United States Court of Appeals, Tenth Circuit
United States Court of Appeals, Tenth Circuit
United States Court of Appeals, Tenth Circuit
2d 1540
A hearing was held before a Presiding Official of the Board, which hearing was
limited, in the first instance, to the single issue of whether Wall "voluntarily"
retired on September 28, 1984. Evidence was taken by the Presiding Official on
the issue of the voluntariness of Wall's application for retirement, and the
Presiding Official held that Wall's retirement was voluntary. Because a
voluntary retirement is not an adverse action which is appealable,1 the
Presiding Officer dismissed Wall's appeal on the ground that the Board had no
jurisdiction to hear Wall's claim of wrongful employment termination because
of his age or physical handicap. 2 Wall filed a timely petition for review by the
Board of the Presiding Official's ruling. On May 2, 1985, the Board denied
Wall's petition for review.
On May 29, 1985, Wall filed an action in the United States District Court for
the District of Kansas, naming as defendants the United States of America; the
Department and Margaret Heckler, then Secretary of the Department; and the
Board and its head, Herbert Ellingwood. In his complaint, Wall stated that, after
being advised that the Department was going to remove him from his civil
service position, he sought advice from the Department concerning possible
retirement; in the course of that inquiry he was misled and misinformed by the
Department; and as a result he applied for retirement. Wall then set forth two
claims for relief, the first based on age discrimination, 29 U.S.C. Sec. 621, et
seq., and a second based on handicap discrimination, 29 U.S.C. Sec. 701, et seq.
On May 30, 1985, Wall filed a parallel petition for review of the May 2
decision of the Board with the United States Court of Appeals for the Federal
Circuit. By agreement of the parties, Wall's proceeding in the Federal Circuit
has been stayed pending final resolution of the action filed by Wall in the
United States District Court for the District of Kansas.
6
The Memorandum and Order of the district court was published and appears as
Wall v. United States, Dep't of Health and Human Services, 637 F.Supp. 90
(D.Kan.1986). Although the matter is not necessarily free of all doubt, we
believe the district court properly construed the statutes in question, and we are
in accord with the result reached by the district court and the supporting
rationale. We could well let the entire matter rest here, but brief additional
comment is in order.
The statutory provisions with which we are primarily concerned are 5 U.S.C.
Secs. 7703(b)(1), 7703(b)(2), and 7702. Under Sec. 7703(b)(1), "[e]xcept as
provided in paragraph (2) of this subsection, a petition to review a final order or
final decision of the Board shall be filed in the United States Court of Appeals
for the Federal Circuit." The exception in Sec. 7703(b)(2) provides, in effect,
that cases of alleged discrimination "subject to the provisions of section 7702"
shall be filed under the applicable statute in a United States District Court.
Discrimination cases "subject to the provisions of section 7702" include cases
where an employee or an applicant for employment (1) has been affected by an
action of an agency which may be appealed to the Board and (2) alleges that the
basis for the agency's action was discrimination prohibited by, inter alia, the
Rehabilitation Act of 1973 and the Age Discrimination in Employment Act of
1967. See 5 U.S.C. Sec. 7702.
The district court in the instant case construed those statutory provisions to
mean that where, in a given case, the Board determines that the agency action
complained of may be appealed to the Board and where the Board further finds
that there was no discrimination, the case falls within the exception mentioned
in Sec. 7703(b)(1), and detailed in Secs. 7703(b)(2) and 7702. Coming within
the exception, the employee, in such circumstance, may then file a
discrimination action in a United States District Court, and the Federal Circuit
would have no jurisdiction to review such an order of the Board. However, the
district court also construed those statutory provisions to mean that where the
Board determines, as it did in the instant case, that an employee's appeal to the
Board is "not appealable" under the statute, and the Board does not consider the
employee's claim of discrimination on its merits, review of the Board's
determination that it lacks jurisdiction to hear the employee's claim lies
exclusively in the Federal Circuit. As the district court noted, if, in the instant
case, the Federal Circuit reverses the Board's determination that Wall's
retirement was voluntary, the matter will then be remanded to the Board to hear
Wall's discrimination claim on its merits. Should Wall then suffer an adverse
ruling on the discrimination issue, he could then file an action in the district
court. It would seem to follow that should the Federal Circuit on appeal uphold
the Board's finding that Wall voluntarily retired, such would rule out any claim
of discrimination. If Wall, in fact and in law, voluntarily retired, he cannot
argue that his termination was the result of agency discrimination.
