Amit P. Mehta, United States District Judge.
Plaintiff Paul Fritch, a career Foreign Service Officer employed by Defendant U.S. Department of State, filed this lawsuit under the Administrative Procedure Act ("APA"), seeking review of the Foreign Service Grievance Board's rulings regarding two administrative grievances he filed. In his first grievance, Plaintiff complained that he was deprived of certain benefits, such as promotion consideration, during a five-year assignment to serve as Director of the Office of the Secretary General for the Organization for Security and Cooperation in Europe ("OSCE"). Defendant deemed Plaintiff ineligible for those benefits because his assignment to OSCE was done through a "separation and transfer" agreement, instead of a "detail." The Foreign Service Grievance Board
After the FSGB denied his first grievance, Plaintiff filed a second grievance in which he argued that he was entitled to certain benefits upon his re-employment with Defendant in June 2012, as a consequence of his separation and transfer to the OSCE. The Board, however, dismissed Plaintiff's second grievance based upon the common law doctrine of claim preclusion. That ruling is the subject of the dispute now before the court.
Upon consideration of the parties' submissions and the present record, the court concludes that the Board's decision to dismiss Plaintiff's second grievance was neither arbitrary and capricious nor contrary to law. Accordingly, the court grants Defendant's Motion for Summary Judgment and denies Plaintiff's Cross-Motion for Summary Judgment.
Plaintiff is a career Foreign Service Officer employed since 1991 by Defendant U.S. Department of State ("State" or "the Department"). Def.'s Mot. for Summ. J., ECF No. 46 [hereinafter Def.'s Mot.], at 6;
Plaintiff served as Director of the Office of the Secretary General at the OSCE from September 2007 through March 2012, and was re-employed by State in June 2012. Def.'s Mot. at 7; Pl.'s Cross-Mot. at 4-5. On August 7, 2012, Plaintiff filed a grievance with State ("First Grievance").
Before the Board could rule on Plaintiff's request for reconsideration, Plaintiff filed a new grievance with State on April 21, 2014 ("Second Grievance"). See Def.'s Mot. at 10; Pl.'s Cross-Mot. at 9. In his Second Grievance, Plaintiff asked the Department "to address violations of statute, regulation and published agency policy created by the Board's" finding that Plaintiff was separated from State during his time at OSCE. Admin. R., ECF No. 44, at 5; see also id. at 11-15. Specifically, Plaintiff alleged that the Department: (1) "failed to comply with 5 C.F.R. § 352.314(a) when it did not consider Plaintiff for promotion during the period of time when he was separated from the Department and transferred to OSCE"; (2) "acted inconsistently with Executive Order 11552 and 5 U.S.C. § 3584 when it failed to give `due consideration' to Plaintiff's qualifications gained during his service with the OSCE when determining the position and grade to which he was assigned upon his reemployment with the Agency," instead opting "merely to reinstate him at the grade he had held prior to that service, three grades lower than the rank of the position he had held at the OSCE"; and (3) "failed to reimburse Plaintiff for housing expenses incurred when Plaintiff was separated and transferred from the Department and employed by the OSCE." Pl.'s Cross-Mot. at 9-10; accord Def.'s Mot. at 10.
Because the Department did not render a timely decision on Plaintiff's Second Grievance, Plaintiff "referred" his grievance directly to the FSGB, which the Board docketed as an appeal. Pl.'s Cross-Mot. at 15.
Following that decision, Plaintiff amended his Complaint to add claims (Counts III and IV) challenging the Board's dismissal of his Second Grievance. See generally Am. Compl. In Count III, Plaintiff asks the court to set aside the Board's denial of his Second Grievance as "arbitrary, capricious, and otherwise not in accordance with law." Am. Compl. at 17; see 5 U.S.C. § 706(2)(A). Plaintiffs offers two arguments to support this claim. First, Plaintiff alleges that he could not have filed the Second Grievance seeking the benefits denied to him following his reemployment "until it became clear that the Department would deny him those benefits." Am. Compl. ¶ 47. Thus, "in essence," he filed the Second Grievance "to enforce the Board's findings in the original grievance, not to relitigate them." Id. Second, Plaintiff claims that while the FSGB has applied issue preclusion in the past, FSGB deviated "without explanation" from prior decisions in the instant case by applying the doctrine of claim preclusion, which it previously had never applied to dismiss a grievance. Id. ¶ 48. Count IV of Plaintiff's Amended Complaint asks the court to set aside the FSGB's denial for a different reason: the failure "to consider all relevant evidence in the record and provide a reasonable explanation for its decision to dismiss the [second] grievance." Id. at 18. Specifically, Plaintiff alleges that by dismissing the Second Grievance, the Board "refus[ed] to require that Defendant provide to Plaintiff those benefits specifically guaranteed by law to those employees in the status (re-employment following a separation/transfer to an international organization) it had found applied to him." Id. ¶ 49.
