Court Opinion

ID: 9372755
Source: CourtListenerOpinion
Date Created: 2023-02-22 16:00:13.830497+00
Date Added: 2024-06-11T17:16:37.163418
License: Public Domain

UNITED STATES OF AMERICA
                       MERIT SYSTEMS PROTECTION BOARD
                                      2022 MSPB 44
                            Docket No. SF-1221-19-0566-W-1

                                    George DeGrella,
                                        Appellant,
                                             v.
                             Department of the Air Force,
                                           Agency.
                                    December 14, 2022

           Amos N. Jones, Esquire, Washington, D.C., for the appellant.

           C. Rhodes Berry, Joint Base Andrews, Maryland, for the agency.

                                         BEFORE

                              Cathy A. Harris, Vice Chairman
                               Raymond A. Limon, Member
                                Tristan L. Leavitt, Member

                                 OPINION AND ORDER

¶1        The appellant has filed a petition for review of the initial decision that
     dismissed his appeal for lack of jurisdiction. For the reasons set forth below, we
     DENY the petition for review and AFFIRM the initial decision. T he appeal is
     DISMISSED for lack of jurisdiction.

                                     BACKGROUND
¶2        During the time at issue in this appeal, the appellant was employed by the
     agency as a Supervisory Services Program Specialist with the Air Force Services
     Activity at Yokota Air Force Base, Japan. Initial Appeal File (IAF), Tab 17 at 4.
                                                                                        2

     The administrative judge found, and the parties do not dispute on review, that the
     appellant’s appointment was as a nonappropriated fund (NAF) employee. 1 IAF,
     Tab 19, Initial Decision (ID) at 2; Tab 1 at 1 (the appellant’s indication on his
     appeal form that his grade or pay band was “NAF”); Tab 5 at 17 (the ap pellant’s
     statement that he was a nonappropriated fund employee); Tab 17 at 4 (Standard
     Form 50 reflecting the appellant’s pay plan as “NF”). On September 4, 2018, the
     agency proposed the appellant’s removal based on two specifications of
     on-the-job misconduct.     IAF, Tab 15 at 12-13.       After he responded to the
     proposal, IAF Tab 13 at 12-21, Tab 14, the agency, in lieu of removal, issued a
     decision suspending the appellant for 28 days, effective September 23, 2018. 2
     IAF, Tab 13 at 4-5.
¶3        The appellant filed a complaint with the Office of Special Counsel (OSC) in
     which he alleged that the proposed removal and the 28-day suspension were in
     retaliation for his having reported fraud, waste, and abuse to agency management.
     IAF, Tab 5 at 5-18, 20-21. On May 15, 2019, OSC advised the appellant that it
     had ended its inquiry into his allegations and that he could appeal the matter to
     the Board. IAF, Tab 5 at 20. The appellant filed an individual right of action
     (IRA) appeal and requested a hearing. IAF, Tab 1.
¶4        In response, the agency argued, inter alia, that the Board lacks jurisdiction
     over the appeal due to his status as a NAF employee, and it moved to dismiss the

     1
       A NAF employee is “a civilian employee who is paid from nonappropriated funds of
     Army and Air Force Exchange Service, Navy Exchange Service Command, Marine
     Corps exchanges, or any other instrumentality of the United States under the
     jurisdiction of the armed forces which is conducted for the comfort, pleasure,
     contentment, or physical or mental improvement of members of the armed force s.”
     10 U.S.C. § 1587(a)(1).
     2
       On October 21, 2018, the appellant was reassigned to the position of Operations
     Manager (Community Services Flight). IAF, Tab 17 at 4. It appears that the appellant
     did not raise the reassignment as a purportedly retaliatory personnel action with the
     Office of Special Counsel, but because the Board otherwise lacks jurisdiction, as
     discussed in this decision, we need not address the reassignment further.
                                                                                         3

