Sharpe v. United States
Opinion
*1354
John E. Sharpe is an officer in the U.S. Navy. In a decision dated February 8, 2016, the Board for Correction of Naval Records ("BCNR" or "Board") found Mr. Sharpe's 2009 separation from the service to have been unlawful. Accordingly, the Board recommended that Mr. Sharpe be returned to active duty, and the Assistant Secretary of the Navy approved the Board's recommendation. Before us now is Mr. Sharpe's appeal of the November 8, 2017 decision of the United States Court of Federal Claims that sustained the Navy's decision to deny Mr. Sharpe, upon his return to active duty, certain categories of back pay associated with his military record.
See
Sharpe v. United States
,
BACKGROUND
I
The pertinent facts are not in dispute. Mr. Sharpe checked in aboard the aircraft carrier USS Carl Vinson ("Carl Vinson") as a Public Affairs Officer ("PAO") on June 20, 2006.
In March of 2007, a reporter contacted a Media Relations Officer from the office of the U.S. Fleet Forces Public Affairs Office, inquiring about Mr. Sharpe's alleged involvement in "hate group activity."
On July 9, 2009, the Assistant Secretary of the Navy approved a recommendation by the Commander, Navy Personnel Command, to discharge Mr. Sharpe from the Navy.
Sharpe
,
II
Mr. Sharpe submitted an application for Correction of Naval Record to the BCNR on September 28, 2012.
On February 8, 2016, the BCNR recommended to the Secretary of the Navy that Mr. Sharpe's non-judicial punishment be set aside, along with its administrative consequences.
Sharpe
,
The Navy proceeded to implement the Board's recommendations. As a result, Mr. Sharpe was issued orders to report to active duty by February 13, 2017, and to
*1356
report to his new duty station in Washington, D.C. by May of 2017.
Sharpe
,
A memorandum by Brian D. Bourne ("Bourne memorandum"), which was issued by the Naval Personnel Command on May 11, 2017, set forth the Personnel Command's position regarding DFAS's calculations. J.A. 858-60. First, the memorandum noted that, before his separation, Mr. Sharpe was assigned to the Carl Vinson for three years and three months, a time period that exceeded the normal twenty-four-month sea duty tour for a PAO. Thus, the memorandum stated that, "[c]ommensurate with PAO detailing policy, [Mr. Sharpe] would not have continued to serve aboard [the Carl Vinson] past 2009 and his record (including pay) should be corrected to show that his sea duty ended on 30 Sep. 09." J.A. 858-59. The Bourne memorandum thus recommended that Mr. Sharpe not receive career sea pay ("CSP") or a CSP premium, since he "did not serve aboard ship, and for constructive service purposes would not have been assigned to a ship" from October 1, 2009, to February 12, 2017. J.A. 859.
2
Next, the Bourne memorandum recommended that Mr. Sharpe receive basic allowance housing ("BAH") at the rate for Norfolk, Virginia for the period of his separation, despite a change in the home port of the Carl Vinson from Norfolk to San Diego, California, in 2010.
III
While his application was pending before the BCNR, Mr. Sharpe filed suit in the Court of Federal Claims "to preserve his right to judicial review."
Sharpe
,
In due course, Mr. Sharpe filed a motion for summary judgment. In it, he argued that he is entitled to the BAH rate for San Diego, beginning April 1, 2010, when the Carl Vinson's home port changed. He also argued that he is entitled to CSP and a CSP premium for the period of his separation
*1357
from the Navy.
The Court of Federal Claims first determined that judgment on the administrative record was appropriate.
[Mr. Sharpe] now argues that this Court cannot ignore and must instead give full weight to the technicality of his formal assignment to the Carl Vinson, and that this "on-paper assignment" entitles him to the BAH rate for San Diego, CSP, and the CSP premium. Simply put, Mr. Sharpe urged the BCNR to ignore his technical "assignment" to the ship in order to nullify his non-judicial punishment and correct his record but now urges this Court to give full weight to that very same technical "assignment" in determining his back pay. These arguments are plainly inconsistent. It is clear that Mr. Sharpe's interests have changed, so he has changed his position accordingly.
The court concluded that all three requirements for the application of judicial estoppel were met: (1) Mr. Sharpe made inconsistent arguments before the BCNR and the court relating to his status vis-à-vis the Carl Vinson; (2) Mr. Sharpe was successful in persuading the Board to accept the position he argued before it (that the Board should ignore his technical "assignment" to the Carl Vinson and recognize that he really was assigned to shore duty); and (3) absent the application of judicial estoppel, Mr. Sharpe would gain an unfair advantage in the litigation.