This court previously granted summary judgment for the Department on Counts I and II of the Amended Complaint, which challenged the denial of Plaintiff's First Grievance. See generally Fritch v. U.S. Dep't of State, 220 F.Supp.3d 51 (D.D.C. 2016). Thereafter, the parties filed cross-motions for summary judgment challenging the remaining two counts of the Amended Complaint (Counts III and IV), both of which relate to the denial of Plaintiff's Second Grievance. The parties' cross-motions are now ripe for consideration.
Pursuant to Rule 56 of the Federal Rules of Civil Procedure, a court ordinarily must grant summary judgment "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). But where, as here, the case involves review of a final agency action under the APA, the Rule 56 standard does not apply. See Picur v. Kerry, 128 F.Supp.3d 302, 308 (D.D.C. 2015). Under the APA, the court's review "is limited to the administrative record and the grounds for decision invoked by the agency." Loma Linda Univ. Med. Ctr. v. Sebelius, 684 F.Supp.2d 42, 52 (D.D.C. 2010) (citing Camp v. Pitts, 411 U.S. 138, 142, 93 S.Ct. 1241, 36 L.Ed.2d 106 (1973)). "[T]he function of the district court is to determine whether or not as a matter of law the evidence in the administrative record permitted the agency to make the decision it did." Stuttering Found. of Am. v. Springer, 498 F.Supp.2d 203, 207 (D.D.C. 2007) (internal quotation marks omitted).
In essence, agency action must be "the product of reasoned decisionmaking" in order to survive arbitrary and capricious review. Fox v. Clinton, 684 F.3d 67, 74-75 (D.C. Cir. 2012); accord Michigan v. EPA, ___ U.S. ___, 135 S.Ct. 2699, 2706, 192 L.Ed.2d 674 (2015). Thus, the court "will ordinarily uphold an agency's decision so long as the agency `examine[d] the relevant data and articulate[d] a satisfactory explanation for its action[,] including a rational connection between the facts found and the choice made.'" Animal Legal Def. Fund, Inc. v. Perdue, 872 F.3d 602, 611 (D.C. Cir. 2017) (quoting State Farm, 463 U.S. at 43, 103 S.Ct. 2856). A court, however, should not "supply a reasoned basis for the agency's action that the agency itself has not given." State Farm, 463 U.S. at 43, 103 S.Ct. 2856 (internal quotation mark omitted).
In this case, the parties have moved for summary judgment on Counts III and IV of the Amended Complaint. With respect to Count III, the Department contends that because Plaintiff could have pursued in his First Grievance the benefits to which he now claims entitlement, but failed to do so, the Board properly determined that he was precluded from pursuing those benefits in his Second Grievance. Def.'s Mot. at 14-15. Moreover, the Department asserts that this court may not consider Plaintiff's argument regarding the Board's failure to apply claim preclusion in the past, as Plaintiff failed to raise that argument in the administrative proceedings below. Id. at 15-16. And in any event, Defendant submits, Plaintiff has failed to cite any Board precedent conflicting with its decision to dismiss the grievance in the instant case or otherwise demonstrating that its decision to do so was arbitrary, capricious, or otherwise not in accordance with law. Id. at 16. With respect to Count IV, the Department argues that, because the Board dismissed the Second Grievance on the ground of claim preclusion, by definition, it did not need to reach the merits. Id.
Plaintiff, for his part, offers three "fundamental reasons" why the Board's dismissal of his Second Grievance should be set aside. Pl.'s Cross-Mot. at 23. First, Plaintiff claims that the Board "failed to follow governing regulations when it treated Plaintiff's Second Grievance as an appeal subject to review, rather than as a grievance to be investigated." Id. at 23-24. Second, Plaintiff asserts that the Board erred in finding his claims were barred by
The court begins with, and quickly dismisses, Plaintiff's argument that the Board's treatment of his Second Grievance as an "appeal" was "not in accordance with law." Pl.'s Cross-Mot. at 24. The court agrees with Defendant that Plaintiff failed to properly raise this issue with the Board during the administrative proceedings. See Def.'s Resp. to Cross-Mot. for Summ. J. & Reply in Supp. of Mot. for Summ. J., ECF No. 50 [hereinafter Def.'s Reply], at 6-9; see also Admin. R., ECF No. 44, at 67-78 (Plaintiff's opposition to motion to dismiss second grievance).
