Wallace B. Shaw v. Harold Gwatney and John O. Marsh, Jr.

795 F.2d 1351, 1986 U.S. App. LEXIS 26575, 55 U.S.L.W. 2035
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 27, 1986
Docket85-1514
StatusPublished
Cited by33 cases

This text of 795 F.2d 1351 (Wallace B. Shaw v. Harold Gwatney and John O. Marsh, Jr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallace B. Shaw v. Harold Gwatney and John O. Marsh, Jr., 795 F.2d 1351, 1986 U.S. App. LEXIS 26575, 55 U.S.L.W. 2035 (8th Cir. 1986).

Opinion

WOLLMAN, Circuit Judge.

The primary issue in this case is whether a district court, presented with a claim for less than $10,000 accrued back pay against the United States, has jurisdiction pursuant to the Tucker Act, 28 U.S.C. §§ 1346(a)(2), 1491 (1982), to ultimately award back pay in an amount greater than that statutory maximum. The District Court for the Eastern District of Arkansas 1 made such an award in reinstating Wallace B. Shaw to his position as U.S. property and fiscal officer for Arkansas pending his proper removal by the U.S. Army in accordance with due process and the Army’s own procedural regulations, 604 F.Supp. 880. The Army argues that the back pay award of more than $10,000 was exclusively within *1353 the jurisdiction of the Claims Court. In addition the Army argues that the district court erred in granting even equitable relief because Shaw’s removal from his position was an exercise of military discretion not subject to judicial review and because due process and Army regulations were not implicated since Shaw was by law removable and was in fact removed at the will of the Arkansas Governor.

Before reaching any of the Army’s contentions, however, we must consider an overriding question regarding our appellate jurisdiction. See McGowne v. Challenge-Cook Bros., 672 F.2d 652, 658 (8th Cir.1982). Pursuant to the Federal Courts Improvement Act of 1982, see 28 U.S.C. § 1295(a)(2) (1982), the Court of Appeals for the Federal Circuit now has exclusive jurisdiction over most final decisions of district courts based “in whole or in part” on section 1346(a)(2). Thus, if we agree with Shaw that the district court had jurisdiction of his back pay claim under section 1346(a)(2), we must transfer this appeal to the Federal Circuit. E.g., Van Drasek v. Lehman, 762 F.2d 1065 (D.C.Cir.1985); Kidde, Inc. v. E.F. Bavis & Associates, 735 F.2d 1085 (8th Cir.1984) (per curiam) (patent case under section 1295(a)(1)); see 28 U.S.C. § 1631 (1982). If we agree with the Army that the district court acted beyond its power in awarding back pay, that court’s decision could not have been based “in whole or in part” on section 1346(a)(2), and we have jurisdiction to review questions properly before the district court regarding significant prospective equitable relief. Doe v. United States Department of Justice, 753 F.2d 1092, 1101-02 (D.C.Cir.1985).

Determination whether this appeal properly lies here or in the Federal Circuit thus requires that we go beyond the plaintiff’s or district court’s characterization of the source of district court jurisdiction and analyze the underlying bases for the district court’s assertion of or refusal to exercise its power. E.g., Van Drasek, supra; see also Wronke v. Marsh, 767 F.2d 354, 355 (7th Cir.1985) (per curiam) (appellate jurisdiction to be based on the “real rather than ostensible source of the district court’s jurisdiction”); cf. Maier v. Orr, 754 F.2d 973, 982 (Fed.Cir.1985) (Federal Circuit had the power to determine that district court jurisdiction actually rested on section 1346(a)(2), even though the complaint premised jurisdiction on mandamus (28 U.S.C. § 1361 (1982)) and on its face would have been appealable only to the regional circuit). Contra Oliveira v. United States, 734 F.2d 760, 762 n. 6 (11th Cir.1984) (per curiam). This practice seems in keeping with the emphasis in the legislative history of the Federal Courts Improvement Act that there be no “presumption” in favor of jurisdiction and that jurisdiction be affirmatively shown. 2 S.Rep. No. 275, 97th Cong., 2d Sess. 18, reprinted in 1982 U.S. Code Cong. & Ad. News 11, 28. We vacate the district court’s award of back pay as beyond its power but affirm the order of reinstatement.

I.

The underlying jurisdictional question in this case arises from Shaw’s diligence in attempting to prevent his removal in June 1982 as property and fiscal officer. Having received advance notice of the impending employment action, he filed suit four days prior to its effective date seeking an *1354 injunction. Preliminary relief was denied on the ground that reinstatement would be an adequate remedy were Shaw eventually to prevail, and Shaw on the day his removal was to be effective filed an amended complaint requesting reinstatement and back pay. After receiving briefs on the Army’s initial motion to dismiss, the district court on March 30, 1984, ruled that Shaw’s removal was not shielded from review as an exercise of military discretion and that Shaw had been entitled to the pretermination process established by the relevant military regulations. Shaw v. Gwatney, 584 F.Supp. 1357 (E.D.Ark.1984) (Shaw I). The Army subsequently filed a second motion to . dismiss, alleging that the district court lacked jurisdiction to award relief because Shaw’s back pay claim had by that time grown to approximately $50,000. The court, however, found its jurisdiction proper under section 1346(a)(2), observing that Shaw had not yet been entitled to back pay when he filed his initial complaint and invoking the traditional rule that “jurisdiction is determined by reference to the time of the institution of the action.” Shaw v. Gwatney, 604 F.Supp. 880, 884 (E.D.Ark.1985) (Shaw II) (citing 1 J. Moore, J. Lucas, H. Fink, D. Weckstein & J. Wicker, Moore’s Federal Practice 110.91[3] (2d ed. 1986) ); see 14A C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure § 3702, at 28 (2d ed. 1985).

While we do not dispute the rule relied on by the district court or its practical advantages (or even necessity), see Shaw II, 604 F.Supp. at 884, it is not properly applied here. The district court in looking to Shaw’s initial complaint ignored the essential change wrought in the nature of the action when the monetary claim against the United States was added. Because of the doctrine of sovereign immunity, such a claim requires an additional jurisdictional basis beyond that which supports a claim for injunctive relief. See generally Van Drasek v. Lehman, 762 F.2d 1065, 1068-69 (D.C.Cir.1985); 14 C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure §§ 3654-3655, 3657 (2d ed. 1985).

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795 F.2d 1351, 1986 U.S. App. LEXIS 26575, 55 U.S.L.W. 2035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-b-shaw-v-harold-gwatney-and-john-o-marsh-jr-ca8-1986.