     appeal on that basis, relying on Clark v. Army & Air Force Exchange Service,
     57 M.S.P.R. 43, 45-46 (1993) (AAFES), and Clark v. Merit Systems Protection
     Board, 361 F.3d 647, 651 (Fed. Cir. 2004). 3 IAF, Tab 6 at 8. The appellant
     replied to the agency’s submission, but did not address the agency’s argument
     regarding the significance of his status as a NAF employee to the Board’s
     jurisdiction to hear his IRA appeal. IAF, Tab 18.
¶5        In an initial decision based on the written record, the administrative judge
     dismissed the appeal for lack of jurisdiction.      See ID.   Based on the Board’s
     decision in AAFES and the U.S. Court of Appeals for the Federal Circuit’s
     (Federal Circuit’s) decision in Clark, the administrative judge found that
     “because the appellant was a NAF employee, the Board lack[ed] jurisdiction over
     his IRA appeal.” ID at 4.
¶6        The appellant has filed a petition for review, Petition for Review (PFR)
     File, Tab 1. The agency has responded in opposition. PFR File, Tab 3.

                                         ANALYSIS
     The Board lacks jurisdiction over an IRA appeal filed by a NAF employee.
¶7        As set forth below, the appellant’s petition for review does not establish any
     error in the initial decision. However, because a significant amount of time has
     passed since the Board last addressed the dispositive issue presented in this
     appeal, we take this opportunity to explain, that despite changes to the
     whistleblower protection statutes, the Board still lacks jurisdiction over an IRA
     appeal filed by a NAF employee.
¶8        The Board’s jurisdiction is not plenary but is limited to that granted by law,
     rule, or regulation. Maddox v. Merit Systems Protection Board, 759 F.2d 9, 10
     (Fed. Cir. 1985); Francis v. Department of the Air Force, 120 M.S.P.R. 138, ¶ 14

     3
       The Board’s decision in Clark v. Army & Air Force Exchange Service is unrelated to
     the U.S. Court of Appeals for the Federal Circuit’s decision in Clark v. Merit Systems
     Protection Board. To avoid confusion, we refer to the Board’s decision as AAFES.
                                                                                            4

      (2013). The appellant has the burden of establishing jurisdiction over his appeal
      by a preponderance of the evidence. 5 C.F.R. § 1201.57(c)(3).
¶9          Under 5 U.S.C. § 2105(c)(1), the code provision that defines “employee”
      for the purposes of Title 5 unless specifically modified, an individual paid from
      nonappropriated funds of the various military exchanges and certain other
      instrumentalities of the armed forces is, with certain exceptions not relevant here,
      not an “employee” for the purposes of the laws administered by the Office of
      Personnel Management (OPM).          For example, in Taylor v. Department of the
      Navy, 1 M.S.P.R. 591, 593-96 (1980), the Board held that the adverse action
      procedures of Title 5 are laws administered by OPM for the purposes of 5 U.S.C.
      2105(c) and that, therefore, 5 U.S.C. § 7513(d) does not provide NAF employees
      with a right to appeal an adverse personnel action to the Board. 4
¶10         The instant appeal is not an adverse action appeal; however, in this case the
      appellant challenged the agency’s action by filing an IRA appeal claiming
      reprisal for his whistleblowing disclosures in violation of 5 U.S.C. § 2302(b)(8).
      IAF, Tab 1, Tab 5 at 4-5.       That statute prohibits, as relevant here, taking a
      personnel action because of any disclosure of information which the employee
      reasonably believes evidences gross mismanagement, a gross waste of funds, or
      an abuse of authority. 5 U.S.C. § 2302(b)(8).
¶11         In AAFES, the Board considered the claim of a NAF employee that his
      employing agency took various personnel actions against him in retaliation for his
      having disclosed fraud, waste, and abuse.         AAFES, 57 M.S.P.R. at 44.          He
      asserted that the Board had jurisdiction over his IRA appeal because he claimed
      that OPM does not enforce or administer 5 U.S.C. § 2302(b)(8) and that,

