Office of Personnel Management v. Richmond

496 U.S. 414, 110 S. Ct. 2465, 110 L. Ed. 2d 387, 1990 U.S. LEXIS 3004
Supreme Court of the United States·Decided August 13, 1990·No. 88-1943·Published·Cited by 1,167 cases

Opinions

Justice Kennedy

delivered the opinion of the Court.

This case presents the question whether erroneous oral and written advice given by a Government employee to a [416]*416benefits claimant may give rise to estoppel against the Government and so entitle the claimant to a monetary payment not otherwise permitted by law. We hold that payments of money from the Federal Treasury are limited to those authorized by statute, and we reverse the contrary holding of the Court of Appeals.

I

Not wishing to exceed a statutory limit on earnings that would disqualify him from a disability annuity, respondent Charles Richmond sought advice from a federal employee and received erroneous information. As a result he earned more than permitted by the eligibility requirements of the relevant statute and lost six months of benefits. Respondent now claims that the erroneous and unauthorized advice should give rise to equitable estoppel against the Government, and that we should order payment of the benefits contrary to the statutory terms. Even on the assumption that much equity subsists in respondent’s claim, we cannot agree with him or the Court of Appeals that we have authority to order the payment he seeks.

Respondent was a welder at the Navy Public Works Center in San Diego, California. He left this position in 1981 after petitioner, the Office of Personnel Management (OPM), approved his application for a disability retirement. OPM determined that respondent’s impaired eyesight prevented him from performing his job and made him eligible for a disability annuity under 5 U. S. C. § 8337(a). Section 8337(a) provides this benefit for disabled federal employees who have completed five years of service. The statute directs, however, that the entitlement to disability payments will end if the retired employee is “restored to an earning capacity fairly comparable to the current rate of pay of the position occupied at the time of retirement.” § 8337(d).

The statutory rules for restoration of earning capacity are central to this case. Prior to 1982, an individual was deemed [417]*417restored to earning capacity, and so rendered ineligible for a disability annuity, if

“in each of 2 succeeding calendar years the income of the annuitant from wages or self-employment. . . equals at least 80 percent of the current rate of pay of the position occupied immediately before retirement.” 5 U. S. C. § 8337(d) (1976 ed.) (emphasis added).

The provision was amended in 1982 by the Omnibus Budget Reconciliation Act, Pub. L. 97-253, 96 Stat. 792, to change the measuring period for restoration of earning capacity from two years to one:

“Earning capacity is deemed restored if in any calendar year the income of the annuitant from wages or self-employment or both equals at least 80 percent of the current rate of pay of the position occupied immediately before retirement.” 5 U. S. C. § 8337(d) (emphasis added).

After taking disability retirement for his vision impairment, respondent undertook part-time employment as a schoolbus driver. From 1982 to 1985, respondent earned an average of $12,494 in this job, leaving him under the 80% limit for entitlement to continued annuity payments. In 1986, however, he had an opportunity to earn extra money by working overtime. Respondent asked an employee relations specialist at the Navy Public Works Center’s Civilian Personnel Department for information about how much he could earn without exceeding the 80% eligibility limit. Relying upon the terms of the repealed pre-1982 statute, under which respondent could retain the annuity unless his income exceeded the 80% limit in two consecutive years, the specialist gave respondent incorrect advice. The specialist also gave respondent a copy of Attachment 4 to Federal Personnel Manual Letter 831-64, published by OPM, which also stated the former 2-year eligibility rule. The OPM form was correct when written in 1981; but when given to respondent, the [418]*418form was out of date and therefore inaccurate. Respondent returned to the Navy in January 1987 and again was advised in error that eligibility would be determined under the old 2-year rule.

After receiving the erroneous information, respondent concluded that he could take on the extra work as a schoolbus driver in 1986 while still receiving full disability benefits for impaired vision so long as he kept his income for the previous and following years below the statutory level. He earned $19,936 during 1986, exceeding the statutory eligibility limit. OPM discontinued respondent’s disability annuity on June 30, 1987. The annuity was restored on January 1, 1988, since respondent did not earn more than allowed by the statute in 1987. Respondent thus lost his disability payments for a 6-month period, for a total amount of $3,993.

