Young v. United States

133 Fed. Cl. 471, 2017 U.S. Claims LEXIS 1005, 2017 WL 3599485
CourtUnited States Court of Federal Claims
DecidedAugust 14, 2017
Docket16-916C
StatusPublished

This text of 133 Fed. Cl. 471 (Young 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
Young v. United States, 133 Fed. Cl. 471, 2017 U.S. Claims LEXIS 1005, 2017 WL 3599485 (uscfc 2017).

Opinion

ORDER REGARDING CROSS-MOTIONS FOR SUMMARY JUDGMENT

WHEELER, Judge.

Plaintiff Eric J. Young alleges that the Securities & Exchange Commission (“SEC”) breached a Settlement Agreement with him by failing to rescind a Proposed Notice of Suspension and treating a voluntary suspension as disciplinary for the purposes of an employee benefits program. Alternatively, Mr. Young claims that the SEC breached its implied covenant of good faith and fair dealing by frustrating his expectation to have a clean employment record following settlement. The Court finds that the SEC adhered to the terms of the Settlement Agreement *473 and did not violate its implied covenant. Mr. Young has not presented any credible evidence demonstrating that the SEC failed to perform its side of the bargain. Therefore, the Court GRANTS the Government’s cross-motion for summary judgment and DENIES Mr. Young’s motion for partial summary judgment.

Background

Mr. Young has been an employee of the SEC since October 2012 and currently serves as Senior Counsel in the SEC Office of the Whistleblower. JA 96, 72. 2 During the relevant time period, Mr. Young served as an Attorney-Advisor in the SEC’s Office of Equal Employment Opportunity (“OEEO”). Id. at 96. On February 27, 2014, Mr. Young allegedly sent an inappropriate email to his colleagues discussing his frustrations with members of another culture. Id. at 182. On March 6, 2014, Mr. Young allegedly had an “outburst” in another co-worker’s office. Id. These two events prompted the Chief Human Capitol Officer, Ms. Lacey Dingman, to issue Mr. Young a “Notice of Proposed Fourteen Calendar Day Suspension” (“the Notice”) on June 6, 2014. Id. at 180-84. The Notice' informed Mr. Young that “[t]his is only a proposal” and described his rights to challenge the proposed suspension. Id. at 183-84.

Mr. Young disputed the factual allegations set forth in the Notice and objected to the proposed suspension. JS ¶10. On July 17, 2014, following negotiations, Mi'. Young and the SEC entered into a Settlement Agreement. JA 186. Under the Settlement Agreement, Mr. Young agreed to take four actions: (1) “accept a ten (10) day suspension, which will be documented permanently in [Mr. Young’s] Office Personnel Folder;” (2) perform a “nine (9) month interagency detail to the U.S. Attorney’s Office;” (3) “[n]ot to challenge the voluntariness of the ten (10) day suspension or detail before the Merit Systems Protection Board ... or in any other forum”; and (4) to waive any other claims Mr. Young may have against the SEC. Id. In exchange, the SEC agreed to take four actions: (1) “rescind [the Notice];” (2) “effect [Mr. Young’s] ten (10) day suspension;” (3) “remove the 10 [ ] day suspension from [Mr. Young’s] Official Personnel Folder” if he resigns, transfers or retires; and (4) “approve [Mr. Young’s] nine (9) month interagency detail to the U.S. Attorney’s Office....” Id, at 186-86. Further, the Settlement Agreement specified “[t]his Agreement does not constitute an admission of fault ...” by the SEC or Mr. Young. Id. at 186. Ms. Dingman participated in the settlement negotiations. JS ¶ 17. The SEC removed the Notice from Mr. Young’s personnel file and Mr. Young served his voluntary suspension and inter-agency detail. JA 1-179.

On August 28, 2014, the SEC announced the creation of a Pay Transition Program under which SEC employees who met certain eligibility requirements could apply for increased compensation. Id. at 189, 198. Under the Program, employees were not eligible if they “had been formally disciplined within the last year.” Id. at 220. The SEC defined “formally disciplined” as “the following personnel actions: (1) removal, (2) demotion, (3) suspension of any length and (4) reprimand.” Id. at 224. Ms. Dingman oversaw the Pay Transition Program during the relevant time period and made final decisions regarding an employee’s ability to participate in the Program. Id. at 220-21.

On September 3, 2014, Ms. Dingman issued two Notifications of Personnel Action, Standard Form 50 (“SF-50”) which documented Mr. Young’s voluntary suspension. Id. at 232-33. The SF-50s listed “conduct unbecoming a federal employee” as the reason for the suspension. Id. Mr. Young notified the SEC that the SF-50s were incorrectly identified because there was no finding that Mr. Young had behaved inappropriately under the Settlement Agreement. Id. at 230-31. As a result, the SEC changed the SF-50s to list “settlement agreement” as the reason for the suspension. Id. at 227-28, 83.

Mr. Young submitted his application to the Pay Transition Program in October 2014. JS ¶38. On June 6, 2016, the SEC, acting through Ms. Dingman, denied Mr. Young’s. *474 application because “he had not met the eligibility requirements for the program due to a discipline or performance issue.” JA 234. Mr. Young filed a formal grievance under the SEC’s administrative grievance procedures challenging the determination that he was ineligible to participate in the Pay Transition Program. Id. at 244-49. The SEC ultimately denied Mr. Young’s challenge stating that Mr. Young was ineligible due to prior discipline, “specifically, a ten (10) day suspension, which [he] served during August and September 2014.” Id. at 259.

Mr. Young filed a complaint in this Court on August 1, 2016 asserting that the SEC breached the express terms of the Settlement Agreement (Count I) and the SEC breached its implied covenant of good faith and fair dealing (Count II). Dkt. No. 1. On April 21, 2017, Mr. Young filed a motion for partial summary judgment and, on May 26, 2017, the Government filed a cross-motion for summary judgment. Dkt Nos. 29, 32. The parties have completed briefing the cross-motions and the Court heard oral argument on July 17, 2017.

Discussion

Summary judgment is appropriate where “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” RCFC 56(c). A fact is “material” if it might significantly alter the outcome of the case under the governing law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The moving party bears the initial burden of showing that there exists no genuine dispute as to any material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Summary judgment will not be granted if the “evidence is such that a reasonable [trier of fact] could return a verdict for the nonmoving party.” Anderson, 477 U.S. at 248, 106 S.Ct. 2505. The Court’s function is not to weigh the evidence and determine the merits of the case presented, but to determine whether there is a genuine issue of material fact for trial. Id. at 249,106 S.Ct. 2505; see Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587-88, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). However, when the non-moving party fails to make a sufficient showing of the existence of an essential element for which he bears the burden of proof, summary judgment is appropriate.

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133 Fed. Cl. 471, 2017 U.S. Claims LEXIS 1005, 2017 WL 3599485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-united-states-uscfc-2017.