Leon H. WHITE, Appellee, v. Warren M. BLOOMBERG, Postmaster, United States Post Office Department to be known as The United States Postal Service, et al., Appellants.
No. 73-1960
United States Court of Appeals, Fourth Circuit
Decided July 18, 1974
Argued Jan. 10, 1974.
Finally, the recent Tenth Circuit case, United States v. Briola, 465 F.2d 1018 (10th Cir. 1972), rehearing denied (1972), cert. denied, 409 U.S. 1108, 93 S. Ct. 908, 34 L.Ed.2d 688 (1973), is distinguishable insofar as the time sequence in that case raised a question as to Briola‘s knowledge of the subordinate, Meyer, utilizing a different name in placing the bets. There is no similar time sequential dilemma in this case. The evidence is clear that Andrino had the requisite knowledge of the creation of the debts, and that he subsequently manipulated the use of force against the debtors in such a manner as to merit the inference that he was primarily responsible for the physical and mental abuse of the debtors following the extension of the credit.
Andrino‘s final contention regarding consolidation of the two indictments is equally without merit. The evidence relating to the several crimes charged tended to demonstrate a common “scheme or design” embracing those independent, yet related crimes, and tended to establish his complicity in their commission. Smith v. United States, 173 F.2d 181, 185 (9th Cir. 1949); accord, Tandberg-Hanssen v. United States, 284 F.2d 331, 333 (10th Cir. 1960). Any potential errors latent in the consolidation of the two cases was more than compensated for by adequate opportunity for cross-examination, and by limitation of jury instructions. United States v. Gary, 447 F.2d 907, 909-910 (9th Cir. 1971), rehearing denied (1971). That the jury acquitted Andrino of the first count in the second indictment evidences their discernment of the factual issues in the case, the ability of counsel to control presentation, and the propriety and strength of the trial court‘s instructions. There was no prejudice in ordering consolidation of the two cases for single trial.
Accordingly, the judgment of conviction as to the three counts is affirmed.
Kenneth A. Reich, Baltimore, Md. (Robert M. Bell, Garber A. Davidson, Jr., David F. Tufaro and Piper & Marbury, Baltimore, Md., on brief) for appellee.
CRAVEN, Circuit Judge:
This suit by a wrongfully discharged postal employee raises an ancillary question of procedure under the Back Pay Act of 1966,
The Baltimore Post Office discharged Leon White on October 30, 1970, for failing to pay a debt claimed by the postal employees’ credit union. After exhausting his administrative remedies, White filed this suit for reinstatement1 and back pay in the district court.1 On June 23, 1972, the district court granted plaintiff‘s motion for summary judgment. White v. Bloomberg, 345 F.Supp. 133 (D.Md.1972). The court‘s opinion was accompanied by an order in these words:
Notes
The defendant United States Postal Service shall without delay reinstate plaintiff and pay to him back pay from the date of his discharge, namely, October 30, 1970, to the date of his reinstatement in accordance with the opinion of this Court filed this 23rd day of June, 1972.
The Postal Service reinstated White six days later, and the parties began discussions over the exact amount he would receive under the Back Pay Act.2 Some time in October 1972 the Postal Service first informed White‘s counsel that the back pay award would include only the period from October 30, 1970, the date of discharge, to August 5, 1971, the date of the final administrative action, because White had not actively sought substitute employment after his administrative appeal failed.3 At plaintiff‘s re-
The Mitigation Issue
The Back Pay Act provides as follows:
(b) An employee of an agency who, on the basis of an administrative determination or a timely appeal, is found by appropriate authority under applicable law or regulation to have undergone an unjustified or unwarranted personnel action that has resulted in the withdrawal or reduction of all or a part of the pay, allowances, or differentials of the employee—
(1) is entitled, on correction of the personnel action, to receive for the period for which the personnel action was in effect an amount equal to all or any part of the pay, allowances, or differentials, as applicable, that the employee normally would have earned during that period if the personnel action had not occurred, less any amounts earned by him through other employment during that period; and
(2) for all purposes, is deemed to have performed service for the agency during that period, except that the employee may not be credited, under this section, leave in an amount that would cause the amount of leave to his credit to exceed the maximum amount of the leave authorized for the employee by law or regulation.