In the alternative, the Court of Federal Claims determined that the Navy's decision to award Mr. Sharpe the BAH rate for Norfolk, Virginia, and to deny him CSP and a CSP premium was not arbitrary or capricious, or contrary to law.
Turning next to CSP, the Court of Federal Claims "[found] it illogical to award Mr. Sharpe CSP and [a] CSP premium when he never actually went to sea or performed any sea duties."
Id.
at 818-19. The court relied on
Boruski v. United States
,
Mr. Sharpe timely appealed to this court. We have jurisdiction pursuant to
DISCUSSION
I
We review the grant or denial of a judgment on the administrative record without deference.
Cleveland Assets, LLC v. United States
,
Our scope of review is "narrow": we determine only whether [the agency] examined "the relevant data" and articulated "a satisfactory explanation" for [its] decision, "including a rational connection between the facts found and the choice made." We may not substitute our judgment for that of [the agency], but instead must confine ourselves to ensuring that [it] remained "within the bounds of reasoned decisionmaking."
Dep't of Commerce v. New York
, --- U.S. ----,
Mr. Sharpe challenges both bases for the decision of the Court of Federal Claims: (1) its application of judicial estoppel; and (2) its ruling on the merits. We turn first to Mr. Sharpe's claims with respect to BAH and CSP. Because we conclude that the Court of Federal Claims did not err in its ruling on the merits, we do not reach the issue of judicial estoppel.
II
"Under the constructive service doctrine, 'military personnel who have been illegally or improperly separated from service are deemed to have continued in active service until their legal separation.' "
Barnick v. United States
,
Mr. Sharpe argues that the Court of Federal Claims erred when it upheld the Navy's decision to award him the BAH rate for Norfolk, Virginia. According to Mr. Sharpe, (1) his duty station at the time of his separation was the Carl Vinson, (2) the determination of BAH for a service member assigned to a ship is a function of the ship's home port, and (3) the Carl Vinson undisputedly moved home ports from Norfolk to San Diego on April 1, 2010. Thus, Mr. Sharpe argues, he should receive the San Diego BAH rate for the period from April 1, 2010, to February 12, 2017. Mr. Sharpe relies on
Holley
, a case in which an Army serviceman was held entitled to receive an overseas housing allowance for the entire period of his constructive active duty service, although it was "probable" that, but for his illegal discharge, he would have remained abroad for only ten more months.
Next, Mr. Sharpe contends that because he was receiving CSP at the time of his separation, he should have received CSP and a CSP premium for the period of his separation, regardless of whether he was "serving on" the Carl Vinson. According to Mr. Sharpe, returning him to his prior status takes priority over whether his CSP payments were originally proper. Mr. *1360 Sharpe relies on Groves , arguing that it supports his contention that although the Secretary has certain discretion to award or terminate special pay, that discretion may not be exercised when a service member is denied special pay by virtue of an unlawful conviction.
The government responds that it was not arbitrary or capricious for the Navy to provide Mr. Sharpe with the BAH he was receiving at the time of his separation and that it would have created a windfall for Mr. Sharpe to receive the higher BAH rate for San Diego, where he never resided. To find otherwise, the government argues, would do more than make Mr. Sharpe "whole." Instead, it would put him in a better position than he would have been in had he not been separated. The government also contends that it is Mr. Sharpe's burden to show that he would have continued to serve on the Carl Vinson during the time of his separation, and that the Navy's determination that Mr. Sharpe would not have served on the ship for that time period is entitled to deference, citing Voge . Appellee's Br. 45-47 (citing 844 F.2d at 779-80 ). The government contends that to award Mr. Sharpe the San Diego BAH is contrary to its purpose, which is to assist service members with the cost-of-living expenses in the area within the vicinity of their permanent duty station, not to award a post-hoc windfall for servicemembers retroactively restored to duty.
Next, the government contends that the purpose of CSP and the CSP premium are to compensate service members for the arduous conditions of sea duty and separation from home and family. The government states that the fact that Mr. Sharpe was receiving CSP before his separation does not entitle him to receive it during his separation. 7
III
As noted, the law requires that Mr. Sharpe be placed in the same position he would have been in but for his wrongful separation. At the time of his wrongful separation, Mr. Sharpe was assigned to the Carl Vinson, which was at home port in Norfolk, Virginia. Accordingly, the Navy used the best approximation it had for the position Mr. Sharpe would have been in but for his illegal separation-that position he was in before he was improperly separated-assigned to the Carl Vinson and receiving the BAH rate for Norfolk, Virginia.
