Effingham County Board of Education v. United States

7 Cl. Ct. 34, 1984 U.S. Claims LEXIS 1238, 22 Educ. L. Rep. 182
CourtUnited States Court of Claims
DecidedDecember 10, 1984
DocketNo. 220-84C
StatusPublished
Cited by4 cases

This text of 7 Cl. Ct. 34 (Effingham County Board of Education 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
Effingham County Board of Education v. United States, 7 Cl. Ct. 34, 1984 U.S. Claims LEXIS 1238, 22 Educ. L. Rep. 182 (cc 1984).

Opinion

ORDER

REGINALD W. GIBSON, District Judge.

By the complaint filed in this case, the plaintiffs (the Board) seek an order requiring the defendant to accept the Board’s notice of termination from coverage of its employees under the Social Security program. Public Law 761, 83d Congress, au[36]*36thorized the Social Security Administration, at the request of any state, to enter into an agreement with such state for the purpose of extending the benefits of the Old Age and Survivors Insurance System to employees of such state or any political subdivision thereof. Such an agreement was entered into with the State of Georgia covering certain employees, and this action seeks to terminate said agreement.

After the complaint was filed in this court, plaintiffs filed, on November 23, 1984, Plaintiffs’ Motion To Allow Plaintiffs’ Motion And Request For a Rule 14 Order Notifying Third Party to Appear.1 The third-party sought to be notified by this motion is the State of Georgia.

Rule 14, RUSCC, provides, in pertinent part, as follows:

(a) ... (1) The court, ... on the motion of a party, may notify any person with legal capacity to sue or be sued and who is alleged to have an interest in the subject matter of any pending action to appear as a party and assert his interest (if any) therein.
* * * * * *
(3) A motion made by plaintiff ... shall be filed at the time the complaint is filed. ... For good cause shown, the court may allow any such motion to be filed at a later time. (Emphasis added.)

The complaint in this matter was filed in this court on May 2, 1984, thus it is clear that the requirement set forth in the first sentence in RUSCC 14(a)(3) has not been met in that it was filed more than six months late. Nevertheless, the rule provides in the last sentence of said subsection that the court “may” allow such motion to be filed at a later time for “good cause shown.” We must therefore examine the plaintiffs’ submissions to ascertain whether the delinquency in filing the motion is supported by the requisite “good cause showpng].”

In their motion for leave to file, plaintiffs proffer the following reasons as warranting a finding of the requisite “good cause shown”:

... at the time of the filing of the instant litigation, the Plaintiffs were unaware of the precise nature or the extent of the State of Georgia’s considerable involvement in the transactions which form a basis for Plaintiffs’ suit. Discovery ... [initiated after suit filed] revealed that the State of Georgia has an arguably considerable contractual and a manifest constitutional interest in the subject matter ... of this litigation.2

In determining whether the foregoing allegations are sufficient in fact and in law to constitute the requisite “good cause showpng],” a brief overview of the historical facts underlying the genesis of this litigation may be helpful.

In accordance with the executed “Federal-State Agreement” dated December 15, 1952, and effective January 1, 1952, between the defendant (Commissioner for Social Security) and the State of Georgia (Employees’ Retirement System of Georgia),3 the insurance system established by Title II of the Social Security Act, as amended, was extended in conformity with Section 218 of the Social Security Act to certain designated employees of the State. Thereafter, on or about July 11, 1974, the Board submitted a “Plan and Agreement” to the Employees’ Retirement System of Georgia (the State agency), which was approved on December 31, 1974, extending the insurance system established by Title II, Social Security Act, to services performed by certain designated individual employees of the [37]*37Board, including but not limited to the individual plaintiffs herein, to be effective on September 1, 1974.

The “Federal-State Agreement” provided, inter alia, that the State agency may terminate said agreement (in its entirety or with respect to any coverage group) upon two years advanced notice in writing to the Administrator (effective at the end of a calendar quarter specified in the notice). It also provided, in order to terminate coverage, that the agreement must have been in effect (and the coverage group included) for a period not less than five years prior to receipt of such notice.

Similarly, the “Plan and Agreement” submitted by the Board and approved by the State agency provided that the Board (political subdivision) may request the State agency to take all necessary steps with the Social Security Administration (§ 218(g), Social Security Act), to terminate the “Plan and Agreement” with respect to any coverage group.

In accordance with the foregoing provisions, on or about October 14, 1981, more than five years after the inclusion of employees of the Board under such coverage, the State agency (Employees’ Retirement System of Georgia) duly requested the Social Security Administration to terminate the coverage for employees of the Board effective December 31, 1983. Said request was subsequently acknowledged and agreed to by the Social Security Administration in a letter to the State agency dated November 3, 1981, which was to become effective on December 31, 1983.

However, in view of Public Law 98-21, § 103(a), amending § 218(g) of the Act, 42 U.S.C. § 418, which became effective on or about April 20, 1983, an impediment to the foregoing termination provisions was promulgated which provided, regarding the termination of an agreement, that:

(g) No agreement under this section may be • terminated, either in its entirety or with respect to any coverage group, on or after the date of the enactment of the Social Security Amendments of 1983.
(b) The amendment made by subsection (a) shall apply to any agreement in effect ... on the date of the enactment of this Act, without regard to whether a notice of termination is in effect on such date, and to any agreement ... which may become effective ... after that date.

In addition to the foregoing, plaintiffs state that the State of Georgia has previously been requested by them to voluntarily participate in this proceeding; however, it has declined to do so. The Attorney General’s letter dated September 13, 1984, conclusively establishes that the State has no concerns in this litigation which it feels compelled to protect by its presence as a party.4

In opposition to plaintiffs’ position, defendant forcefully argues that this court should deny said motion(s) because (i) “Georgia has no ‘interest’ in this action”; (ii) this court has no jurisdiction over third-party claims such as plaintiffs seek to postulate here; and (iii) plaintiffs have not made the required “good cause showpng]” sufficient to invoke the discretion of this court.

Although the court finds that the State’s assertions demonstrate that it has no concerns in this litigation which it feels obligated to protect by its presence as a party, that is not to say that it has no “interest” in this action in the context envisioned by RUSCC 14.

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Cite This Page — Counsel Stack

Bluebook (online)
7 Cl. Ct. 34, 1984 U.S. Claims LEXIS 1238, 22 Educ. L. Rep. 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/effingham-county-board-of-education-v-united-states-cc-1984.