Horner v. Merit Systems Protection Board

815 F.2d 668
Court of Appeals for the Federal Circuit·Decided March 24, 1987·No. Appeal No. 86-1115·Published·Cited by 6 cases

Opinion

ARCHER, Circuit Judge.

The Director of the Office of Personnel Management (OPM) appeals the order of the Merit Systems Protection Board (MSPB or board), 27 M.S.P.R. 97 (1985), Docket No. HQ12068410013, finding that the Office of the Special Counsel (OSC) has authority under 5 U.S.C. § 1206(e)(1)(D) and § 1206(g)(1) (1982) to bring a disciplinary action against a federal employee. The board dismissed Count I of the disciplinary action and approved the settlement of the parties with respect to Count II. Both counts involve alleged improprieties in Williams’ acceptance of gifts. We vacate and remand with instruction to dismiss for lack of jurisdiction.

ISSUES

The crux of this appeal is whether the OSC has the authority pursuant to sections 1206(e)(1)(D) and 1206(g)(1)1 to file a com[670]*670plaint with the board for discipline of an employee for an alleged violation of a civil service law, rule, or regulation, where the alleged violation is not related to personnel practices, Hatch Act violations, or merit systems abuse. The right of OPM to appeal the board’s ruling is also raised as a preliminary issue.

BACKGROUND

Richard D. Williams, a regional director of the Federal Mediation and Conciliation Service (FMCS), was charged with two counts of impropriety by the OSC. It is alleged in Count I that Williams accepted two gifts worth approximately $50.00 and $75.00 from lower paid employees in violation of 5 U.S.C. § 7351(3) (1982). The OSC alleges in Count II that Williams accepted a gift of a weekend trip to Las Vegas in violation of 5 C.F.R. §§ 735.201(a), (d), and (f) and 735.202(a)(1) and (3) (1986) from a subordinate employee and an officer of a union whose contract disputes are mediated by FMCS.

The Administrative Law Judge (AD) did not reach the merits of the case and dismissed the action, concluding that the OSC does not have authority under 5 U.S.C. §§ 1206(e)(1)(D) and (g) to investigate and prosecute the alleged violations in this case. The board disagreed with the AD and found that the OSC does have authority to bring a general disciplinary action of the type involved here. The board reached its conclusion by comparing the House and Senate versions of section 1206(e)(1)(D) and focusing on the specific language allowing the OSC to investigate “activities prohibited by any civil service law, rule, or regulation, including any activity related to political intrusion in personnel decisionmaking; ....” 5 U.S.C. § 1206(e)(1)(D). The board and the OSC suggest that the meaning of this provision is clear and not in conflict with other portions of the statute and urge this court to limit our inquiry to the plain meaning of the statute.

The board reached the merits and dismissed Count I under 5 C.F.R. § 735.202(d) (1986), which permits gifts of nominal value made voluntarily by subordinate employees on a special occasion. With regard to Count II, the board granted the Joint Motion for Consent Disposition (settlement). Under the settlement, Williams stipulated to the charges in Count II and agreed to a fine of $1,000. In addition, Williams agreed to his removal from the Senior Executive Service (SES). Williams also specifically waived his right to oppose the Special Counsel’s authority to bring charges under Count II before the board. Count I was not part of the settlement agreement. Pursuant to 5 U.S.C. § 7703(d) (1982), OPM appeals the issue of whether the OSC has authority under the Civil Service Reform Act of 1978, Pub.L. No. 95-452, 92 Stat. 1111 et seq. (1978) (codified as amended in scattered sections of 5 U.S.C.) (CSRA) to bring this type of disciplinary action against Williams.

OPINION

I.

A. OPM’s Authority to Appeal

As a preliminary matter, the board argues that this appeal cannot be sustained because the board dismissed Count I and adopted the proposed settlement of Count II and thus left no live case or controversy. We reject this suggestion of mootness insofar as OPM is concerned. A case is moot when the issues presented are no longer [671]*671live or the parties lack a legally cognizable interest in the outcome. Powell v. McCor-mack, 395 U.S. 486, 496-97, 89 S.Ct. 1944, 1950-51, 23 L.Ed.2d 491 (1969); United States v. Associated Dry Goods Corp., 682 F.2d 212, 213 (CCPA 1982). For the following reasons, we conclude that the judicial resolution of the issue of OSC’s jurisdiction raised in this appeal remains live and is properly appealable by OPM.

OPM has been given a statutory right to seek judicial review of any final order or decision of the board that is determined by the Director of OPM to be an erroneous interpretation of a civil service law, rule, or regulation affecting personnel management and to have a substantial impact on such law, rule, or regulation. 5 U.S.C. § 7703(d) (1982). Standing to initiate or maintain an action may be granted by statute. In Association of Data Processing Service Organizations, Inc. v. Camp, 397 U.S. 150, 154, 90 S.Ct. 827, 830, 25 L.Ed.2d 184 (1970), the Court stated that “Congress can, of course, resolve the question [of standing] one way or another, save as the requirements of Article III dictate otherwise.” (Citation omitted.) Accord Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct. 2197, 2206, 45 L.Ed.2d 343 (1975). As a result, OPM is authorized to initiate and maintain this appeal. We have no question that the issue of the OSC’s authority to bring a general disciplinary action against an employee, and in turn the issue of the board’s jurisdiction to hear such a case, the latter being dependent on the former, is of vital interest to OPM, which has administrative responsibility for personnel practices and policies throughout most parts of government. These interests are more than sufficient to satisfy the section 7703(d) requirements and any Article III case or controversy requirement. Since OPM has standing and interests which are adversely affected by the board’s decision, this case is properly before this court to resolve the issue of OSC’s authority to initiate a general disciplinary action.

While Williams did not appeal the board’s decision, the disciplinary action against him will be a nullity if we overturn the board’s decision regarding OSC’s authority. There is no requirement, however, that Williams must appeal in order for OPM to seek appeal.

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Horner v. Merit Systems Protection Board, 815 F.2d 668 (Fed. Cir. 1987).

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815 F.2d 668 (Federal Circuit, 1987)