Donovan v. Gober

5 F. Supp. 2d 142, 1998 U.S. Dist. LEXIS 5722, 1998 WL 197857
CourtDistrict Court, W.D. New York
DecidedMarch 2, 1998
Docket1:97-cr-00021
StatusPublished
Cited by2 cases

This text of 5 F. Supp. 2d 142 (Donovan v. Gober) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donovan v. Gober, 5 F. Supp. 2d 142, 1998 U.S. Dist. LEXIS 5722, 1998 WL 197857 (W.D.N.Y. 1998).

Opinion

ORDER

ARCARA, District Judge.

This case was referred to Magistrate Judge Carol E. Heckman pursuant to 28 U.S.C. § 636(b)(1), on July 28, 1997. On July 21, 1997, defendant filed a motion to dismiss. On January 12, 1998, Magistrate Judge Carol E. Heckman filed a Report and Recommendation, recommending that defendant’s motion to dismiss be granted.

Plaintiff filed objections to the Report and Recommendation on January 29, 1998. The defendant filed a response to the objections on February 23,1998.

Pursuant to 28 U.S.C. § 636(b)(1), this Court must make a de novo determination of those portions of the Report and Recommendation to which objections have been made. Upon a de novo review- of the Report and Recommendation, and after reviewing the submissions the Court-adopts the proposed findings of the Report and Recommendation.

Accordingly, for the reasons set forth in Magistrate Judge Heckman’s Report and Recommendation, defendant’s motion to dismiss is granted.

. IT IS SO ORDERED.

REPORT AND RECOMMENDATION AND ORDER

HECKMAN, United States Magistrate Judge.

This matter was referred to the undersigned by the Hon. Richard J. Arcara, to hear and report on dispositive motions in accordance with 28 U.S.C. § 636(b). Plaintiffs claims arise out of a determination by *144 the Secretary of Veterans Affairs 1 (the VA) that plaintiff is liable to indemnify the VA based upon the VA’s payment on plaintiffs guaranteed housing loan. The government has moved to dismiss this' action pursuant to Rules 12(b)(1) and 12(b)(6) of the Federal rules of Civil Procedure. For the following reasons, it is recommended that the government’s motion be granted.

BACKGROUND

In March of 1979, plaintiff refinanced his townhouse located in Washington, D.C. To do so, he obtained a home mortgage loan in the amount of $70,000, guaranteed in part by the VA (Item 8, Ex. C, p. 3).

In June 1985, the mortgage holder reported to the VA that the mortgage was four months in arrears, and then followed up in August 1985 with a notice of intention to foreclose (Id. at pp. 5-7). Plaintiff requested that a deed in lieu of foreclosure be accepted by the VA. His request was denied as not being in the best interest of the government (Id.). Plaintiff was sent correspondence informing him of the foreclosure sale and his potential liability resulting therefrom (Id.).

Subsequent to the sale, and after all applicable adjustments, the VA issued plaintiff a notice of indebtedness in the amount of $6,849 .56 from the foreclosure deficiency (Id. at 8). According to plaintiff, he was not notified of either the denial of his request for a deed in lieu of foreclosure or the subsequent debt (Item 13, pp. 2-3). The government asserts that the VA Debt Management Center (VADMC) wrote to plaintiff regarding his debt, but that its efforts were hampered by the fact that plaintiff had relocated in November 1985 without providing the VA with a forwarding address (Item 8, Ex. C, p. 8).

On November 27, 1991, the VA sent a notice to plaintiffs employer, the Federal Aviation Administration, requesting an offset of his federal salary (Id.). An offset of $204.61 was deducted from plaintiffs salary every two weeks from December 27, 1991 through December 30, 1992 (Id. at p. 9). At that time, the offset was suspended pending the outcome of plaintiffs appeal from a decision of the VA Regional Office in Buffalo, New York, to the Board of Veterans’ Appeals (BVA), which was commenced in February 1992 (Id. at pp. 1, 2, 9). The issues raised on appeal involved the VA’s decision to deny acceptance of a deed in lieu of foreclosure, the validity of the loan guaranty indebtedness, the procedures employed in initiating debt collection, alleged withholding of records, alleged violations of plaintiffs privacy rights, and entitlement to monetary damages. In December 1993, the VA refunded to plaintiff the full amount of the salary offset collected, pending resolution of his appeal (Id., Ex. D, ¶ 5).

The BVA issued its decision on May 12, 1995, finding that: (1) it did not have jurisdiction over plaintiffs due process claims with respect to the salary offset, as well as his claims regarding the alleged withholding of documents, the alleged violation of his privacy rights, and entitlement to monetary damages, (2) the VA’s decision whether to accept a deed in lieu of foreclosure was not subject to review, (3) the home loan guarantee indebtedness charges were validly established, and (4) the amount of the debt was properly computed (Id., Ex. C, pp. 9-13). On May 26, 1995, plaintiff appealed this decision to the United States Court of Veterans Appeals (CVA) where the matter is still pending (Id., Ex. C).

Plaintiff commenced the present action on January 13,1997. His complaint is based on the same facts and circumstances which are the subject of his pending appeal before the CVA. Plaintiff now advances substantially the same claims he presented to the BVA regarding alleged due process violations, Freedom of Information Act violations and Privacy Act violations, and adds claims for damage to his reputation and emotional distress (Item 1).

On July 21,1997, the government moved to dismiss on the grounds that: (1) this court lacks subject matter jurisdiction, (2) plaintiff fails to state a claim upon which relief can be granted, and (3) plaintiff failed to commence *145 this action within the applicable statute of limitations-periods.

DISCUSSION

1. JURISDICTION.

The government characterizes plaintiffs claim as a challenge to a benefit determination, and argues that Section 511 of Title 38 precludes review of such claims in federal district court. In response, plaintiff asserts that the present action is based on the violation of his constitutional rights, that the BVA lacks jurisdiction over constitutional claims, and that this court is his only avenue of relief.

T agree with the government’s conclusion that this court lacks jurisdiction, but mot for. the reasons set forth in the Secretary’s memorandum. The government’s argument is summarized as follows. •

Historically, section 511 of Title 38 of the United States Code 2 has precluded judicial review of veteran’s benefits determinations. Thus, the Secretary’s decision as to any question of law and fact necessary to such a decision was final. In 1988, however, Congress passed the Veterans’ Judicial Review Act, which established the Court of Veterans Appeals. Veterans’ Judicial Review Act— Veterans’ Benefits Improvement Act of 1988, Pub.L. No. 100-697, § 402, 102 Stat. 4105, 4122.

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5 F. Supp. 2d 142, 1998 U.S. Dist. LEXIS 5722, 1998 WL 197857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donovan-v-gober-nywd-1998.