      4
        More recently, in discussing whether service with a NAF activity can be combined
      with other service to find that an individual has completed his probationary period, the
      Board confirmed that individuals working for a NAF activity do not have adverse action
      appeal rights pursuant to chapter 75 of Title 5. Fitzgerald v. Department of the Air
      Force, 108 M.S.P.R. 620, ¶ 15 n.8 (2008).
                                                                                         5

      therefore, he was an employee under 5 U.S.C. § 2105 for purposes of 5 U.S.C.
      § 2302(b)(8). Id. at 45. The Board disagreed, finding that the language of the
      statutory provisions that allows an employee to seek corrective action from the
      Board by filing an IRA appeal, 5 U.S.C. §§ 1214(a)(3) and 1221(a), makes them
      applicable to “employees” and does not modify the definition of an “employee” in
      5 U.S.C. § 2105, which, as noted, excludes individuals appointed to a NAF
      position. AAFES, 57 M.S.P.R. at 45. The Board further found nothing in the
      Whistleblower Protection Act (WPA), Pub. L. No. 101-12, 103 Stat. 16 (1989),
      itself or its legislative history to suggest that Congress intended to limit OPM’s
      role of administering rules, regulations, and statutes governing the civil service to
      the extent that 5 U.S.C. §§ 1221(a) and 2302 are no longer laws administered by
      OPM so as to broaden the class of employees who have the right to file an IRA
      appeal to include NAF employees. AAFES, 57 M.S.P.R. at 45-46. In Clark, the
      Federal Circuit reached the same conclusion, agreeing with the Board’s
      “well-reasoned analysis in AAFES” and finding that an employee serving in a
      NAF position has no right to appeal to the Board for alleged violations of the
      WPA. Clark, 361 F.3d at 651.
¶12          Much time has passed since the Board and Federal Circuit last opined on
      whether the Board has jurisdiction over a claim of reprisal for whistleblowing
      brought by a NAF employee.          In the intervening years, Congress has made
      significant changes to the whistleblower protection statutory scheme, including,
      most    notably,   through   the   enactment   of   the   Whistleblower   Protection
      Enhancement Act (WPEA). Pub. L. No. 112-199, 126 Stat. 1465 (2012).
¶13          When legislating, Congress is presumed to know an existing statute’s
      interpretation. Parker Drilling Management Services, Ltd. v. Newton, 139 S. Ct.
      1881, 1890 (2019) (concluding that “Congress legislates against the backdrop of
      existing law”); Lorillard v. Pons, 434 U.S. 575, 581 (1978) (stating that, when
      “Congress adopts a new law incorporating sections of a prior law, Congress
      normally can be presumed to have had knowledge of the [administrative or
                                                                                           6

      judicial] interpretation given to the incorporated law, at least insofar as it affects
      the new statute”); see Lindahl v. Office of Personnel Management, 470 U.S. 768,
      780-83 (1985) (finding that Congress’ failure to expressly repeal the prior judicial
      construction of the scope of review of disability determinations creates a
      presumption that Congress intended to embody that construction in the amended
      statute); 2A Norman Singer, Sutherland Statutory Construction § 45.12 (6th ed.
      2000) (stating that, in interpreting legislative language, it may be presumed that
      the legislative body was aware, among other things, of existing judicial
      decisions). Thus, under these principles of statutory construction, in enacting the
      WPEA, Congress can be presumed to have known of the Board’s and the Federal
      Circuit’s respective interpretations of the existing statute.
¶14         Congress’ knowledge of the Board and its reviewing court’s interpretations
      of the WPA’s provisions is specifically demonstrated by the content of the WPEA
      and its legislative history. The legislative history of section 101 of the WPEA
      specifically identified three court decisions that narrowed the scope of what
      constitutes a protected disclosure and explained that the statute overruled those
      decisions. S. Rep. No. 112-155, at 4-5 (2012); see WPEA § 101(b)(2)(C). By
      this action, Congress demonstrated that it was aware of the decisions affecting the
      scope of whistleblower protection and how to overturn those decisions. However,
      neither the WPEA itself, nor its legislative history, purports to change, or even to
      address, the definition of “employee” as interpreted by the Board and Federal
      Circuit in AAFES and Clark.           Thus, although it expanded the scope of
      whistleblower protection in other ways that have implications for Board
      jurisdiction,   nothing   suggests   that   the   WPEA    altered   the   longs tanding
      administrative and judicial interpretations that NAF employees have no right to
      file an IRA appeal with the Board.
¶15         In addition to the WPEA, other statutes have modified the whistleblower
      protection statutory scheme.         Section 1097(c) of the National Defense
      Authorization Act, 2018, Pub. L. No. 115-91, 131 Stat. 1283, 1618 (2017),
                                                                                         7

