Nancy Johnson v. United States Railroad Retirement Board

969 F.2d 1082, 297 U.S. App. D.C. 82
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 11, 1992
Docket90-1243, 90-5380
StatusPublished
Cited by26 cases

This text of 969 F.2d 1082 (Nancy Johnson v. United States Railroad Retirement Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nancy Johnson v. United States Railroad Retirement Board, 969 F.2d 1082, 297 U.S. App. D.C. 82 (D.C. Cir. 1992).

Opinions

Opinion for the Court filed by Chief Judge MIKVA.

Opinion concurring in part and dissenting in part filed by Circuit Judge BUCKLEY.

MIKVA, Chief Judge:

In a bold challenge to judicial authority, the United States Railroad Retirement Board argues that it is free, when it chooses, to ignore the decisions of United States courts of appeals. Since 1981, the Board has cut off benefits for the spouses and widows of railroad workers after their dependent children turn sixteen, even though the Railroad Retirement Act of 1974, 45 U.S.C. §§ 231-231v (1988), says that they are entitled to benefits until the children turn eighteen. In 1985, the Court of Appeals for the Eighth Circuit rejected the Board’s position that an amendment to the Social Security Act required the change. Costello v. United States R.R. Retirement Bd., 780 F.2d 1352 (8th Cir.1985). The Board, however, refused to apply the Costello decision, even within the Eighth Circuit, and continued to deny benefits at the administrative level. In March 1991, the Court of Appeals for the Eleventh Circuit rejected the Board’s position for the same reasons as the Eighth Circuit. Johnson v. United States R.R. Retirement Bd., 925 F.2d 1374 (11th Cir.1991). The Board still refuses to acquiesce. Since individual challenges have been ineffective, Nancy Johnson, whose spousal benefits were denied, tried to bring a class action in district court challenging the Board’s interpretation of the Railroad Act and its policy of intracir-cuit nonacquiescence.

Because we think that Mrs. Johnson has not been denied “meaningful” access to judicial review, we uphold the district court’s conclusion that the Railroad Act vests exclusive jurisdiction in the courts of appeals. But we join the Eighth and Eleventh Circuits and reject the Board’s interpretation of the Railroad Act for the third time. We also think that the Board’s unapologetic policy of nonacquiescence is inconsistent with the Board’s own jurisdictional arguments and troubling on statutory and constitutional grounds. If the Board continues to deny benefits after our decision today, we expect that the policy itself can be directly challenged in an appropriate action before this court.

I. Background

Nancy Johnson is the wife of Edward Johnson, a former railroad employee. As the mother and stepmother of his five children, the Board found her eligible for a spousal annuity effective September 10, 1976. In late 1986, the Board notified her that the Tier I component of her annuity would be cut off on April 1, 1987, when her youngest child turned sixteen. (The Railroad Act divides the benefit into two tiers, with separate eligibility criteria). On reconsideration, Mrs. Johnson’s claim was denied, and her monthly payment was reduced from $391.11 to $84.11. She filed an administrative appeal, and was told that the issue presented “was solely a matter of law,” and did not require a hearing. The first appeals referee denied Mrs. Johnson’s claim, and came to the remarkable conclu[1084]*1084sion that the Costello case requires her benefits to be terminated, even though the case explicitly requires the opposite result. Railroad Bd. No. 90-1243 (Sept. 29, 1987). A second appeals referee reopened the decision and again rejected her argument, noting that “Costello was not a class action case and the Board did not pursue it further.” Id. (July 12, 1988). Mrs. Johnson appealed again, and on May 16, 1989, a three-member panel of the Board issued its final decision, affirming the decision of the second appeals referee in a one-sentence order. The third panel member dissented vigorously, calling the Board’s policy of nonacquiescence “grossly unjust” and urging payment of Tier I benefits to all widows and spouses with children between sixteen and eighteen. Id. (May 16, 1989) (Chamberlain, C.J., dissenting).

Having exhausted her administrative remedies, Mrs. Johnson filed a class action in district court, suing individually and on behalf of similarly situated beneficiaries under the Act. She claimed that the Board’s denial of full benefits to those in her circumstances violated the Act and the Fifth Amendment’s Due Process clause. She also claimed that the Board’s policy of intracircuit nonacquiescence violated the statutory and constitutional rights of her class.

The district court decided that the Railroad Act gives the federal courts of appeals exclusive jurisdiction to review the Board’s decisions. Concluding, accordingly, that it lacked subject matter jurisdiction over Mrs. Johnson’s complaint, it transferred her case to this court pursuant to 28 U.S.C. § 1631 on July 12, 1990. This presented Mrs. Johnson with a dilemma: although an appeals court can adjudicate her individual claim, it cannot adjudicate the class action; and if she chose to pursue the transfer, she would have to abandon the class action challenge. She chose instead to move for reconsideration, requesting that the district court dismiss her complaint, or that it certify its order finding no jurisdiction for interlocutory review under 28 U.S.C. § 129(b). While her complaint was pending in the district court, Mrs. Johnson petitioned this court for review, to protect her individual claim for benefits. The district court, in turn, granted reconsideration, vacated the transfer, and on October 4, 1990, dismissed Johnson’s case for lack of jurisdiction.

This appeal followed.

II. Analysis

A. District Court Jurisdiction

Two circuits are split about whether district courts have subject matter jurisdiction to entertain class action suits raising purely legal challenges to the Board’s determination of benefits under the Railroad Act. Compare Linquist v. Bowen, 813 F.2d 884, 888 (8th Cir.1987) (district court properly exercised mandamus jurisdiction under 28 U.S.C. § 1361 to entertain class action on behalf of dual beneficiaries under Social Security Act and Railroad Retirement Act) with Denberg v. United States R.R. Retirement Bd., 696 F.2d 1193, 1197-98 (7th Cir.1983), cert. denied, 466 U.S. 926, 104 S.Ct. 1706, 80 L.Ed.2d 180 (1984) (reversing district court’s exercise of jurisdiction over class action challenging Act’s treatment of male and female spouses on equal protection grounds). Although Mrs. Johnson’s jurisdictional argument is plausible, the logic of the precedents persuades us to reject it.

Section 10(b) of the Administrative Procedure Act says that “the form of proceeding for judicial review is the special statutory review proceedings relevant to the subject matter in a court specified by statute or, in the absence or inadequacy thereof, any applicable form of legal action ... in a court of competent jurisdiction.” 5 U.S.C. § 703 (1988) (emphasis added). We begin, therefore, by asking whether the statutory review proceedings govern Mrs.

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Bluebook (online)
969 F.2d 1082, 297 U.S. App. D.C. 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nancy-johnson-v-united-states-railroad-retirement-board-cadc-1992.