Respondent appealed the denial of benefits to the Merit Systems Protection Board (MSPB). He argued that the erroneous advice given him by the Navy personnel should estop OPM and bar its finding him ineligible for benefits under the statute. The MSPB rejected this argument, noting that the officials who misinformed respondent were from the Navy, not OPM. The MSPB observed that, “[h]ad [respondent] directed his request for information to the OPM, presumably, he would have learned of the change in the law.” The MSPB held that “OPM cannot be estopped from enforcing a statutorily imposed requirement for retirement eligibility.” App. to Pet. for Cert. 22a. The MSPB denied respondent’s petition for review, and respondent appealed to the Court of Appeals for the Federal Circuit.

A divided panel of the Court of Appeals reversed, accepting respondent’s contention that the misinformation from Navy personnel estopped the Government, and that the es-toppel required payment of disability benefits despite the statutory provision to the contrary. The Court of Appeals acknowledged the longstanding rule that “ordinarily the government may not be estopped because of erroneous or unau[419]*419thorized statements of government employees when the asserted estoppel would nullify a requirement prescribed by Congress.” 862 F. 2d 294, 296 (1988). Nonetheless, the Court of Appeals focused on this Court’s statement in an earlier case that “we are hesitant ... to say that there are no cases” where the Government might be estopped. Heckler v. Community Health Services of Crawford County, Inc., 467 U. S. 51, 60 (1984). The Court of Appeals then discussed other Court of Appeals and District Court opinions that had applied estoppel against the Government.

The Court of Appeals majority decided that “[b]ased on the Supreme Court’s acknowledgment that the estoppel against the government is not foreclosed and based on court of appeals rulings applying estoppel against the government, our view is that estoppel is properly applied against the government in the present case.” 862 F. 2d, at 299. The Court reasoned that the provision of the out-of-date OPM form was “affirmative misconduct” that should estop the Government from denying respondent benefits in accordance with the statute.

Free access — add to your briefcase to read the full text and ask questions with AI

Office of Personnel Management v. Richmond, 496 U.S. 414, 110 S. Ct. 2465, 110 L. Ed. 2d 387, 1990 U.S. LEXIS 3004 (1990).

496 U.S. 414 (Office of Personnel Management v. Richmond) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

10-47 251
Board of Veterans' Appeals, 2017
Marilyn Keepseagle v. Sonny Perdue
856 F.3d 1039 (D.C. Circuit, 2017)
Martin v. United States
Federal Claims, 2017
Don J. Permoda v. Office of Personnel Management
Merit Systems Protection Board, 2017
In Re Pt-1 Communications, Inc.
447 B.R. 115 (E.D. New York, 2011)
Chennareddy v. Dodaro
698 F. Supp. 2d 1 (District of Columbia, 2009)
Bull v. Allstate Insurance Co.
649 F. Supp. 2d 529 (W.D. Louisiana, 2009)
United States v. Jenkins
714 F. Supp. 2d 1213 (S.D. Georgia, 2008)
Baltazor., Inc. v. Fidelity National Ins. Program
544 F. Supp. 2d 516 (E.D. Louisiana, 2008)
Republic of Ecuador v. ChevronTexaco Corp.
499 F. Supp. 2d 452 (S.D. New York, 2007)
Southern Ute Indian Tribe v. Leavitt
497 F. Supp. 2d 1245 (D. New Mexico, 2007)
Gildor v. United States Postal Service
491 F. Supp. 2d 305 (N.D. New York, 2007)
Parsley v. CITY OF COLUMBUS, OHIO DEPT. OF PUBLIC
471 F. Supp. 2d 858 (S.D. Ohio, 2006)
Gengler v. United States ex rel. Department of Defense & Navy
453 F. Supp. 2d 1217 (E.D. California, 2006)