Although the Act itself does not authorize deductions based on an employee‘s failure to seek substitute employment, the Court of Claims has held that the common law rules of mitigation apply. Urbina v. United States, 192 Ct.Cl. 875, 428 F.2d 1280 (1970); Schwartz v. United States, 149 Ct.Cl. 145, 181 F.Supp. 408 (1960). Under this doctrine, the employer can reduce its back pay obligation by the amount the employee could have earned if he had made reasonable efforts to find another job. 11 S. Williston, Law of Contracts §§ 1358-59 (Jaeger ed. 1968); NLRB v. Moss Planing Mill Co., 224 F.2d 702 (4th Cir. 1955). In this case neither White nor the defendants raised the issue of mitigation prior to the entry of summary judgment, and each now argues that the other bore the burden of proof with respect to this issue. Because defendants did not appeal the initial back pay award, however, they may not now assert plaintiff‘s failure of proof on this issue as a bar to recovery.4 And, though mitigation is ordinarily considered an affirmative defense that must be pleaded and proved by the employer, e. g., Florence Printing Co. v. NLRB, 376 F.2d 216 (4th Cir.), cert. denied, 389 U.S. 840, 88 S.Ct. 68, 19 L.Ed.2d 104 (1967); Williston, supra, § 1360; 5 C. Wright & A. Miller, Federal Practice and Procedure § 1273 (1969), we rest our decision on other grounds.
The full text of the order: “MR. CLERK: In view of certain matters that have been raised in this case with regard to the amount of back pay which the plaintiff is entitled to receive under the Order of this Court, the official court file in this case should be reopened. It is so ORDERED, this 2nd day of November, 1972.” While the order in certain circumstances might be viewed merely as a direction to the clerk for administrative or statistical purposes, parts of two subsequent letters from the court to the attorneys make its meaning clear, or at least make clear that the matter of mitigation was before the court for consideration on its merits. Letter of November 14, 1972 “Tentatively, it would appear to me . . . that the government does have a right to raise the issue of mitigation for the period beginning October 31, 1971 and ending June 23, 1972.” Letter of December 7, 1972 “(2) I believe that an evidentiary hearing, either at the administrative or judicial level, will be required to determine the issue of mitigation.”Defendants did not present this procedural argument to the district judge prior to the entry of summary judgment. White‘s complaint clearly raised the issue of back pay. Both parties moved for summary judgment, but neither sought to limit the court‘s decision to the issue of liability or suggested that there was a genuine issue on damages that would justify a partial summary judgment under
Despite their failure to ask the district court to reserve the question of failure to mitigate on the amount of back pay and to limit the summary judgment to a theoretical determination of entitlement to back pay, or even to reinstatement only, defendants contend that the judgment must be so limited because the district court lacked power to
Because the Act and the regulations are silent on this point, we decline to impose a bifurcated procedure on the district courts. The district judges are better situated than we to choose the optimum procedure for a given case. In many cases the court may be able to compute back pay at the time it orders reinstatement. If a particular case presents a complex dispute over computation, the district court has discretionary power to bifurcate the proceedings under Rule 42(b) or Rule 56(c). Indeed, the district court might have done so here had it been asked. Or the district judge may prefer to have the employee and the agency seek agreement on the computation of back pay. If so, he may follow a procedure that has been employed in other Back Pay Act cases, ordering reinstatement and retaining jurisdiction over the back pay issue in case the parties cannot reach an administrative settlement. See Floyd v. Resor, 409 F.2d 714 (5th Cir. 1969); Massman v. Secretary of HUD, 332 F.Supp. 894 (D.D.C.1971).10 We hold that the district courts are free to tailor an appropriate procedure to fit the facts and the pleadings and to select what seems best for a given case. We decline to adopt a mandatory bifurcation rule, and especially so where bifurcation is suggested for the first time four months after final judgment.
