Carmine J. PUCCIARIELLO, Plaintiff, v. The UNITED STATES, Defendant.
No. 13-590 C
United States Court of Federal Claims.
June 2, 2014
BUSH, Senior Judge.
116 Fed. Cl. 390
Contract; Fifth Amendment Taking; Preemption of Tucker Act Jurisdiction by 49 U.S.C. § 46110 (2006); Jurisdictional Effect of Failure to Concede Lawfulness of Government “Taking“; Failure to State a Claim for Money Damages; No Jurisdiction to Award Equitable Relief under 28 U.S.C. § 1491(a)(2) (2012).
C. The Collis Declaration is Admissible under Federal Rule of Evidence 702.
Supplementation of the administrative record with expert testimony is appropriate when necessary to assist the Court in understanding technical or complex information in a bid protest. NCL Logistics Co. v. United States, 109 Fed. Cl. 596, 613 (2012); see also Guzar Mirbachakot Transp. v. United States, 104 Fed. Cl. 53, 64 (2012) (deeming expert testimony as essential for resolution of the protest and consistent with
The question here is whether the Collis declaration should be admissible as expert testimony under
D. The Leahy Declaration is Not Admissible.
LabCorp has offered the Leahy declaration to show that the VA should not have included 1,575 tests in its solicitation, but should have included only the lesser number of tests that the VA Medical Centers actually ordered in 2013. It is well settled that a protester who has the opportunity to challenge a government solicitation term and fails to do so before the bidding process concludes waives the right to raise that challenge later in this Court. Blue & Gold Fleet, L.P. v. United States, 492 F.3d 1308, 1313 (Fed. Cir. 2007). This rule furthers the statutory mandate to “give due regard to ... the need for expeditious resolution of the action.” Id. (citing
Conclusion
For the reasons explained above, the Government‘s motion to strike the Declarations of Ariel H. Collis and Sharon Williams Leahy is GRANTED in part and DENIED in part. The Collis declaration is admitted, but the Leahy declaration is not admitted.
IT IS SO ORDERED.
Michael Moulis, Fort Lauderdale, FL, for plaintiff.
Russell J. Upton, United States Department of Justice, with whom were Stuart F. Delery, Assistant Attorney General, Bryant G. Snee, Acting Director, and Reginald T. Blades, Jr., Assistant Director, Washington, DC, for defendant. Bradley J. Preamble, Office of the Chief Counsel, Federal Aviation Administration, Washington, DC, of counsel.
OPINION
BUSH, Senior Judge.
Now pending before the court is defendant‘s motion to dismiss pursuant to
BACKGROUND1
In this lawsuit, Plaintiff Carmine J. Pucciariello2 seeks damages, as well as injunctive and declaratory relief, based upon the Federal Aviation Administration‘s (FAA) decision to terminate plaintiff‘s appointment as a designated airworthiness representative (DAR). Plaintiff alleges that the FAA, in terminating plaintiff‘s appointment, breached a settlement agreement pursuant to which the FAA had promised to appoint plaintiff as a DAR. In addition, plaintiff alleges that the FAA‘s termination decision resulted in an uncompensated taking in violation of the
I. Designated Airworthiness Representatives
Congress has charged the FAA with the responsibility to prescribe air safety standards, including certification requirements for aircraft, pilots, airports, and airlines, in order to “promote safe flight of civil aircraft in air commerce.”
Under
- Upon the written request of the representative;
- Upon the written request of the employer in any case in which the recommendation of the employer is required for the designation;
- Upon the representative being separated from the employment of the employer who recommended him or her for certification;
- Upon a finding by the Administrator that the representative has not properly performed his or her duties under the designation;
- Upon the assistance of the representative being no longer needed by the Administrator; or
- For any reason the Administrator considers appropriate.
The FAA, however, has developed internal procedures to guide the nonrenewal or termination of DAR appointments. See FAA Order 8100.8D, ¶¶ 1100-1110, 1414-1415. Of particular relevance to this dispute, FAA Order 8100.8D sets forth the procedures for administrative appeals of decisions to terminate a DAR appointment, and provides that a DAR, upon timely appeal, may request a meeting with the appeal panel and the FAA inspector or project engineer who made the recommendation to terminate the DAR appointment. See id. ¶ 1108(b)(2).
