Woodruff v. United States

80 Fed. Cl. 806, 2008 U.S. Claims LEXIS 77, 2008 WL 762010
United States Court of Federal Claims·Decided March 18, 2008·No. No. 06-806C·Published·Cited by 9 cases

Opinion

ORDER

HORN, Judge.

FINDINGS OF FACT

The plaintiff in this case, Phillip S. Wood-ruff,1 is a retired employee of the Federal Aviation Administration (FAA). On September 29, 1995, the plaintiff contends that he slipped and fell at his workplace and sustained injuries which aggravated pre-existing conditions and caused him to miss work from September 29, 1995 to October 3, 1995. Plaintiff underwent surgery on May 1, 1997, [808]*808which plaintiff claims was necessary because of the September 29,1995 accident. Plaintiff again took medical leave for the period April 30, 1997 to February 1, 1998. The plaintiff resumed work part-time, with a flexible schedule, on February 1, 1998. During this time, the plaintiff was permitted to work from home, and also from a telecommuting center near his home. The plaintiff returned to work in March, 1998 on a full-time basis but retained the privileges of working from home and telecommuting. On September 3, 1998, the plaintiffs supervisor revoked his flexible work schedule and the telecommuting arrangement, requiring that the plaintiff work full-time in the office.

Documents submitted for the record by both the plaintiff and the defendant2 reflect that the FAA sent the plaintiff at least two notices, one dated January, 31, 1998, and another dated May 3, 1999, asserting that, due to a processing error, the plaintiff had received both workers’ compensation and an FAA salary for pay periods 9710 through 9803, April 27, 1997 through January 31, 1998, and pay periods 9902 through 9907, January 3, 1999 through March 27, 1999. The FAA notices claimed that the plaintiff owed the defendant $8,054.70 and $5,814.54 respectively, totaling $13,869.24, the same figure that the plaintiff claims in the complaint filed in this court.

In an attempt to reconcile payroll records, the plaintiff and the defendant had a teleconference with the Office of Workers’ Compensation on August 17, 2000. After the conference, the defendant agreed to place the plaintiff on leave without pay, effective the then, current, 20018, pay period, but the

parties did not resolve any conflicts relating to prior pay periods.

On January 30,2003, the defendant sent the plaintiff a Bill of Collection pursuant to FAA Order 2770.2G(8)(b)(l) (Oct. 18, 2000).3

FAA Order 2770.2G(8)(b)(l) (2000) provides:

When an erroneous payment is discovered, the debtor will receive from the servicing accounting office, in one communication to the extent practicable, the following documents:
(a) a notice of indebtedness, captioned “Letter of Indebtedness,” stating the amount of the debt and the basis of the debt;
(b) a demand for payment containing a payment due date, captioned “Bill for Collection”. The Letter of Indebtedness and the Bill for Collection trigger various timetables for making a repayment agreement, requesting a review of the claim, petitioning for a hearing on the claim, or requesting a waiver of the claim (see paragraph 2 of Appendix 3, Notice of Procedural Rights Regarding Collection of a Debt Owed to the United States Government, below);
(c) a notice of procedural rights under 49 C.F.R. Part 92, “Recovery of Debts to the United States by Salary Offset” (see appendix 3 below);
(d) instructions for requesting a waiver of the Government’s claim, which include notice that if a debtor submits a waiver request before the final agency determination of the validity of the debt, validity will be considered to have been conceded (see [809]*809Appendix 4, Waiver—Sample Notice, below);
(e) a copy of any communication regarding the nature of the erroneous payment originated by the servicing human resources organization.

FAA Order 2770.2G(8)(b)(l) (2000) (emphasis in original).

The FAA Order further states in subsection (8)(b)(2) that a person receiving a Bill of Collection may:

(a) reserve the right to request a waiver of the Government’s claim, and contest the validity of the debt using the procedures in 49 C.F.R. Part 92, summarized in appendix 3, below. If validity is contested, a waiver request should not be submitted until final agency action determining the validity of the debt, as defined in paragraph 8b(6), below. A waiver request submitted before then will be interpreted as a concession that the payment is due;
(b) pay the debt in full, or arrange in writing for a schedule of payments, on or before the payment due date as specified in appendix 3, below; or
(e) acknowledge the debt and request a waiver, as described in appendix 4, below. If the debt is acknowledged, the waiver request must be submitted on or before the payment due date specified in the Bill for Collection. When the debt is acknowledged, a waiver request submitted after the payment due date will not be considered.

FAA Order 2770.2G(8)(b)(2) (2000). Thus, request of a waiver forecloses the debtor’s opportunity to contest the validity of the agency’s claim. See FAA Order 2770.2G(8)(b)(2)(a) (2000). The plaintiff claims that he was not advised of certain procedural constraints, particularly that a request for waiver on his part precluded his right to contest the claim on the merits.

Section 7(a) of FAA Order 2770.2G (2000) details the standards for granting a waiver:

A waiver may be granted only when collection would be against equity and good conscience, and not in the best interests of the United States. Generally, this criterion will be met by a finding that the erroneous payment occurred through administrative error and that there is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee. Fault includes more than a proven overt act or omission by the employee. Fault is considered to exist if, in light of all the facts, it is determined that the debtor requesting the waiver knew or should reasonably have known that an error occurred, and fails to make inquiries or bring the matter to the attention of the appropriate officials.

FAA Order 2770.2G(7)(a) (2000).

The plaintiff responded to the Bill of Collection by filing a request for waiver of charges on February 13, 2003, which was denied by the FAA on July 27, 2004. The plaintiff appealed the FAA’s decision to deny the waiver request on August 17, 2004. On May 11, 2005, the Assistant Administrator for Financial Services approved the denial of plaintiffs appeal. The plaintiff retired from the FAA on May 8, 2006.

On December 29, 2006, defendant sent plaintiff a delinquency notice informing plaintiff that he had thirty days in which to pay all debts, interest, and administrative costs accrued, totaling $14,589.31. This amount included a claim for $13,869.24, which is the subject of the plaintiffs complaint, and $720.07, for health benefits, which is not included in the plaintiffs complaint. The delinquency notice stated that the plaintiff had the right to an administrative review, which plaintiff requested on January 8, 2007.

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Woodruff v. United States, 80 Fed. Cl. 806, 2008 U.S. Claims LEXIS 77, 2008 WL 762010 (uscfc 2008).

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