ERIC G. BRUGGINK, District Judge.
This is an action for back pay brought by an active duty bankruptcy judge. Judge Cornish's compensation is set by statute to "equal 92 percent of the salary of a judge of the district court of the United States as determined pursuant to [28 U.S.C.] section 135." 28 U.S.C. § 153(a) (2006). Plaintiff contends that he has not received his full statutory compensation because the compensation of district court judges has been improperly reduced due to Congress's failure to pay district court judges cost of living allowances ("COLAs") in 1995, 1996, 1997, 1999, 2007, and 2010. As a result, plaintiff's compensation for the six years preceding the filing of this suit has been reduced, he contends, because it does not include the cumulative effect of those COLAs on his salary. With respect to liability, he relies on the Federal Circuit's decision in Beer v. United States, 696 F.3d 1174 (Fed. Cir. 2012), cert. denied, 133 S.Ct. 1997 (2013).
Pending are the parties' cross motions for summary judgment. The matter is fully briefed and oral argument
The parties agree on the material facts. As indicated above, the salary of bankruptcy judges is fixed by statute to be "equal to 92 percent of the salary of a judge of the district court of the United States as determined pursuant to section 135." 28 U.S.C. § 153(a) (hereafter "Section 153(a)"). The salary of district court judges, in turn, is impacted by the Ethics Reform Act of 1989, Pub. L. No. 101-194, 103 Stat. 1716 (1989), which directs that, whenever a COLA is given to General Schedule employees, the salary of judges is increased by the amount of that COLA, less 0.5 percent. Id. § 704. Although that scheme was followed for several years, in 1995, 1996, 1997, and 1999, Congress adopted language in omnibus appropriations legislation which had the effect of excluding judges from receiving those COLA adjustments. For example, in 1997, the blocking legislation read as follows:
Omnibus Consolidated Appropriations Act of 1997, Pub. L. No. 104-208, § 637, 110 Stat. 3009-364 (1996).
Although blocking legislation was not adopted in 2007 and 2010, district court judges nevertheless did not receive the adjusted General Schedule COLA for those years because Congress amended a 1981 appropriations rider commonly known as "Section 140." We quote from the Federal Circuit opinion in Beer for the rest of the narrative:
Section 140 originally read:
696 F.3d at 1178.
The critical step toward a determination in Judge Cornish's favor on liability occurred when the Court of Appeals for the Federal Circuit issued its opinion in Beer. In substance, it held that Congress violated Article III of the Constitution when it purported to exclude Article III judges from COLAs granted in 1995, 1996, 1997, and 1999 to all general schedule federal civilian employees. "[T]he 1989 Act reduced judges' income by banning outside income but promised in exchange automatic maintenance of compensation—a classic legislative quid pro quo. . . ." Id. at 1183. When it enacted the "blocking legislation in 1995, 1996, 1997, and 1999, Congress broke this commitment and effected a diminution in judicial compensation." Id. at 1185.
The Federal Circuit also held that the Beer plaintiffs were entitled by statute to the 2007 and 2010 COLAs because the attempt to enforce the amendment to Section 140 was ineffective. Id. 1185-86. On April 22, 2013, the Supreme Court denied certiorari in Beer. 133 S.Ct. 1997 (2013).
Plaintiff's argument is straightforward: 28 U.S.C. § 153(a) provides that "Each bankruptcy judge . . . shall receive as full compensation for his services, a salary at an annual rate that is equal to 92 percent of the salary of a judge of the district court of the United States as determined pursuant to section 135." In light of Beer, it is undisputed
Defendant disagrees. It concedes that, under Beer, the compensation of bankruptcy judges should reflect the 2007 and 2010 COLAs received by district court judges because the court's analysis was not dependent on the plaintiff judges' Article III status.
Such a conclusion is belied by a straightforward reading of the controlling statutes. Section 153(a) is unambiguous: "Each bankruptcy judge shall . . . receive . . . a salary that is equal to 92 percent of the salary of a judge of the district court as determined pursuant to section 135. . . ." Section 135, in turn, provides that district court judges "receive a salary at an annual rate determined under section 225 of the Federal Salary Act of 1967 (2 U.S.C. §§ 351-361) as adjusted by section 461 of this title." 28 U.S.C. § 135 (2006). In relevant part, Section 461 incorporates the 1989 Ethics Reform Act. See 5 U.S.C. § 5318 (2012). The Federal Circuit in Beer ruled that the pay scheme adopted in the 1989 Act must be honored despite the blocking legislation. The result is unavoidable: the salaries of district court judges must reflect the missing COLAs, and the salary of bankruptcy judges is set by statute at 92 percent of the salary of district court judges.
Defendant argues, nevertheless, that "[b]ecause he is not an Article III judge, Judge Cornish is not protected by the Compensation Clause from having his pay diminished," Def.'s Mot. for Summ. J. 3. This is true but irrelevant. Judge Cornish is not relying on the constitutional argument used successfully by the plaintiffs in Beer. He does not need to. He has a perfectly straightforward statutory claim.