II. Factual Background
In December 1998, Mr. Pucciariello entered into a settlement agreement with the FAA to resolve a discrimination complaint filed with the Equal Employment Opportunity Commission (EEOC).4 Compl. ¶ 7 & Attach. A at 1-3.5 Under the agreement, Mr.
Several years later, on January 25, 2012, the FAA terminated Mr. Pucciariello‘s DAR appointment after finding that he had not properly performed his duties as a DAR. See Compl. ¶ 15 & Attach. B at 1 (January 25, 2012 letter stating that Mr. Pucciariello‘s DAR appointment was “terminated pursuant to
The meeting between FAA personnel and Mr. Pucciariello took place on January 18, 2012. Compl. Attach. B at 1. According to FAA records, Mr. Pucciariello‘s responses to various queries of FAA personnel during the meeting revealed that plaintiff lacked the requisite knowledge to properly perform his DAR functions. Id. at 1-2. Specifically, FAA personnel found the documentation provided by plaintiff to be out-of-date or otherwise not in compliance with FAA regulatory guidance. Id. at 1. In addition, although Mr. Pucciariello represented during the meeting that he had inspected the helicopter when it was fully assembled, as required by FAA regulations, further investigation by FAA personnel revealed that the helicopter was, in fact, disassembled when Mr. Pucciariello performed his inspection. Id. at 2.
Based on these events, on January 25, 2012, Sergio Lopez, manager of the South Florida FSDO, advised Mr. Pucciariello by letter that his DAR appointment had been terminated. Compl. ¶ 15 & Attach. B at 1-2. Mr. Lopez‘s letter set forth the bases for termination and also advised Mr. Pucciariello of his administrative appeal rights. Id. Attach. B at 2 (advising Mr. Pucciariello that he “may submit a request for appeal in writing to this office no later than 14 calendar-days from the date of receipt of this letter“).
III. Procedural History
Mr. Pucciariello submitted a timely administrative appeal on February 6, 2012. Compl. ¶ 16. Thereafter, the FAA Southern Region Office convened an appeal panel to review plaintiff‘s termination. Id. ¶ 17 & Attach. B at 3. Upon reviewing the reasons for termination provided by the South Florida FSDO, as well as Mr. Pucciariello‘s appeal submission, the appeal panel upheld the decision to terminate plaintiff‘s DAR appointment. Id. By letter dated March 29, 2012, Thomas A.
Nearly five months later, on August 27, 2012, plaintiff filed a complaint in the United States District Court for the Southern District of Florida, alleging violations of due process arising out of his DAR termination. Pucciariello v. LaHood, No. 12-61675 (S.D. Fla.); see Def.‘s Mot. App. at A18. The government filed a motion to dismiss for lack of subject matter jurisdiction, arguing that, pursuant to
On August 19, 2013, Mr. Pucciariello filed a complaint in this court, seeking damages and injunctive and declaratory relief based upon the FAA‘s decision to terminate his DAR appointment.6 Plaintiff characterizes his current challenge to the FAA‘s termination decision as “an action for 5th Amendment taking of property without just compensation, and without complying with procedural due process and written procedural rules and regulations designed to protect the Plaintiff.” Compl. ¶ 1. Additionally, plaintiff asserts that his current claims “are based on [the] Government‘s breach of an explicit written settlement agreement where Plaintiff agreed to retire and the FAA agreed to assign him as an FAA Designated Airworthiness Representative (DAR).” Id.
Plaintiff‘s complaint contains two counts. In the first count, plaintiff alleges that the FAA breached the terms of the December 1998 settlement agreement by terminating Mr. Pucciariello‘s DAR appointment “without due process or cause,” and in an “arbitrary” and “capricious” manner. Compl. ¶¶ 9-10. In the second count, which plaintiff styles as a claim for “unjust taking without due process,” plaintiff alleges that he possesses a property interest in his DAR appointment by virtue of the settlement agreement, and that the FAA deprived him of that property interest without adhering to the agency‘s internal procedures for appeals from termination decisions. Id. ¶¶ 11-18. Specifically, plaintiff asserts that the agency failed to honor Mr. Pucciariello‘s request for a meeting with the FAA appeal panel, as provided for by FAA Order 8100.8D, ¶ 1108(b)(2). See id. ¶¶ 16-17.