Post-Judgment Interest
The Postal Service contends that as a government agency it is immune from an award of post-judgment interest. It is well established that under the doctrine of sovereign immunity, the government may not be required to pay interest on its debts without consent. E. g., United States v. Alcea Band of Tillamooks, 341 U.S. 48, 71 S.Ct. 552, 95 L.Ed. 738 (1951). But it is equally well established that Congress waives sovereign immunity when it authorizes a governmental agency to sue and be sued in its own name. RFC v. J. G. Menihan Corp., 312 U.S. 81, 61 S.Ct. 485, 85 L.Ed. 595 (1941); FHA v. Burr, 309 U.S. 242, 60 S.Ct. 488, 84 L.Ed. 724 (1940).11 Under the terms of
In RFC v. J. G. Menihan Corp., supra, the Supreme Court wrote that
[I]f the general authority to “sue and be sued” is to be delimited by implied exceptions, it must be clearly shown that certain types of suits are not consistent with the statutory or constitutional scheme, that an implied restriction of the general authority is necessary to avoid grave interference with the performance of a governmental function, or that for other reasons it was plainly the purpose of Congress to use the “sue and be sued” clause in a narrow sense. 309 U.S. at 245, 60 S.Ct. at 490 (footnote omitted).
The Postal Reorganization Act contains no indication that the “sue and be sued” provision should not be read to authorize an award of interest against the Postal Service. The waiver of immunity is restricted by
Affirmed.
WIDENER, Circuit Judge (concurring and dissenting):
I concur with the majority in allowing interest to be recovered against the Postal Service under the “sue and be sued” provisions of
As to the mitigation issue, I must respectfully dissent.
The district court, I believe, was not factually correct in its assertion that the judgment was not, and would not be, reopened. Thus, the majority, relying on the statement by the district court that it refused to reopen the judgment, has reached the incorrect conclusion that the Postal Service has failed to properly raise the mitigation issue. The record on appeal contains an order of the district court dated November 2, 1972, which I would construe as reopening the case to specifically consider the amount of back pay due plaintiff under the order of June 23, 1972.1 It is, then, apparent that the mitigation issue was raised, and the issue was not only raised, it was argued continually by correspondence from both parties to the court until the May 4, 1973 opinion and order were filed. I also note that the district court, although noting it would not reopen the judgment under F.R.C.P. 60(b), despite having already done so, nevertheless proceeded to decide the mitigation issue on the merits, and concluded that the plaintiff had met his burden of mitigation by “doing what is reasonable” in seeking administrative and judicial review of his discharge. Although I am of opinion this holding on the merits as to mitigation is not in accordance with the statutes, regulations, and case law on the subject, especially in its reliance on Schwartz and Urbina, in both of which cases the employee was either actually at work or seeking work by way of mitigation, this is not my principal complaint.
Whether the judgment was reopened or not, I think the district court erred in holding, contrary to the statutes and regulations, that the Postal Service was precluded from raising any issue relating to the amount of the award after the order of June 23rd became final. The district court, in the order of June 23rd, as it properly should not have, did not compute the amount, so the Postal Service then did just as the statutes and regulations require and began the computation. Indeed, had the district court, in its order of June 23rd, computed the amount, as it did later, absent prior administrative determination, its authority so to do was precluded by the statute
This case is controlled by the Back Pay Act,
Pursuant to § 5596(c), the Civil Service Commission has prescribed such regulations which are found in
The regulations then continue,
I am of opinion the statute and regulations are clear, that they allow no variation from the set procedure prescribed, and that the district court had no authority to compute the back pay to the plaintiff absent prior administrative determination, or at least an opportunity to the Postal Service to make an administrative determination.
For a case reciting the proper method to be used in the ascertainment of back pay, see Floyd v. Resor, 409 F.2d 714 (5th Cir. 1969), in which case, after ordering the reinstatement of the employee, the district court retained jurisdiction of the matter of the back pay but deferred its judgment on the merits of the question of the amount of back pay until the amount had been computed by administrative action.
The holding of the majority in this case, that a district court may proceed directly to the merits of the amount of the back pay absent a prior administrative determination, or opportunity therefor, not only is contrary to the plain words of the statute and the specifically authorized regulations, but may only go to further clutter up and needlessly encumber the dockets of already overloaded district courts. Even aside from the statute and regulation requirements, absent some compelling reason not shown by this record, I am unable to grasp the logic of allowing a resort to the district court when a previous administrative determination is available. Like the majority in its dictum concerning primary jurisdiction, I do not reach the question of whether or not exhaustion of administrative remedies may be required. See Myers v. Bethlehem Corp., 303 U.S. 41, esp. 50-53, 58 S.Ct. 459, 82 L.Ed. 638 (1938).
