Rory C Flynn v. Securities and Exchange Commission

CourtMerit Systems Protection Board
DecidedNovember 14, 2024
DocketDC-1221-20-0215-W-3
StatusUnpublished

This text of Rory C Flynn v. Securities and Exchange Commission (Rory C Flynn v. Securities and Exchange Commission) is published on Counsel Stack Legal Research, covering Merit Systems Protection Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rory C Flynn v. Securities and Exchange Commission, (Miss. 2024).

Opinion

UNITED STATES OF AMERICA MERIT SYSTEMS PROTECTION BOARD

RORY C. FLYNN, DOCKET NUMBER Appellant, DC-1221-20-0215-W-3

v.

SECURITIES AND EXCHANGE DATE: November 14, 2024 COMMISSION, Agency.

THIS FINAL ORDER IS NONPRECEDENTIAL 1

Bruce Bettigole , New York, New York, for the appellant.

Laura Walker and James V. Blair , Washington, D.C., for the agency.

BEFORE

Cathy A. Harris, Chairman Raymond A. Limon, Vice Chairman Henry J. Kerner, Member

*Member Kerner recused himself and did not participate in the adjudication of this appeal.

FINAL ORDER

¶1 The appellant has filed a petition for review of the initial decision, which dismissed his individual right of action (IRA) appeal as barred by the doctrine of res judicata. Generally, we grant petitions such as this one only in the following

1 A nonprecedential order is one that the Board has determined does not add significantly to the body of MSPB case law. Parties may cite nonprecedential orders, but such orders have no precedential value; the Board and administrative judges are not required to follow or distinguish them in any future decisions. In contrast, a precedential decision issued as an Opinion and Order has been identified by the Board as significantly contributing to the Board’s case law. See 5 C.F.R. § 1201.117(c). 2

circumstances: the initial decision contains erroneous findings of material fact; the initial decision is based on an erroneous interpretation of statute or regulation or the erroneous application of the law to the facts of the case; the administrative judge’s rulings during either the course of the appeal or the initial decision were not consistent with required procedures or involved an abuse of discretion, and the resulting error affected the outcome of the case; or new and material evidence or legal argument is available that, despite the petitioner’s due diligence, was not available when the record closed. Title 5 of the Code of Federal Regulations, section 1201.115 (5 C.F.R. § 1201.115). After fully considering the filings in this appeal, we conclude that the petitioner has not established any basis under section 1201.115 for granting the petition for review. Therefore, we DENY the petition for review. We VACATE the initial decision and DISMISS the appeal based on adjudicatory efficiency.

BACKGROUND ¶2 The Securities and Exchange Commission (Commission) appointed the appellant to the position of Associate General Counsel (Adjudication) in its Office of General Counsel (OGC) effective August 12, 2012, subject to a 2 -year trial period. Flynn v. Securities & Exchange Commission, MSPB Docket No. DC- 1221-14-1124-W-1 (1124 IRA Appeal), Appeal File (1124-W-1 IAF), Tab 27 at 5. On May 6, 2013, the agency terminated the appellant during his trial period, citing poor performance, lack of professional judgment, and an inability to work cooperatively with senior-level managers. 1124-W-1 IAF, Tab 16 at 23, 25-27. ¶3 As Associate General Counsel, the appellant headed OGC’s Adjudication Practice Group, which drafted decisions on appeals to the Commission from decisions issued by the Commission’s administrative law judges and by self-regulatory organizations. 1124-W-1 IAF, May 19, 2015 Hearing Transcript (5/19/15 HT) at 24, 41-43, 70 (testimony of the appellant). 2 The Commission’s 2 The hearing transcript is in a condensed format such that four pages of transcript appear on each page. To avoid confusion and to be consistent with the administrative 3

regulation at 17 C.F.R. § 201.900, also known as “Rule 900,” provides guidance for these appeals. A portion of the regulation, referenced to here as Rule 900(a), provides “[g]uidelines for timely completion of proceedings.” 17 C.F.R. § 201.900(a)(1)(iii) (2015). 3 Another portion of the regulation, referred to here as Rule 900(b), provides for “[r]eports to the Commission on pending cases,” (also known as “900(b) reports”). 17 C.F.R. § 201.900(b) (2015). This portion of the regulation directs that OGC submit “confidential status reports” regarding “adjudicatory proceedings” to the Commission. Id. For matters not concluded within 30 days of the deadlines set forth in Rule 900(a), OGC “shall specifically apprise the Commission of that fact, and shall describe the procedural posture of the case, project an estimated date for conclusion . . . , and provide such other information as is necessary to enable the Commission to determine whether additional steps are necessary to reach a fair and timely resolution of the matter.” Id. ¶4 After holding the appellant’s requested hearing, the administrative judge issued an initial decision in the 1124 IRA Appeal, denying the appellant’s request for corrective action. 1124-W-1 IAF, Tab 128, Initial Decision at 1, 15 (1124- W-1 ID). He found that the appellant did not meet his burden to prove his prima facie case of whistleblower reprisal by preponderant evidence because he did not prove that his disclosures were protected as possible allegations of a violation of law, rule or regulation, or gross mismanagement. Id. at 6-16. Rather, he found that the appellant disputed the agency’s policy decision not to comply with what he concluded were discretionary guidelines in Rule 900. Id. at 14-15. The judge’s initial decision, we have cited to the page numbers assigned by the court reporter and not the Board’s numerical pagination. 3 The current version of Rule 900 became effective on September 27, 2016. Amendments to the Commission’s Rules of Practice, 81 Fed. Reg. 50,212-01, 50,241-42 (July 9, 2016) (codified at 17 C.F.R. § 201.900). The current version of Rule 900(a)(1) (iii) contains different timeframes, i.e., 8 and 10 months from the completion of briefing, for timely completion of proceedings. Accordingly, all citations to “Rule 900” refer to the earlier version of the rule that was in place at the time of the events giving rise to this case. See 17 C.F.R. § 201.900 (2015). 4

appellant filed a petition for review of the initial decision, but the two Board members could not agree on the disposition of the petition and the initial decision therefore became the final decision of the Board. Flynn v. Securities & Exchange Commission, MSPB Docket No. DC-1221-14-1124-W-1, Order (Sept. 1, 2016). ¶5 The appellant then sought review of the Board’s final decision in the 1124 IRA Appeal in the U.S. Court of Appeals for the Fourth Circuit (Fourth Circuit). In December 2017, the Fourth Circuit issued a decision affirming the Board’s finding that the appellant’s disclosures alleging violations of the agency’s Rule 900(a) were not protected. Flynn v. Securities & Exchange Commission, 877 F.3d 200, 205-06 (4th Cir. 2017). It also found that the appellant had waived his claim that violation of Rule 900(a) evidenced gross mismanagement. Id. at 206 n. 3.

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

Related

Zgonc v. Department of Defense
230 F. App'x 967 (Federal Circuit, 2007)
Perry v. Merit Systems Protection Bd.
582 U.S. 420 (Supreme Court, 2017)
Sabersky v. Department of Justice
61 F. App'x 676 (Federal Circuit, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
Rory C Flynn v. Securities and Exchange Commission, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rory-c-flynn-v-securities-and-exchange-commission-mspb-2024.