James E. Foreman v. Department of the Army

241 F.3d 1349, 2001 U.S. App. LEXIS 3411, 2001 WL 198923
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 23, 2001
Docket00-3195
StatusPublished
Cited by11 cases

This text of 241 F.3d 1349 (James E. Foreman v. Department of the Army) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James E. Foreman v. Department of the Army, 241 F.3d 1349, 2001 U.S. App. LEXIS 3411, 2001 WL 198923 (Fed. Cir. 2001).

Opinion

PER CURIAM.

James E. Foreman petitions for review of the final decision of the Merit Systems Protection Board denying his petition for enforcement of a settlement agreement provision requiring the Army to register him in the Department of Defense (“DOD”) priority placement program. Foreman v. Army, 85 M.S.P.R. 247 (M.S.P.B.1999) (final order). Because the Board did not err in determining that the Army was excused from performance of the registration provision and that the Board had no authority to order the DOD to register Foreman or award damages for nonperformance, we affirm.

DISCUSSION

Mr. Foreman was employed by the Army, which proposed to remove him for misconduct and delinquency in his supervisory responsibilities. Foreman appealed the removal action to the Board and received a hearing, at which the parties negotiated a settlement agreement. The settlement contained several benefits for Foreman, including rescission of the removal decision, removal of all related documents 'from his file, and registration with the DOD priority placement program. The Army complied with all provisions of the settlement agreement except the provision that it “shall ... register the Appellant for worldwide consideration under the Department of Defense Priority Placement Program.” Foreman v. Army, No. SE-0752-98-0210-C-1, slip op. at 2 (M.S.P.B. June 24, 1999) (initial decision) (“Foreman I ”). Foreman filed a petition to the Board to enforce this provision pursuant to 5 U.S.C. § 1204(a)(2) (1994).

Before the Administrative Judge (“AJ”) decided the enforcement petition, he required Foreman to elect between rescinding the agreement and retaining the benefits of the agreement absent priority placement. Foreman’s attorney elected, under protest, to keep the agreement in place absent any unenforceable provisions. The AJ then decided the enforcement petition on the merits, finding that the Army was excused from registering Foreman in the priority placement program under the doctrine of impossibility because DOD regulations preclude registration of employees whose performance or conduct is less than fully successful. Id. at 8-9. Because Foreman’s relevant annual perfor- *1351 manee evaluation rated his overall performance as “needs improvement,” which fell below the level of “successful,” the AJ determined that Foreman was ineligible for registration in the priority placement program and that the mandatory nature of the regulations made it impossible for the Army to register Foreman. Id. at 6-7. Furthermore, the AJ concluded that the Board did not have the authority to direct the DOD to register Foreman in its priority placement program and that the Board did not have jurisdiction to award money damages. Id. at 7-8. Finally, the AJ denied Foreman’s enforcement petition because he did not elect to rescind the settlement agreement for breach and thus had to accept its terms absent the unenforceable provision. Id. at 8. Foreman appealed the AJ’s initial decision to the full Board. The Board denied his petition for review, thus rendering the initial decision final. 5 C.F.R. § 1201.113(b) (2000). Foreman timely appealed to this court. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(9) (1994).

On appeal, Foreman argues that internal agency regulations are an insufficient basis on which to preclude his registration in the priority placement program. He contends that the Board’s decision improperly allows a DOD regulation to trump the Board’s own enforcement powers to compel federal agencies to comply with its orders under 5 U.S.C. § 1204(a)(2). He also argues that the Army and the Board erroneously relied on a negative performance rating that should have been removed from his record as part of the settlement agreement. Finally, Foreman argues that the Board has authority to award damages and that he is entitled to them under traditional contract law principles.

The scope of our review in an appeal from a decision of the Board is limited. We must affirm the Board’s decision unless it was “(1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; (2) obtained without procedures required by law, rule, or regulation having been followed; or (3) unsupported by substantial evidence.” 5 U.S.C. § 7703(c) (1994); Gibson v. Dep’t of Veterans Affairs, 160 F.3d 722, 725 (Fed.Cir.1998). We review the Board’s construction of the agreement de novo. Massie v. United States, 166 F.3d 1184, 1187 (Fed.Cir.1999).

We agree with the government that the Army’s failure to register Foreman with the priority placement was excusable on the ground of impossibility. A settlement agreement may not impose obligations upon a third party, in this case the DOD, without its consent. See Local Number 93 v. City of Cleveland, 478 U.S. 501, 529-530, 106 S.Ct. 3063, 92 L.Ed.2d 405 (1986) (“Of course, parties who choose to resolve litigation through settlement ... may not impose duties or obligations on a third party, without that party’s agreement.”). Foreman signed a settlement agreement with the Army requiring an action on the part of the DOD, which is established by statute as a separate legal entity from the Army. See 5 U.S.C. § 101 (1994) (designating the Department of Defense as an executive department); 5 U.S.C. § 102 (1994) (designating the Department of the Army as a military department). The Army tried in good faith to register Foreman in the priority placement program, but the DOD refused to register Foreman upon discovering that his performance evaluation was less than that required for entry into the program. Foreman I at 6. Foreman’s argument that the Board’s decision improperly puts an agency regulation above the Board’s enforcement powers is unpersuasive. Although the Board can “order any federal agency or employee to comply with any order or decision issued by the Board” under its authority in 5 U.S.C. § 1204(a)(1), the Board does not have the power to enforce an agreement between the Army and Foreman upon the DOD, which was not a party to that agreement. Moreover, it stands to reason that the Board should not be able to enforce on the DOD an obli *1352

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241 F.3d 1349, 2001 U.S. App. LEXIS 3411, 2001 WL 198923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-e-foreman-v-department-of-the-army-cafc-2001.