As compensation for the FAA‘s alleged wrongdoing, plaintiff requests damages for lost past and future earnings, as well as damages for “loss of earning capacity” and “loss of reputation in the aviation industry.” Compl. ¶ 19; see also id. ¶¶ 2, 20-21. In addition to monetary damages, plaintiff requests “declaratory relief concluding that the United States Government removed him as a DAR in violation of its written agreement and in violation of Plaintiff‘s procedural due process rights,” id. ¶ 2, as well as “[i]njunctive relief enjoining the FAA from denying Plaintiff his right to a meeting to appeal [the] termination of his [DAR] designation,” id. ¶ 22.
On November 18, 2013, the government filed a motion to dismiss plaintiff‘s complaint pursuant to
The government also seeks dismissal of plaintiff‘s complaint pursuant to
DISCUSSION
I. Standards of Review
A. RCFC 12(b)(1)
The relevant issue in a motion to dismiss under
Where the court‘s jurisdiction is challenged, the plaintiff bears the burden of establishing subject matter jurisdiction by a preponderance of the evidence and by presenting competent proof. Alder Terrace, Inc. v. United States, 161 F.3d 1372, 1377 (Fed. Cir. 1998) (citing McNutt v. Gen. Motors Acceptance Corp., 298 U.S. 178, 189 (1936)); Reynolds, 846 F.2d at 748 (citations omitted). If the plaintiff fails to meet his burden, and jurisdiction is therefore found to be lacking, the court must dismiss the action.
In considering a motion to dismiss for lack of subject matter jurisdiction which challenges the truth of jurisdictional facts alleged in the complaint, the court may make findings of fact pertinent to its jurisdiction. Ferreiro v. United States, 350 F.3d 1318, 1324 (Fed. Cir. 2003) (citing Moyer v. United States, 190 F.3d 1314, 1318 (Fed. Cir. 1999), and Reynolds, 846 F.2d at 747); Rocovich v. United States, 933 F.2d 991, 993 (Fed. Cir. 1991) (“In determining whether a motion to dismiss should be granted, the Claims Court may find it necessary to inquire into jurisdictional facts that are disputed.“). In making findings of fact pertinent to its jurisdiction, the court is not restricted to the face of the pleadings, but may review evidence extrinsic to the pleadings, including declarations or affidavits. Rocovich, 933 F.2d at 994 (citing Land v. Dollar, 330 U.S. 731, 735 n. 4 (1947), and Reynolds, 846 F.2d at 747).
B. RCFC 12(b)(6)
It is well-settled that a complaint should be dismissed for failure to state a claim under
When considering a motion to dismiss under
Although the court primarily examines the allegations in the complaint when considering a motion to dismiss pursuant to
Plaintiff attaches to his complaint several documents, which include the settlement agreement at issue as well as correspondence between Mr. Pucciariello and FAA personnel regarding the FAA‘s decision to terminate Mr. Pucciariello‘s DAR appointment. See Compl. Attachs. A-B. Those documents, which are incorporated by reference into the complaint and are integral to plaintiff‘s claims, may properly be considered by the court without converting defendant‘s motion to dismiss into one for summary judgment. E.g., Toon, 96 Fed. Cl. at 298-99. Likewise, the court may consider public court documents filed in Mr. Pucciariello‘s district court action, including Mr. Pucciariello‘s complaint and the district court‘s order dismissing that lawsuit. E.g., DeKalb, 108 Fed. Cl. at 692.
