Munoz v. Social Security Administration

97 F. App'x 910
CourtCourt of Appeals for the Federal Circuit
DecidedApril 2, 2004
DocketNo. 03-3053
StatusPublished
Cited by1 cases

This text of 97 F. App'x 910 (Munoz v. Social Security Administration) 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
Munoz v. Social Security Administration, 97 F. App'x 910 (Fed. Cir. 2004).

Opinion

PER CURIAM.

Robert Munoz appeals the decision of the Merit Systems Protection Board (MSPB or Board), Docket No. CH0432000183-C-1, 92 M.S.P.R. 537, denying Mr. Munoz’s petition for enforcement of a settlement agreement he entered into with the Social Security Administration (SSA). The MSPB held that the SSA did not breach the agreement when it disclosed information related to the agreement to the Office of Personnel Management (OPM). We conclude that the MSPB erred in its interpretation of the agreement, and that the SSA’s disclosure to OPM was a breach of its terms. The decision of the MSPB is reversed. We remand for determination of remedy for the breach.

[911]*911BACKGROUND

Mr. Munoz was employed by the Social Security Administration as a Benefit Authorizer Trainee. He and two other Benefit Authorizer Trainees were removed by the SSA for unacceptable performance as defined in 5 U.S.C. § 4301(3). Each employee appealed to the MSPB. The first appeal to be decided was that of George Harris, wherein the MSPB ruled that the SSA did not establish performance standards, as was required by 5 C.F.R. § 432.103(h), and did not inform Harris of the critical elements of his position, as was also required. The MSPB reversed the removal. Harris v. Social Security Administration, Docket No. CH04320000671-1 (M.S.P.B. Feb. 8, 2000). When the SSA proposed settlement of the other two appeals, the SSA Chief Counsel wrote to the attorney representing Mr. Munoz and the third employee that “[t]he Agency is aware that there is a substantial likelihood that your clients will prevail in the administrative hearing” based on the Harris precedent.

Thereafter, Mr. Munoz and the SSA entered into a settlement agreement. Mr. Munoz agreed to withdraw his appeal with prejudice, and the SSA agreed to replace the Notice of Removal with a voluntary resignation and to pay Mr. Munoz $52,500. Both sides agreed to keep confidential the settlement agreement and all matters discussed during the settlement negotiations, except for disclosure to “officials who have a need to know to perform their official duties” or as required by law. The following agreement clauses recite these terms:

a. In return for Mr. Munoz’s agreement to withdraw with prejudice his appeal to the MSPB and not to appeal his removal in any other forum, the Agency will withdraw the Notification of Personnel Action, Removal dated November 4, 1999, and will instead allow Mr. Munoz to voluntarily resign his position. Mr. Munoz’s Standard Form-50 will not state or make reference to his October 5,1999, removal,
g. This settlement agreement and all matters discussed during the settlement negotiations shall be kept confidential by Mr. Munoz, his attorney, the Agency, and the Agency’s representatives. The Agency is authorized to disclose the agreement to officials who have a need to know to perform their official duties and to other entities to the extent required by Federal statute or regulation.

Mr. Munoz then resigned from his position, and the SSA replaced the personnel form showing removal for unacceptable performance with one that showed voluntary resignation.

In April 2001 Mr. Munoz applied for employment with the SSA as a Social Insurance Specialist (Claims Representative). He cited his past experience and veterans preference. OPM placed his name on the list of eligible candidates. The following month, the SSA notified the OPM that it objected to Mr. Munoz’s inclusion on the list of eligible candidates, stating:

[Mr. Munoz] was removed from his position as a Benefit Authorizer Trainee under Chapter 43 due to his failure to perform the critical elements of the job. The eligible appealed his removal to the Merit Systems Protection Board and the case was settled with the Agency. Based on his prior service as a Benefit Authorizer Trainee the Agency does not believe that the eligible could perform the duties of a more complex Claims Representative position.

The agency also told OPM of the critical elements that Mr. Munoz had not satisfactorily performed and the various perform[912]*912anee improvement plans that he failed, as well as of the settlement agreement allowing him to resign. As a result, OPM removed Mr. Munoz’s name from the list of eligible candidates. On Mr. Munoz’s petition, the MSPB held that the settlement agreement had not been breached by the SSA’s disclosures. This appeal followed.

DISCUSSION

The decision of the MSPB must be upheld unless it is determined to be (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) (2000). The interpretation of a settlement agreement is given plenary review, as a matter of law. Mays v. United States Postal Serv., 995 F.2d 1056, 1059 (Fed.Cir.1993).

The issue is focused on whether the settlement agreement permits the SSA to disclose Mr. Munoz’s past performance, the removal, the settlement, and its terms. Mr. Munoz states that the intent of the settlement was to give him a clean record; the SSA states that the intent was simply to replace the removal form with a resignation form, but not to prohibit the disclosures that were made. The issue turns on the intent of the parties when they entered into the contract as reflected in the contract terms, and, if there is any ambiguity in the contract language, with recourse to any other evidence that may be relevant to contract interpretation. Greco v. Dep’t of the Army, 852 F.2d 558, 560 (Fed.Cir.1988).

The settlement agreement provided that Mr. Munoz would resign, that the record would show voluntary departure rather than removal for cause, and that the settlement and its negotiations would be kept in confidence but for the specified exceptions. The SSA argues that its obligation was met when it replaced the SF-50 that showed removal for cause with the SF-50 showing voluntary resignation. The SSA states that its disclosure of the removal, the reasons therefor, the appeal, and its settlement, did not violate the settlement agreement.

The SSA points to an earlier draft of the agreement, which specified how the agency would respond to inquiries:

D. The Agency will respond to any inquiries from prospective employers regarding the Employee’s tenure with the Agency. In response to any inquiry, the Agency will disclose verbally only the dates of the Employee’s employment with the Agency, his position titles, grades, and salaries.

The SSA argues that since this clause was not included in the final agreement, it was not intended that the agency would be limited in its disclosures concerning the employee. However, as a matter of contract interpretation, an omitted draft clause cannot contradict an included final clause. We also take note that the omitted clause relates only to “verbal” disclosure.

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97 F. App'x 910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munoz-v-social-security-administration-cafc-2004.