The court now turns to the heart of the matter: Plaintiff's argument that the Board erred in dismissing his Second Grievance on the ground of claim preclusion. Plaintiff challenges the Board's application of claim preclusion on two primary grounds: (1) the Board had not previously applied claim preclusion to dismiss a grievance and therefore lacked the authority to do so; and (2) the Board erred on the merits by applying claim preclusion to bar Plaintiff's claims in this case. See Pl.'s Cross-Mot. at 24-38. Neither argument is convincing.
Plaintiff's first contention — that the Board lacked the power to apply the common law doctrine of claim preclusion — is waived because he did not raise it before the FSGB. Compare Pl.'s Cross-Mot. at 36-38; Pl.'s Reply to Def.'s Opp'n to Cross-Mot. for Summ. J., ECF No. 53 [hereinafter Pl.'s Reply], at 10-11, with Admin. R., ECF No. 44, at 67-78. When the Department moved to dismiss Plaintiff's Second Grievance, it asserted two grounds for dismissal. See Admin. R., ECF No. 44, at 57. First, it argued that Section 1109(a) of the Foreign Service Act, 22 U.S.C. § 4139(a),
Even if Plaintiff could raise that argument now, the contention lacks merit. Plaintiff makes his assertion that the Board did not have the authority to invoke claim preclusion most clearly in his reply brief. Citing the D.C. Circuit's decision in North Carolina v. FERC, 112 F.3d 1175 (D.C. Cir. 1997), he insists that claim preclusion "cannot preclude a party from raising claims under circumstances defined by the legislature." Pl.'s Reply at 10 (citing FERC, 112 F.3d at 1185). Here, Plaintiff suggests that the controlling statute is 22 U.S.C. § 4134(a), which provides that a Foreign Service Officer may file a grievance within two years from the date the Officer discovers the matter giving rise to the grievance. Pl.'s Reply at 11. Drawing a parallel to the statute at issue in North Carolina v. FERC, Plaintiff asserts that "[w]here Congress has not required the Officer to include in a grievance all possible claims, including those that have not yet ripened into a dispute, the Board cannot impose such a requirement under the guise of claim preclusion." Id.
Plaintiff's reliance on North Carolina v. FERC is misplaced. In that case, the state of North Carolina sought review of a decision "to amend a FERC license under which a power project was operated within Lake Gaston on the Roanoke River" by Virginia Power and Electric Company. 112 F.3d at 1180. The amended license would have allowed Virginia Beach to build an intake structure within the project's boundaries and withdraw water from the Lake as a part of a pipeline project. Id. Because Lake Gaston is located primarily in North Carolina, North Carolina intervened in the license amendment proceedings and petitioned the Commission to stay its proceeding until Virginia Power obtained a water quality certification from North Carolina pursuant to section 401(a)(1) of the Clean Water Act, 33 U.S.C. § 1341(a)(1). Id. at 1180-82. After the Commission denied the petition, North Carolina moved for rehearing. Id. at 1182. In denying the motion, the Commission held, among other things, that North Carolina waived its Section 401 certification right by failing to assert it during an earlier proceeding involving Virginia Beach's
After finding that North Carolina did not waive its certification right under the plain language of Section 401(a)(1), the D.C. Circuit addressed the agency's alternative grounds for affirmance, one of which was the common law doctrine of claim preclusion. Id. at 1183-85. The Circuit rejected the Commission's invitation to "read th[e] doctrine [of claim preclusion] into Section 401(a)(1)," which "clearly provide[d] that a Federal license or permit may not be granted `until the certification required by [the statute] has been obtained or has been waived' as a result of a state's `refus[al] to act on a request' for such in a timely manner." Id. at 1185 (third alteration in original) (emphasis added) (quoting 33 U.S.C. § 1341(a)(1)). The court reasoned that there was "no room for the doctrine of claim preclusion in such a precisely worded provision," and to hold otherwise would require the court "to usurp the legislative function." Id.
