Stewart LIFF and Stewart Liff & Associates, Inc., Appellees v. OFFICE OF INSPECTOR GENERAL FOR the U.S. DEPARTMENT OF LABOR, et al., Appellees Daniel Petrole, Former Inspector General of the Office of the Inspector General for the U.S. Department of Labor, in His Individual and/or Official Capacities, et al., Appellants
No. 16-5045 Consolidated with 16-5370
United States Court of Appeals, District of Columbia Circuit.
Argued October 26, 2017 Decided February 6, 2018
881 F.3d 912
Paul Y. Kiyonaga, Washington, DC, argued the cause and filed the briefs for plaintiffs-appellees.
Before: Garland, Chief Judge, and Pillard and Wilkins, Circuit Judges.
Wilkins, Circuit Judge:
Stewart Liff runs a human resources consulting business that contracts with various government and private clients—or he did, he alleges, prior to the reputational injury caused by scurrilous reports from the Office of Inspector General for the Department of Labor (“DOL-OIG“) and the Office of Personnel Management (“OPM“), disseminated by government officials and publicized by the Washington Post. Liff, individually and through his consulting business, Stewart Liff & Associates, Inc., sued DOL, DOL-OIG and OPM alleging violations of his due process rights and the
Defendants filed a motion to dismiss, in which Defendant-Appellants Petrole, Harris, and Berry moved to dismiss Liff‘s Bivens claim on the basis that alternative remedies were available to protect his constitutional interest and on qualified-immunity grounds, arguing that they had violated no clearly established constitutional right. The District Court denied the motion as to the Bivens Defendants, reasoning that it was “premature” to decide whether a Bivens remedy was available and rejecting Defendant-Appellants’ assertion of qualified immunity. The agencies and the Bivens Defendants sought reconsideration of other aspects of the District Court‘s decision. The Bivens Defendants then appealed the District Court‘s initial decision on the motion to dismiss, asserting that it was error not to decide the availability of a Bivens remedy and that they were entitled to qualified immunity.
We reverse. The District Court should have decided the availability of a Bivens remedy as a threshold question gating whether the Bivens Defendants must defend against this suit in their personal capacities. Reviewing that question of law directly, we conclude that no Bivens remedy is available for Liff‘s claims. Congress has provided significant remedies for disputes between contractors and the government entities that engage them, as well as for persons aggrieved by the government‘s collection, maintenance, and dissemination of information. In light of these alternative remedies and the comprehensive remedial schemes they represent, we decline to extend a Bivens remedy for Liff‘s claims.
Background
We accept as true the well-pleaded allegations of the Complaint for the purpose of this appeal, as did the District Court. See Davis v. Billington, 681 F.3d 377, 379 (D.C. Cir. 2012); Wilson v. Libby, 535 F.3d 697, 701 (D.C. Cir. 2008).
Liff is a “nationally-recognized consultant ... on human resources management issues.” Compl. ¶ 1. After retiring from a career in the Department of Veterans Affairs (“VA“), Liff opened a consulting firm called Stewart Liff & Associates and began providing training and resources on management issues for various government entities. His clients included the VA, the Departments of Labor, Defense, Agriculture, and Treasury, OPM, the State of Georgia, and the World Bank. Compl. ¶¶ 15-16. Some 90% of Liff‘s consulting and training work was for federal agencies. Compl. ¶ 18.
In 2009, Liff was hired as a subcontractor to provide consulting services to the Department of Labor Veterans’ Employment and Training Service (“DOL-VETS“), after Assistant Secretary of Labor Ray Jefferson directed agency contracting staff to look into procuring Liff‘s services. Compl. ¶¶ 20-22. Liff alleges that Jefferson requested that DOL-VETS staff Angela Freeman and Paul Briggs “determine whether Liff could be hired to provide consulting services, in accordance with the law and applicable ethical principles.” Compl. ¶ 21. DOL-VETS eventually hired Liff as a subcontractor through contractors For Your Information, Inc. and MSTI, Inc. Compl. ¶¶ 22-23. Liff‘s work for DOL-VETS included three “management assessment reports” on topics including “program development methods and processes,” union relations, “visual management strategies at DOL-VETS to boost employee performance,” and ways to improve the tracking and evaluation of agency programs. See Compl. ¶¶ 26-29.
After this information became public, Deputy Secretary Seth Harris issued a memorandum which “prais[ed] DOL-OIG for its report and set[] forth concrete follow-up actions” including a “vow[]” to “‘aggressively pursue’ Liff for ‘all valid causes of action.‘” Compl. ¶ 48. Liff “was not apprised of these specific allegations” before Harris issued the memorandum and “thus did not have an opportunity to meaningfully respond.” Id. Like the DOL-OIG report, Harris‘s memorandum was posted online. Id.