II. Analysis
A. The Court Lacks Subject Matter Jurisdiction over Plaintiff‘s Claims
Pursuant to the
To establish
Here, the alleged money-mandating sources of law identified by Mr. Pucciariello are: (1) the Takings Clause of the
1. Plaintiff‘s Fifth Amendment Takings Claim
The first money-mandating source of law alleged by plaintiff is the Takings Clause of the
2. Plaintiff‘s Breach of Settlement Agreement Claim
The second alleged money-mandating source of law identified in plaintiff‘s complaint is his settlement agreement, which plaintiff alleges was breached by the FAA when the agency terminated his DAR appointment. See Compl. ¶¶ 1-2, 6, 9-10. As set forth below, the court concludes that the settlement agreement can fairly be interpreted as mandating the payment of money, and thus would normally be sufficient to confer
The term “contract,” for purposes of the
Despite this general pronouncement, however, it is well-settled that “[t]he government‘s consent to suit under the Tucker Act does not extend to every contract.” Rick‘s Mushroom Serv., Inc. v. United States, 521 F.3d 1338, 1343 (Fed. Cir. 2008) (citations omitted). This court would not, for example, have
At the same time, however, the Federal Circuit in Holmes cautioned that the alleged breach of a settlement agreement does not necessarily give rise to
Applying that standard to the Title VII settlement agreements at issue in Holmes, the Federal Circuit concluded that the plaintiff in Holmes had demonstrated that the agreements in that case could fairly be interpreted as contemplating money damages in the event of breach, and the Federal Circuit therefore reversed this court‘s dismissal of the complaint for lack of jurisdiction. See id. at 1315-16. The plaintiff in Holmes alleged that the Department of the Navy (Navy) had breached two agreements settling Title VII employment actions. Under the terms of the settlement agreements, the Navy agreed to expunge a suspension letter from Mr. Holmes’ personnel file and to document that he had resigned for personal reasons. Id. at 1315. The Navy also agreed to provide Mr. Holmes with a “neutral reference” in response to inquiries from future employers. Id. at 1315. Based on those terms, which the Federal Circuit found to “inherently relate to monetary compensation through relationship to ... future employment,” the court held that the settlement agreements in Holmes could fairly be interpreted as mandating the payment of money in the event of the government‘s breach. Id. The court also noted that “there is no language in the agreements indicating that the parties did not intend for money damages to be available in the event of breach.” Id.
In Cunningham v. United States, 748 F.3d 1172 (Fed. Cir. 2014), the Federal Circuit, in a precedential opinion, expanded the jurisdictional holding of Holmes to a “substantially similar” claim for breach of an agreement settling the plaintiff‘s discrimination claim arising under the
Citing Holmes, the government in the present case contends that plaintiff has failed to establish
The court agrees with plaintiff that Mr. Pucciariello‘s EEOC settlement agreement, like the settlement agreements in Holmes and Cunningham, can fairly be interpreted as contemplating money damages under the standards established by the Federal Circuit in those cases. Under plaintiff‘s agreement, the FAA agreed to appoint Mr. Pucciariello as a DAR. Compl. Attach. A at 1-2. Although, as noted, DAR appointments are terminable at the discretion of the FAA Administrator, see
The government‘s attempts to distinguish this case from Holmes and Cunningham are unavailing. Defendant argues that plaintiff‘s settlement agreement is unlike the agreement in Holmes because it “did not provide a guarantee of a perpetual DAR appointment,” nor did it specifically require the payment of any wages to Mr. Pucciariello. Def.‘s Mot. at 13; see also Def.‘s Reply at 2-3 (asserting that “the settlement agreement did not guarantee any amount of wages“). Yet neither did the settlement agreements in Holmes or Cunningham. The Federal Circuit found the agreements in Holmes and Cunningham to inherently relate to future compensation not because the agreements guaranteed any future term of employment or mandated the payment of wages, but because the agreements placed restrictions on the personnel information available to Mr. Holmes’ and Mr. Cunningham‘s prospective employers, thereby positively affecting Mr. Holmes’ and Mr. Cunningham‘s future employment prospects. See Cunningham, 748 F.3d at 1177-78; Holmes, 657 F.3d at 1316. The purpose of such an agreement was not to guarantee future employment or compensation, but “‘to prevent [the plaintiff] from being denied future employment based on his record as the [agency] maintained it prior to the agreement[].‘” Cunningham, 748 F.3d at 1177 (quoting Holmes, 657 F.3d at 1316).
Defendant also contends that plaintiff‘s EEOC settlement agreement cannot fairly be interpreted as contemplating money damages because the standard remedy for breach of a settlement agreement resolving an employment dispute is enforcement of the settlement terms or rescission of the settlement agreement and reinstatement of the underlying action. See Def.‘s Mot. at 13-14; Def.‘s Reply at 1-2. As support for this argument, the government cites the EEOC regulation at
Defendant also relies, unpersuasively, on dicta in a single footnote in the Holmes decision in which the Federal Circuit noted that “money damages appear not to be the routine remedy for the breach of a settlement agreement involving an employment dispute.” 657 F.3d at 1315 n. 8 (citing Harris v. Brownlee, 477 F.3d 1043, 1047 (8th Cir. 2007)); see Def.‘s Mot. at 13-14. The government asserts that this footnote “effectively rebuts” the presumption that a damages remedy will be available upon the breach of a government settlement agreement. See Def.‘s Reply at 2. Defendant‘s strained interpretation of this single footnote runs headlong into the holding of Holmes. Contrary to the government‘s reading of Holmes, the Federal Circuit‘s acknowledgement that monetary damages are not the standard remedy for breach of a settlement agreement resolving an employment dispute is not dispositive of the issue at bar. Accordingly, the court concludes that Mr. Pucciariello‘s settlement agreement with the FAA can fairly be interpreted as requiring the payment of money.
