Ferreiro v. United States

54 Fed. Cl. 274, 2002 U.S. Claims LEXIS 278, 2002 WL 31425745
CourtUnited States Court of Federal Claims
DecidedOctober 29, 2002
DocketNo. 00-648 C
StatusPublished
Cited by2 cases

This text of 54 Fed. Cl. 274 (Ferreiro 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.

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Ferreiro v. United States, 54 Fed. Cl. 274, 2002 U.S. Claims LEXIS 278, 2002 WL 31425745 (uscfc 2002).

Opinion

OPINION

BUSH, Judge.

This case is currently before the court on defendant’s motion to dismiss for lack of subject matter jurisdiction pursuant to Rule of the Court of Federal Claims (RCFC) 12(b)(1) filed February 1, 2001, and plaintiffs’ motion for certification as class action, filed November 2, 2000.

[275]*275BACKGROUND

I. Factual Background

In their Second Amended Complaint for Money Damages and Call and Discovery, filed March 21, 2002, Teresa Alen Ferreiro Viuda de Perez, as Surviving Spouse of Luis Perez, deceased; Dorothy Erasmo Jeffers, as Surviving Spouse of Charles Jeffers, deceased; and Mario Vazquez Lopez seek pension benefits not paid since the imposition of the Cuban Embargo. In their Motion to Certify Class, filed November 2, 2000, plaintiffs contend that this action should be certified as a class action, as the claims and defenses of these representative parties are typical of the claims or defenses of the class and the representative parties will fairly and adequately protect the interests of the class. The plaintiffs are Cuban Nationals living in Cuba. The plaintiffs and those they represent were among an undetermined number of Cuban Nationals enlisted in the Armed Forces of the United States during the Second World War and were therefore afforded the opportunity to participate in the Civil Service Retirement System. Some of the plaintiffs remained employed at the Guantanamo Bay Naval Facility in Cuba following the end of the war, and some of them served with distinction and were presented military awards and honors. Plaintiffs are presently prohibited from traveling to the United States by both the United States and the Republic of Cuba.

Plaintiffs’ benefits have not been paid, es-crowed, or accounted for since the United States imposed the Cuban Embargo in 1963. All government agencies owing monies to Cuban Nationals suspended pension, social security, and veterans’ benefits pursuant to United States Department of the Treasury (Treasury) regulations. In a letter dated February 10, 1964, the United States Civil Service Commission explained that:

It has now been determined that there is no reasonable assurance that a payee living in Cuba will actually receive United States Government checks or be able to negotiate them for full value. Therefore, since the United States Treasury Department Regulations now prohibit payments to persons residing in Cuba, Civil Service annuity payments are being suspended. This stoppage of payments applies to all Civil Service annuitants and survivor-annuitants residing in Cuba including those whose Civil Service annuity checks were being delivered to an address outside Cuba. This means that any checks to which you were entitled which were dated after January 2, 1963, will not be issued.
If payments to Cuban residents are resumed at some time in the future, the Civil Service annuity benefits which were withheld will be paid provided all conditions for entitlement to such benefits have been met.

Exhibit C to Second Amended Complaint.

Plaintiffs contend that they are Cuban Nationals who are afforded the privilege to sue the United States pursuant to 28 U.S.C. § 2502. They assert that citizens of the United States are afforded reciprocal rights before the courts of the Republic of Cuba equal to those rights of Cuban Nationals, and plaintiffs are therefore permitted to bring suit in this court pursuant to that statute. Plaintiffs assert, in support of this argument, that the Embargo imposed by the United States against travel to Cuba “has been, in large part, a failure and that large numbers of the Citizens from the United States frequent the island each year and make use of its Courts where appropriate.” Second Amended Complaint at 2-3. Plaintiffs further contend in this regal’d:

For many years, U.S. Citizens have ignored, and the Treasury has failed to prosecute, the large number of Americans who travel to Cuba without a Treasury License. In addition to average Citizens, Movie Stars, Celebrities and former U.S. Government Officials are known to routinely travel to Cuba, without permission, through the numerous and well defined points of entry. So well known are these points of entry that a system has arisen whereby Americans “illegally” traveling to Cuba are aided by foreign governments who surreptitiously provide travel routes designed to hide these visits from U.S. Customs when the Americans return. Plaintiffs assert with certainty that as litigants before a Cuban tribunal, U.S. Citizens stand on an [276]*276equal footing with Citizens of the Republic of Cuba and receive a fair and impartial hearing and fair judicial remedy.

Id. at 3.

Plaintiffs assert, in the alternative, that the reciprocity requirement contained in 28 U.S.C. § 2502 is inapplicable in the instant matter as the claims asserted against the United States are not disputed nor contingent. Rather, plaintiffs contend, the United States has “admitted owing the monies sought herein and has merely ‘delayed’ making payment for the past thirty-seven (37) years of the Embargo.” Id. Plaintiffs contend, in support of this argument, that the continued imposition of the Embargo is no longer an impediment prohibiting payment of monies to Cuban Nationals as the Treasury-regulations themselves currently provide for safekeeping in blocked accounts and restricted payments pursuant to 31 C.F.R. Part 515, et seq.

In their “First Cause of Action for Money Damages (Payment of Civil Service Annuities),” plaintiffs contend that their benefits were merely “suspended” by virtue of the applicable Treasury regulations. Plaintiffs point to two facts in support of this statement: (1) the Treasury determined that the mail delivery system in place in Cuba in 1963 did not appear to provide “reasonable assurance that a payee living in Cuba [would] actually receive United States Government checks;” and (2) the Treasury determined that in 1963 the government of the Republic of Cuba provided no reasonable assurance that the plaintiffs would “be able to negotiate (the checks) for full value.” Id. at 6. Plaintiffs contend there has never been a question of their entitlement to these benefits such as to require them to first apply to the Office of Personnel Management or appeal any adverse determination to the Merit Systems Protection Board. Plaintiffs contend: “The effect of the Cuban Embargo upon the obligations of the United States does not operate as a forfeiture of those payments. Instead, current Regulations require that sums owed to Cuban Nationals be placed in block accounts and disbursed according to law.” Id. Plaintiffs contend that the “[c]lass” is entitled to the immediate payment into blocked accounts of all monies, with interest calculated at the legal rate, currently being held by the United States Civil Service Commission.

In their “Second Cause of Action for Money Damages (Unjust Enrichment),” plaintiffs aver that the United States currently holds monies belonging to individuals who were given the opportunity to participate in the Civil Service Retirement System in return for their services rendered to the Allied forces during World War II and thereafter.

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54 Fed. Cl. 274, 2002 U.S. Claims LEXIS 278, 2002 WL 31425745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferreiro-v-united-states-uscfc-2002.