Seh Ahn Lee v. United States

127 Fed. Cl. 734, 2016 U.S. Claims LEXIS 1179, 2016 WL 4447441
CourtUnited States Court of Federal Claims
DecidedAugust 24, 2016
Docket15-1555C
StatusPublished
Cited by5 cases

This text of 127 Fed. Cl. 734 (Seh Ahn Lee 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
Seh Ahn Lee v. United States, 127 Fed. Cl. 734, 2016 U.S. Claims LEXIS 1179, 2016 WL 4447441 (uscfc 2016).

Opinion

Claims for civilian pay and breach of contract; Back Pay Act, 5 U.S.C. § 6696; absence of appointment to the civil service; implied contract precluded by an express contract dealing with the same subject; dismissal pursuant to RCFC 12(b)(1) and (6)

OPINION AND ORDER

LETTOW, Judge.

Plaintiffs Seh Ahn Lee, Irina Ryan, Ahmad Nariman, and Mark Peach claim they are entitled to civilian pay and damages for breach of contract, alleging that the Broadcasting Board of Governors (“Broadcasting Board” or the “Board”), an independent agency of the United States (the “government”), denied plaintiffs full compensation and benefits for their work as contractors for the agency. Plaintiffs assert that although they were hired by the Broadcasting Board as purchase order vendors (or nonpersonal service contractors), they were in reality acting in the capacity of personal service contractors. Plaintiffs assert that they should be awarded monetary relief under the Back Pay Act, 6 U.S.C. § 6596, for certain wages, benefits, and tax payments to which they would have been entitled if their contracts had been properly classified as personal service contracts. Alternatively, plaintiffs claim they should receive monetary damages as a result of the government’s breach of an implied contract for compensation commensurate with their services in the capacity of personal service contractors. Plaintiffs have included class allegations in then* complaint and amended complaint, contending that “approximately 660 persons [at the Board] have been providing personal services by means other than by federal appointment at any given time, including at present.” Am. Compl. ¶ 102, EOF No. 7. In that connection, plaintiffs have filed a motion to certify a class of persons who are said to have worked in the *737 capacity of personal service contractors. Pis.’ Mot. to Certify Class, ECF No. 17.

Pending before the court is the government’s motion to dismiss plaintiffs’ complaint pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules of the United States Court of Federal Claims (“RCFC”). Regarding plaintiffs’ civilian pay claim, the government asserts that plaintiffs have failed to state a valid claim for relief because the Back Pay Act only applies to government “employees” as defined by 5 U.S.C. § 2105(a), and plaintiffs have not alleged they fall within this defined group. Def.’s Mot. to Dismiss (“Def.’s Mot.”) at 7-8, ECF No. 12. Regarding plaintiffs’ breach of contract claim, the government argues that this court lacks subject matter jurisdiction because, under the Contract Disputes Act (“CDA”) of 1978, recodified at 41 U.S.C'. §§ 7101-7109, plaintiffs must first submit a claim to the appropriate contracting officer, and they have not done so. Def.’s Mot. at 5-7.

The motions have been briefed and were addressed at a hearing on August 16, 2016. For the reasons discussed, the government’s motion to dismiss plaintiffs’ complaint is GRANTED, and plaintiffs’ motion to certify a class is DENIED as moot.

BACKGROUND

The Broadcasting Board was established in 1994 to streamline management of the government’s international broadcasting activities through organizations such as Voice of America, Radio Free Europe, and Radio Marti. See United States International Broadcasting Act of 1994, Pub. L. No. 103-236, §§ 301-15, 108 Stat. 382 (1994) (codified at 22 U.S.C. §§ 6201-16); see also Am. Compl. ¶ 21; 5 U.S.C. § 104(1). The Board initially operated as part of the United States Information i^gency, but it became an independent government agency in 1999 under the general oversight of the Secretary of State, who serves as one of the nine voting members of the Board. See Omnibus Consolidated and Emergency Supplemental Appropriations Act of 1999, Pub. L. No. 105-277, § 1323,112 Stat. 2681 (1998).

Plaintiffs are four individuals who provided services to various elements of Voice of America — an organization within the Broadcasting Board — either directly through individual purchase order vendor contracts or as independent subcontractors to staffing agencies under prime contracts with the Board. Am, Compl. ¶¶ 22-25. Mr. Lee is a naturalized U.S. citizen from South Korea who has worked as a contractor for nearly 13 years, including under a subcontract with Technologist, Inc. Am. Compl. ¶22. Ms. Ryan is a naturalized U.S. citizen from Russia who has worked as a contractor for approximately nine years, including through a subcontract with Computer Technology Services, Inc. Am. Compl. ¶ 23. Mr. Nariman is a naturalized U.S. citizen from Iran who formerly worked as a contractor for approximately six years from 2007 to 2013. Am. Compl. ¶24. Mr. Peach is a U.S. citizen who has worked as a contractor for approximately eight years. Am. Compl. ¶25. As noted earlier, plaintiffs allege that approximately' 660 potential class members served under similar contracts with the Board. Am. Compl. ¶ 9.

In 2013, the Department of State’s Office of Inspector General (“OIG”) conducted an audit of the Board’s Office of Contracts “to evaluate whether [the Board] had adequate acquisition policies and procedures and to assess the efficacy of those policies and procedures.” Pis.’ Opp’n to Def.’s Mot, to Dismiss (“Pis.’ Opp’n”) Ex. A, at 1 (Audit of the Broadcasting Board of Governors Administration and Oversight of Acquisition Functions (June 2014) (“OIG Report”)), ECF No. 15-2. As a result of its audit, OIG concluded that, among other things, the “[Board] awarded contracts that were personal in nature, resulting in [the Board] exceeding its statutory authority to award personal service!] contracts.” Id. In its analysis, OIG used the definition of a personal service contract in 48 C.F.R. (Federal Acquisition Regulations, or “FAR”) § 37.104(a), which states that such a contract “is characterized by the employer-employee relationship it creates between the [g]overnment and the contractor’s personnel.” Id. at 10. OIG looked to the following six factors outlined in FAR § 37.104(d) to assess whether certain Broadcasting Board contracts were personal service contracts:

(1) Performance on site.
*738 (2) Principal tools and equipment furnished by the [government.
(3) Services are applied directly to the integral effort of agencies or an organizational subpart in furtherance of assigned function or mission.
(4) Comparable services, meeting comparable needs, are performed in the same or similar agencies using civil service personnel.
(5) The need for the type of service provided can reasonably be expected to last beyond one year.

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Cite This Page — Counsel Stack

Bluebook (online)
127 Fed. Cl. 734, 2016 U.S. Claims LEXIS 1179, 2016 WL 4447441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seh-ahn-lee-v-united-states-uscfc-2016.