As we have previously acknowledged, the constructive service doctrine is a "legal fiction," and it is improper for us to speculate exactly where Mr. Sharpe's career path would have led him but for his separation.
See
Barnick
,
Given the facts of this case, the Navy's decision to place Mr. Sharpe in the same position he was in before his improper separation by paying him the BAH rate for Norfolk was not arbitrary, capricious, or contrary to law. Rather, we agree with the Court of Federal Claims that it was "quite reasonable."
Sharpe
,
That Mr. Sharpe should be placed in the "same position" does not mean that the BCNR erred when it declined to pay him CSP or a CSP premium.
8
Mr. Sharpe's reliance on
Groves
on this point is misplaced. In that case, until his trial by court-martial on charges of larceny, an orthopedic surgeon who was an officer in the Army Reserve was receiving "financial bonuses designed to attract and retain certain professionals in military service." 47 F.3d at 1142. These were in the form of Variable Special Pay, Incentive Special Pay, and Additional Special Pay.
Id.
His conviction was later set aside, and he sought back pay, allowances, and restoration to active duty.
Id.
at 1143. The Court of Federal Claims awarded him basic pay and allowances, but it denied his request for special pay because he did not demonstrate that he had satisfied the additional eligibility requirements for it.
Id.
We reversed, noting that, under
Absent evidence that the Secretary would have otherwise denied Groves the special pay at issue, the statutory mandate to restore all rights, privileges, and property includes any special pay that Groves was receiving prior to his court-martial, and for which he would have continued to be eligible had the conviction never occurred .
Whether Mr. Sharpe's original award of CSP was proper is not before us, although we note Mr. Sharpe's statements in his application to the BCNR suggest otherwise.
See, e.g.
, J.A. 912 ("I was at no relevant time attached to or embarked in a vessel within the meaning of Art. 15.
At no time
did I live, eat, work, stand watch, or serve any punishment aboard ship."). In any event, what is determinative is that Mr. Sharpe cannot claim to have been "assigned to" or "serving on" a ship during the time of his constructive service.
See
Sharpe
,
CONCLUSION
For the foregoing reasons, we hold that the Court of Federal Claims properly sustained the Navy's decisions to (1) award Mr. Sharpe the BAH rate for Norfolk, Virginia, and (2) deny Mr. Sharpe CSP and a CSP premium. We therefore affirm the decision of the Court of Federal Claims.
AFFIRMED
COSTS
Each party shall bear its own costs.
Article 88,
Any commissioned officer who uses contemptuous words against the President, the Vice President, Congress, the Secretary of Defense, the Secretary of a military department, the Secretary of Homeland Security, or the Governor or legislature of any State, Commonwealth, or possession in which he is on duty or present shall be punished as a court-martial may direct.
As stated by the Court of Federal Claims, "CSP is an allowance for service members entitled to basic pay who are 'assigned to' and 'serving on' a ship."
Sharpe
,
As the Court of Federal Claims explained, "BAH is a variable, basic housing allowance awarded to service members eligible for basic pay in order to address higher costs of living in certain geographic areas."
Sharpe
,
Before the Court of Federal Claims, Mr. Sharpe alleged his thirty-seventh month of consecutive sea duty began on June 21, 2009. J.A. 631.
On appeal the government contends that the reason Mr. Sharpe was not issued orders to another duty station was because, after he received non-judicial punishment, on June 17, 2008, the Navy determined that he should be administratively separated, and he underwent out-processing prior to the issuance of his separation orders on September 15, 2009. Appellee's Br. 47.
We note that a discretionary decision by the Secretary of the Navy would be beyond our review.
See
Dysart v. United States
,
Counsel for the government stated at oral argument that the Navy believes it was error for Mr. Sharpe to have received CSP before his separation. Oral Arg. at 26:18-27:06 (May 6, 2019).
As noted, Mr. Sharpe was receiving CSP at the time of his separation.
Reference
- Full Case Name
- John F. SHARPE, Plaintiff-Appellant v. UNITED STATES, Defendant-Appellee
- Cited By
- 16 cases
- Status
- Published