Defendant goes on to argue that, although the court in Beer ruled that the blocking legislation was unconstitutional as to Article III judges, it is enforceable with respect to other judges and executive officers. It cites Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837 (1984), for the proposition that, "[i]f a court, employing traditional tools of statutory construction, ascertains that Congress had an intention on the precise question at issue, that intention is the law and must be given effect." Id. at 843 n.9. In so arguing, defendant abandons the first principle of statutory construction, namely, reading the text of the relevant provisions for plain meaning. Instead it chooses to probe the debris of the unconstitutional blocking legislation and in it discerns an "intention on the precise question at issue." The general principle cited by defendant is that "[E]ven assuming a conflict with the bankruptcy judge pay statute, Congress's specific intent with respect to these COLAs must take precedence over the more general language of the bankruptcy judge pay statute." Def.'s Reply and Opp'n 2.
We acknowledge the underlying tool of construction that subsequent particularized legislation generally takes precedence over prior, conflicting, generalized provisions of law. What defendant incorrectly assumes, however, is that it has established that the blocking legislation reflects a specific intent on the relevant issue. Plainly it does not.
The precise question here is whether, if the blocking legislation fails in its principal purpose of denying COLAs to all judges, Congress had a specific intent nevertheless to reduce the salaries of bankruptcy judges. To ask the question is to answer it: no, if the blocking legislation failed in its principal purpose of denying COLAs to all judges, Congress plainly did not express a specific intent to reduce the salaries of bankruptcy judges. The legislation says nothing in particular about bankruptcy judges.
The attempts to block COLAs were, in each case, a one paragraph addition to a massive annual appropriations bill in which the blocking paragraphs left exactly zero by way of a legislative history contrail. Even more important, as the amicus brief carefully lays out, the salaries of bankruptcy judges are part of a complex, interlocking superstructure of statutes that have evolved over decades and which are the result, unlike the blocking paragraphs, of extensive debate and a lengthy legislative record, all leading to a carefully constructed, intentional end: bankruptcy judges earn 92 percent of the salary of district court judges. It would approach absurdity to unscramble that superstructure in pursuit of a chimerical congressional intent with respect to a piece of unconstitutional legislation. As the amici correctly observe, it would result in reading a substantive statute designed to preserve 92 percent parity in such a way as to result in permanent disparity.
Plaintiff offers a more apt line of statutory construction principles. He points out, for example, that repeals or amendments by implication are disfavored, citing United States v. Welden, 377 U.S. 95, 103 (1964). A repeal by implication would only be appropriate if the two acts are in irreconcilable conflict and the later act is clearly intended as a substitute for the former. Radzanower v. Touche Ross & Co., 426 U.S. 148, 154 (1976). Morever, a void statute cannot affect a valid existing law. See, e.g., Stewart v. Waller, 404 F.Supp. 206, 215 (N.D. Miss. 1975). All three principles have application here. Accommodating a partial application of the blocking provisions would amount to an unwarranted amendment of Section 153; the blocking legislation is not clearly intended to supplant the parity aspects of Section 153 in the circumstance that it is found invalid as to Article III judges; and the blocking provisions have been found to be unconstitutional.
We also cannot overlook the confusion that would result from adopting defendant's position. Pay administrators within the Administrative Office of the United States Courts would, for the foreseeable future, have to be told to ignore a plain reading of the controlling statutes and pay bankruptcy judges "what Congress really wants them to be paid." One would have to construct a hypothetical district court salary by taking the current salary of a district court judge, backing out the cumulative effect of four COLAs, and then apply 92 percent against that figure. Those adjustments, of course, could not be found in any presently-controlling law.
The simple fact is that Congress tried, but failed, to limit COLAs for judges. We decline to award a consolation prize of applying the failed effort to non-Article III judges.
Having concluded that Judge Cornish's salary has been improperly calculated during the six years prior to the filing of his claim, we move to the question of damages, as to which there is only one disputed issue: should Judge Cornish's back pay award be adjusted to reflect hypothetical increases in life insurance premiums? We concluded in Beer v. United States, 111 Fed. Cl. 592, that such an adjustment was not appropriate with respect to the Article III judges who brought that suit. We see no reason for a different result here and adopt the analysis set out in that opinion. See id. at 598-99.
Accordingly, defendant's motion for summary judgment is denied. Plaintiff's cross motion for summary judgment is granted. On the assumption that the court's rulings in this opinion are correct, the parties agree that Judge Cornish is entitled to net back pay through September 2013, in the amount of $93,383.39. We have attached to this opinion the underlying calculations in a spreadsheet prepared by the parties. In addition, pursuant to 28 U.S.C. § 1491(a)(2), the Administrative Office of the United States Courts is directed to reflect in the plaintiff's pay records the omitted COLAs, leading to a current annual rate of $181,332. Judgment accordingly.