10
11
12
Ballentine was the basis for Synan, and neither, in our view, is at odds with
Williams.
13
Such cases as Covington v. Dep't of Health and Human Services, 750 F.2d 937
(Fed.Cir.1984) and Christo v. Merit Systems Protection Bd., 667 F.2d 882
(10th Cir.1981), relied on by Wall, are inapposite. In Covington, which does
not involve alleged discrimination, the Board found "voluntary retirement,"
and, on appeal, the Federal Circuit held that because of misinformation the
retirement was involuntary as a matter of law, and remanded the case to the
15
We therefore hold that the Federal Circuit has exclusive jurisdiction to hear
Wall's appeal from the Board's May 2 order that he voluntarily retired from the
Department, and that his de novo action in the United States District Court for
the District of Kansas was properly dismissed.
16
Judgment affirmed.
17
18
I agree with the majority's conclusion that, under section 205 of the Civil
Service Reform Act of 1978, 5 U.S.C. Sec. 7703(b)(1) (1982), the Federal
Circuit has exclusive jurisdiction to review the Board's ruling that it did not
have an appealable order before it. The Board's decision that Wall's termination
was "voluntary," and his action therefore not appealable, precluded the district
court from exercising jurisdiction over Wall's discrimination claim pursuant to
section 7703(b)(2) of that statute. However, I do not agree with the majority's
conclusion that the district court had no jurisdiction over Wall's discrimination
claims. Federal employees with discrimination claims are entitled to bring de
novo actions in federal district court under the relevant civil rights statutes. Wall
filed this action directly under the Age Discrimination in Employment Act, 29
U.S.C. Sec. 633a(c) (1982), and the Rehabilitation Act of 1973, 29 U.S.C. Sec.
794a (1982). For the reasons set out below, I am convinced that the district
court had jurisdiction over Wall's action under those statutes. Because I
conclude that the result reached by the majority is contrary to both the spirit
and the language of the statutes at issue, I must respectfully dissent.
19
Health and Human Services gave him a notice of proposed termination. Wall
protested the decision to his regional director, Al Kemp, but on September 18,
1984, Kemp informed Wall in a written memorandum that the termination
decision would become effective on September 28. This memorandum advised
Wall that he could appeal the decision to the Board, and further stated:
20 appeal to the MSPB containing an allegation of discrimination (as defined in
"An
MSPB Regulations 1201.151(a)(2)) will not be processed concurrently with a
discrimination complaint filed within the Department. Accordingly, if you believe
that this action is based on such discrimination, you may:
21Either appeal to the MSPB within 20 calendar days after the effective date of the
1.
action taken against you, raising the matter of discrimination in your appeal to the
MSPB (and otherwise complying with MSPB Regulation 1201.153), or
22File a discrimination complaint within the Department ...; but you must, if you
2.
wish to file a discrimination complaint, first consult an Equal Employment
Opportunity (EEO) Counselor within 30 calendar days after you receive the
decision.
23
Rec., vol. I, doc. 6, ex. B (emphasis added). Wall chose the first option and
appealed the allegedly discriminatory decision to the Board.
I.
24
As set out below, the statutes governing appeals to the Board make clear that
appeals decided by the Board involving discrimination are entitled to de novo
judicial review. Cases in which an employee both challenges an action that is
appealable to the Board and alleges discrimination are termed mixed cases. See
Christo v. Merit Systems Protection Board, 667 F.2d 882, 883-84 (10th
Cir.1981). Such cases are appealed to the Board under 5 U.S.C. Sec. 7702(a)(1)
(1982), which states:
25
26
(A) has been affected by an action which the employee or applicant may appeal
to the Merit Systems Protection Board, and
27
(B) alleges that a basis for the action was discrimination prohibited by--
28
(i) section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16),(ii) section
6(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(d)),
29
(iii) section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791),
30
31
(v) any rule, regulation, or policy directive prescribed under any provision of
law described in clauses (i) through (iv) of this subparagraph,
32 Board shall, within 120 days of the filing of the appeal, decide both the issue of
the
discrimination and the appealable action in accordance with the Board's appellate
procedures under section 7701 of this title and this section."
