000 to Mr. Cunningham pursuant to the settlement agreement. Id. Ex. 1 ¶ 5.

For his part, Mr. Cunningham agreed to withdraw his MSPB appeal with prejudice, and further agreed that he would “not bring any action or proceeding in any forum against OPM, its employees, officers or agents, or their successors in their individual or official capacity, for any claim arising out of or related to the matters involved in this complaint, which occurred before the date this Agreement is signed by all parties.” Id. Ex. 1 ¶4. Mr. Cunningham further agreed that he would not “disclose any information concerning this Agreement or his alleged discrimination complaint to anyone employed by or connected with OPM, including, but not limited to, any past, present, or prospective employee or applicant for employment with OPM.” Id. Ex. 1 ¶ 10. In addition, plaintiff agreed that he would direct inquiries from any future potential employers to the Director of Human Resources at OPM. Id. Ex. 1 ¶9.

[211]*211In July 2006, plaintiff was offered a position as a background investigator with tbe United States Investigation Service (USIS), contingent upon satisfactory results from a comprehensive background investigation.3 Id. ¶ 12. Following an initial background clearance from USIS in February 2007, Mr. Cunningham was informed that he would join the next training class in October 2007. Id. ¶ 13. USIS also informed plaintiff that it anticipated receiving a new contract from OPM, and that OPM required a separate background clearance for its contractors. Id. Mr. Cunningham agreed to an investigation by OPM, met with the investigator, and was instructed to report for duty on October 22, 2007. Id. Mr. Cunningham reported for training in Maryland on that date. Id.

On October 26, 2007, less than one week after plaintiff had commenced his initial training, the general manager of USIS informed Mr. Cunningham that he was being suspended without pay, effective immediately, at the direction of OPM’s security office. Id. ¶ 14. On October 28, 2007, plaintiff met with his investigator, who informed him that the background investigation had revealed information about his termination by OPM, his subsequent appeal to the MSPB, the hearing on the MSPB appeal, and the settlement agreement. Id. ¶ 15. Plaintiff refused to sign a waiver allowing the background investigator to review his entire personnel file, believing that such a waiver would have violated the confidentiality provisions of the settlement agreement. Id. ¶ 16.

Mr. Cunningham remained suspended without pay until February 1, 2008, when he was terminated by USIS due to the results of the background investigation conducted by OPM. Id. ¶ 17. Following his termination from USIS, plaintiff requested a copy of his personnel file from OPM. Id. ¶ 18. The file contained a document which established that one current OPM employee, Mr. Watkins, and one former OPM employee, Charles Fo-earino, had discussed Mr. Cunningham’s termination and subsequent appeal to the MSPB with the background investigator in violation of the settlement agreement. Id.

On March 24, 2008, Mr. Cunningham filed a petition with the MSPB to enforce his settlement agreement with OPM. Id. ¶ 19. On July 16, 2008, an administrative judge in the MSPB’s New York field office found that OPM had breached the settlement agreement. Id. Because she determined that OPM’s breach of the settlement agreement was material, the administrative judge also noted that plaintiff would normally be entitled to choose between enforcing the terms of the agreement or rescinding that agreement and reinstating his original appeal before the MSPB. Id. Ex. 2 at 9. The administrative judge explained that enforcement of the agreement would not be an effective remedy in plaintiffs case because the breach involved a non-disclosure provision, and the MSPB was not authorized to award damages for breach of a settlement agreement. Id. For those reasons, the administrative judge recommended that the MSPB vacate its earlier order dismissing Mr. Cunningham’s appeal as settled, and reinstate that appeal before the Board. Id.

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Related

Cunningham v. United States
748 F.3d 1172 (Federal Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
108 Fed. Cl. 208, 2012 U.S. Claims LEXIS 1635, 2012 WL 6720428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cunningham-v-united-states-uscfc-2012.