Finn v. United States

152 Ct. Cl. 1, 1961 U.S. Ct. Cl. LEXIS 177, 1961 WL 8743
CourtUnited States Court of Claims
DecidedJanuary 18, 1961
DocketNo. 254-58
StatusPublished
Cited by14 cases

This text of 152 Ct. Cl. 1 (Finn 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
Finn v. United States, 152 Ct. Cl. 1, 1961 U.S. Ct. Cl. LEXIS 177, 1961 WL 8743 (cc 1961).

Opinion

Jones, Chief Judge,

delivered the opinion of the court: The plaintiff, a veterans’ preference eligible seeks back pay for alleged arbitrary and capricious action on the part of the Bureau of Internal Revenue in suspending and later removing him as an employee. He claims back pay in the sum of $31,417 from June 13,1952, the date of his discharge, to May 1,1958, shortly before the date of filing of his petition in this court.

The facts in brief are as follows: On February 21, 1938, plaintiff became a Civil Service employee of the Bureau of Internal Revenue and continued as such until June 13, 1952. At the time of his removal he was a Deputy Collector, grade GS-9, at a salary of $5,310 per year.

As a result of an investigation, a letter of charges was sent to plaintiff on November 27,1951, notifying him that it was proposed to suspend him from duty and pay for an indefinite period pending further investigation. The substance of the charge as outlined in the letter was that he had conspired to submit a false report in violation of 18 U.S.C. § 1001. Full details of the alleged transaction were set out in this letter. Plaintiff was advised that he might submit affidavits in support of his reply and that full consideration would be given to his answer before a decision was communicated to him.

Plaintiff denied the charges by letter dated November 29, 1951. On March 26, 1952, the Commissioner of Internal Revenue notified plaintiff that pending completion of an investigation of the charges preferred against him, he was suspended from duty and pay for an indefinite period effective at the close of business on March 27,1952.

The Bureau of Internal Revenue on April 3, 1952, issued a letter of proposed adverse action in which plaintiff was notified that it was proposed to remove or otherwise discipline him. The charges in that letter were substantially the same as the charges contained in the letter of proposed suspension. Plaintiff was given 5 days in which to reply, [3]*3and was again given an opportunity to present affidavits. Plaintiff was advised that full consideration would be given to any reply that he might make, after which a written decision would be furnished Him.

The plaintiff submitted a one-page reply in which he denied generally the charges in the letter of proposed adverse action. On June 3, 1952, plaintiff was notified of the final decision of the Bureau of Internal Eevenue to separate him from his position with the Internal Eevenue Service as of July 13, 1952. He was notified of his right to appeal the action to the Second Civil Service Eegion within 10 days from the effective date of his removal.

The plaintiff had not appealed this suspension, but in a letter dated June 18, 1952, he did appeal the agency’s action in removing him to the Civil Service Commission Eegional Office in New York City. The Commission began its customary investigation under section 14 of the Veterans’ Preference Act, 5 T7.S.C. § 863.

On April 18, 1952, an indictment had been filed in the United States District Court for the Eastern District of New York against the plaintiff and two others, in which it was charged that he conspired with J ames J. Andrews to submit a false report on Form 53, Deputy Collector’s Eeport of Uncollected Taxes, in the matter of the income tax liability of one Anthony Struk; that the said Form 53 was improper in that false statements were made therein that the said taxpayer had no assets and that a diligent effort had been made by the plaintiff to collect the taxes due; and that the purported financial statement submitted by plaintiff in support of Form 53 was false in that it was not obtained from the taxpayer and that taxpayer’s assets were not truly reflected therein.

Since the indictment contained substantially the same charges as those pending before the Civil Service Commission, the investigation by the Commission was postponed pending disposition of the criminal case.

The plaintiff was brought to trial in the United States District Court for the Eastern District of New York on November 30,1953. After the evidence had been introduced, the judge directed a verdict of acquittal on the ground that [4]*4substantial evidence bad not been offered sufficient to justify submission of the case to the jury.

After this acquittal, the Eegional Office of the Civil Service Commission was requested by the plaintiff to proceed with the adjudication of his administrative appeal. The plaintiff’s requested hearing was held on March 30, 1954, in the offices of the Second Civil Service Eegion at which hearing the plaintiff was represented by counsel.

In announcing the decision, the Eegional Director made a lengthy analysis of the evidence submitted and after such analysis made the following recommendation:

It is the finding of this office, based on all the evidence of record, that the charge preferred against the appellant is sustained by the evidence and that his suspension and removal from the service were neither arbitrary nor unreasonable, but for such cause as would promote the efficiency of the service within the meaning of the language of Section 14 of the Veterans’ Preference Act. No change is recommended, therefore, in the personnel actions from which this appeal was taken.

Plaintiff appealed the Eegional Director’s decision to the United States Civil Service Commission. The matter was referred to the Board of Appeals and Eeview which stated after consideration and review that the charges preferred against the plaintiff on April 3, 1952, and the notice of proposed action in connection therewith were procedurally valid; were substantiated by the preponderance of the evidence and showed just cause for his removal; and that the weight of the evidence showed that Mr. Finn was aware that the financial statement was false. The Eeview Board affirmed the decision of the Eegional Office.

The record clearly demonstrates that the plaintiff was accorded all his procedural rights and that he was given adequate notice and opportunity to apply for a hearing before the Eegional Office. In these circumstances it has been the uniform holding of this and other courts that the adverse action of the agency and commission will not be set aside unless there is a definite showing that such action was arbitrary, capricious, or unsupported by substantial evidence. In fact the plaintiff in practical effect concedes as much, except for the suspension for more than 30 days. [5]*5However, be took no further steps or appeal in connection with that suspension.

The plaintiff contends as follows: (1) The United States District Court and the Civil Service Commission were presented with identical charges. The District Court entered judgment of acquittal on the ground that there was no substantial evidence of guilt presented that would justify submitting the charges to the jury. (2) The Civil Service Commission heard similar evidence but reached a different conclusion, that is, plaintiff’s removal was for the good of the service and was justified. (3) The District Court is superior to the Commission as a judicial body. The conclusion from these premises is that if a trial judge cannot find sufficient evidence supporting a criminal indictment to permit a case to go to the jury, a subsequent determination of guilt sufficient for dismissal by the Civil Service Commission must have been arbitrary and capricious.

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Bluebook (online)
152 Ct. Cl. 1, 1961 U.S. Ct. Cl. LEXIS 177, 1961 WL 8743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finn-v-united-states-cc-1961.