Taylor v. United States

41 Fed. Cl. 440, 1998 U.S. Claims LEXIS 182, 1998 WL 430330
CourtUnited States Court of Federal Claims
DecidedJuly 30, 1998
DocketNo. 97-946 C
StatusPublished
Cited by19 cases

This text of 41 Fed. Cl. 440 (Taylor 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
Taylor v. United States, 41 Fed. Cl. 440, 1998 U.S. Claims LEXIS 182, 1998 WL 430330 (uscfc 1998).

Opinion

[443]*443ORDER

MOODY R. TIDWELL, III, Senior Judge.

This action is brought by former employees of the Army and Air Force Exchange Service (AAFES) under the Separation Pay Act, 5 U.S.C. § 5597 (1994). Plaintiffs assert that defendant promised separation pay incentives to AAFES employees who applied for involuntary early retirement and retired after the Department of Defense authorized separation pay incentives for AAFES employees. Plaintiffs additionally assert that defendant failed to make separation payments to non-mobile persons and mobile persons who had not made a Permanent Change of Station (PCS) move under their current obligation of mobility. Plaintiffs’ current motion, which defendant opposes, is to certify a class of all similarly situated persons pursuant to Rule 23 of the United States Court of Federal Claims (RCFC 23). As discussed below, the court finds that plaintiffs satisfy the criteria for class certification, and therefore plaintiffs’ motion to certify a class action is allowed.1

BACKGROUND

In October, 1992, Congress enacted the Separation Pay Act “to avoid or minimize the need for involuntary separation due to a reduction in force, base closure, reorganization, transfer of function, or other similar action affecting [one] or more defense agencies....” 5 U.S.C. § 5597(b). The Act authorized the Secretary of Defense to “establish a program under which separation pay may be offered to encourage eligible employees to separate from service voluntarily (whether by retirement or resignation).” Id.

On January 13, 1993, the Secretary of Defense approved separation pay incentives for AAFES employees. These pay incentives were extended on October 12, 1994. The incentives provided for separation pay to be paid in a lump sum equal to the lesser of either (a) the amount the employee would be entitled to receive under 5 U.S.C. § 5595(c) (1994), if the employee were entitled to pay under this section;2 or (b) $25,000. See 5 U.S.C. § 5597(d)(2).

All five named plaintiffs were hired by the AAFES between 1966 and 1968 and remained continually employed until their retirement between January, 1993 and March, 1996. Each volunteered for separation after AAFES’s request for volunteers under the Separation Pay Act. Plaintiffs allege that defendant’s failure to award them separation pay violates the Act. Plaintiffs also allege that defendant failed to make these payments because plaintiffs were either non-mobile or mobile, but had not made a PCS move. Plaintiffs Taylor, Cole, and McCarthy also filed discrimination charges against the AAFES.

On January 27, 1998, plaintiffs moved to certify a class consisting of:

all future, present, and former Army and Air Force Exchange Service (AAFES) non-mobile employees and all future, present, and former AAFES mobile employees who did not make a Permanent Change of Station (PCS) move under their last obligation of mobility and who may seek or have sought voluntary separation by resignation or retirement in order to avoid or minimize the need for involuntary separation due to reduction in force, base closure, reorganization, transfer of function or other similar action since January 13, 1993, who have not received separation pay and who are, were, or will be employees as defined by 5 U.S.C. § 5597(a)(3).

Pls.’ Br. in Supp. of their Mot. for Class Certification at 7-8. For the reasons discussed below, the court grants plaintiffs’ motion for class certification.

DISCUSSION

1. Certification of a Class Action

Federal district courts and the Court of Federal Claims utilize different rules when considering whether to certify class actions. This court’s rules provide:

[444]*444A motion to certify a class action shall be filed with the complaint and comply with Rule 3(c), with service to be made as provided in Rule 4. The court shall determine in each case whether a class action may be maintained and under what terms and conditions.

RCFC 23. Unlike Rule 23 of the Federal Rules of Civil Procedure, RCFC 23 is discretionary, granting the court freedom to determine under what circumstances to certify a class and the terms and conditions of the class once it is certified.

Despite this broad grant of discretion, prior cases in this court have repeatedly observed that class actions are “reserved for extraordinary cases and [are] generally disfavored.” O’Hanlon v. United States, 7 Cl.Ct. 204, 206 (1985); see Buchan v. United States, 27 Fed.Cl. 222, 223 (1992); Black v. United States, 24 Cl.Ct. 471, 477 (1991); Armitage v. United States, 18 Cl.Ct. 310, 312 (1989), aff'd, 991 F.2d 746 (Fed.Cir.1993); Cutright v. United States, 15 Cl.Ct. 576, 578 (1988); Busby School of the Nothern Cheyenne Tribe v. United States, 8 Cl.Ct. 596, 602 (1985); Saunooke v. United States, 8 Cl.Ct. 327, 329 (1985). The language disfavoring class actions originated in O’Hanlon, and appears to have been premised merely on the fact that class actions were not frequently certified in this court. See O’Hanlon, 7 Cl.Ct. at 206. The lack of class actions prior to O’Hanlon may be attributed more to the fact that previous cases were not suited for class action resolution than to a generalized belief that they should not be certified in this court. After O’Hanlon, however, courts appeared to treat the disfavored status language as a general rule, rather than making an individual determination regarding the propriety of each class action. Considering the discretionary nature of RCFC 23 and the fact that it calls for a case-by-case determination, there appears to be no basis for stating that class actions are “generally disfavored” and should be used only in “rare and extraordinary cases.”

A frequently cited rationale for the disfavored status of class actions is related to the unique jurisdiction of this court. In eases where a money judgement is sought against the United States, the court requires individual proof of the amount of money damages. See Buchan, 27 Fed.Cl. at 225. This requirement is based on the belief that only individual plaintiffs can meet the burden of proof for damages when there is a waiver of sovereign immunity, which is always present in this court. See Abel v. United States, 18 Cl.Ct. 477, 478 n. 1 (1989); Saunooke, 8 Cl.Ct. at 329. While a valid concern, this rationale principally implicates the determination of money damages. In this case, the court can certify the class to determine whether the government is liable to class members for separation pay. Later, if necessary, the court can use a formula to determine damages for individual class members.

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Bluebook (online)
41 Fed. Cl. 440, 1998 U.S. Claims LEXIS 182, 1998 WL 430330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-united-states-uscfc-1998.