33
Adverse actions that may be appealed to the Board under the above-italicized
language are narrowly defined, and include only removal, suspension for more
than fourteen days, reduction in grade or pay, and furlough of thirty days or
less. See Williams v. Dept. of the Army, 651 F.2d 243, 244 (4th Cir.1981) (per
curiam). As the majority notes, they do not cover a "voluntary" retirement,
even when made under threat of removal.1 See Christie v. United States, 518
F.2d 584, 588, 207 Ct.Cl. 333 (1975).
34
35
36
Christo v. Merit Systems Protection Bd., 667 F.2d 882, 885 (10th Cir.1981).
Judicial review of Board decisions in which discrimination is not an issue is
obtained in the Federal Circuit.
37
38
II.
39
If Wall had chosen the second option set out in the Kemp memorandum and
filed a discrimination claim with his department, he would have followed the
procedures for filing age and handicap discrimination claims. See generally, 29
C.F.R. Secs. 1613.211-.283; 1613.501-.514; 1613.701-.709 (1987). An
examination of the relevant civil rights statutes and associated regulations
reveals that if Wall had pursued this option, he would have been entitled to de
novo judicial review.
40
It is apparent that Congress intended the Civil Service Reform Act provisions
and the civil rights statutes to be read together to provide "a unified, coherent
Federal structure to combat job discrimination in all its forms." Message of the
President accompanying Reorg. Plan No. 1 of 1978, 3 C.F.R. 32, (1978),
reprinted in 5 U.S.C.App. at 1155 (1982), and in 92 Stat. 3781 (1978).
Confusing overlap and duplication were meant to be eliminated. The thrust
behind these statutes and associated administrative enforcement procedures is
41 ensure that: (1) Federal employees have the same rights and remedies as those in
"to
the private sector and in State and local government; (2) Federal agencies meet the
same standards as are required of other employers; and (3) potential conflicts
between an agency's equal employment opportunity and personnel management
functions are minimized. The Federal government must not fall below the standard
of performance it expects of private employers."
42
Id.
43
In this case, Wall asserted that his resignation was involuntary due to
discrimination both on the basis of physical handicap and on the basis of age.
These civil rights statutes, when read together with the provisions of the Civil
Service Reform Act set forth above, manifest a clear Congressional directive
that a federal employee seeking administrative relief on a discrimination claim
be provided de novo judicial review. An employee may obtain such review by
filing suit in federal district court within thirty days of final agency action on
the claim, whether the final agency action consists of resolution of a mixed
case by the Board, or rejection of the claim by the claimant's agency. See
S.Rep. No. 969, 95th Cong., 2d Sess. 63, reprinted in 1978 U.S.Code Cong. &
Admin.News 2723, 2785.
III.
45
The Board found that Wall's termination was voluntary.4 It then ruled that
because a voluntary termination is not an action which may be appealed to the
Board, it had no jurisdiction under section 7702(a)(1) to decide the
discrimination claim. The majority concludes that Wall may only appeal the
finding of lack of jurisdiction, and that this appeal must be taken in the Federal
Circuit. In so concluding, however, the majority appears to equate the issue of
voluntariness, which underlies the jurisdictional question, with the claim of
discrimination. See slip op. at ----. If the two issues are in fact one and the
same, that issue is whether the alleged discrimination resulted in a constructive
The Government, on the other hand, appears to argue that the issue of
jurisdiction is a "threshold" issue unrelated to the discrimination claim.
Accordingly, the Government asserts that Wall is only entitled to judicial
review of this decision, and that review is therefore exclusively in the Federal
Circuit. Apart from the conceptual difficulty of separating the issues of
voluntariness and discriminatory constructive discharge,5 under the
Government's analysis, as it candidly admits, a person in Wall's position may
be unable to raise his discrimination claim in any judicial forum. I cannot
accept the Government's conclusion that Congress intended federal employees
to be without a remedy in this situation. The Government has presented no
compelling statutory construction or policy argument to support such a result,
and it is clearly contrary to the Congress' express intent that federal workers'
rights and remedies under the civil rights statutes are to be fully protected. See
H.R.Conf.Rep. No. 1717, 95th Cong., 2d Sess. 141, reprinted in 1978 U.S.Code
Cong. & Admin.News 2723, 2874-75.
IV.
