Cutler v. United States

202 Ct. Cl. 221, 1973 U.S. Ct. Cl. LEXIS 71, 1973 WL 21345
CourtUnited States Court of Claims
DecidedJune 20, 1973
DocketNo. 237-72
StatusPublished
Cited by4 cases

This text of 202 Ct. Cl. 221 (Cutler 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
Cutler v. United States, 202 Ct. Cl. 221, 1973 U.S. Ct. Cl. LEXIS 71, 1973 WL 21345 (cc 1973).

Opinion

Davis, Judge,

delivered -the opinion of the court:

Wallace Cutler is a former defense-contractor employee who was allegedly discharged because the Defense Department initially denied him security clearance; some years later he was officially cleared. In this action he seeks monetary restitution under a departmental regulation providing for reimbursement by the Government of earnings lost by a contractor employee denied clearance if he later receives a favorable determination.1

Cutler’s submission, in the form of a motion for summary judgment, is as follows: In 1957 he was employed by Emerson Badio and Phonograph Corporation, which did defense work, as a field engineer working on classified matters. He held a confidential clearance from his employer but the company desired for him a higher grade of access to classified information, and therefore applied to the Defense Department for a “secret” rating. Late in June 1957 the Department denied him such access and suspended his interim security clearance. As a direct result, he says, he was discharged by Emerson in August 1957. Thereafter he tried for several years to have the Defense Department overturn this denial of clearance. After a series of proceedings, the Department, in June 1966, finally determined that the granting to him of authorization for access to secret information was clearly consistent with the national interest — and he was so informed at that time. He applied to the Department for monetary restitution in April 1972; this was denied the following month. He then brought this suit.

Defendant’s cross-motion for summary judgment queries whether plaintiff has proved the basic fact that his separation from Emerson was the result of the Department’s initial refusal of clearance. We do not consider whether this controversy over an essential factual element of the claim calls for [225]*225a trial because we accept one of tbe Government’s other defenses as dispositive. That complete bar is the plaintiff’s failure to comply with the procedural requirement of the 1986 regulation, in effect when he filed his demand with the Defense Department in 1972, that claims for reimbursement be presented to the Department within one year after final clearance, or one year after the claim accrues (whichever is later).

On this point the decisive issue is whether, in this particular respect, plaintiff’s claim is governed, as he asserts, by the 1955 directive which controlled when he was originally denied clearance in 1957, or by the 1966 regulation which had become the prevailing rule in 1972 when he filed his claim. The earlier regulation imposed no time limitation on the filing of the administrative claim for reimbursement.2 The 1966 directive3 provided that “Any claim shall be forever barred unless it is filed within one year after the date such claim first accrues, or within one year of the final disposition of the case, whichever is later * * Mr. Cutler’s case was finally determined, as we have noted, on June 22, 1966, and he did not present any claim to the Defense Department until April 21,1972, almost sis years later.

Greene v. United States, 376 U.S. 149 (1964), held that the complainant in Greene v. McElroy, 360 U.S. 474 (1959), was entitled to recover under the 1955 regulation, and not a later (1960) one which the Government sought to apply. But that case was quite different. The substantive requirements for restitution had been significantly altered in the [226]*226subsequent directive, and tbe defendant insisted that the claimant had to meet the new substantive conditions which were more burdensome than the earlier prerequisites. Moreover, the 1960 directive was not even issued until six or seven months after Greene 'had formally made his claim to the Defense Department. It was in these circumstances that the Supreme Court 'held that the 1960 directive should not be applied retroactively, or utilized at all. The opinion pointed out that the major aspect of the new substantive requirements (of the 1960 provision) were wholly irrelevant to a determination of damages under the 1955 regulation, and “[i]n view of the substantial differences between the two regulations and in view of the additional factual determinations that would be relevant under the 1960 regulation but irrelevant under the 1955 regulation, we conclude the 1960 regulation does not provide a reasonable basis for reviewing petitioner’s rights under the 1955 regulation.” 376 U.S. at 163.4

Significantly for the present case, the Greene opinion went on to say: “We do not suggest that a claimant, seeking damages under a former regulation, need not resort to administrative proceedings under a new regulation where the new regulation contains essentially the same substantive requirements as its predecessor.” 376 U.S. at 163. We can assume that plaintiff Cutler would be entitled under Greene, supra, to the substantive requirements of the 1955 directive, insofar as they might differ from those of the 1966 regulation (or an intermediate 1960 version), but there is no basis in Greene for excusing him from compliance with the purely procedural precondition of the 1966 scheme that he file his claim within a period of one year.5

Greene is therefore no barrier, but is the time-limitation [227]*227otherwise valid and applicable? It may be that, if plaintiff’s claim were grounded in a contract, a statute, or the Constitution, and Congress bad established a specified limitations period, an administrative agency could not bar relief by imposing an administrative time-limit shorter than that Congress had adopted. Cf. Perry v. Alien, 239 F. 2d 107 (C.A. 5, 1956).6 But we have expressly held that any claim of a contractor employee in plaintiff’s situation must flow, not from a contractual right, a statute, or the Constitution, but solely from the reimbursement provision of the Defense Department’s own regulation. Kanarek v. United States, supra, 161 Ct. Cl. 37, 314 F. 2d 802 (1963). Cf. Greene v. United States, supra, 376 U.S. at 152, 164. The right to monetary restitution depends upon, and is created by, the regulation which offers that relief. In the absence of the restitution portion of the directive, there would be no monetary redress at all.

That being so, we see no reason why the Department which gave the right cannot decide to circumscribe it with this reasonable and appropriate procedural requirement.7 There is no conflict with any Congressional legislation since Congress has not spoken in this area, and it is certainly sensible for the agency to erect some sort of time-fence. Otherwise it could be said that potential claimants had an unlimited period in which to seek relief from the Department, and thereafter a period of six years before suit had to be brought if the application was rejected.8 Just as the authors of a regulation granting monetary redress may properly demand particularized and reasonable proof that the applicant fits [228]*228■within the covered class, so may they ask (if, as here, Congress has not acted) that he present his claim within a reasonable time of its accrual.

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Cite This Page — Counsel Stack

Bluebook (online)
202 Ct. Cl. 221, 1973 U.S. Ct. Cl. LEXIS 71, 1973 WL 21345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cutler-v-united-states-cc-1973.