      amended the law to provide that a disclosure should not be excluded from
      coverage because it was made before the individual’s appointment or application
      for employment, addressed the scope of protection for disclosures made in the
      normal course of an employee’s duties, and addressed the protection provided for
      cooperating with or disclosing information to certain investigative entities.      In
      addition, section 5721 of the National Defense Authorization Act for Fiscal
      Year 2020, Pub. L. No. 116-92, 133 Stat. 1198, 2175 (2019), amended the law to
      provide protection for disclosures to Congress. The Follow the Rules Act, Pub.
      L. No. 115-40, 131 Stat. 861 (2017), effectively overruled a Federal Circuit
      decision and expanded the list of prohibited personnel practices articulated in
      5 U.S.C. § 2302(b)(9).         163 Cong. Rec. H2983-01 (daily ed. May 1, 2017)
      (statements of Reps. Comer, Connolly, and Grothman). Similarly, section 103 of
      the Dr. Chris Kirkpatrick Whistleblower Protection Act of 2017, Pub. L.
      No. 115-73, 131 Stat. 1235, 1236 (2017), also amended the list of prohibited
      personnel practices. None of these statutes, however, address the definition of an
      “employee” for purposes of determining who can file an IRA appeal with the
      Board. Thus, we conclude that despite the passage of time and amendments to
      the statutory scheme, the holdings in AAFES and Clark remain valid. Thus, we
      affirm the initial decision.

      10 U.S.C. § 1587 does not provide a right of appeal to the Board for NAF
      employees who claim retaliation for whistleblowing.
¶16         On review, the appellant argues for the first time that the Board has
      jurisdiction over his IRA appeal because 10 U.S.C. § 1587 protects NAF
      employees from retaliation for whistleblowing, and because he had recourse to
      OSC, exhausted his remedy with that agency, and was provided appeal rights to
      the Board by OSC. 5 PFR File, Tab 1 at 5-6; IAF, Tab 5 at 20. Under 10 U.S.C.

      5
       Generally, the Board will not consider new arguments on petition for review absent a
      showing that they are based on new and material evidence that was not previously
                                                                                              8

      § 1587(b) and (d), the Secretary of Defense is responsible for prohibiting reprisal
      against NAF employees for whistleblowing and for correcting any such acts of
      reprisal. Subsection (e) provides that the Secretary shall, after consulting with
      OPM, OSC, and the Board, prescribe regulations to implement the statute.
      10 U.S.C. § 1587(e).       Although the Secretary of Defense apparently has
      implemented the statute, nothing in the statute suggests a right to appeal to the
      Board. 6 Thus, while reprisal for whistleblowing as described by the appellant
      may be unlawful under 10 U.S.C. § 1587, an appeal contesting the agency action
      is not within the Board’s jurisdiction. 7

                                              ORDER
¶17         This is the final decision of the Merit Systems Protection Board in this
      appeal. Title 5 of the Code of Federal Regulations, section 1201.113 ( 5 C.F.R.
      § 1201.113).