In this case, Plaintiff has pointed to no similar "precisely worded" statutory provision. Instead, the statute cited by Plaintiff, 22 U.S.C. § 4134(a), simply states when a grievance must be filed, see id. (providing that a grievance "is forever barred ... unless it is filed with the Department not later than two years after the occurrence giving rise to the grievance"), and is thus more akin to a statute of limitations. Unlike in North Carolina v. FERC, there is nothing inherently inconsistent about the Board applying the doctrine of claim preclusion in the face of a statute that does no more than set a limitations period within which to file a grievance. The Board therefore did not act arbitrarily by relying on the doctrine of claim preclusion to dismiss the Second Grievance.
As was the case before the Board, Plaintiff's primary argument here is that the FSGB wrongly applied the doctrine of claim preclusion to his case. See Pl.'s Cross-Mot. at 2, 25-27. For the reasons stated below, the court finds no error with the Board's decision.
Plaintiff contends that this "critical test" is not satisfied here, in part because the claims raised in his First and Second grievances are "distinct." Pl.'s Cross-Mot. at 26-27. Specifically, Plaintiff argues that the "subject of [his] First Grievance ... was the denial of promotion eligibility while he was assigned to OSCE, which he alleged was due to the Department's effectuating the assignment in 2007 by separation/transfer." Id. at 28. By contrast, Plaintiff contends, the claim in his Second Grievance "did not concern the benefits to which he would have been entitled during a detail to the OSCE" and instead challenged "the Department's failure to award him the benefits to which he was entitled after he was re-employed, in light of the Board's decision rejecting his challenge to his separation/transfer." Id. at 28-29. Thus, Plaintiff attempts to distinguish the two claims based on the purported time when each arose.
Like the Board, the court finds that distinction unconvincing. While Plaintiff emphasizes that his First Grievance concerned benefits he should have received during his assignment to OSCE, the benefits that he claims he was entitled to after his assignment in his Second Grievance also arise out of the same operative set of facts: the assignment itself. Both grievances rise and fall on the question whether Plaintiff's 2007 assignment was a "separation and transfer" or a "detail." No other facts are relevant. Thus, as the Board properly recognized, both sets of claims "flow from the separation/transfer action." Admin. R., ECF No. 44, at 112.
Plaintiff offers a host of arguments to avoid the consequence of his splitting of claims, but none are convincing. First, he asserts that, because "he was entitled to certain comparable but legally distinct benefits after his return from his separation/transfer to OSCE," the Second Grievance differs from the First. See Pl.'s Cross-Mot. at 27. That Plaintiff sought "comparable but legally distinct benefits" in his Second Grievance, however, does not entitle Plaintiff to "get a second bite at th[e] same apple." See Nat'l Res. Def. Council, 513 F.3d at 261. Rather, as Plaintiff himself recognizes, "a party cannot escape application of the doctrine by raising a different legal theory or seeking a different remedy in the new action that was available to [him] in the prior action." Pl.'s Cross-Mot. at 26 (alteration in original) (quoting Sluss v. Renaud, No. 15cv1475, 2016 WL 4487729, at *3 (D.D.C. Aug. 25, 2016)). Accordingly, the fact that Plaintiff sought "legally distinct" benefits as part of his Second Grievance does not save him.
Next, Plaintiff argues that the Board's application of claim preclusion was improper because the claims he raised in the Second Grievance could not have been included in his First Grievance. Id. at 31. The reason he could not grieve the claims simultaneously, Plaintiff states, is that the second contention — that he was entitled to benefits even as a separated employee under Executive Order 11552 and 5 U.S.C.
Additionally, Plaintiff challenges the Board's decision as arbitrary and capricious because "it reveals considerable confusion" over whether its "decision [wa]s predicated upon collateral estoppel or claim preclusion." See Pl.'s Cross-Mot. at 32; Pl.'s Reply at 7-8. The court rejects this argument. True, the Board repeatedly characterized the doctrine it was applying as "Collateral Estoppel (Claim Preclusion)," see Admin. R., ECF No. 44, at 110-12, even though collateral estoppel refers to issue preclusion, see generally Bailey v. Fulwood, 793 F.3d 127, 136 n.5 (D.C. Cir. 2015). But in dismissing Plaintiff's Second Grievance, the Board unquestionably applied the elements of claim preclusion. For example, the Board held:
Id. at 111. Indeed, other than mistakenly characterizing claim preclusion as "collateral estoppel" instead of "res judicata," there is no indication whatsoever that the Board confused the two doctrines. See, e.g., id. at 110-11 ("We are not convinced that the two claims are separate and distinct...." (emphasis added)); id. at 112 ("[Plaintiff] had the opportunity, and even
Finally, the court's conclusion that the Board did not improperly apply the doctrine of claim preclusion resolves Plaintiff's contention as to Count IV, which is that the Board failed to consider the merits of his Second Grievance. See Am. Compl. ¶ 49; Pl.'s Cross-Mot. at 2-3. Because the Board found the Second Grievance to be barred under the doctrine of claim preclusion, it appropriately dismissed the Second Grievance without considering its merits. Cf. Nat'l Res. Def. Council, 513 F.3d at 261. That is how claim preclusion works.
