Sanchez v. United States

CourtUnited States Court of Federal Claims
DecidedJanuary 29, 2026
Docket25-565
StatusPublished

This text of Sanchez v. United States (Sanchez 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.

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Sanchez v. United States, (uscfc 2026).

Opinion

In the United States Court of Federal Claims No. 25-565C Filed: January 29, 2026

* * * * * * * * * * * * * * * * * ** * BIANCA M. SANCHEZ, * * Plaintiff, * v. * * UNITED STATES, * * Defendant. * * * * * * * * * * * * * * * * * * * * **

Pheobe A. Clark, Wukela Law Firm, Florence, SC, for plaintiff.

Kelly E. Palamar, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington DC, for defendant. With her were Albert S. Iarossi, Assistant Director, Commercial Litigation Branch; Patricia M. McCarthy, Director, Commercial Litigation Branch; and Brett A. Shumate, Assistant Attorney General, Civil Division, United States Department of Justice, Washington, DC. Darrel Waugh, Assistant General Counsel, Federal Bureau of Prisons.

OPINION

HORN, J.

On March 31, 2025, plaintiff Bianca M. Sanchez filed a complaint in the United States Court of Federal Claims alleging two causes of action, count one “Breach of Contract” and count two “Quantum Meruit/Unjust Enrichment,” as a result of an alleged failure by the Federal Bureau of Prisons (BOP) to perform its obligations under an alleged 2018 Student Loan Repayment Agreement which plaintiff signed. On June 16, 2025, defendant filed a motion to dismiss plaintiff’s complaint. Defendant argues that count one of plaintiff’s complaint for “Breach of Contract” should be dismissed pursuant to Rule 12(b)(6) (2024) of the Rules of the United States Court of Federal Claims (RCFC) for failure to state a claim upon which relief can be granted because, as further discussed below, “the Student Loan Repayment Agreement that Ms. Sanchez signed on April 18, 2018 was never signed or approved by either the [BOP’s] Regional Director or the BOP’s Personnel Director, and thus did not constitute a binding contract.” (alteration added; internal citations omitted). Defendant further argues that count two of plaintiff’s complaint for “Quantum Meruit/Unjust Enrichment” must be dismissed pursuant to RCFC 12(b)(1) for lack of subject matter jurisdiction. Defendant’s motion to dismiss has been fully briefed and oral argument was held.

FINDINGS OF FACT

The context in which plaintiff’s case arose is that the BOP established a Student Loan Repayment Program pursuant to 5 U.S.C. § 5379 (2024) which states, “[t]he head of an agency may, in order to recruit or retain highly qualified personnel, establish a program under which the agency may agree to repay (by direct payments on behalf of the employee) any student loan previously taken out by such employee.” 5 U.S.C. § 5379(b)(1) (alteration added). An implementing regulation reflects that the statute at 5 U.S.C. § 5379 “authorizes agencies to establish a student loan repayment program for the purpose of recruiting or retaining highly qualified personnel.” 5 C.F.R. § 537.101 (2024). The statute at 5 U.S.C. § 5379(b)(2) provides:

Payments under this section [titled “Student loan repayments”] shall be made subject to such terms, limitations, or conditions as may be mutually agreed to by the agency and employee concerned, except that the amount paid by an agency under this section may not exceed—

(A) $10,000 for any employee in any calendar year; or (B) a total of $60,000 in the case of any employee.

5 U.S.C. § 5379(b)(2) (alteration added). An employee selected to receive benefits under a student loan repayment program “must agree in writing, before receiving any such benefit, that the employee will— (A) remain in the service of the agency for a period specified in the agreement (not less than 3 years), unless involuntarily separated[.]” 5 U.S.C. § 5379(c)(1) (alteration added). The statute at 5 U.S.C. § 5379(f) also requires that benefits under a student loan repayment program “shall be in addition to basic pay and any other form of compensation otherwise payable to the employee involved.” 5 U.S.C. § 5379(f).

In the appendix filed with defendant’s motion to dismiss, defendant submitted BOP Program Statement 3530.02 (2016) (hereinafter Program Statement 3530.02), an internal BOP document, which offered guidance for the implementation of the BOP’s Student Loan Repayment Program. According to Program Statement 3530.02, under the BOP’s Student Loan Repayment Program, the BOP may agree to repay all or part of a current employee’s outstanding student loans in the amount of “up to $10,000 per year (up to a maximum loan repayment of $30,000 for three years), and may not be prorated should the service agreement be unfulfilled.” Program Statement 3530.02 states that “[b]efore a student loan repayment may be paid, the candidate or employee must sign a Student Loan Repayment Agreement (Attachment C-14) to complete a minimum of 36 months of employment with DOJ, beginning on the date of the first repayment.” (alteration added). Additionally, Program Statement 3530.02 states that “[a]n employee who fails to complete at least 36 months of DOJ service as the initial Repayment Agreement established or 12 months of DOJ service under a supplemental Repayment Agreement is indebted to the

2 Federal Government and must repay all student loan repayments received under the relevant agreement.” (alteration added). Moreover, Program Statement 3530.02 states that student loan repayments “[a]re not considered part of the employee’s rate of basic pay for any other purpose.” (alteration added). According to Program Statement 3530.02, approval for BOP Student Loan Repayment Agreements begins with the Chief Executive Officer of the BOP institution requesting “each student loan repayment in writing through the Regional Director,” followed by the Regional Director’s approval or disapproval of the request, and, if approved by the Regional Director, concluding with the forwarding of the request “to the Staffing and Employee Relations section (SERS) for routing to the Bureau Personnel Director, and the Assistant Director over the discipline involved” for final approval.

According to plaintiff’s complaint, plaintiff began working at the BOP in Bennettsville, South Carolina on January 22, 2017. Plaintiff alleges that the BOP offered plaintiff an opportunity to participate in the Student Loan Repayment Program in 2018 in exchange for remaining in the service of the agency for three years. Plaintiff claims that a BOP Human Resources Specialist, Ms. Beth Graham, offered plaintiff a Student Loan Repayment Agreement via email on April 17, 2018, which plaintiff signed on April 18, 2018. (hereinafter the alleged April 2018 Student Loan Repayment Agreement). The alleged April 2018 Student Loan Repayment Agreement stated: “In consideration of the repayment of my outstanding Federally-insured student loan balance as described below, I Bianca M. Sanchez agree to remain in the service of the Bureau of Prisons for a period of 36 months, beginning on the date that the repayment is made.” (emphasis added).

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