Murphy v. United States

130 Fed. Cl. 554, 2017 U.S. Claims LEXIS 81, 2017 WL 532343
CourtUnited States Court of Federal Claims
DecidedFebruary 8, 2017
Docket16-95
StatusPublished
Cited by2 cases

This text of 130 Fed. Cl. 554 (Murphy v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphy v. United States, 130 Fed. Cl. 554, 2017 U.S. Claims LEXIS 81, 2017 WL 532343 (uscfc 2017).

Opinion

Overseas Differentials and Allowances Act, 6 U.S.C. §§ 5922, 6923(a); Department of State Standardized Regulations (“DSSR”) §§ 132.4, 132.11, 136; Department of Defense Instruction (“DoDI”) 1400.25, Vol. 1250; Army in Europe Regulation (“AE Reg.”) 690-500.592; Rules of the United States Court of Federal Claims (“RCFC”) 12(b)(6) (Failure To State Claim), 41(b) (Failure To Prosecute Claim).

MEMORANDUM OPINION AND FINAL ORDER GRANTING THE GOVERNMENT’S MOTION TO DISMISS

BRADEN, Judge.

I. RELEVANT FACTUAL BACKGROUND. 1

William A. Murphy was a civilian employee of the Department of the Army (the “Army”) who currently is living in Vicenza, Italy. Compl. at ¶ 3. 2 Pursuant to the Department of State Standardized Regulations (“DSSR”) § 136(a), 3 as of February 1, 2002, Mr. Mur *556 phy received a living quarters allowance (“LQA”) to pay for personally-owned quarters (“POQ”) during his tour of duty in Vi-cenza, Italy. Compl. Tab 2, at 6. A LQA for a POQ includes “rent,” ie., an annual amount up to ten percent of the original price of the POQ for a period “not to exceed ten years” and a “utilities” subsidy that includes heat, light, fuel, and garbage disposal expenses. See DSSR § 136(a).

In November 2010, the Army reassigned Mr. Murphy to the United States and terminated the LQA. Compl. Tab 2, at 6-7. But, on June 16, 2012, the Army reassigned Mr. Murphy to his former position in Vicenza, Italy and he resumed occupancy of his POQ. Compl. at ¶ 6.

On October 21, 2013, the Army’s Office of the Deputy Chief of Staff, G-l authorized a LQA for Mr. Murphy’s POQ, effective June 18, 2012, to expire on April -13, 2021. Compl. Tab 6. On November 27, 2013, however, the Army terminated the rental portion of Mr. Murphy’s LQA, although, he continued to receive utility expenses. Compl. at ¶¶ 1, 7. In response, Mr. Murphy sent an e-mail and called the Army’s O-l Civilian Human Resources Agency Office to ask why payments for the rental portion of the LQA were terminated. Compl. at ¶ 9. The Army responded that, according to the DSSR, the rental portion of the LQA for Mr. Murphy’s POQ was limited to “one instance per employee” for a total period of ten years, ie., 120 months, and Mr. Murphy had exhausted the rental portion of the LQA. Compl. at ¶ 9.

Sometime in late 2013, Mr. Murphy filed a claim with the Office of Personnel Management (“OPM”) requesting an “exception to policy for an extension to continue receiving [LQA] for rental quarters in Italy beyond ten years[.]” 4 Compl. Tab 2, at 6. The reason Mr. Murphy requested an exception was that he was compelled to seek rental quarters suitable for his handicapped spouse, but had been unable to sell his POQ. Compl. Tab 2, at 6. Therefore, Mr. Murphy requested continuation of the rental portion of the LQA, either until he could sell his POQ or he met the Date Eligible For Return From Overseas (“DEROS”), whichever occurred first. Compl. Tab 2, at 6. On December 24, 2013, OPM denied Mr. Murphy’s request for an extension, because Department of Defense Instruction 1400.26, Volume 1260 (the “DoDI”) specifically prohibits granting a LQA for rental quarters, if the employee owns a POQ in the local area of work. Compl. Tab 2, at 6 (citing DoDI 1400.25, Vol. 1250). Therefore, OPM determined that it did not have the authority to consider Mr. Murphy’s “exception” to the DoDI. Compl. Tab 2, at 6.

On April 10, 2014, Mr. Murphy filed a second claim with OPM requesting reconsideration of the Army’s November 27, 2013 denial of the rental portion of his LQA. Compl. Tab 2, at 6. On November 25, 2014, OPM denied Mr. Murphy’s request for reconsideration in Claim Decision 14-0030. Compl. at ¶ 12. Therein, the OPM ruled that the ten-year period, prescribed by the DSSR § 136(a), is cumulative and “[Mr. Murphy] has received the full ten-year-grant for the POQ he owns and occupies ... regardless of his intervening two-year-return to the United States.” Compl. at ¶ 14; Compl. Tab 2, at 7-8.

On March 17, 2015, Stars and Stripes, a newspaper published by the Department of Defense, featured an article reporting that, under the current regulations, “[e]mployees are allowed LQA for privately-owned quarters (POQ) in as many areas as they are assigned,” but proposed changes to the DSSR would. “[l]imit authorization of LQA for privately-owned quarters to [one] instance per employee and only when certified by the housing office and the budget office that [the authorization] is in the best interests of the govemment[.]” Compl. Tab 8, at 38-39. The March 17, 2015 article also stated that, if an employee returned to the United States after a LQA-eligible assignment, the *557 employee would be eligible to receive LQA again, if the employee was immediately assigned to another overseas job. Compl. Tab 8, at 39.

On May 28, 2015, Mr. Murphy filed an appeal to the Merit Systems Protection Board (“the Board”). Compl. Tab 3, at 11. On July 10, 2015, the appeal was dismissed because the Board determined that it lacked jurisdiction over his appeal. Compl. Tab 3, at 14. Under 5 U.S.C. § 7512, the Board has jurisdiction to review an appeal from a removal, a suspension of more than 14 days, a reduction in grade or pay, or a furlough action of 30 days or less. But, the Board determined that it lacked jurisdiction, because the denial of a LQA benefit was not a “reduction of pay.” Compl. Tab 3 at 13. The Board, noted, however, that Mr. Murphy could seek redress “with an appropriate United States Court.” Compl. Tab 3 at 14.

II. RELEVANT PROCEDURAL HISTORY.

On January 19, 2016, Mr. Murphy (“Plaintiff’) filed a Complaint in the United States Court of Federal Claims alleging that, because the Army terminated his LQA when he was transferred back to the United States in October 2010, pursuant to the DSSR § 132.4, 5 a new ten-year period for a LQA commenced, when the Army reassigned him to Italy for a second tour of duty, under the DSSR § 132.11. 6 Compl. at ¶ 6. The January 19, 2016 Complaint also alleges that the Army unlawfully terminated the rental portion of Plaintiffs LQA on November 27, 2013, so that Plaintiff is entitled to reinstatement, pursuant to the DSSR § 132.11, for payments until April 2021, ie., approximately $1,600.00 per month for rent, including retroactive payments, dating back to November 2013, in the amount of $34,000.00. Compl. at ¶¶ 1-19.

On March 21, 2016, the Government filed a Motion To Dismiss (“Gov’t Mot.”), pursuant to Rule of the United States Court of Federal Claims (“RCFC”) 12(b)(6), for failure to state a claim upon which relief can be granted. Plaintiff failed to file a timely response.

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130 Fed. Cl. 554, 2017 U.S. Claims LEXIS 81, 2017 WL 532343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-v-united-states-uscfc-2017.