Lead Opinion
On April 30, 1983, petitioner Leon Barnett was discharged from his position as a correctional officer with the District of Columbia Department of Corrections, a position he had held for two and a half years. The Department discharged him because it discovered that he had been convicted of a felony and had not included that information in his January 22, 1980, employment application.
Barnett filed for unemployment benefits on May 5, 1983. On May 16 a claims deputy determined that he was ineligible for benefits because he had been discharged for “misconduct,” D.C.Code § 46-111(b) (Supp.1984). He appealed this decision, and a hearing was held by an appeals examiner on May 20. On July 8, 1983, the appeals examiner affirmed the decision of the claims deputy, finding that Barnett had been dismissed because he had falsified his job application. Barnett did not seek further administrative review of this decision, as he was entitled to do under agency regulations promulgated pursuant to D.C.Code § 46-112(e) (1981), see 18 DCRR § 4610 (1983), nor did he seek judicial review at that point.
Following the expiration of the 10-day period for second-level appeals to the Office of Appeals and Review, see 18 DCRR § 4610.2 (1983), Barnett discovered that he was in fact entitled to expungement. He filed a motion with his sentencing judge to correct his conviction records, and Federal District Judge Howard Corcoran acted upon this motion on October 28, 1983, expunging the conviction nunc pro tunc to May 21, 1976.
On November 13, 1983, Barnett filed a petition for reconsideration of the adverse unemployment benefits decision with the Office of Appeals and Review (OAR), based on the new information. On November 18, 1983, the agency dismissed his petition as untimely filed. The OAR also stated that its dismissal constituted a “final decision” of the agency and that Barnett could seek review of that decision from this court.
The Department of Employment Services (DOES) now argues that this court has no jurisdiction over the appeal, because Barnett failed to exhaust all of his administrative remedies in a timely fashion prior to his appeal to this court. DOES maintains that Barnett’s procedural default warrants our dismissal of the petition. We disagree, finding extraordinary circumstances in this case justifying a departure from the normal rule of full exhaustion of administrative remedies as a prerequisite to judicial review. Upon a review of the record, we find no “misconduct” by Barnett within the meaning of the Unemployment Compensation Act, D.C.Code § 46-lll(b) (Supp.1984), and we therefore reverse the decision of the agency.
I.
DOES contends that the three levels of administrative review incorporated within the Unemployment Compensation Act and accompanying regulations — determinations by a claims deputy, an appeals examiner, and the Office of Appeals and Review — are “jurisdictional”; in other words, that this court has no jurisdiction to review the merits of a petition by a claimant who has failed to pursue all three levels of review in a timely fashion.
It is true that we have held that the appeals periods for intra-agency reviews are “jurisdictional,” in the sense that the agency may decline to review any petition that is not filed in a timely fashion. Gosch v. District of Columbia Department of Employment Services,
Exhaustion requirements, whether incorporated within an agency statute, or created by judicial rule, are “ *rule[s] of judicial administration.’ ” Id. at 733 (citing Myers v. Bethlehem Shipbuilding Corp.,
The exhaustion rule, however, is not carved in stone. The rule has its origins, according to Professor Jaffe, in “ ‘a discretionary rule adopted by courts of equity to the effect that a petitioner will be denied equitable relief when he has failed to pursue an available administrative remedy by which he might obtain the same relief.’ ” L. Jaffe, Judicial Control of Administrative Action 425 (1965) (quoting Smith v. United States,
Where, as in this case, the statute demonstrates Congress’ intent to require administrative determination in advance of judicial consideration of a claim, the claimant must make a “strong showing” of compelling circumstances justifying equity’s intervention in order to persuade us to excuse a failure to exhaust and examine the claim’s merits. Aircraft & Diesel Equipment Corp. v. Hirsch,
It is inappropriate for us, at this point, to attempt to define all of the circumstances in which exhaustion might be excused. We are content to hold that, on the facts presented in this case, the claimant ltas demonstrated “compelling circumstances,” see Moore v. City of East Cleveland, supra,
It would not advance the policy behind the exhaustion rule to require Barnett, as a prerequisite to our review of his claim, to have appealed the decision of the appeals examiner to the Office of Appeals and Review prior to securing the court order of expungement; judicial economy is not served by requiring a claimant “ ‘to go through obviously useless motions in order to preserve [his] rights.’ ” Bendure v. United States,
Moreover, where circumstances beyond the control of the applicant prevent him from exhausting his administrative remedies, like the federal government’s error in this case in failing to expunge Barnett’s criminal record, lack of exhaustion may be excused. See Donato v. United States,
Also weighing in favor of review is the fact that petitioner’s procedural default occurred after the agency had been afforded an opportunity to create a factual record, McGee, supra note 7,
Finally, while we recognize the desirability of the general practice under which our court declines to consider the merits of cases in which the petitioner has not fully exhausted his opportunities for administrative review, nevertheless we should not “lose sight of the fact that such appellate practice should not be applied where the obvious result would be a plain miscarriage of justice.” Hormel v. Helvering,
In summary, we hold that the exhaustion of administrative remedies requirement incorporated within the Unemployment Compensation Act is not jurisdictional, and that equity may permit us to relax the requirement in exceptional cases. This is such a case, for the federal government’s error, combined with the delay in securing a court order of expungement, are “compelling circumstances” excusing Barnett’s failure to take a timely administrative appeal and justifying our review of the case on the merits.