Liff also worked with OPM. In July 2011, Liff learned that the Office of the Inspector General for OPM (“OPM-OIG“) “had initiated an investigation into how Liff‘s services as a subcontractor to OPM ... had been arranged.” Compl. ¶ 47. In August 2011, OPM “terminat[ed] the task order under which Liff was providing human resources management consulting,” for which Liff expected to be paid an outstanding amount of “approximately $350,000.” Id. Liff did not receive “any prior notice” of this termination “or opportunity to meaningfully address” the underlying “negative characterizations of [his] work.” Id.
In early 2012, Liff participated in an interview with an OPM-OIG special agent. Compl. ¶ 49. Liff understood this interview to be part of an investigation in which he would be a witness. Id. On April 2, 2013, OPM-OIG issued a report which “posited, without adequate support, that Liff‘s services may have been ‘wasteful’ of taxpayer resources as proper procurement procedures for his services had not been used.” Id. The next week, OPM Director Berry made public statements disclaiming any future use of Liff‘s services. In particular, Berry wrote a publicly released letter to OPM-OIG that stated that “he had taken steps to ‘ensure that OPM immediately concluded any business involving Stewart Liff & Associates, Inc.‘” Compl. ¶ 50. Berry also commented in a press conference that OPM would not use Liff‘s consulting services again. Because OPM “provides consulting services through interagency agreements to some 150 other federal agencies and entities,” OPM‘s decision not to use Liff‘s services “contributed significantly to a broad preclusion of Liff from future government consulting opportunities.” Id.
Liff alleges that the actions of DOL-OIG, OPM, and the individual government
Procedural History
The Bivens Defendants moved to dismiss the complaint, arguing that there was no Bivens remedy for the reputational harm that Liff alleged, that alternative remedies enacted by Congress precluded judicial recognition of a Bivens remedy, and that recognizing a Bivens action in this context would chill speech by government officials. They also asserted a qualified-immunity defense, contending that the alleged actions violated no clearly established constitutional right. In addition, Defendants argued that Liff‘s constitutional claims were untimely, as the analogous District of Columbia statute of limitations had expired.
The District Court denied the motion as to the Bivens Defendants. The District Court noted the argument that no Bivens remedy was available, but declined to decide the issue, explaining that it would await factual development because it “appear[ed] both ill advised and premature to pronounce on the availability of a Bivens remedy before deciding the threshold question of whether a due-process violation ha[d] transpired.” Liff v. Office of the Inspector Gen. for the U.S. Dep‘t of Labor, 156 F.Supp.3d 1, 18-19 (D.D.C. 2016). Turning to the qualified-immunity issue, the District Court concluded that Liff‘s complaint sufficiently alleged that actions taken by Harris, Petrole, and Berry interfered with Liff‘s right to pursue his chosen profession, both through de facto debarment from contracting with OPM, as effected by Berry, and through the “broad effect” of Harris‘s and Petrole‘s actions with respect to the DOL-OIG report. Id. at 19-20. The District Court then found that the right was “sufficiently clear” to defeat the Bivens Defendants’ qualified-immunity defense at the motion-to-dismiss stage. Id. at 21.
Defendants moved for, and were granted, reconsideration on the statute-of-limitations question, which the District Court had declined to decide in the first instance. Defendants did not seek reconsideration with respect to the Bivens and qualified-immunity issues. Instead, the Bivens Defendants appealed those holdings for our interlocutory review.
Discussion
I.
Defendant-Appellants seek this Court‘s review of the District Court‘s denial of their motion to dismiss on qualified-immunity grounds. The collateral-order doctrine permits immediate appellate review of “a limited set of district-court orders” that “finally determine claims of right separable from, and collateral to, rights asserted in the action, too important to be denied review and too independent of the cause itself” to justify delay. Ashcroft v. Iqbal, 556 U.S. 662, 671, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quotation marks and citation omitted). A district court‘s denial of a qualified-immunity claim is one such exception “because qualified immunity ... is both a defense to liability and a limited entitlement not to stand trial or
We review de novo the District Court‘s legal conclusions denying a motion to dismiss. Davis, 681 F.3d at 380. “[W]e, like the district court, accept as true the well-pleaded factual allegations of the complaint.” Id. at 379.
II.
We begin with the availability of a Bivens remedy. The District Court declined to rule on this question; however, it is appropriate to determine the availability of a Bivens remedy at the earliest practicable phase of litigation because it is “‘antecedent’ to the other questions presented,” Hernandez v. Mesa, — U.S. —, 137 S.Ct. 2003, 2006, 198 L.Ed.2d 625 (2017).