      available despite the party’s due diligence.         Clay v. Department of the Army,
      123 M.S.P.R. 245, ¶ 6 (2016). However, we will consider the appellant’s new argument
      on this jurisdictional issue because jurisdiction is always before the Board and may be
      raised by any party or sua sponte by the Board at any time during Bo ard proceedings.
      Lovoy v. Department of Health & Human Services, 94 M.S.P.R. 571, ¶ 30 (2003).
      6
        The agency asserts on review that the regulations called for by 10 U.S.C. § 1587(e)
      are set forth in Department of Defense Directive 1401.03. PFR File, Tab 3 at 7. We
      take administrative notice that this directive contains no reference to Board appeal
      rights.
      7
        To the extent that the appellant suggests that because OSC informed him of Board
      appeal rights, the Board has jurisdiction over his IRA appeal, it is well settled that the
      provision of Board appeal rights in an agency decision does not serve to confer
      jurisdiction on the Board when it does not otherwise exist. Morales v. Social Security
      Administration, 108 M.S.P.R. 583, ¶ 5 (2008); Covington v. Department of the Army,
      85 M.S.P.R. 612, ¶ 9 (2000); Hunter v. Department of Justice, 73 M.S.P.R. 290, 294
      (1997).
                                                                                        9

                           NOTICE OF APPEAL RIGHTS 8
      You may obtain review of this final decision. 5 U.S.C. § 7703(a)(1). By
statute, the nature of your claims determines the time limit for seeking such
review and the appropriate forum with which to file.               5 U.S.C. § 7703(b).
Although we offer the following summary of available appeal rights, the Merit
Systems Protection Board does not provide legal advice on which option is most
appropriate for your situation and the rights described below do not represent a
statement of how courts will rule regarding which cases fall within their
jurisdiction.   If you wish to seek review of this final decision, you should
immediately review the law applicable to your claims and carefully follow all
filing time limits and requirements. Failure to file within the applicable time
limit may result in the dismissal of your case by your chosen forum.
      Please read carefully each of the three main possible choices of review
below to decide which one applies to your particular case. If you have questions
about whether a particular forum is the appropriate one to review your case, you
should contact that forum for more information.

      (1) Judicial review in general. As a general rule, an appellant seeking
judicial review of a final Board order must file a petition for review with the U.S.
Court of Appeals for the Federal Circuit, which must be received by the court
within 60 calendar days of the date of issuance of this decision.                5 U.S.C.
§ 7703(b)(1)(A).
      If you submit a petition for review to the U.S. Court of Appeals for the
Federal   Circuit,   you   must   submit    your   petition   to   the   court    at   the
following address:

8
  Since the issuance of the initial decision in this matter, the Board may have updated
the notice of review rights included in final decisions. As indicated in the notice, the
Board cannot advise which option is most appropriate in any matter.
                                                                                    10

                             U.S. Court of Appeals
                             for the Federal Circuit
                            717 Madison Place, N.W.
                            Washington, D.C. 20439

      Additional information about the U.S. Court of Appeals for the Federal
Circuit is available at the court’s website, www.cafc.uscour ts.gov. Of particular
relevance is the court’s “Guide for Pro Se Petitioners and Appellants,” which is
contained within the court’s Rules of Practice, and Forms 5, 6, 10, and 11.
      If you are interested in securing pro bono representation for an appeal to
the U.S. Court of Appeals for the Federal Circuit, you may visit our website at
http://www.mspb.gov/probono for information regarding pro bono representation
for Merit Systems Protection Board appellants before the Federal Circuit. The
Board neither endorses the services provided by any attorney nor warrants that
any attorney will accept representation in a given case.

      (2) Judicial   or   EEOC     review   of   cases     involving    a   claim   of
discrimination. This option applies to you only if you have claimed that you
were affected by an action that is appealable to the Board and that such action
was based, in whole or in part, on unlawful discrimination. If so, you may obtain
judicial review of this decision—including a disposition of your discrimination
claims—by filing a civil action with an appropriate U.S. district court ( not the
U.S. Court of Appeals for the Federal Circuit), within 30 calendar days after you
receive this decision.     5 U.S.C. § 7703(b)(2); see Perry v. Merit Systems
Protection Board, 582 U.S. ____ , 137 S. Ct. 1975 (2017).              If you have a
representative in this case, and your representative receives this decision before
you do, then you must file with the district court no later than 30 calendar days
after your representative receives this decision. If the action involves a claim of
discrimination based on race, color, religion, sex, national origin, or a disabling
condition, you may be entitled to representation by a court-appointed lawyer and
                                                                                11

