Sylvia Wigton v. Director United States Office of Personnel Manage

CourtCourt of Appeals for the Third Circuit
DecidedFebruary 2, 2023
Docket22-1942
StatusUnpublished

This text of Sylvia Wigton v. Director United States Office of Personnel Manage (Sylvia Wigton v. Director United States Office of Personnel Manage) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sylvia Wigton v. Director United States Office of Personnel Manage, (3d Cir. 2023).

Opinion

NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT ______________

No. 22-1942 ______________

AUDREY GORGONZOLA; GAIL G. HUDSON; KATHRYN DAANE; DOLORES VASSALLUZZO; MICHELLE RAE SMITH; THOMAS C. MARCIN, on behalf of themselves and other individuals similarly situated;

v.

DIRECTOR UNITED STATES OFFICE OF PERSONNEL MANAGEMENT, Appellant

Appeal from the United States District Court for the Western District of Pennsylvania (D.C. No. 2-10-cv-01768) District Judge: Hon. Mark R. Hornak ______________

Argued January 23, 2023 ______________

Before: SHWARTZ, BIBAS, and FUENTES, Circuit Judges.

(Filed: February 2, 2023) ______________

OPINION * ______________

Stephanie R. Marcus [ARGUED]

* This disposition is not an opinion of the full Court and, pursuant to I.O.P. 5.7, does not constitute binding precedent. Charles W. Scarborough United States Department of Justice Civil Division 950 Pennsylvania Avenue, N.W. Washington, DC 20530

Counsel for Appellant

Jonathan K. Cohn Maureen Davidson-Welling [ARGUED] John E. Stember Stember Cohn & Davidson-Welling 425 First Avenue, 7th Floor The Hartley Rose Building Pittsburgh, PA 15219

Timothy P. O’Brien O’Brien Coleman & Wright 116 Boulevard of the Allies Pittsburgh, PA 15222

Counsel for Appellees

SHWARTZ, Circuit Judge.

The District Court certified a class of retired part-time nurses who worked for the

Veterans Administration (“VA”) and are eligible for enhanced retirement benefits. The

Court issued a notice to the class using language that the class representatives and the

United States Office of Personnel Management (“OPM”) jointly proposed that notified

the class of the benefits. The language also set forth various actions OPM represented

that it would take for each class member, including reviewing the files, recalculating the

benefits, and tendering payments if warranted. When the class representatives learned

that OPM disavowed these representations, they filed a motion under the All Writs Act 2 seeking an order directing OPM to fulfill its representations. The Court granted the

motion and directed OPM to take no actions impeding the fulfillment of the promises it

made in the notices. Because the District Court has jurisdiction over the case and the

authority to issue the order, we will affirm in part and dismiss in part.

I

In 2002, Congress passed the Department of Veterans Affairs Health Care

Programs Enhancement Act (the “Enhancement Act”), which changed the way OPM

measures service time—a key factor in calculating retirement annuities for VA nurses.

Gorgonzola v. Dir. U.S. OPM, 782 F. App’x 207, 209 (3d Cir. 2019). After unrelated

litigation, OPM agreed to apply the Enhancement Act retroactively to nurses who retired

before 2002 and awarded increased benefits to nurses who submitted claims for them. Id.

OPM, however, took no action concerning eligible nurses who did not submit claims. Id.

Thereafter,

five retired VA nurses filed a class action lawsuit in [federal district court] against the Director of OPM on behalf of all VA nurses who had worked part time before April 7, 1986, but retired before Congress passed the Enhancement Act. They alleged that OPM, by only recalculating the annuities of those nurses who submitted . . . claim[s], violated the Equal Protection and Due Process Clauses. The nurses requested that the District Court, among other things, [issue a permanent injunction, directing OPM to identify each member of the Class, recalculate her pension in accordance with the Enhancement Act, pay any benefits past due from the date of retirement, and adjust her monthly benefit going forward]. . . .

[OPM initially stated that it could not identify and notify all nurses eligible for a recalculation because its computerized annuity roll did not contain employee-service history.] Then, as the litigation advanced, OPM claimed that it realized that there was another database that could help it identify 3 nurses entitled to a recalculation. . . .

The plaintiffs then filed [the First Amended Complaint (“FAC”)], and OPM moved to dismiss for lack of jurisdiction. OPM argued mainly that the Civil Service Reform Act (“CSRA”) created an exclusive remedial scheme for federal benefits claims: initial adjudication by OPM, with an appeal available to the [Merit Systems Protection Board (“MSPB”)], and subsequent judicial review available only in the Court of Appeals for the Federal Circuit.

The District Court denied OPM's motion [in part], . . . conclud[ing] that it did “not have jurisdiction to order OPM to recalculate any individual’s payment,” as “that relief can only be sought through the CSRA.” Wigton v. Berry, 949 F. Supp. 2d 616, 636-37 (W.D. Pa. 2013). But it explained that it did have jurisdiction “to entertain a challenge to an undisclosed, systematic determination of OPM to fail to notify individuals of” their eligibility for certain benefits, an eligibility that OPM “unequivocally concedes” is statutorily required. Id. at 637. [Thus, the Court concluded that it had jurisdiction to grant relief in the form of notice to eligible recipients about the enhanced benefits.]

The District Court eventually certified the class, and, in April 2017, granted summary judgment for the plaintiffs on their Equal Protection claim . . . [because] OPM, with no rational basis, had treated retired nurses differently by providing some with notice of their rights [but not others. The Court also allowed discovery on the Due Process claim to proceed]. . . . In light of those rulings, the District Court ordered [counsel for all parties to file a joint status report detailing the procedure for identifying and giving class and remedial notice to class members, and to submit an agreed-upon form of such notice. The District Court directed OPM to “withhold a portion of the gross amount of any retrospective payment(s), with the amount of such holdback to be set by further Order of Court, and . . . hold such monies in trust, pending disposition of them as may be later ordered by th[e] Court, for the payment of counsel fees and recoverable litigation costs.” Gorgonzola v. McGettigan, No. 2:10-cv-01768, 2017 WL 1449789, at *14 (W.D. Pa. Apr. 21, 2017)]. . . . [T]he District Court [thereafter] issued another order directing OPM to “hold back” 30% of any retrospective payments to annuitants for a possible future attorneys’ fee award [(the “Holdback Order”)].

Gorgonzola, 782 F. App’x at 209-11 (footnotes and emphasis omitted).

The parties then submitted multiple joint status reports over a period of two years 4 that: (1) included lists of class members and (2) proposed contents of notices to them. 1

Several of the joint status reports represented to the District Court that OPM would “issue

decisions . . . to notify [recipients] of the results of OPM’s file review and, if they are

eligible, recalculation.” JA 1012 n.3, 1081-82 n.4, 1126 n.4. The parties’ proposed class

notices included similar representations. Each proposed notice contained language that

represented that OPM would: (1) review the recipient’s file to determine if the recipient

was eligible for a recalculation, (2) recalculate her benefits if warranted, (3) send the

recipient the agency’s decision concerning the benefits, and (4) issue any owed benefits

to the recipient, subject to the Holdback Order. 2 JA 1018, 1156 (List 1); 1088-89 (List

2); 1024, 1171 (List 3); 1126, 1132-3 (List 4). The District Court neither required nor

requested these representations be included in the notices.

The District Court reviewed the proposed language and issued orders that

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