In considering the availability of a Bivens remedy, we first look for “an ‘alternative, existing process’ capable of protecting the constitutional interests at stake.” Minneci v. Pollard, 565 U.S. 118, 125, 132 S.Ct. 617, 181 L.Ed.2d 606 (2012) (citing Wilkie, 551 U.S. at 550, 127 S.Ct. 2588); Ziglar v. Abbasi, — U.S. —, 137 S.Ct. 1843, 1858, 198 L.Ed.2d 290 (2017) (noting that “an alternative remedial structure ... alone may limit the power of the Judiciary to infer a new Bivens cause of action“). “[A] remedial statute need not provide full relief” to prompt judicial deference because the touchstone is “who should decide whether such a remedy should be provided.” Wilson, 535 F.3d at 705 (quoting Bush v. Lucas, 462 U.S. 367, 103 S.Ct. 2404, 76 L.Ed.2d 648 (1983)). “The answer most often will be Congress,” Ziglar, 137 S.Ct. at 1857, and “[w]hen the design of a [remedial scheme] suggests that Congress has provided what it considers adequate remedial mechanisms for constitutional violations,” courts decline to create additional remedies. Schweiker v. Chilicky, 487 U.S. 412, 423, 108 S.Ct. 2460, 101 L.Ed.2d 370 (1988); see also Spagnola v. Mathis, 859 F.2d 223, 228 (D.C. Cir. 1988) (explaining that “courts must withhold their power to fashion damages remedies when Congress has put in place a comprehensive system to administer public rights, has ‘not inadvertently’ omitted damages remedies for certain claimants, and has not plainly expressed an intention that the courts preserve Bivens remedies“).
Under this rationale, the Supreme Court has declined to extend Bivens where Congress has provided at least a partial remedy via statute, see Bush, 462 U.S. at 388, 103 S.Ct. 2404 (federal employment law); Chilicky, 487 U.S. at 424, 108 S.Ct. 2460 (Social Security); Wilkie, 551 U.S. at 550, 127 S.Ct. 2588 (various statutes), as well as where other causes of action provide redress, see Minneci, 565 U.S. at 120, 132 S.Ct. 617 (state tort law); Ziglar, 137 S.Ct. at 1865 (habeas or other equitable relief). Cf. Bivens, 403 U.S. at 394, 91 S.Ct. 1999 (“The interests protected by state laws regulating trespass and the invasion of privacy, and those protected by the Fourth Amendment‘s guarantee against unreasonable searches and seizures, may be inconsistent or even hostile.“). This Court itself has recognized alternative remedial
Where no alternative remedy is available, courts exercise judgment regarding the propriety of extending a judicial remedy, “paying particular heed ... to any special factors counselling hesitation before authorizing a new kind of federal litigation.” Wilkie, 551 U.S. at 550, 127 S.Ct. 2588 (quoting Bush, 462 U.S. at 378, 103 S.Ct. 2404). Courts must conduct a “special factors” analysis when considering “new” Bivens remedies—that is, Bivens claims in cases with “meaningful enough” differences from previously recognized contexts, see Ziglar, 137 S.Ct. at 1859.
III.
Defendant-Appellants assert that many and various statutes and regulations provide alternative remedies that “block Liff‘s Bivens action. Before considering the substance of those remedies, we first address whether we should evaluate the full scope of alternatives as presented in this appeal. Liff argues that Defendant-Appellants’ reliance on the
“It is the general rule, of course, that a federal appellate court does not consider an issue not passed upon below.” Singleton v. Wulff, 428 U.S. 106, 120, 96 S.Ct. 2868, 49 L.Ed.2d 826 (1976) (citation omitted). This rule embodies the principle that litigants should not be surprised by a decision without having had an opportunity to address the issue being decided. Id. However, courts of appeals have discretion to resolve issues not raised in or decided by the district court, as may be justified by the facts of individual cases. Id. at 121, 96 S.Ct. 2868. This Court has exercised this discretion in various “exceptional cases or particular circumstances,” including where the issue presents “a novel, important, and recurring question of federal law,” or where the new argument relates to a threshold question such as the clear inapplicability of a statute. See Lesesne v. Doe, 712 F.3d 584, 588 (D.C. Cir. 2013) (citation omitted). The Court also has found it appropriate to resolve issues not raised in the district court where the case “involves a straightforward legal question, and both parties have fully addressed the issue on appeal.” Prime Time Int‘l Co. v. Vilsack, 599 F.3d 678, 686 (D.C. Cir. 2010); Roosevelt v. E.I. Du Pont de Nemours & Co., 958 F.2d. 416, 419 n.5 (D.C. Cir. 1992) (exercising discretion to address an issue first raised on appeal because “the issue is purely one of law important in the administration of federal justice, and resolution of the issue does not depend on any additional facts not considered by the district court“). For example, in Lesesne v. Doe, the Court interpreted on appeal whether the
Even assuming that Defendant-Appellants did not identify below some of the specific remedial mechanisms advanced here, we exercise our discretion to consid-
We turn now to the various remedies that Defendant-Appellants argue preclude a Bivens remedy. The constellation of statutes and regulations governing federal contracts, as well as the
A.