3. Preemption of Tucker Act Jurisdiction by 49 U.S.C. § 46110
Unfortunately for plaintiff, although his breach of contract and takings claims would otherwise be within this court‘s
a person disclosing a substantial interest in an order issued by ... the Administrator of the Federal Aviation Administration with respect to aviation duties and powers designated to be carried out by the Administrator[] in whole or in part under [Title 49, Subtitle VII, Parts A or B of the United States Code] may apply for review of the order by filing a petition for review in the United States Court of Appeals for the District of Columbia Circuit or in the court of appeals of the United States for the circuit in which the person resides or has its principal place of business.
The court‘s analysis of the jurisdictional impact of
a. The FAA‘s Termination of Plaintiff‘s DAR Appointment Is an Order Subject to the Exclusive Review Mechanism Set Forth in 49 U.S.C. § 46110
By its terms,
Although the court has not identified any reported decisions of the United States Supreme Court or the Federal Circuit applying
The term “order,” for purposes of
Defendant asserts, and plaintiff does not contest, that the FAA‘s March 29, 2012 “final decision” to uphold the termination of Mr. Pucciariello‘s DAR appointment constitutes an appealable order within the meaning of
Furthermore, although the entire extent of the administrative record is unknown, it is evident from the complaint and the parties’ briefs that the record contains not only the settlement agreement itself, which sets forth the basis for Mr. Pucciariello‘s DAR appointment, but also correspondence from the FAA to Mr. Pucciariello explaining the process by which the agency decided to terminate Mr. Pucciariello‘s DAR appointment as well as the agency‘s asserted bases for termination. See Compl. Attachs. A-B; Def.‘s Mot. at 1-4. In his complaint, plaintiff challenges both the merits of the FAA‘s termination decision as well as the procedures used by the agency in arriving at that decision. See Compl. ¶¶ 9-10 (alleging that the FAA‘s termination decision was “without due process or cause” and was “arbitrary, capricious and otherwise in violation of the law“). The record herein, which sets forth the reasons supporting the FAA‘s termination decision and describes the procedures afforded to Mr. Pucciariello, is sufficient to allow a reviewing court to make an informed decision on plaintiff‘s claims. See Green, 981 F.2d at 519 (holding that an administrative record consisting of documents describing the FAA‘s investigation of alleged misconduct by plaintiff, a former designated pilot examiner, as well as related correspondence between plaintiff and FAA personnel,
The court therefore concludes that the FAA‘s March 29, 2012 “final decision” to uphold the termination of Mr. Pucciariello‘s DAR appointment was an order subject to
b. 49 U.S.C. § 46110 Provides a Specific and Comprehensive Scheme of Judicial Review that Preempts Tucker Act Jurisdiction
Mr. Pucciariello never filed a petition for review of the FAA‘s order with a United States court of appeals. Instead, he chose to file suit in the United States District Court for the Southern District of Florida, alleging that the FAA‘s termination of his DAR appointment violated his due process rights under the
The question that remains is whether Mr. Pucciariello may bring his claims in this court pursuant to the
It is fundamental that all federal courts, except the Supreme Court, are creatures of statute established by Congress, and therefore possess only the jurisdiction granted to them by Congress. In re United States, 877 F.2d 1568, 1571 (Fed. Cir. 1989) (citing
As a court established by Congress under
The Federal Circuit has consistently found preemption of
The court concludes that
c. Plaintiff‘s Claims Are Inescapably Intertwined with a Challenge to the FAA‘s Termination of Plaintiff‘s DAR Appointment
The court‘s analysis does not end here, however, because plaintiff‘s complaint does not seek to “affirm, amend, modify, or set aside any part of” the FAA‘s termination order, see
Several United States courts of appeals, including the Federal Circuit, have recognized that statutes such as
