Viernes v. United States

United States Court of Federal Claims·Decided July 31, 2026·No. 25-117·Published

Opinion

In the United States Court of Federal Claims

ABRAHAM N. VIERNES, II,

Plaintiff, No. 25-cv-117 v. Filed: July 31, 2026 THE UNITED STATES,

Defendant.

Brian D. Schenk, Midwest Military & Veterans Law, PLLC, Minneapolis, MN, argued for Plaintiff.

Delisa M. Sanchez of the United States Department of Justice, Civil Division, Washington, D.C. argued for Defendant. With her on the briefs were Brett A. Shumate, Patricia M. McCarthy, and Deborah A. Bynum of the United States Department of Justice, Civil Division, Washington, D.C., and Lieutenant Jesse Williams of the United States Navy Office of the Judge Advocate General, General Litigation Division.

MEMORANDUM AND ORDER

This military pay case revolves around two decisions of authorities within the Department

of the Navy (Navy) that occurred several years apart—one relating to a naval officer’s eligibility

for retirement, the other to his retirement pay grade. Plaintiff Abraham N. Viernes, II, who spent

most of his career as an enlisted servicemember, and finished his service as a commissioned

officer, argues that he should have been allowed to retire with the pay grade of a lieutenant junior

grade (lieutenant or LTJG), rather than the lower officer grade of ensign. In 2006, after being

discharged from service due to substandard performance of duty prior to becoming eligible for

retirement, Plaintiff applied to the Board for Correction of Naval Records (BCNR or Board) for

relief. The Board determined that his separation was lawful, that he was not entitled to separation

pay, and that restoration of Plaintiff to active duty would be inappropriate given his substandard professional performance during his brief time as a commissioned officer. However, the Board

granted Plaintiff some relief from the consequences of his separation, in the form of a records

correction making him eligible for retirement benefits in the Navy. The Board amended Plaintiff’s

relief in 2009 so that he could transfer to the Navy’s Fleet Reserve as an enlisted servicemember

and, a decade later, become eligible for retirement at his highest satisfactorily-served rank. In its

2009 amendment, the BCNR indicated that Plaintiff was expected to retire at the level of lieutenant

junior grade, with a pay grade of O-2E. In 2019, Plaintiff applied to the Navy “to be advanced on

the retired list to the highest grade in which he served on active duty satisfactorily” pursuant to 10

U.S.C. § 8334, and received an official retirement designation of ensign (O-1E), a lower officer

rank than lieutenant (O-2E). Plaintiff once more applied to the Board for correction, but the Board

found no error or injustice and accordingly declined to alter Plaintiff’s military records.

Plaintiff argues that the Board unreasonably affirmed his retirement grade of ensign (O-

1E) when he previously served at the lieutenant level at the pay grade of O-2E. Defendant responds

that Plaintiff’s arguments merely seek to repackage a non-justiciable challenge to a discretionary

function of the Navy as a procedural claim. In the alternative, Defendant argues that, based on the

record, the Board did not act unreasonably, and its conclusion was based on substantial evidence.

The Court finds that this case is justiciable and accordingly DENIES Defendant’s Motion

to Dismiss. However, the Court DENIES Plaintiff’s Motion for Judgment on the Administrative

Record and GRANTS Defendant’s Motion for Judgment on the Administrative Record. After

thoroughly reviewing the Administrative Record, the Court holds that the Board’s decision was

not arbitrary and capricious, nor was it lacking in substantial evidentiary support. Instead, the

record reflects that the Board was well-supported in finding that the Navy’s determination of

Plaintiff’s retirement grade did not merit correction.

2 BACKGROUND

I. Statutory Framework

A variety of Federal statutes regulate the payment of current and retired servicemembers,

depending on their status, rank, and military service. In the Navy, enlisted members of the Regular

Navy or the Navy Reserve who have “completed 20 or more years of active service in the armed

forces,” may then be transferred to the Fleet Reserve. 10 U.S.C. § 8330(b). 1 Once a

servicemember reaches 30 years of service, including time in the Fleet Reserve, the servicemember

is transferred to the retired list. Id. § 8331(a). At that point, the servicemember may be placed on

the retired list at “the highest grade in which he served on active duty satisfactorily, as determined

by the Secretary of the Navy [(Secretary)].” Id. § 8334(a). Naval officers who serve at least 20

years in active duty, “of which at least 10 years was service as a commissioned officer,” id.

§ 8323(a)(1), may be directly retired “in the highest permanent grade in which such officer is

determined to have served on active duty satisfactorily,” id. § 1370(a)(1). Congress has granted

“the Secretary of the military department concerned”—here, the Secretary of the Navy—the

authority to determine the highest permanent grade of satisfactory service for officers who served

at or below the rank of rear admiral. Id. § 1370(a)(2)(A).

When transferring officers to the Fleet Reserve, the Navy has established further

regulations, including those encoded in Office of the Chief of Naval Operations Instruction

(OPNAVINST) 1811.3A, Voluntary Retirement and Transfer to the Fleet Reserve of Members of

the Navy Service on Active Duty (Feb. 28, 2012). The regulation states that, when considering

1 The Fleet Reserve is unique to the Navy and Marine Corps: enlisted members of the Army, Air Force, and Space Force may directly retire after 20 years of service. See 10 U.S.C. §§ 7314 (Army), 9314 (Air Force and Space Force). Servicemembers in the Fleet Reserve receive retainer pay, which is equivalent to retired pay. Id. § 8330(c)(1).

3 whether a member “served satisfactorily in the current grade held, or in a higher grade,” the

following factors “are considered”:

(1) Time served in current or higher grade[;] (2) If a member voluntarily requested retirement or transfer to the Fleet Reserve in the next lower grade and has not fulfilled the required time-in-grade requirements as stated in paragraph 7[;] (3) Any conviction by courts-martial, report of misconduct, moral, or professional dereliction, or conduct not in the interest of national security[;] (4) The nature and severity of any misconduct.

OPNAVINST 1811.3A ¶ 7(i). In addition to making determinations of satisfactory service for

retirement grades, the Secretary of the Navy has authority to “correct any military record of the

[Navy] when the Secretary considers it necessary to correct an error or remove an injustice.” 10

U.S.C. § 1552(a)(1). This same statute establishes civilian correction boards and dictates that

“such corrections shall be made by the Secretary acting through boards of civilians of the executive

part of that military department.” Id.; see Strand v. United States, 951 F.3d 1347, 1351 (Fed. Cir.

2020) (citing 10 U.S.C § 1552(a)(1)). The BCNR is one such military-records correction board.

When a servicemember applies to the BCNR, the Board first determines whether to

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