to waiver of any requirement of prepayment of fees, costs, or other security. See
42 U.S.C. § 2000e-5(f) and 29 U.S.C. § 794a.
      Contact information for U.S. district courts can be found at their respective
websites, which can be accessed through the link below:
      http://www.uscourts.gov/Court_Locator/CourtWebsites.aspx.
      Alternatively, you may request review by the Equal Employment
Opportunity Commission (EEOC) of your discrimination claims only, excluding
all other issues. 5 U.S.C. § 7702(b)(1). You must file any such request with the
EEOC’s Office of Federal Operations within 30 calendar days after you receive
this decision. 5 U.S.C. § 7702(b)(1). If you have a representative in this case,
and your representative receives this decision before you do, then you must file
with the EEOC no later than 30 calendar days after your representative receives
this decision.
      If you submit a request for review to the EEOC by regular U.S. mail, the
address of the EEOC is:
                            Office of Federal Operations
                     Equal Employment Opportunity Commission
                                  P.O. Box 77960
                             Washington, D.C. 20013

      If you submit a request for review to the EEOC via commercial delivery or
by a method requiring a signature, it must be addressed to:
                            Office of Federal Operations
                     Equal Employment Opportunity Commission
                                 131 M Street, N.E.
                                   Suite 5SW12G
                             Washington, D.C. 20507

      (3) Judicial     review   pursuant   to   the   Whistleblower    Protection
Enhancement Act of 2012. This option applies to you only if you have raised
claims of reprisal for whistleblowing disclosures under 5 U.S.C. § 2302(b)(8) or
other protected activities listed in 5 U.S.C. § 2302(b)(9)(A)(i), (B), (C), or (D).
If so, and your judicial petition for review “raises no challenge to the Board’s
                                                                                     12

disposition of allegations of a prohibited personnel practice described in
section 2302(b) other than practices described in section 2302(b)(8), or
2302(b)(9)(A)(i), (B), (C), or (D),” then you may file a petition for judicial
review either with the U.S. Court of Appeals for the Federal Circuit or any court
of appeals of competent jurisdiction. 9 The court of appeals must receive your
petition for review within 60 days of the date of issuance of this decision.
5 U.S.C. § 7703(b)(1)(B).
      If you submit a petition for judicial review to the U.S. Court of Appeals for
the Federal Circuit, you must submit your petition to the court at the
following address:
                               U.S. Court of Appeals
                               for the Federal Circuit
                              717 Madison Place, N.W.
                              Washington, D.C. 20439

      Additional information about the U.S. Court of Appeals for the Federal
Circuit is available at the court’s website, www.cafc.uscourts.gov. Of particular
relevance is the court’s “Guide for Pro Se Petitioners and Appellants,” which is
contained within the court’s Rules of Practice, and Forms 5 , 6, 10, and 11.
      If you are interested in securing pro bono representation for an appeal to
the U.S. Court of Appeals for the Federal Circuit, you may visit our website at
http://www.mspb.gov/probono for information regarding pro bono representation
for Merit Systems Protection Board appellants before the Federal Circuit. The

9
   The original statutory provision that provided for judicial review of certain
whistleblower claims by any court of appeals of competent jurisdiction expired on
December 27, 2017. The All Circuit Review Act, signed into law by the President on
July 7, 2018, permanently allows appellants to file petiti ons for judicial review of
MSPB decisions in certain whistleblower reprisal cases with the U.S. Court of Appeals
for the Federal Circuit or any other circuit court of appeals of competent jurisdiction.
The All Circuit Review Act is retroactive to November 26, 2017. Pub. L. No. 115-195,
132 Stat. 1510.
                                                                           13

Board neither endorses the services provided by any attorney nor warrants that
any attorney will accept representation in a given case.
      Contact information for the courts of appeals can be found at their
respective websites, which can be accessed through the link below:
      http://www.uscourts.gov/Court_Locator/CourtWebsites.aspx.

FOR THE BOARD:

/s/
Jennifer Everling
Acting Clerk of the Board
Washington, D.C.