Holmes v. United States
2011 U.S. App. LEXIS 18809
| Fed. Cir. | 2011Background
- Holmes, a disabled Navy veteran, alleged the Navy breached two Title VII settlement agreements (1996 and 2001) arising from EEOC actions and a 2001 district-court action, seeking monetary damages under the Tucker Act.
- 1995 Agreement required expunging certain records and correcting OPF; 1996 Agreement provided employment and OPF documentation; 2001 Agreement mandated expungement of a fourteen-day suspension and neutral MIB reference.
- Holmes learned in 2006 that the Navy had not fully comply with expungement; he later filed suit in 2009 in the Court of Federal Claims seeking damages for breaches.
- Court of Federal Claims dismissed for lack of jurisdiction (money damages not clearly mandated) and for statute of limitations under 28 U.S.C. § 2501, not applying accrual suspension.
- This appeal argues Tucker Act jurisdiction exists because the agreements are money-mandating and that accrual suspension applies; the Federal Circuit reverses and remands.
- Court ultimately holds that the settlement agreements can fairly be read to mandate money damages for breach and that Holmes is entitled to accrual-suspension relief, so jurisdiction lies and remand is appropriate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Tucker Act jurisdiction lies for breach of Title VII settlement agreements. | Holmes—contracts are money damages under Tucker Act. | Navy—no money-mandating terms; non-monetary remedies predominate. | Yes; jurisdiction exists as the agreements can fair-interpret to money damages. |
| Whether the 1996 and 2001 Agreements are money-mandating. | Contracts inherently permit money damages for breach. | No express money damages; EEOC relief is non-monetary. | Fair-interpretation supports money damages; money-mandating requirement satisfied. |
| Whether accrual-suspension tolling applies to the six-year limit. | Holmes entitled to accrual-suspension due to inherently unknowable breach. | No concealment or inherently unknowable breach; inquiry-notice began earlier. | Holmes entitled to accrual-suspension; suit timely under § 2501. |
| Whether the 2001 Agreement is a consent decree and affects jurisdiction. | Not a consent decree; jurisdiction remains with CFC. | Argues it is a consent decree and outside Tucker Act. | Not a consent decree; Tucker Act jurisdiction remains. |
| Whether the Court of Federal Claims correctly dismissed for limitations before accrual suspensions. | Holmes filed within six years of reasonable knowledge date. | Lacked accrual-suspension applicability. | Reversed; accrual-suspension applies; case remanded. |
Key Cases Cited
- Navajo Nation v. United States, 556 U.S. 287 (U.S. 2009) (money-mandating requires a fair reading of rights to damages under the source of law)
- Rick's Mushroom Serv., Inc. v. United States, 521 F.3d 1338 (Fed. Cir. 2008) (cooperative agreements not money-mandating; CDA not applicable to implied-in-fact contracts)
- Khan v. United States, 201 F.3d 1375 (Fed. Cir. 2000) (need substantive money-damages right to invoke Tucker Act)
- White Mountain Apache Tribe v. United States, 537 U.S. 465 (U.S. 2003) (money-mandating standard requires fair inference of damages right)
- Testan v. United States, 424 U.S. 392 (U.S. 1976) (inquiry into money damages when source is statute)
- Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375 (U.S. 1994) (settlement vs. substantive rights distinction)
- Massie v. United States, 166 F.3d 1184 (Fed. Cir. 1999) (contracts arising under government dispute fall within Tucker Act)
- Del-Rio Drilling Programs Inc. v. United States, 146 F.3d 1358 (Fed. Cir. 1998) (contract claims may involve statutory interpretation; still Tucker Act jurisdiction)
- L.S.S. Leasing Corp. v. United States, 695 F.2d 1359 (Fed. Cir. 1982) (inherently unknowable accrual suspension involves reasonableness consideration)
- Roberts v. United States, 312 Fed. Appx. 340 (Fed. Cir. 2009) (construal of accrual suspension doctrine in context of government records)