That leaves Plaintiff's argument concerning the Board's rejection of his plea to apply the equitable principle of judicial estoppel to prevent the Department from seeking dismissal on claim preclusion grounds. Plaintiff contends that Defendant pulled a bait and switch. He maintains that when the Department opposed his request for reconsideration of the First Grievance, the Department argued that the Board should not consider Plaintiff's claims regarding Executive Order 11552 and 5 U.S.C. § 3584 — one of the bases for his Second Grievance — in part because "they did not concern the claims raised in the First Grievance," and "in any event ... were fully addressed in the Second Grievance." Pl.'s Cross-Mot. at 43 (citing Admin. R. Part 6, ECF No. 38, at 197). Having taken that position in the First Grievance proceedings, Plaintiff maintains that the Department was foreclosed — or judicially estopped — from subsequently arguing in the Second Grievance proceedings that Plaintiff could have brought his claims all at once. See id. at 44. Thus, in the administrative proceedings below, Plaintiff urged the Board not to invoke claim preclusion on the ground of judicial estoppel. See id. at 38; see also Admin. R., ECF No. 44, at 73-76.
The Board, however, declined to apply that equitable doctrine. See Admin. R., ECF No. 44, at 112-13. In doing so, the Board relied on the test set out in New Hampshire v. Maine, 532 U.S. 742, 121 S.Ct. 1808, 149 L.Ed.2d 968 (2001), which articulates three factors that courts generally consider when determining whether to apply judicial estoppel in a particular case:
See Admin. R., ECF No. 44, at 113 & n.4 (quoting Moses v. Howard Univ. Hosp., 567 F.Supp.2d 62, 66 (D.D.C. 2008)); Moses, 567 F. Supp.2d at 66 (quoting New Hampshire, 532 U.S. at 750-51, 121 S.Ct. 1808). Applying this test, the Board ultimately found "no evidence that any of these three factors appl[ied], that the Department abused the legal system by any of the arguments it made in this case, or that its actions met any other prerequisites that might be used in determining applicability of this doctrine." Admin. R., ECF No. 44, at 113. The Board also concluded
The court finds no error in the Board's ruling or its reasoning. Having closely reviewed all of the parties' relevant submissions to the Board during both proceedings, the court concludes that the Department's position in its opposition to Plaintiff's request for reconsideration of the First Grievance was not "clearly inconsistent" with the position it took later in its motion to dismiss the Second Grievance. As Defendant correctly points out, its opposition simply argued that Plaintiff's claims under the Executive Order and relevant statute "had not been asserted during the proceedings on the merits, and therefore could not justify reconsideration of the Board's decision." Def.'s Reply at 24; cf. Pl.'s Cross-Mot. at 42-43 (noting that, with respect to his argument regarding Executive Order 11552 and 5 U.S.C. § 3584, the Board held that Plaintiff was "presenting this as a new argument which, ... [the Board] will not consider on the merits or as grounds for reconsideration" (quoting Admin. R. Part 6, ECF No. 38, at 275)). The Department's position in its motion to dismiss the Second Grievance is premised on a similar ground: Plaintiff's failure to assert these claims when he filed the First Grievance. See Admin. R., ECF No. 44, at 62-63. Moreover, as the Board recognized, there is no inconsistency in the Department's position that the Board remand the first grievance to the agency if the Board denied the request for reconsideration in all other respects, but allowed Plaintiff to pursue the new claims he raised for the first time in his request for reconsideration. See id. at 113. Parties frequently present alternative arguments, and there is nothing novel about the Department's decision to do so here.
For the reasons set forth above, Defendant's Motion for Summary Judgment, ECF No. 46, is granted, and Plaintiff's Cross-Motion for Summary Judgment, ECF No. 49, is denied. A separate Order accompanies this Memorandum Opinion.
22 U.S.C. § 4139(a)(1). The FSGB did not rely on this statute to dismiss Plaintiff's Second Grievance. Admin. R., ECF No. 44, at 110.