The court‘s review of the complaint and the parties’ briefs confirms that Mr. Pucciariello‘s claims are inescapably intertwined with a challenge to the procedure and merits surrounding the FAA‘s order terminating his DAR appointment. As noted, the complaint alleges a number of procedural improprieties with the FAA‘s decision to terminate Mr. Pucciariello‘s DAR appointment. See Compl. ¶¶ 1-2, 4-5, 9, 12, 17-18. It also challenges the merits of the FAA‘s termination by alleging that the agency‘s decision was without “cause” and was “arbitrary” and “capricious.” Id. ¶¶ 9-10; see also id. ¶ 18 (asserting that “[t]he FAA‘s alleged reasons for the termination of Plaintiff‘s DAR are without merit“). Therefore, a consideration of plaintiff‘s claims would necessarily require a review of the procedures used and actions taken by the FAA with regard to the agency‘s termination of Mr. Pucciariello‘s DAR appointment, and would also require a review and balancing of the same evidence used by the agency to support its decision in that regard. The exclusive scheme of judicial review of FAA orders set forth in
Accordingly, the court concludes that it lacks jurisdiction to consider plaintiff‘s breach of contract claim and his Fifth Amendment takings claim because those claims are subject to the exclusive jurisdictional scheme set forth in
4. No Jurisdiction to Award Plaintiff‘s Requested Injunctive and Declaratory Relief
Defendant next argues that the court lacks jurisdiction to award the injunctive and declaratory relief requested by plaintiff. See Def.‘s Mot. at 14-16. The court agrees.
The
The government contends that equitable relief is “the primary goal of [plaintiff‘s] lawsuit,” and therefore by definition cannot be tied and subordinate to any award of monetary damages. See Def.‘s Mot. at 16 (citing, e.g., Thorndike v. United States, 72 Fed. Cl. 580, 583 (2006), and Rice v. United States, 31 Fed. Cl. 156, 164 (1994)). Although the court finds this assertion to be unfounded inasmuch as plaintiff‘s complaint clearly and repeatedly requests monetary damages in the form of lost past and future earnings, “loss of earning capacity,” and “loss of reputation in the aviation industry,” see Compl. ¶¶ 2, 19-21, the court nevertheless concludes that it lacks authority under
First, as noted supra, plaintiff‘s requested injunction would “enjoin[] the FAA from denying Plaintiff his right to a meeting to appeal [the] termination of his [DAR] designation.” Compl. ¶ 22. This injunction would not be merely incidental to an award of lost earnings, “loss of earning capacity,” and “loss of reputation in the aviation industry,” see id. ¶ 19, but rather would be separate from, and in addition to, such requested damages.15 Moreover, even if plaintiff‘s requested injunction were merely incidental to the damages requested in his complaint, it does not fall within the narrow group of orders specified in
Furthermore, and most fundamentally, because the court concludes that it lacks jurisdiction over plaintiff‘s monetary claims, see supra, and that plaintiff has failed in any event to state a claim for damages, see infra, the court has no basis upon which to exercise jurisdiction over plaintiff‘s claims for injunctive or declaratory relief. See, e.g., Legal Aid Soc‘y of New York v. United States, 92 Fed. Cl. 285, 301 (2010) (holding that jurisdiction was lacking with respect to plaintiff‘s equitable claims under
B. Plaintiff Has Failed to State a Claim upon which Relief Can Be Granted
The court has dismissed all of plaintiff‘s claims for lack of subject matter jurisdiction. Nevertheless, in the interests of judicial economy, the court considers, in the alternative, defendant‘s
1. Plaintiff Has Failed to State a Claim for Breach of the Settlement Agreement
The government argues that plaintiff has failed to allege facts that, if true, would allow the court to reasonably infer that the FAA breached plaintiff‘s settlement agreement. See Def.‘s Mot. at 16-17; Def.‘s Reply at 4-6. In that regard, defendant notes that under the settlement agreement which plaintiff attached to his complaint, Mr. Pucciariello agreed to retire from employment with the FAA on or before February 28, 1999 and the FAA agreed to appoint him as a DAR. See Def.‘s Mot. at 16 (citing Compl. ¶ 7 & Attach. A at 1-2). Defendant asserts that, accepting as true the allegations of the complaint, both parties fulfilled their respective obligations under the settlement agreement when Mr. Pucciariello retired on or before February 28, 1999 and the FAA appointed him as a DAR. See id. at 16-17 (citing Compl. ¶ 8 & Attach. A at 4). In addition, defendant asserts that the settlement agreement “did not provide a guarantee of a perpetual DAR appointment,” and therefore plaintiff has failed to make a plausible demonstration that the FAA‘s termination of Mr. Pucciariello‘s DAR appointment resulted in a breach of the agreement. See id. at 17.
