Frank Palacios v. Richard Spencer
Opinion
Opinion for the Court filed by Senior Circuit Judge RANDOLPH.
RANDOLPH,
Senior Circuit Judge
: Frank Palacios sought judicial review of a decision of the Board for Correction of Naval Records. The district court, after determining that it lacked subject-matter jurisdiction, dismissed Palacios's complaint, denied his motion for leave to amend the complaint, and rejected his motion to transfer the case to the United States Court of Federal Claims.
Palacios v. Spencer
,
Palacios served in the U.S. Marine Corps from 1992 to 1995. He received an other-than-honorable discharge stemming from his pattern of misconduct. In about 2002 and 2009, he sought an upgrade of his discharge on the basis that his misconduct resulted from his mental and physical disabilities. The Naval Discharge Review Board denied both of his requests. Palacios then asked the Board for Correction of Naval Records to correct his records. The Correction Board denied his request in 2010.
In response, Palacios filed an action for judicial review of the Correction Board's decision in the Court of Federal Claims. The Claims Court dismissed his suit as untimely under the statute of limitations applicable to his wrongful-discharge claim.
Palacios v. United States
,
This appeal arises from Palacios's request that the Correction Board reconsider its decision. After the Board denied this request in 2015, Palacios filed suit in the United States District Court for the District of Columbia. He claimed that the Board's denial of reconsideration was arbitrary and capricious, unsupported by substantial evidence, and contrary to law under the Administrative Procedure Act,
The government moved to dismiss on the ground that Palacios's complaint fell outside the applicable statute of limitations and that it asserted a claim under the Tucker Act over which the Court of Federal Claims had exclusive jurisdiction. In his opposition to the government's motion to dismiss, Palacios moved for leave to amend his complaint by dropping his request for money damages or, in the alternative, to transfer the case to the Court of Federal Claims.
When a party in the district court moves to transfer the case to the Court of Federal Claims,
see
The district court in this case did not follow this statutory procedure, perhaps because neither Palacios nor the government brought the governing statutes to the court's attention. The district court, rather than staying its proceedings, denied Palacios's transfer motion, granted the government's motion to dismiss, and denied Palacios's motion for leave to amend his complaint.
Because the Federal Circuit has exclusive jurisdiction over appeals from orders granting or denying the transfer of an action to the Court of Federal Claims, we dismiss for want of jurisdiction Palacios's appeal from that aspect of the district court's judgment.
See
Murthy v. Vilsack
,
As to the district court's dismissal of the complaint, we agree that the court lacked subject-matter jurisdiction over Palacios's complaint.
1
The complaint expressly
demanded the entry of a judgment including an award of back pay exceeding $10,000. Under the Tucker Act, the Court of Federal Claims therefore had exclusive jurisdiction over this claim.
2
See
Palacios argues that primarily his complaint sought to correct his military records and that the essence of his complaint was therefore not monetary. We "look only to the essence of a complaint in the
absence
of an explicit request for monetary relief."
Schwalier
,
In opposing the government's motion to dismiss, Palacios sought leave to amend his complaint in order to drop his demand for back pay. The district court properly denied his motion. The amendment would have been futile. Aside from the Tucker Act jurisdictional problem, the Board's denial of Palacios's request for reconsideration is not subject to judicial review because Palacios alleges only "material error" in the agency's original decision.
Sendra Corp. v. Magaw
,
First, a denial of reconsideration may be reviewable, albeit under an especially deferential standard of review, when the requesting party raises " 'new evidence' or 'changed circumstances.' "
Sendra
,
Second, courts may review an agency's decision if the agency, despite denying reconsideration, "clearly states or
indicates that it has reopened the matter."
Sendra
,
The district court lacked jurisdiction over Palacios's complaint, and it correctly determined that amendment to cure the jurisdictional defect would have been futile. We therefore dismiss the appeal with respect to the motion to transfer and affirm with respect to the motions to dismiss and for leave to amend.
Dismissed in part and affirmed in part.
Reference
- Full Case Name
- Frank PALACIOS, Appellant v. Richard v. SPENCER, Secretary of the Navy, Appellee
- Cited By
- 19 cases
- Status
- Published