Schucker v. Federal Deposit Insurance

401 F.3d 1347, 2005 U.S. App. LEXIS 4311, 2005 WL 605781
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 16, 2005
Docket2004-3227
StatusPublished
Cited by13 cases

This text of 401 F.3d 1347 (Schucker v. Federal Deposit Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schucker v. Federal Deposit Insurance, 401 F.3d 1347, 2005 U.S. App. LEXIS 4311, 2005 WL 605781 (Fed. Cir. 2005).

Opinion

LINN, Circuit Judge.

Nancy Schucker appeals the Merit Systems Protection Board’s (“Board”) final order denying Schueker’s appeal of the Federal Deposit Insurance Corporation’s (“Agency”) decision denying Schucker a right to retreat to the position of Counsel in the Special Issues Unit (“Special Issues Counsel”) and separating Schucker by reduction in force (“RIF”). Schucker v. Fed. Deposit Ins. Corp., No. DC-0351-02-0587-I-1, 2004 WL 322722 (M.S.P.B. Feb.17, 2004) (“Final Decision”); Schucker v. Fed. Deposit Ins. Corp., No. DC-0351-02-0587-I-1 (M.S.P.B. Nov.27, 2002) (“Initial Decision ”). Because the Board acted arbitrarily by refusing to consider Schucker’s rebuttal evidence under circumstances in which longstanding Board policy requires its consideration and by failing to explain this inconsistent treatment, we vacate the Board’s decision and remand for further proceedings consistent with this opinion.

I. BACKGROUND

In 1988, Schucker began her career with the Agency. Between September 1991 and April 1993, Schucker served as Counsel in the Supervision and Legislation Branch, Resolutions Section, CG-0905-15 (“Resolutions Counsel”). Initial Decision at 3. In 1994, the Agency disbanded the Resolutions Section. The Agency reassigned Schucker to the position of Counsel in the Liquidations Branch, and then to *1349 Counsel in the Supervision and Legislation Branch. In 2002, the Agency reorganized the legal division and reduced its staff. Id. at 2.

Reduction-in-force regulations provide that if an employee is to lose her position via reduction in force, then that employee has a right to retreat to a position held by another employee with lower retention standing in the same tenure group and subgroup if, inter alia, the other employee holds a position that is the same as or “essentially identical” to a position held by the employee seeking to retreat. 5 C.F.R. § 351.701(c)(1) (2002). On March 4, 2002, the Agency informed Schueker that she had no retreat rights. Initial Decision at 2. On May 17, 2002, Schueker was separated by reduction in force. Id.

Upon separation by reduction in force, an employee may appeal that decision to the Board. 5 C.F.R. § 351.901. In such an appeal, the Agency has the burden to prove by a preponderance of the evidence that it followed the reduction-in-force regulations found at 5 C.F.R. part 351. Initial Decision at 2 (citing Losure v. Interstate Commerce Comm’n, 2 MSPB 361, 2 M.S.P.R. 195, 201-02 (1980)). On June 17, 2002, Schueker appealed to the Board asserting that under 5 C.F.R. § 351.701(c) she had a right to retreat to the position of Special Issues Counsel because that position was “essentially identical” to her prior position as Resolutions Counsel.

In its July 19, 2002 response, the Agency explained that upon reviewing Schucker’s “official position at the time of the RIF [and] her background and entire work history,” it did not believe that Resolutions Counsel and Special Issues Counsel were “essentially identical” positions. (Agency Resp. at 16-17.) The Agency asserted that the “Special Issues Unit is tasked with performing legal work on issues relating to specialized areas ... [including] perform[ing] original research and writing on these specialized issues, supervis[ing] outside counsel and reporting] to a Senior Counsel,” (id. at 16), and that the work performed as Resolutions Counsel was “functionally distinct,” (id. at 17).

On September 17, 2002, the Agency filed a Prehearing Statement. The Agency again asserted that Resolutions Counsel and Special Issues Counsel were not “essentially identical” positions. (Agency Prehearing Statement at 11-13.) The Agency also suggested a list of witnesses and a general summary of expected testimony. Included on the list were Frank Aaron and Henry Griffin. Aaron was to testify about “the RIF process, and the determination of [Schucker’s] assignment rights” and Griffin was to testify about “the duties of a Counsel in the Special Issues Unit, the duties of a Counsel in the former Resolutions Section, and how these positions differ.” (Id. at 16.)

On October 28, 2002, Schueker waived her right to a hearing and agreed to present the case on written submissions. In an order, the Administrative Judge explained:

On October 28, 2002, the appellant withdrew her request for a hearing. Based on the withdrawal, the hearing has been canceled. The record will remain open for receipt of evidence and argument from both parties until November 13, 2002. After that date, the record will be held open until November 20, 2002, for receipt of final argument from both parties. After November 20, 2002, the record will be closed and no further submissions accepted.

Schucker v. Fed. Deposit Ins. Corp., No. DC-0351-02-0587-I-1 (M.S.P.B. Oct.30, 2002) (“Submission Order ”).

On November 13, 2002, the Agency submitted the Agency Brief Supporting Affir-mance and the declarations of Aaron and Griffin, which provided, for the first time, *1350 a detailed explanation of why the positions were not “essentially identical.” (Agency’s Br. Supp. Affirm; Aaron Aff.; Griffin Aff.) Also on November 13, 2002, Schucker filed Appellant’s Submission of Evidence and Argument in Lieu of Hearing, which included the affidavit of Gail Jensen. Schucker’s submissions provided comparisons of the position descriptions.

On November 19, 2002, the Agency submitted its Final Argument In Support Of Affirmance and supplemental declarations of both Griffin and Aaron, which addressed Jensen’s affidavit and Schucker’s argument. The Agency included a written request that the Administrative Judge accept the supplemental declarations, claiming an inability “to anticipate or address, in its prior submissions” the Jensen evidence and related argument because neither the witness nor the argument was approved in the pre-hearing conference. (Letter from Agency to Judge Bogle of 11/19/02, at 1.) The Agency concluded: “[t]he Agency believes that the Supplemental Declarations are needed so that the record will contain accurate evidence on all issues, and are properly submitted as rebuttal evidence.” (Id.)

On November 20, 2002, via facsimile, Schucker filed Appellant’s Final Argument, which addressed the Agency’s Brief in Support of Affirmance and, in particular, the Agency’s position-description comparison. Appellant’s Final Argument began by explaining how Aaron and Griffin interpreted the descriptions erroneously and ended by citing Barbara Taft’s opinion of what the positions entailed. Schucker also submitted a Supplemental Affidavit and a Declaration sworn by Taft, in which Taft critiqued the views of Griffin and Aaron and opined on the comparability of the positions.

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Bluebook (online)
401 F.3d 1347, 2005 U.S. App. LEXIS 4311, 2005 WL 605781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schucker-v-federal-deposit-insurance-cafc-2005.