47
The Government argues that Wall has failed to exhaust administrative remedies
with respect to the discrimination claims because the agency has not had an
opportunity to address them. An argument can be made, however, that these
claims have in fact received administrative consideration. See note 5 supra.
Moreover, as set out above, Wall was told by his agency that he could either
raise his discrimination claims in his appeal to the Board, or file a complaint
with the agency, but not both. These instructions mirror the regulations issued
by the EEOC controlling the administrative processing of mixed cases. See 29
C.F.R. 1613.403. The regulations thus provide alternative means by which an
employee such as Wall, who contends that his resignation was the involuntary
result of illegal discrimination, can exhaust his administrative remedies. Wall
pursued his claims with the Board, and its decision that it had no jurisdiction to
consider those claims became final on May 7, 1985, long after the thirty-day
period had expired within which Wall was required to initiate a discrimination
complaint with the agency. See 29 C.F.R. Sec. 1613.214(a). Even assuming that
the agency would have extended the filing time, see id. at Sec. 1613.214(a)(4),
by establishing alternative procedures for pursuing administrative relief, the
regulations make clear that pursuing either alternative is sufficient to exhaust
administrative remedies. See id. at Sec. 1613.421.
48
V.
49
50
Honorable Luther L. Bohanon of the United States District Court for the
Northern, Eastern and Western Districts of Oklahoma, sitting by designation
Christie v. United States, 518 F.2d 584, 207 Ct.Cl. 333 (1975); Schultz v.
United States Navy, 810 F.2d 1133 (Fed.Cir.1987); 5 C.F.R. Sec. 752.401(c)(3)
(1984)
Presumably, if the Presiding Officer had ruled that Wall's application for
termination was involuntary, he would have then proceeded to hear and rule on
the merits of Wall's claim that he was terminated because of his age and
physical handicap
Wall, of course, did not know his action was not appealable and thus not
covered by section 7702(a)(1) until after he had chosen to appeal via that
section and the Board found his termination voluntary
Wall filed his claim in the district court within thirty days of the Board's
decision dismissing his case
There is a split of authority on whether a plaintiff who chooses to first seek an
administrative remedy must obtain final agency action in his claim before filing
suit. Compare Langford, 839 F.2d at 1193-94 with Purtill, 658 F.2d at 138
The Board here set out its standard for voluntariness as follows:
"Although employee-requested actions are presumed to be voluntary, Christie
v. United States, 518 F.2d 584 (Ct.Cl.1975), this presumption will not prevail if
the employee comes forward with sufficient evidence to show that the disputed
action was involuntarily extracted or coerced. The standards for determining
duress are set forth in Fruhauf Southwest Garment Co. v. United States, 111
F.Supp. 945, 951[, 126 Ct.Cl. 51] (1953), as follows:
(1) that one side involuntarily accepted the terms of another;
(2) that circumstances presented no other alternative; and
(3) that said circumstances were the result of coercive acts of the opposite
party."
Rec., vol. I, doc. 6, ex. H, at 2.
Chemical Corp., 538 F.2d 1094, 1097-98 (5th Cir.1976), cert. denied sub nom.
Allied Chemical v. White, 434 U.S. 1051, 98 S.Ct. 903, 54 L.Ed.2d 804 (1978);
Bernstein v. Consolidated Foods Corp., 622 F.Supp. 1096, 1105-06
(N.D.Ill.1984). However, [i]n determining the effectiveness of any such waiver,
a court would have to determine that the employee's consent to the settlement
was voluntary and knowing." Alexander, 415 U.S. at 52 n. 15, 94 S.Ct. at 1021
n. 15 (emphasis added).
The Board decision in this case found that "the agency's personnel specialists
clearly did not inform appellant that he would be precluded from exercising his
appeal rights to the adverse action if he selected a retirement date effective the
same date as that action." Rec., vol. I, doc. 6, ex. H, at 5. In ruling that Wall's
decision was voluntary despite his lack of knowledge of the rights he was
giving up, the Board clearly employed a standard inconsistent with that required
to ascertain whether he waived a cause of action for discrimination. Moreover,
an employer who alleges that a civil rights plaintiff has waived his right to
proceed with his discrimination claim is asserting an affirmative defense to that
claim. To the extent that the Board's decision was a ruling on this issue, the
decision is, contrary to the Government's argument, a disposition of the merits
of Wall's claim on an issue Wall is entitled to have reviewed de novo in district
court.