Miller v. Federal Deposit Insurance

818 F.3d 1357, 2016 U.S. App. LEXIS 6403, 2016 WL 1393532
CourtCourt of Appeals for the Federal Circuit
DecidedApril 8, 2016
Docket2014-3137
StatusPublished
Cited by17 cases

This text of 818 F.3d 1357 (Miller v. Federal Deposit Insurance) 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
Miller v. Federal Deposit Insurance, 818 F.3d 1357, 2016 U.S. App. LEXIS 6403, 2016 WL 1393532 (Fed. Cir. 2016).

Opinion

NEWMAN, Circuit Judge.

Robert M. Miller appeals the decision of the Merit Systems Protection Board (MSPB or Board) denying his request for relief under the Veterans Employment Opportunities Act (VEOA) resulting from his non-selection for a vacancy advertised by the Federal Deposit Insurance Corporation (FDIC). We affirm the Board’s decision. 1

Background

Mr. Miller served on active duty from June 2003 until July 21, 2007. He has a Veteran’s Administration disability rating of 60 percent. Since 2008, Mr. Miílér has been employed as an Economic Analyst in the FDIC’s Division of Research in San Francisco. He was hired at the GS-9 level and has risen to the GS-12 level.

On September 7, 2012 the FDIC posted vacancy announcements for a CG-13 Financial Economist position in Washington, D.C. The FDIC posted two vacancy announcements, the first open to all U.S. citizens and the second for status candidates. Mr. Miller submitted applications under both hiring procedures.

Mr. Miller was one of three applicants selected for an interview. Mr. Kupiec, the selecting official, and two other senior FDIC employees participated in the interviews. Each interviewer rated each candidate’s answers to three questions on bank failure prediction models as Outstanding, Good, or Inadequate. On the first question, all three interviewers rated Mr. Miller’s response as “Good.” On the second question, two interviewers rated his answer as “Inadequate” and one interviewer rated his answer as “Good.” On the third question, two interviewers rated his answer as “Inadequate” and one interviewer rated his answer as “Outstanding.” The other two candidates also received some “Inadequate” ratings. No candidate was selected, and the vacancy was cancelled.

Mr. Miller was notified that no one had been chosen for the Financial Economist position. He then filed a complaint with the Department of Labor, stating that the FDIC had cancelled the vacancy in bad faith to avoid hiring a veteran or having to request a “pass over” from the Office of Personnel Management. The Department of Labor denied Mr. Miller’s claim, finding no evidence to support the charge of violation of his veterans’ preference rights.

Mr. Miller appealed to the MSPB, alleging violation of the VEOA based on bad faith in the cancellation of the position. He cited Willingham v. Department of the Navy, 118 M.S.P.R. 21 (2012), in which the Board held that “bad faith in, deciding to cancel a vacancy may be a factor in determining if a cancellation affects a veteran’s right to compete.” Id. at 31. He also *1359 alleged reprisal and discriminatory practices.

The administrative judge (AJ) dismissed Mr. Miller’s appeal for lack of MSPB jurisdiction. The AJ found that the charge of bad faith in cancellation of the position.did not raise a non-frivolous allegation of violation of veterans’ preference, and thus the Board lacked jurisdiction. The AJ also found the allegation of bad faith to be unsupported.

¡The full Board found that the MSPB had jurisdiction over the VEOA claim, but found no violation of the VEOA. The Board held that the allegation of non-selection for the Senior Financial Economist position in violation of veterans’ preference rights was sufficient to confer jurisdiction over a VEOA appeal. However, the Board held that Mr. Miller had not established a violation of his veterans’ preference rights.

Specifically, the Board found that the FDIC “conducted a thorough; structured interview of each of the candidates” ánd “none of the interviewees possessed the requisite skills and knowledge for the position.” MSPB Op. at *3. An agency is “not required to hire a preference eligible veteran, if ... it does not believe that the candidate is qualified or possessed the necessary experience.” Id. (citing Abell v. Dep’t of the Navy, 343 F.3d 1378, 1384 (Fed.Cir.2003)).

Mr. Miller appeals. .

Discussion

We review the Board’s decision to ascertain whether it was (1) arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law; (2) obtained without following the procedures required by law; or (3) unsupported by substantial evidence. 5 U.S.C. § 7703(c); see Barrett v. Soc. Sec. Admin., 309 F.3d 781, 785 (Fed.Cir.2002). Factual findings of the Board are sustained unless they are not supported by substantial evidence. See Bolton v. Merit Sys. Prot. Bd., 154 F.3d 1313, 1316 (Fed.Cir.1998).

The Veterans’ Preference Act of 1944 (VPA), Pub.L. No. 359, ch. 287, 58 Stat. 390, established the principle of veterans’ preference, whereby preference eligible veterans receive certain advantages when seeking federal employment. The VPA is codified in scattered sections of Title 5 of the U.S.Code. See, e.g., Lazaro v. Dep’t of Veterans Affairs, 666 F.3d 1316, 1318 (Fed.Cir.2012) (discussing some of the statutes and regulations enacted to provide veterans with their preference rights); Joseph v. FTC, 505 F.3d 1380, 1381 (Fed.Cir.2007) (same). The VEOA provides preference eligible veterans with an administrative challenge for an agency hiring decision violating a'veteran’s rights under a statute or regulation relating to veterans’ preference. 5 U.S.C. § 3330a.

“Federal agencies generally use two types of selection to fill vacancies: (1) the open ‘competitive examination’ process and (2) the ‘merit promotion’ process.” Joseph, 505 F.3d at 1381 (citations omitted). The competitive examination process is typically open to the public. 5 C.F.R. § 332.101. The merit promotion process is used when the position is to be internally filled by a current agency employee or a “status” applicant, such as a preference eligible veteran.. Id. § 335.103(b)(1). Veterans receive certain advantages under both processes, but the advantages differ.

In merit promotion procedures, preference eligible veterans receive the ability to apply for vacancy announcements otherwise open only to current agency employees., Veterans “may not be denied the opportunity to compete for. vacant positions .for which the agency making the announcement will aecept applications from individuals outside its own workforce under merit promotion procedures.” 5 U.S.C. § 3304(f)(1). When applying under *1360

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818 F.3d 1357, 2016 U.S. App. LEXIS 6403, 2016 WL 1393532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-federal-deposit-insurance-cafc-2016.