Wolfson v. United States

492 F.2d 1386, 204 Ct. Cl. 83, 1974 U.S. Ct. Cl. LEXIS 235
United States Court of Claims·Decided March 20, 1974·No. No. 48-70·Published·Cited by 16 cases

Opinion

Per Curiam:*

Plaintiff brings this action pursuant to the Tucker Act, 28 U.S.C. § 1491; Executive Order No. 10865, dated February 20, 1960, as amended by Executive Order No. 10909, dated Jan. 17, 1961; and Department of Defense (DOD) Directive No. 5220.6, dated December 7,1966,31 Fed. Reg. 16188, codified at 32 C.F.B. § 155.9 (1973). He seeks reimbursement for alleged loss of earnings resulting from being discharged in 1950 by his employer, a Government contractor, because of defendant’s denial of authorization for plaintiff to have access to Government classified material, followed by a grant to him some 18 years later of such access authorization (commonly referred to as a “security clearance”).

The instant proceeding was limited to the issues of law and fact relating to (1) the right of plaintiff to recover; and, if so, (2) the question of whether plaintiff is entitled to anything inasmuch as he concedes that his earnings during [87] the interim period between the time of defendant’s denial of access authorization and plaintiff’s discharge from his employment by reason thereof, and the time defendant granted such authorization, greatly exceeded the amount plaintiff would have earned in the position he held at the time of such denial and discharge, it being understood that plaintiff contends that his interim net earnings did not exceed those properly recoverable by him.1

In February 1950 plaintiff, while employed by Armour Research Foundation (“Armour”), a Government contractor, was denied a security clearance to work on “top-secret, secret, confidential, or restricted” Government contracts by the Army-Navy-Air Force Personnel Security Board (PSB). While Armour was notified that the denial of security clearance “* * * [was] not to imply that the Department of the Army desire[d] the dismissal of * * * [plaintiff],” he was, in fact, discharged 4 days later.

Plaintiff requested the Industrial Employment Review Board (IERB) to issue a “statement of charges” upon which the PSB based its decision, and to permit a personal appearance so that he could respond thereto. In May 1950 the IERB informed him that the PSB had based its decision on the fact that investigative reports indicated:

a. That you are a member of and sympathetically espouse the principles of The Young Progressives of America, a Communist dominated and Communist Front Organization.
b. That you have close and sympathetic associations with known Communist Party members and Communist Party sympathizers.

The hearing requested by plaintiff was held on October 10, 1950, and the IERB confirmed the denial of clearance on November 15,1950. This denial, pursuant to Department of [88] the Army (DA) Memo 380-5-10, dated April 2, 1948, as amended August 9, 1948, was a final decision from which no administrative appeal was then possible.

Shortly after his employment with Armour was terminated, plaintiff obtained work with the Revere Camera Company, Chicago, Illinois, as a lens polisher. He began work at this new position on April 7, 1950, at the same hourly rate of $1.50 previously earned at Armour.

Plaintiff made no further inquiries concerning his security status until 1958. Sometime prior to September 15th of that year, plaintiff was briefly employed by the Nortronics Division of Northrop Aircraft, Inc., Hawthorn, California, but he was discharged when it was discovered that he lacked a security clearance and that it would take 6 to 18 months to secure one. This episode prompted plaintiff to send a letter dated September 26,1958, to the Director, Office of Industrial Personnel Security Review, Department of Defense, Washington, D.O., in which he requested review of the 1950 final denial of clearance. By a reply letter, dated October 6,1958, plaintiff was advised by said office that the then current regulation, DOD Directive No. 5220.6, dated February 2, 1955 (sometimes referred to as the 1955 Directive), a copy of which was enclosed for plaintiff’s information, provided for reconsideration of prior decisions of the IERB only on the grounds of newly discovered evidence or for other good cause shown. Plaintiff was informed that his letter was not considered to contain any newly discovered evidence or to constitute good cause for reopening his case; therefore, it was suggested that he submit a statement under oath commenting directly on the aforestated reasons given for the denial of clearance, and also written statements from others commenting on his suitability for access to classified information. Plaintiff did not respond to these suggestions and took no further action until March 1963.

On March 5, 1963, plaintiff wrote to the Office of Inspector, Naval Material, Industrial Security Division (INSMAT), Los Angeles, California, in an apparent effort to have a new security clearance application processed “as quickly as possible.” Without waiting for a rep]y from INSMAT, however, [89] plaintiff sent a letter dated April 15, 1968, to the Office of Industrial Personnel Access Authorization Eeview (OIPAAE), Department of Defense, Washington, D.C., requesting reconsideration of his entire case on the basis of the regulation then currently in force. On April 22,1963, the OIPAAE acknowledged plaintiff’s April 15,1963 request for “reconsideration of the prior decision of the Industrial Employment Eeview Board,” 2 explained to him the proper procedure for obtaining such reconsideration, and transmitted therewith a copy of the then applicable regulation, DOD Directive No. 5220.6, dated July 28,1960, 32 G.F.E. §§ 155.1-155.5 (1960) (the 1960 Directive). Section V, paragraph B., 1, entitled “EECONSIDEEATION OF PEIOE DECISIONS,” of said Directive read in pertinent part:

Decisions rendered under any industrial personnel review program prior to the effective date of this Eegulation which denied or revoked an access authorization may be reconsidered by such boards as the Director deems appropriate * * * after a finding by the appropriate board that there is newly discovered evidence or that other good cause has been shown. * * *

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Wolfson v. United States, 492 F.2d 1386, 204 Ct. Cl. 83, 1974 U.S. Ct. Cl. LEXIS 235 (cc 1974).

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