Upon a review of the augmented record, we find the agency’s determination that Barnett had obtained his employment with the D.C. Department of Corrections by fraudulent means, and that this “misconduct” justified denial of benefits under the Unemployment Compensation Act, to be in error. See D.C.Code § 1-1510(a) (1981). Pursuant to D.C.Code § 17-306 (1981), we reverse the decision of the appeals examiner, and remand to the agency for the calculation and award of benefits to petitioner.
Reversed and remanded.
Notes
. In a Notice of Proposed Discharge, dated January 28, 1983, James Freeman, Assistant Director for Correctional Services, informed Barnett that he would be discharged because (1) he used fraud in securing employment, and falsified official documents, and (2) he was a convicted felon.
. The following questions were included in the application form (SF 171):
30A. Have you ever been convicted ... for any felony....
30B. During the past seven years have you been convicted, imprisoned, on probation or parole....
NOTE: When answering A and B above, you may omit ... (3) any conviction the record of*1158 which has been expunged under Federal or State law; (4) any conviction set aside under the Federal Youth Corrections Act or similar State authority.
Barnett answered "no” to both 30A and 30B.
. Barnett was indicted in 1971 for violations of the federal narcotics laws, and he entered a plea of guilty to the charges on April 16, 1973. He was sentenced to probation under the Federal Youth Corrections Act, 18 U.S.C. § 5010 (repealed 1984), and the Act provided for automatic expungement of records of conviction following unconditional release from probation, 18 U.S.C. § 5021(a) (repealed 1984). Barnett successfully completed his probationary term on May 21, 1976, and at that point his conviction should have been expunged by federal authorities.
. The agency has the discretion to define the term "final decision,” and by its action or inaction it may be deemed to have waived the defense that administrative remedies have not been fully exhausted because no "final decision” was rendered. See Weinberger v. Salfi,
. The Department of Employment Services assumed the functions of the old District of Columbia Unemployment Compensation Board, by Reorganization Plan No. 1 of 1980, part V (effective April 17, 1980).
. D.C.App.R. 15(a) now provides that petitions for review of agency decisions must be filed "within thirty days after notice is given" to the claimant of the decision (unless an applicable statute provides a different time for filing, not the case here). New Rule 15(a) supersedes the Department of Employment Services’ regulation that allows only 15 days for appeals to this court of final agency decisions, see 18 DCRR § 4611.2 (1983). Section 4611.2 was based on former D.C.App.R. 15(b), which set forth a 15-day appeals period. Former Rule 15(b) was in effect at the time Barnett filed his appeal with this court, and Barnett did file his appeal within 15 days of the Office of Appeals and Review determination. D.C.App.R. 15 is promulgated pursuant to D.C.Code § 17-307(a) (1981) (time for appeal from agency decisions may be set by this court by rule).
. See generally McGee v. United States,
. See, e.g., Andrade, supra note 7,
. In another context, we have described a failure to exhaust administrative remedies as "depriv[ing] this court of jurisdiction of the petition.” Beal v. District of Columbia Rental Housing Comm’n,
. See also Glover v. St. Louis-San Francisco Ry.,
. See Humana of S.C., Inc. v. Califano,
. See NLRB v. Industrial Union, supra note 8,
See also Athas v. United States,
. See also Athlone Industries, supra,
. See also Zipes, supra,
Concurrence Opinion
concurring:
I join fully in Judge Mack’s well-wrought opinion. I add these few words merely to emphasize that in ruling as we do in this case, we are not opening the floodgates to careless litigants who sleep on their rights and fail to exhaust their administrative remedies.
The numerous cases which allow the exhaustion requirement to be relaxed all speak in terms of “exceptional,” “extraordinary,” or “compelling” circumstances. I would require a clear showing by the aggrieved litigant that such circumstances not only are present but are totally beyond the litigant’s control. Failing that, the litigant should demonstrate that there would be a “plain miscarriage of justice”
. Hormel v. Helvering,
