Wagstaff v. United States

111 Fed. Cl. 754, 2013 U.S. Claims LEXIS 1008, 2013 WL 3989224
CourtUnited States Court of Federal Claims
DecidedJuly 31, 2013
DocketNo. 11-466C
StatusPublished
Cited by3 cases

This text of 111 Fed. Cl. 754 (Wagstaff 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
Wagstaff v. United States, 111 Fed. Cl. 754, 2013 U.S. Claims LEXIS 1008, 2013 WL 3989224 (uscfc 2013).

Opinion

[756]*756Pro Se\ Takings; Illegal exactions; Motion for Summary Judgment, RCFC 56(c); 31 U.S.C. § 3720A (2006) (authorizing tax refund offsets against taxpayers who owe debts to federal agencies); 31 U.S.C. § 3720D (2006) (authorizing wage garnishments against persons who owe debts to federal agencies); Fed. R. Evid. 902(4)(certified copies of public records); RCFC 34(a)(1) (authorizing inspection of original documents).

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

This ease is the sixth in a series of cases involving pro se Plaintiff Audrey S. Wagstaff (“Plaintiff’) and the Department of Education, all regarding Plaintiffs student loans. On August 30, 1999, the Department of Education sued Plaintiff in the United States District Court for the Western District of Texas, seeking repayment of the principal and interest due on Plaintiffs student loans. See Complaint, United States v. Wagstaff, No. 5:99-cv-00960 (W.D.Tex. Aug. 30, 1999), EOF No. 1 (“Wagstaff I ”). That case voluntarily was dismissed by the Department of Education on May 30, 2000, but the Department of Education subsequently initiated administrative proceedings that resulted in Plaintiffs wages being administratively garnished and her federal tax refunds offset to recover the loan balance and associated interest.

On December 29, 2005, Plaintiff sued the Department of Education in the United States District Court for the Western District of Texas, alleging that the Department of Education violated the Fair Debt Collection Practices Act (“FDCPA”), Pub. L. No. 95-109, 15 U.S.C. §§ 1692-1692p (2006). See Wagstaff v. Dep’t of Educ., No. 5:05-cv-01245 (W.D.Tex. Feb. 15, 2007) (“Wagstaff II ”). That action was dismissed for lack of jurisdiction, and the United States Court of Appeals for the Fifth Circuit subsequently affirmed the dismissal. See Wagstaff v. Dep’t of Educ., 509 F.3d 661 (5th Cir.2007) (“Wagstaff III”). On October 31, 2008, Plaintiff again sued the Department of Education, this time in Texas state court, but the lawsuit was removed to federal district court and again dismissed. See Wagstaff v. Dep’t of Educ., No. 5:08-cv-00923 (W.D.Tex. Apr. 22, 2009) (“Wagstaff TV”). That decision was also appealed and upheld by the United States Court of Appeals for the Fifth Circuit. See Wagstaff v. Dept. of Educ., 366 Fed.Appx. 564 (5th Cir.2010) (unpublished) (“Wagstaff V”). Plaintiff now seeks relief from this court.

1. FACTUAL BACKGROUND AND PRIOR PROCEDURAL HISTORY.1

A. Plaintiff Signed Six Student Loan Promissory Notes In 1991-1993 And Defaulted On The Notes, And The Department Of Education Attempted To Collect.

Between January 1991 and February 1993, Plaintiff signed promissory notes for four Stafford Loans and two Supplemental Loans for Students (“SLS”) to attend Our Lady of the Lake University in San Antonio, Texas. Compl. Exs. 1-6 (“the six promissory notes”).2 The total principal amount of the [757]*757promissory notes due is $17,000.00, and each note indicates that.it was approved and disbursed by Bank One, Texas, N.A. Compl. Exs. 1-6. Following Plaintiffs graduation in May 1993, she was employed through at least February, 2007, if not later, but to date has made no voluntary payments on any of these loans. See Wagstaffll at 8.

Plaintiffs “student loans were guaranteed by the Texas Guaranteed Student Loan Corporation (“TGSLC”) and then reinsured by the Department of Education under federal loan guaranty programs.” Wagstaff II at 8. “[I]n August 1995, after the TGSLC was unable to collect from [P]laintiff, it assigned its right and title to the loans to the Department of Education.” Wagstaff II at 8. Pursuant to a May 22, 1995 Notice from the Department of the Treasury (“Treasury”), Plaintiffs 1994 income tax refund was offset to recover funds the Department of Education paid as a result of Plaintiff s nonpayment of her student loans, plus associated interest. Compl. ¶ 46. Plaintiffs income tax refund also was offset for the 1998 tax year. Compl. ¶ 7.

On or around August 30, 1999, the Department of Education filed suit against Plaintiff in the United States District Court for the Western District of Texas for repayment of the principal and interest due on her student loans. Compl. ¶ 8; see also Wagstaff I, ECF No. 1. On or around October 6,1999, Plaintiff met with a “United States Assistant District Attorney” to dispute the Department of Education’s claim and the validity of at least one of the promissory notes. Compl. ¶ 9.3

On May 30, 2000, the Government voluntarily dismissed the August 30, 1999 Complaint, without prejudice. See Wagstaff I, ECF No. 3;4 see also Wagstaff II at 9 (describing the dismissal of the Government’s August 30, 1999 lawsuit). Following the dismissal, the Department of Education investigated Plaintiffs allegations, but after Plaintiff failed to provide evidence to support her claim, concluded that the promissory notes were valid. See Wagstaffll at 9 (describing the Government’s actions after its voluntary dismissal of Wagstaff I).

In 2004, the Department of Education resumed efforts to collect the outstanding balance of Plaintiffs loans. See Wagstaff II at 9. On August 26, 2004, the Department of Education sent Plaintiff a notice advising that any further income tax refunds would be offset, but that she could seek administrative review of this decision within sixty-five days. See Wagstaff II, ECF No. 44, Ex. 12 at 2. As of September 22, 2004, the Department of Education’s records indicated that Plaintiff owed $36,266.70, reflecting a principal balance of $18,040.35, interest of $10,973.01, and fees and costs of $7,253.34.5 Compl. Ex. 7.

[758]*758On or about November 11, 2004, Plaintiff filed a Request For Review of tax refund offsets with the Department of Education, See Wagstaff II at 9. Because Plaintiff’s November 11, 2004 Request For Review was deemed untimely, on May 3, 2005, the Department of Education decided Plaintiffs Request For Review and determined that tax refund offsets could proceed. See Wagstaff II at 9; see also Wagstaff II, ECF No. 44, Ex. 12 (Department of Education’s May 3, 2005 decision regarding tax refund offsets).

For tax years 2004-2008 and 2010, Treasury resumed tax refund offsets to Plaintiffs income tax returns. Compl. ¶ 159. Between November 2004 and July 2005, Plaintiff continued to correspond with the Department of Education, requesting a complete accounting of her debt, objecting to having not received a hearing, and raising concerns about the collection methods used by NCO Financial Systems, Inc., a debt collection agency. See Wagstaff II at 9-10.

At some point in 2005, the Department of Education initiated efforts to garnish Plaintiffs wages.

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Bluebook (online)
111 Fed. Cl. 754, 2013 U.S. Claims LEXIS 1008, 2013 WL 3989224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wagstaff-v-united-states-uscfc-2013.