In response, plaintiff asserts that the FAA, in terminating his DAR appointment, breached the provision of the settlement agreement stating that the agreement “in no manner denies [Mr. Pucciariello] the right of renewal of [his] DAR [appointment] provided he otherwise satisfies all regulatory requirements in place or hereafter added to said regulatory requirements, and is otherwise qualified to be the holder of a DAR.” Compl. Attach. A at 2-3; see Pl.‘s Resp. at 12. Plaintiff interprets this provision of the agreement as imposing a “for-cause” limitation on the FAA‘s ability to terminate or refuse to renew Mr. Pucciariello‘s DAR appointment. See Pl.‘s Resp. at 12 (stating that the agreement “clearly states that the FAA had to renew Plaintiff‘s DAR upon Plaintiff‘s request ‘provided he otherwise satisfies all ... regulatory requirements in place’ and was otherwise qualified to hold a DAR appointment” (quoting Compl. Attach. A at 2-3)). In plaintiff‘s view, the FAA‘s termination of Mr. Pucciariello‘s DAR appointment breached the agreement because Mr. Pucciariello “had at all times satisfied the applicable regulatory requirements and was otherwise qualified to hold the DAR.” See id. In addition, plaintiff asserts that the FAA “breached the settlement agreement by failing to give Plaintiff an adequate hearing at which he could refute the basis for his DAR non-renewal.” Id.
In order to state a claim for breach of the settlement agreement, Mr. Pucciariello must allege facts plausibly suggesting: (1) a valid contract between the parties; (2) an obligation or duty arising out of the contract; (3) a breach of that duty; and (4) damages caused by the breach. San Carlos Irrigation & Drainage Dist. v. United States, 877 F.2d 957, 959 (Fed. Cir. 1989). Interpretation of the settlement agreement, as with any contract, begins with the agree
For three reasons, the court concludes that plaintiff has failed to state a claim for breach of the settlement agreement. First, as a preliminary matter, the court does not agree with plaintiff‘s interpretation of the settlement agreement as guaranteeing the continuation of Mr. Pucciariello‘s DAR appointment absent a showing of “cause” for termination or nonrenewal. As noted supra,
The provision of the settlement agreement upon which plaintiff relies cannot be read as divesting the FAA Administrator of his statutorily-conferred discretion to decide whether to terminate or not renew Mr. Pucciariello‘s DAR appointment. That provision stated that the settlement agreement “in no manner denies [Mr. Pucciariello] the right of renewal of [his] DAR [appointment] provided he otherwise satisfies all regulatory requirements in place or hereafter added to said regulatory requirements, and is otherwise qualified to be the holder of a DAR.” Compl. Attach. A at 2-3. Far from imposing a “for-cause” limitation on the FAA‘s discretion to terminate or not renew Mr. Pucciariello‘s DAR appointment, this provision simply alluded to two of the non-exclusive bases for termination or nonrenewal of DAR appointments set forth in the FAA‘s implementing regulations—namely, “[u]pon a finding by the Administrator that the representative has not properly performed his or her duties under the designation,” or “[f]or any reason the Administrator considers appropriate.” See
Second, even if the settlement agreement could reasonably be interpreted as imposing a “for-cause” limitation on the FAA‘s ability to terminate or not renew Mr. Pucciariello‘s DAR appointment, plaintiff has failed to allege facts plausibly suggesting that the FAA lacked cause to terminate that appointment. As the government correctly notes, plaintiff attached to his complaint Mr. Lopez‘s January 25, 2012 letter. See Compl. Attach. B at 1-2. That letter, which is incorporated by reference into the complaint and may be considered without converting defendant‘s
Plaintiff alleges no facts from which the court can reasonably infer that the FAA‘s stated reasons for terminating Mr. Pucciariello‘s DAR appointment, as set forth in Mr. Lopez‘s January 25, 2012 letter, were incorrect or pretextual. Although plaintiff alleges, in paragraph 18 of his complaint, that “[t]he FAA‘s alleged reasons for the termination of Plaintiff‘s DAR are without merit,” that allegation is no more than a “label” or “conclusion” that is not entitled to the presumption of truth afforded to well-pleaded factual allegations. Iqbal, 556 U.S. at 678 (citation omitted). The same is true of plaintiff‘s bald and unsupported assertion, in his response brief, that he had “at all times satisfied the applicable regulatory requirements and was otherwise qualified to hold the DAR.” See Pl.‘s Resp. at 12.