Many of Liff‘s asserted harms relate to his purported inability to obtain government contracts—at least, his inability to obtain contracts as frequently as he used to, as Liff has won at least one bid since the events upon which he bases his Complaint. Defendant-Appellants identify myriad statutes and regulations that provide remedies for contracting-related disputes, which they allege would encompass many of Liff‘s asserted harms. These include the
Liff rejects these various remedies as inapt, as he “is not making a bid protest, contesting a contract award or challenging the administration of a contract,” see Appellee‘s Br. 29—all claims he does not deny could be brought under these various contract-related provisions. But it makes no difference, for the purpose of our analysis and the availability of a Bivens remedy, that Liff has framed claims that “are manifestly not contract actions,” id. at 30. Cf. A & S Council Oil Co., Inc. v. Lader, 56 F.3d 234, 241 (D.C. Cir. 1995) (evaluating applicability of government contracting statutes and noting that “plaintiffs’ claim that the wrong originated in some statutory violation does not strip the case of its contractual character“). Clearly, Liff alleges injury outside of what may arise in contract: his asserted damages, for instance, go beyond the contracts that he claims he lost as a result of his alleged reputational harm. It is equally clear, however, that lost contracts are an inherent piece of the bigger picture. Liff himself alleges as much, including in his Bivens claim his loss of “his legitimate expectation of income from the OPM task orders/contract,” for example. Compl. ¶ 82. Moreover, if Liff lost no contracts—if business continued as usual for Liff and his consulting firm—he presumably would not have brought this suit. But assuming as true Liff‘s allegations that he did in fact lose contracts, as we must at this phase in the litigation, these contracting statutes and regulations provide him recourse with respect to those losses.
It also makes no difference if the contract-based remedies would not provide a full remedy for Liff. The question is whether alternative remedies exist, not whether they cover the full breadth of harm that a would-be Bivens plaintiff alleges. Even if gaps remain in the overlapping and extensive contracting remedies, Congress‘s activity in this area counsels against a judicially created Bivens remedy. See Chilicky, 487 U.S. at 423, 108 S.Ct. 2460. We see no indication that Congress “inadvertently” omitted remedies excluded from this remedial scheme or otherwise intended for the courts to take it upon themselves to extend additional remedies. See Spagnola, 859 F.2d at 228. Accordingly, judicial recognition of a Bivens remedy is not appropriate in light of the existence of this “comprehensive remedial scheme.” See Wilson, 535 F.3d at 705. Other courts to consider this question similarly have held
Of course, it may not always be the case that the particular nature of the constitutional harm that a contractor alleges is sufficiently connected to the contracting relationship between the contractor and the government such that this particular remedial scheme precludes judicial recognition of a Bivens remedy—in fact, Liff‘s allegations about potentially rights-implicating statements by the Bivens Defendants arguably present one such example, discussed below. Cf. Evers, 536 F.3d at 659 (explaining the “closer case” where government officials “defamed [the contractor] by making negative false statements to third parties,” which may allege a claim sounding in tort). We do not pass upon other hypotheticals. But as to Liff‘s alleged injuries related to his ability to successfully bid for and secure government contracts, the congressionally created system for government-contract adjudication precludes judicial extension of further remedies.
B.
As noted, Liff‘s allegations do not all fit tidily within the contract-related statutes and regulations that preclude his Bivens action. Beyond Liff‘s assertion that he is now unable to obtain government contracts, Liff also alleges that reputational damage from the reports of which he complains has impeded his career in private contracting. Liff‘s allegations that government officials disseminated information that harmed Liff‘s reputation find an alternative remedy in the
The
This Court and others have recognized the
Liff argues scattershot that the
We accordingly conclude, as we have before, that the
IV.
Defendant-Appellants assert that the District Court erred in denying their qualified-immunity defenses. Because we have determined that Liff has no viable Bivens action against Defendant-Appellants, we need not consider their qualified-immunity defenses. See, e.g., Doe, 683 F.3d at 397.
Conclusion
For the forgoing reasons, we reverse the District Court‘s denial of the Bivens Defendants’ motion to dismiss.
KANSAS CORPORATION COMMISSION, Petitioner v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent South Central MCN LLC, et al., Intervenors
No. 16-1093 16-1164
United States Court of Appeals, District of Columbia Circuit.
Argued November 20, 2017 Decided February 6, 2018
881 F.3d 924
