Reyes Colon v. United States

132 Fed. Cl. 655, 2017 U.S. Claims LEXIS 729
CourtUnited States Court of Federal Claims
DecidedJune 22, 2017
Docket16-391
StatusPublished
Cited by1 cases

This text of 132 Fed. Cl. 655 (Reyes Colon 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
Reyes Colon v. United States, 132 Fed. Cl. 655, 2017 U.S. Claims LEXIS 729 (uscfc 2017).

Opinion

Claim for overseas living quarters allowance; application of the Overseas Differentials and Allowances Act, 5 U.S.C. § 5923(a)(2), and the Department of State Standardized Regulations, DSSR § 031.12; jurisdiction; eligibility

OPINION AND ORDER

LETTOW, Judge.

Plaintiff, Luis A, Reyes Colon (“Mr. Reyes”), a civilian employee of the United States Department of the Army (“Army”), seeks a living quarters allowance (“LQA”) for his employment at the Army Materiel Support Center in South Korea from May 1, 2014 to the present. Mr. Reyes brings his claim pursuant to the Overseas Differentials and Allowances Act (“the Act”), Pub. L. No. 89-554, 80 Stat. 378, 510 (1966) (codified at 6 U.S.C. §§ 5921-28), which authorizes LQA payments for certain federal employees stationed overseas, and Section 031.12 of the implementing Department of State Standard-, ized Regulations (“DSSR”), which establishes LQA-eligibility requirements for employees recruited outside the United States. Mr. Reyes retired from active duty military service in May 2009 after serving in South Korea, and subsequently was employed in South Korea by Serco Inc. (“Serco”), a United States company. He resigned from that position in December 2009 to begin civilian employment with the Army in South Korea, and was granted LQA payments from December 7, 2009 to May 1, 2014. In May 2013, however, the Army informed Mr. Reyes that he was not eligible for LQA payments because an audit had revealed that he did not satisfy the eligibility requirements set forth in DSSR § 031.12(b), Mr. Reyes appealed that determination to the United States Office of Personnel Management (“OPM”), which ruled against him, and thereafter he brought suit in this court to challenge the Army’s interpretation and application of the DSSR.

Pending before the court are Mr. Reyes’ and the government’s motions for summary judgment pursuant to Rule 56 of the Rules of the Court of Federal Claims (“RCFC”). For the reasons stated, Mr. Reyes’ motion is denied and the government’s motion is granted.

*657 BACKGROUND

A The Overseas Differentials and Allowances Act and the DSSR

The Overseas Differentials and Allowances Act authorizes LQA payments to particular federal civilian employees stationed in foreign areas. See 5 U.S.C. §§ 6922-26. The Act specifically provides, in pertinent part, that “[w]hen [g]overnment owned or rented quarters are not provided without charge for an employee in a foreign area,” LQA payments “may be granted ... for rent, heat, light, fuel, gas, electricity, and water.” 6 U.S.C. § 6923(a)(2). The President has the authority to promulgate regulations governing the payment of such allowances, 6 U.S.C. § 6922(c), and that authority has been delegated to the Secretary of State, Exec. Order No. 10903, 26 Fed. Reg. 217-18 (Jan. 12, 1961). The Secretary of State accordingly has established LQA-eligibility requirements through the DSSR. See Roberts v. United States, 745 F.3d 1158, 1163 (Fed. Cir. 2014). In providing eligibility criteria, the DSSR distinguishes between employees recruited within the United States, see DSSR .§ 031.11, and those recruited outside the United States, see DSSR § 031.12, Relevant here, DSSR § 031.12 states in pertinent part:

[LQA] may be granted to employees recruited outside the United States, provided that:
a. the employee’s actual place of residence in the place to which the quarters allowance applies at the time of receipt thereof shall be fairly attributable to his/her employment by the United States [g]overnment; and
b. prior to appointment, the employee was recruited in the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the former Canal Zone, or a possession of the United States, by:
(1)the United States [government, including its Armed Forces;
(2) a United States firm, organization, or interest;
(3) an international organization in which the United States [government participates; or
(4) a foreign government
and had been in substantially continuous employment by such employer under conditions which provided for his/ her return transportation to the United States, the Commonwealth of Puer-to Rico, the Commonwealth of the Northern Mariana Islands, the former Canal Zone, or a possession of the United States....

DSSR § 031.12. 1

The DSSR also delegates authority to the heads of agencies to implement further regulations “with regard to the granting of and accounting for [LQA] payments.” DSSR § 013; see also Roberts, 745 F.3d at 1164 (quoting DSSR § 013 and noting that “the language of the Act and the DSSR, as a whole, provides only baseline requirements for LQA eligibility and contemplated further implementing regulations”). Pursuant to that authority, the United States Department of Defense issued further implementing .regulations related to LQA payments, stating:

[This volume] establishes [Department of Defense] policy, delegates authority, assigns responsibilities, and authorizes the payment of allowances and differentials to [Department of Defense] appropriated fund civilian employees who are 'U.S. citizens living in foreign areas pursuant to the [DSSR] and [Sections 5622, 5584, and 5922 of [T]itle 5, United States Code....

Department of Defense Instruction No. 1400.25, Vol. 1250, DoD Civilian Personnel Management System: Overseas Allowances and Differentials, § 1(b)(1) (Feb. 23, 2012) (“DoDI No. 1400.25, Vol. 1250”); see also DoDI No. 1400.25, Vol. 1250, § 4(c) (explaining that LQA payments are “intended to be recruitment incentives” and are not to be *658 “automatically ... granted”). That instruction delegated authority to the heads of the Department of Defense Components with respect to, among other things, LQA payments under DSSR § 031.12. See DoDI No. 1400,25, Vol. 1250, § 4(a)(1); see also Roberts, 745 F.3d at 1160, 1166 (noting that DoDI No. 1400.25, Vol. 1250 implements the DSSR and also “further delegates LQA authority to the heads of Department of Defense Components”). In accord with that delegation of authority, the Army has authorized LQA payments for civilian employees in South Korea. See Army in Korea Regulation 690-10, Overseas Allowances, Benefits and Entitlements (Sept. 9, 2016) (“AK Reg. 690-10”).

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132 Fed. Cl. 655, 2017 U.S. Claims LEXIS 729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reyes-colon-v-united-states-uscfc-2017.