United States of America v. Christopher Paddack

825 F.2d 504, 263 U.S. App. D.C. 367, 1987 U.S. App. LEXIS 10525
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 7, 1987
Docket86-5371
StatusPublished
Cited by40 cases

This text of 825 F.2d 504 (United States of America v. Christopher Paddack) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States of America v. Christopher Paddack, 825 F.2d 504, 263 U.S. App. D.C. 367, 1987 U.S. App. LEXIS 10525 (D.C. Cir. 1987).

Opinions

Opinion for the Court filed by Circuit Judge SILBERMAN.

Dissenting Opinion filed by Circuit Judge BORK.

SILBERMAN, Circuit Judge:

This is an appeal from a district court order reversing a decision of the Foreign Service Grievance Board (the “Board”). The issue is whether the Board acted arbitrarily and capriciously or contrary to law in holding that applicable regulations governing travel by foreign service officers permitted appellant, Christopher Paddack, to travel with his family from New Orleans, Louisiana to St. Louis, Missouri on the “Mississippi Queen,” a luxury riverboat plying the waters of the Mississippi River. The district court, interpreting the regulations de novo, held that Paddack violated those provisions requiring him to make a “conscientious effort to minimize costs” and to “exercise good judgment.” Because we believe that the district court exceeded its scope of review and that the Board’s opinion is not arbitrary, capricious, or contrary to law, we reverse.

I.

Christopher Paddack, a foreign service officer employed by the United States Information Agency (“USIA” or “Agency”), was, until July, 1982, stationed at the American Embassy in Montevideo, Uruguay. In February of that year, he began preparing for his next assignment in Washington, D.C. Paddock planned to leave Montevideo in July and take approximately fifteen days of authorized leave in Burlington, Iowa before reporting to Washington in August. Before scheduling his trip, Paddack consulted extensively with the Embassy’s Administrative Officer, who routinely handles travel matters for Embassy personnel, and with the State Department’s Office of Operations, Supply and Transportation Branch (“travel office”), which issues and interprets travel regulations for the foreign service. Pad-dack proposed the following itinerary for his trip to Burlington: air from Montevideo to Santiago, Chile; ship to Lima, Peru; air to New Orleans; riverboat to St. Louis; and rental car to Burlington. The Embassy Administrative Officer assured Paddack that the high cost of his proposed riverboat travel would not bar the trip and, in response to a request for State Department authorization, the Department’s travel office declared that the identified itinerary “could be considered direct” travel — the critical factor determining whether or not the route was authorized under the regulations. The Embassy’s travel office made arrangements for Paddack’s travel and issued him tickets and other necessary documents.

Paddack and his family left Montevideo on July 2, 1982 and, after minor deviations from the original itinerary,1 boarded the Mississippi Queen in New Orleans on July 12. The Paddacks enjoyed a leisurely cruise (costing $12,760) up the Mississippi River. When they reached St. Louis, Pad-dack asked if the boat stopped further upriver at Burlington, his ultimate destination. Informed that he could debark by ladder at that location, Paddack booked passage onward to Burlington, directing that the extra cost be billed to the Agency. After his authorized leave in Burlington, Paddack began his duties in Washington, D.C.

Shortly after Paddack arrived in Washington, he submitted his travel voucher documenting his complete itinerary. (USIA had, apparently, routinely paid all of Paddack’s pre-approved travel expenses, including the bill for the New Orleans to St. [507]*507Louis leg of his riverboat trip). Unbeknownst to Paddack, however, an employee of USIA’s Finance Office subsequently revised Paddack’s voucher to add a claim on his behalf of $4,013.82 for per diem compensation and other expenses. Two months later, in October of 1982, this matter came to the attention of James Kohler, Chief of the Financial Operations Division of USIA’s Comptroller’s Office, when the Delta Steamboat Company wrote USIA to request payment of $1,680 for the St. Louis to Burlington leg of the trip. “Shocked,” as he later testified, at the amount involved, Kohler examined Paddack’s entire trip and discovered not only the $4,000 per diem request, but also the $12,760 cost of the New Orleans to St. Louis leg. Although Kohler tentatively decided not to pay the per diem request and supplemental riverboat bill, he took no formal action until nine months later when he wrote the Comptroller General requesting an “advance decision” on the propriety of paying for “excessive transportation costs and per diem incurred for travel via ship by Mr. Christopher Paddack between New Orleans, Louisiana and Burlington, Iowa ($17,371.25).”2 He did this, Kohler testified, to obtain protection against personal liability should the decision to pay these amounts later be deemed contrary to law. See 31 U.S.C. §§ 3527, 3528 (1982). Although the bill for the New Orleans to St. Louis part of the trip had already been paid, (so a truly “advance” decision concerning this expenditure would be impossible to obtain) he nevertheless asked the Comptroller General to decide not only “whether the Agency should pay for 16% days of per diem [and] the cost of transportation between St. Louis and Burlington,” but also whether “Mr. Paddack should be required to reimburse the Agency for transportation cost between New Orleans and St. Louis.”3

Kohler sent over his advance decision request shortly after GAO had independently discovered Paddack’s riverboat travel during a routine audit of USIA’s finances. In a draft audit report dated June 24, 1983, the GAO questioned, inter alia, the legitimacy of this type of travel. After directing his own investigation of Pad-dack’s trip, USIA’s Director, Charles Z. Wick, responded to the report on July 25, 1983, writing that GAO had “identified what appears to be a weakness in the present system which permits foreign service personnel transferring between posts to travel one way by surface transportation regardless of cost.” After briefly summarizing the procedure by which Paddack obtained permission for the trip, Wick concluded: “[ajfter investigating this case, the Agency determined that the traveler acted within the provisions of current regulations (6 FAM 131.1-2c).” (emphasis added). He then expressed his concern about those travel regulations:

[W]e fully agree with the [GAO’s] judgment that the cost of the trip ($12,760) for four first-class riverboat fares from New Orleans to ride far up the Mississippi is not an appropriate use of Agency resources. Since the regulations in question govern the travel of all foreign affairs personnel, we are asking the State Department ... to take up this matter at an early date with the objective of prohibiting such exorbitant surface travel in the future.4

[508]*508Apparently unpersuaded by Wick’s view of the regulations, the Comptroller General, on February 14, 1984, issued his formal response to Kohler’s “advance decision” request, declaring that Paddack’s travel failed to comply with applicable travel regulations. The Comptroller General’s opinion concluded: “[a]ction should be initiated by USIA to recoup from Mr. Paddack the transportation cost of $12,760 paid ... for the riverboat travel, less any unpaid amount properly reimbursable.” See Decision of the Comptroller General No. B-212445 (Feb. 14, 1984). Six weeks later, USIA’s Kohler wrote Paddack informing him that the Comptroller General’s decision had “directed

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Bluebook (online)
825 F.2d 504, 263 U.S. App. D.C. 367, 1987 U.S. App. LEXIS 10525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-v-christopher-paddack-cadc-1987.