Finally, with respect to plaintiff‘s argument that the FAA “breached the settlement agreement by failing to give Plaintiff an adequate hearing at which he could refute the basis for his DAR non-renewal,” see Pl.‘s Resp. at 12, plaintiff has not identified any provision of the agreement requiring the FAA to utilize certain procedures in terminating Mr. Pucciariello‘s DAR appointment, nor did plaintiff allege the existence of any such provision in his complaint. Mr. Pucciariello has therefore failed to allege facts plausibly suggesting any contractual obligation on the part of the FAA to afford Mr. Pucciariello the particular procedural protections he alleges were due him.
For all of the foregoing reasons, the court concludes that plaintiff has failed to state a claim upon which relief can be granted with respect to his claim for breach of the settlement agreement. That claim must therefore be dismissed pursuant to
2. Plaintiff Has Failed to State a Claim for a Fifth Amendment Taking
The government also contends that Mr. Pucciariello‘s takings claim should be dismissed for failure to state a claim. In that regard, defendant first argues that plaintiff has failed to allege sufficient facts from which the court may reasonably infer that Mr. Pucciariello has a cognizable property interest in his DAR appointment that could be the subject of a valid takings claim under the
The court evaluates whether plaintiff has stated a
In this case, the court need not proceed past the first step, as plaintiff has failed to establish a cognizable property interest. To have a property interest cognizable under the
Any doubt that DARs lack a property interest in their designation is clarified by the FAA‘s regulatory guidance, which states that “[a] designation is a privilege, not a right,” and “therefore[] the Administrator has the authority to terminate a delegation for any reason.” FAA Order 8100.8D, ¶ 1108(a); see also id. ¶ 1414 (stating that “renewal of any designee appointment is at the option and sole discretion of the FAA“). Based upon these background principles of law, the court concludes that Mr. Pucciariello has no cognizable property interest in his DAR appointment.
In an attempt to distinguish the authorities holding that designations pursuant to
Furthermore, the court agrees with defendant that even if plaintiff could demonstrate a cognizable property interest in his DAR appointment, he nevertheless fails to state a valid takings claim because his claim is premised upon the FAA‘s alleged violation of its regulations. The gravamen of plaintiff‘s takings claim is his allegation that the FAA unlawfully terminated his DAR appointment by failing to follow applicable regulations and internal procedures governing the termination of such appointments. See Compl. ¶¶ 11-18; see also id. ¶ 1 (asserting that “[t]his is an action for 5th Amendment taking of property without just compensation, and without complying with procedural due process and written procedural rules and regulations designed to protect Plaintiff“), ¶¶ 9-10 (alleging that the FAA terminated Mr. Pucciariello‘s DAR appointment “without due process or cause,” and in an “arbitrary” and “capricious” manner). The Federal Circuit has held that such allegations do not state a claim for a
In sum, because plaintiff has failed to establish a cognizable property interest under the
CONCLUSION
For all of the foregoing reasons, the court concludes that it lacks subject matter jurisdiction over plaintiff‘s claims. In addition, the court concludes that even if it did possess jurisdiction, plaintiff has failed to state a claim upon which relief can be granted. Plaintiff‘s complaint must therefore be dismissed.
Accordingly, it is hereby ORDERED that
- Defendant‘s Motion to Dismiss, filed November 18, 2013, is GRANTED;
- The Clerk‘s Office is directed to ENTER final judgment in favor of defendant, DISMISSING the complaint without prejudice; and
- Each party shall bear its own costs.
BUSH
Senior Judge
