Favreau v. United States

49 Fed. Cl. 635, 2001 U.S. Claims LEXIS 112, 2001 WL 732010
CourtUnited States Court of Federal Claims
DecidedJune 28, 2001
DocketNo. 99-339C
StatusPublished
Cited by3 cases

This text of 49 Fed. Cl. 635 (Favreau 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
Favreau v. United States, 49 Fed. Cl. 635, 2001 U.S. Claims LEXIS 112, 2001 WL 732010 (uscfc 2001).

Opinion

OPINION

BRUGGINK, Judge.

This is a class action brought by former members of the United States Armed Forces who were separated from their respective services1 because they failed to meet weight and/or physical fitness standards. Plaintiffs ■do not challenge their separations but instead challenge the services’ recoupment of bonuses to which they became entitled at the time they agreed to enlist or re-enlist in the services.

There are two causes of action. Count One alleges that the government breached plaintiffs’ enlistment or reenlistment contracts. Count Two alleges that recoupment was an illegal exaction because it violated provisions of the Military Pay and Allowances Act which authorize the payment and recoupment of bonuses2 and the Department of Defense Financial Management Regulations (“FMR”).3 Pending are defendant’s motion to dismiss and plaintiffs’ motion for summary judgment with respect to Count One.4 Also pending are cross motions for summary judgment with respect to Count Two. The motions have been fully briefed and orally argued. For the reasons discussed below, we grant defendant’s motion to dismiss Count One and grant defendant’s motion for summary judgment with respect to Count Two.

BACKGROUND

Each service has the authority to determine the standards that individuals must meet to remain a member of the United [637]*637States Armed Forces. See 10 U.S.C. § 1169 (1994). It is undisputed that the representative plaintiffs failed to satisfy such requirements with respect to weight control or physical fitness. This was the underlying reason for their discharges. It is undisputed, moreover, that plaintiffs’ failures to meet weight or fitness standards were not caused by medical conditions. Nor were they separated until they had received counseling, had participated in remedial weight or physical fitness programs, and had been warned that failure to meet standards might result in discharge. Plaintiffs did not ask to be separated, however.

When a service member is separated for failing these or any other standards, a reason for the separation is assigned pursuant to directives of the Secretary of Defense. DoD Directive 1332.14 HE.2 (Dec. 21, 1993). This Directive sets out guidelines for the separation of semce-members and establishes certain grounds for discharge, although the services in their individual regulations may create additional reasons.5 Directive 1332.14, Pt. 1, IIP. The precise separation categories assigned with respect to plaintiffs thus varied by service and depending on when they were discharged. When the underlying reason for separation was weight control failure or failure of physical standards, one of three separation categories6 were used: unsatisfactory performance,7 convenience of the government, and, after 1992, weight control failure.8

[638]*638It is also undisputed that when one of these separation categories was assigned due to underlying issues of weight control failure or lack of physical fitness, the services each recouped unearned portions of the service member’s enlistment or re-enlistment bonus. Hence this litigation.

There are two code provisions governing recoupment, one dealing with enlistment bonuses and the other with reenlistment bonuses. They provide in pertinent part:

(d)(1) A member who voluntarily, or because of his misconduct, does not complete the term of enlistment for which a bonus was paid to him under this section ... shall refund the percentage of the bonus that the unexpired part of his additional obligated service is of the total reenlistment or extension period for which the bonus was paid.

37 U.S.C. § 308(d)(l)(emphasis added).

(b) Under regulations prescribed by the Secretary of Defense ... a person who voluntarily, or because of his misconduct, does not complete the term of enlistment for which a bonus was paid to him under this section ... shall refund that percentage of the bonus that the unexpired part of his enlistment is of the total enlistment period for which the bonus was paid.

37 U.S.C. § 308a(b)(emphasis added).

The Secretary of Defense is granted explicit authority to implement these provisions through regulations, and has done so. Those regulations are considered below. A complete understanding of the services’ interpretation of these code sections requires examination of additional sources, however: specifically, the separation directive referenced above, memoranda, and several affidavits unique to the litigation. The court will assume for the moment that it can rely on these affidavits for the purpose of setting out the Secretary’s interpretation of the statutory and regulatory language.

Bonuses are not offered to all personnel. Rather they are used as incentives to recruit or keep individuals with certain specialties. The representative’s enlistment “contracts” contain, for example, such language as the following: “I fully understand that continued entitlement to the Enlistment Bonus may be terminated and a pro-rata portion of my Enlistment Bonus may be recouped if I am considered not technically qualified in the bonus specialty ... because (a) I am no longer classified in that NEC ... for any of the following reasons within my control: ... loss of any other mandatory qualification for effective performance ... when such ... loss is voluntary....” Def.’s Summ. J. and Mot. to Dismiss App. II at 345.

Insofar as relevant here, recoupment is only possible with respect to those who “voluntarily” do not complete their term of service.9 The Department of Defense’s (DoD) interpretation of the term “voluntarily” was furnished by Colonel Bobby A. Little in his affidavit. Colonel Little is Director, Offi-eer/Enlisted Personnel Management in the Office of the Secretary of Defense (OSD). He explains that the Director of Officer/Enlisted Personnel Management (OEPM) with the OSD is delegated authority for, among other things, recoupment practices and policies service-wide. OEPM is also responsible for implementing directives of the Secretary of Defense or the Secretary’s designees. OEPM, according to Colonel Little, has

determined that the question whether an individual has failed to complete a term of enlistment “voluntarily” depends on whether the service-member was separated for engaging in conduct that is within the control of the service-member but incompatible with military service. In that regard, we have not limited recoupment to separa[639]*639tions granted at the request of the service-member; rather, even where the military service initiates the separation, we have concluded that recoupment is appropriate if the conduct that resulted in the separation was voluntary, i.e., within the service-member’s control.

... The [separation] codes that trigger recoupment are agreed upon by the services and my office____

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Related

Chapman v. United States
92 Fed. Cl. 570 (Federal Claims, 2010)
Favreau, II v. United States
317 F.3d 1346 (Federal Circuit, 2002)
Favreau v. United States
317 F.3d 1346 (Federal Circuit, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
49 Fed. Cl. 635, 2001 U.S. Claims LEXIS 112, 2001 WL 732010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/favreau-v-united-states-uscfc-2001.