Saunders v. U.S. Department of Veterans Affairs

District Court, E.D. Louisiana·Decided October 30, 2020·No. 2:19-cv-11482·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

RALPH SAUNDERS CIVIL ACTION

VERSUS NO. 19-11482

ROBERT WILKIE, SECRETARY, U.S. SECTION “R” (5) DEPT. OF VETERANS AFFAIRS, ET AL.

ORDER AND REASONS

Defendants, in three motions, move to dismiss plaintiff’s tort claims,1 breach of contract claim,2 and Title VII claims3 for lack of subject matter jurisdiction. First, the Court finds that it lacks subject matter jurisdiction over the tort claims and grants defendants’ motion. Second, the Court finds that it lacks subject matter jurisdiction over the breach of contract claim and transfers it to the United States Court of Federal Claims. Finally, the Court concludes that it has subject matter jurisdiction over plaintiff’s Title VII claims and denies defendants’ motion.

1 R. Doc. 47. 2 R. Doc. 50. 3 R. Doc. 55. I. BACKGROUND

Plaintiff, Ralph Saunders, was an employee at the New Orleans office of the Department of Veterans’ Affairs (“VA”) until 2005. Plaintiff alleges that he is “a fair skinned, light brown, Creole, African American, currently age 64, male,” who worked as a housekeeper and painter for the VA.4 He allegedly suffered an on-the-job injury that led to disability retirement in

May 2005.5 While employed at the VA, plaintiff brought several equal employment opportunity (“EEO”) complaints. In October 2005, plaintiff signed a

settlement agreement with the VA to resolve seven such claims.6 The agreement was finalized on November 9, 2005.7 As part of the settlement, Saunders withdrew all of his claims and agreed that he would not apply for future work with the VA.8 Among other terms, the VA agreed to pay

$240,000.9 Saunders retained his right to file a claim for workers’ compensation.10

4 Id. at 15-16, ¶ VIII. 5 R. Doc. 1 at 16, ¶ VIII. 6 Id. at 17, ¶ X; R. Doc. 55-5 at 1. 7 R. Doc. 1 at 17, ¶ X; R. Doc. 55-5 at 4. 8 R. Doc. 50-4 at 1, ¶ 1.1. 9 Id. at ¶ 2.1. 10 Id. at 1, ¶ 1.3. From June 2005 until December 2017, plaintiff received a disability annuity from the U.S. Office of Personnel Management (“OPM”).11 In 2017,

Saunders began to inquire about alternate disability benefits.12 On December 5, 2017, the Department of Labor’s (“DOL”) Office of Workers’ Compensation Programs (“OWCP”) informed plaintiff that he would begin to receive benefits under the Federal Employees’ Compensation Act

(“FECA”) in lieu of the OPM annuity.13 These FECA benefits, plaintiff claims, pay a significantly higher rate.14 The OWCP made the payment of FECA benefits retroactive to the date plaintiff’s OPM annuity began.15

Plaintiff’s complaint is primarily based on allegations that defendants intentionally transmitted false information to OPM and FECA investigators, which prevented him from receiving the higher FECA benefits earlier.16 Specifically, plaintiff alleges that defendants at the VA incorrectly told FECA

and OPM investigators that he was not “retired-disabled” but had “resigned” or “resigned in lieu of termination.”17 According to Saunders, this prevented him from receiving the higher-value FECA benefits between 2005 and

11 R. Doc. 1 at 12, ¶ II. 12 Id.; see also R. Doc. 55-6 at 1. 13 R. Doc. 55-6 at 1. 14 R. Doc. 1 at 12, ¶ II. 15 R. Doc. 55-6 at 1. 16 R. Doc. 1 at 12, ¶ II. 17 Id. at 13, ¶ III. 2017.18 He alleges that these actions were discriminatory, based on his race, sex, and age, and were in retaliation for the EEO complaints he brought

before his 2005 retirement.19 Based on these allegations, plaintiff brought a new EEO complaint to the VA’s Office of Resolution Management (“ORM”) on January 23, 2018.20 The ORM dismissed the complaint21 and, on appeal, the EEOC affirmed.22

This suit followed.23 In this Court, Saunders sued the VA and three groups of individual defendants: (1) high-level administrators of the VA, Robert Wilkie, the Secretary, and Jeffrey Reeder, chief counsel at the ORM;

(2) employees at the VA’s New Orleans office, Cassandra Holiday, Jeanette Butler, Debbie Richard, Linda Cosey, Anthony Smith, and William Insley (collectively the “local VA defendants”); and (3) employees of the EEOC, Janet Dhillon and Carlton Hadden.24 He brings tort claims, a claim that the

VA breached the 2005 settlement agreement, and claims for Title VII discrimination and retaliation. The defendants ask the Court to dismiss these claims for lack of jurisdiction.

18 Id. at 13, ¶ III. 19 Id. at 13, 18 ¶¶ III, XI. 20 R. Doc. 55-6 at 7. 21 Id. at 10. 22 R. Doc. 55-7 at 4. 23 See R. Doc. 1. 24 The Court previously dismissed the EEOC defendants. R. Doc. 51. II. LEGAL STANDARD

Federal Rule of Civil Procedure 12(b)(1) governs challenges to the Court’s subject matter jurisdiction. “A case is properly dismissed for lack of subject matter jurisdiction when the court lacks the statutory or constitutional power to adjudicate the case.” Home Builders Ass’n of Miss., Inc. v. City of Madison, 143 F.3d 1006, 1010 (5th Cir. 1998) (quoting Nowak

v. Ironworkers Local 6 Pension Fund, 81 F.3d 1182, 1187 (2d Cir. 1996)). Because a 12(b)(1) motion is jurisdictional, the Court considers such a motion “before addressing any attack on the merits,” see In re FEMA Trailer

Formaldehyde Prod. Liab. Litig. (Miss. Plaintiffs), 668 F.3d 281, 286 (5th Cir. 2012), in order to “prevent[] a court without jurisdiction from prematurely dismissing a case with prejudice.” Id. at 286-87 (quoting Ramming v. United States, 281 F.3d 158, 161 (5th Cir. 2001)).

In assessing a challenge to its subject matter jurisdiction, the Court “may dismiss . . . on any one of three different bases: (1) the complaint alone; (2) the complaint supplemented by undisputed facts in the record; or (3) the complaint supplemented by undisputed facts plus the court’s resolution of

disputed facts.” Clark v. Tarrant Cty., 798 F.2d 736, 741 (5th Cir. 1986) (citing Williamson v. Tucker, 645 F.2d 404, 413 (5th Cir. 1981)). Furthermore, plaintiff has the burden of demonstrating that subject matter jurisdiction exists. See Celestine v. TransWood, Inc., 467 F. App’x 317, 318 (5th Cir. 2012) (per curiam) (citing Ramming, 281 F.3d at 161).

III. DISCUSSION

A. State Law Tort Claims Against Individual Defendants First, the United States moves, under 28 U.S.C. § 2679(d)(1), to substitute itself as the proper party-defendant for the tort claims alleged against the individual defendants, to dismiss the tort claims against the individual defendants as a result of the substitution, and to dismiss the

claims against the United States under Federal Rule of Civil Procedure 12(b)(1) for failure to exhaust administrative remedies.25 1. Substitution and Dismissal of the Individual Defendants The Government argues that, in light of its certification that the

individual defendants were acting within the scope of their federal employment, the United States must be substituted as a party, and the Court must dismiss the individual defendants.26 Under the Westfall Act, an FTCA action against the Government is the

exclusive remedy “for injury or loss of property, or personal injury or death

25 R. Doc. 47.

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