Melson v. United States ( 2019 )


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  •        NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    RUDY SAMUEL MELSON,
    Plaintiff-Appellant
    v.
    UNITED STATES,
    Defendant-Appellee
    ______________________
    2018-1386
    ______________________
    Appeal from the United States Court of Federal Claims
    in No. 1:17-cv-00540-TCW, Judge Thomas C. Wheeler.
    ______________________
    Decided: July 17, 2019
    ______________________
    MARK ANTHONY CRAWFORD, The Crawford Law Firm,
    PC, Floral Park, NY, argued for plaintiff-appellant.
    IGOR HELMAN, Commercial Litigation Branch, Civil Di-
    vision, United States Department of Justice, Washington,
    DC, argued for defendant-appellee. Also represented by
    ROBERT EDWARD KIRSCHMAN, JR., LOREN MISHA PREHEIM,
    JOSEPH H. HUNT.
    ______________________
    Before DYK, REYNA, and TARANTO, Circuit Judges.
    2                                    MELSON v. UNITED STATES
    PER CURIAM.
    Rudy Melson brought suit in the Court of Federal
    Claims (“Claims Court”) seeking damages related to his
    2005 discharge from the United States Army Reserve and
    his 2008 separation from the United States Public Health
    Service (“USPHS”) Commissioned Corps. The Claims
    Court dismissed his suit. We affirm in part, vacate in part,
    and remand.
    BACKGROUND
    According to his complaint, Melson served in the
    United States Army Reserve from 2002 to 2005. He was
    discharged in 2005. He thereafter served in the USPHS
    Commissioned Corps in various capacities from 2006 to
    2008. For part of Melson’s time in the USPHS, he was as-
    signed to the Bureau of Prisons to fulfill his active duty ser-
    vice obligation. Melson alleges that he was informed that
    would be involuntarily separated for cause, but that he was
    then forced to resign in lieu of involuntary termination in
    2008.
    On April 17, 2017, Melson filed suit in the Claims
    Court, seeking compensation related to his discharge from
    the Army Reserve and his separation from the USPHS
    Commissioned Corps. The Claims Court interpreted Mel-
    son’s complaint as requesting back pay based on his wrong-
    ful discharge from the Army Reserve and USPHS
    Commissioned Corps, and as seeking damages for illegal
    discrimination and a hostile work environment at the
    USPHS. The court held that the back pay claims were
    barred by the six-year statute of limitations applicable to
    all claims over which the Claims Court has jurisdiction, 
    28 U.S.C. § 2501
    . The court noted that back pay claims accrue
    upon discharge under our decision in Martinez v. United
    States, 
    333 F.3d 1295
    , 1303–04 (Fed. Cir. 2003) (en banc).
    It held that Melson was discharged from the Army Reserve
    in 2005 and separated from the USPHS in 2008, more than
    six years before he brought suit in 2017. As to the
    MELSON v. UNITED STATES                                     3
    discrimination and hostile work environment claims, the
    court held that these claims—like other tort or discrimina-
    tion claims—fall outside the Claims Court’s limited juris-
    diction.
    Melson appeals. We have jurisdiction under 
    28 U.S.C. § 1295
    (a)(3). We review dismissal of a complaint for lack
    of jurisdiction and failure to state a claim de novo. See
    Turping v. United States, 
    913 F.3d 1060
    , 1064 (Fed. Cir.
    2019).
    DISCUSSION
    There are three types of claims at issue in this case:
    back pay claims, discrimination and hostile work environ-
    ment claims, and disability retirement claims. On appeal,
    Melson “concedes that his back pay claims may be un-
    timely,” as the Claims Court held. Appellant’s Br. at 13.
    Such a concession is appropriate because under Martinez,
    
    333 F.3d at
    1303–04, a “claim for back pay accrues all at
    once at the time of discharge” and a plaintiff must “file suit
    within the six-year limitation period prescribed in 
    28 U.S.C. § 2501
    .” Here both the discharge and separation
    dates were more than six years before Melson brought suit
    in the Claims Court. The Claims Court thus properly dis-
    missed the back pay claims as untimely.
    Melson also does not allege any error in the court’s dis-
    missal of his discrimination and hostile work environment
    claims, which the Claims Court held were not within its
    limited jurisdiction. We therefore affirm the Claims
    Court’s dismissal of the discrimination and hostile work
    environment claims.
    On appeal, Melson contends only that the Claims Court
    improperly dismissed his claims for disability retirement
    benefits. Disability retirement is governed by 
    10 U.S.C. § 1201
    , which provides that a service member may retire
    and receive “retired pay” if the member is “unfit to perform
    the duties of the member’s office, grade, rank, or rating
    4                                  MELSON v. UNITED STATES
    because of physical disability” that is “of a permanent na-
    ture and stable.”
    The government contends that Melson did not plead a
    disability retirement claim in his complaint. With respect
    to Melson’s service in the USPHS Commissioned Corps, his
    complaint alleged that he was “placed in a hostile work en-
    vironment” and that his supervisors had “a propensity to
    discriminate,” J.A. 23, but he did not claim that he should
    receive disability retirement based on that service. We con-
    clude that Melson failed to state a disability retirement
    claim based on Melson’s separation from the USPHS Com-
    missioned Corps.
    However, Melson’s complaint alleged that he had a
    “medical condition that caused his” discharge from the
    Army Reserve, and that the medical condition was “due to
    aggravation proximately caused by Basic Combat Training
    and additional ROTC training thereafter, which qualified
    him for medical separation with severance pay.” J.A. 19
    (emphasis omitted). The complaint also requested the
    Claims Court to “[a]mend the existing ‘AUTHORITY AND
    REASON’ of Mr. Melson’s NGB FORM 22E [his Army Re-
    serve discharge form] to reflect: ‘Separation for Physical
    Disability Discharge with Severance Pay.’” J.A. 24.
    Though not a model of clarity, we conclude that the com-
    plaint alleged a disability retirement claim with respect to
    Melson’s discharge from the Army Reserve.
    The government contends that Melson’s disability re-
    tirement claim, based on his discharge from the Army Re-
    serve, is barred by the six-year statute of limitations. On
    May 13, 2019, we asked the parties to “file simultaneous
    supplemental briefs addressing whether the Army Board
    for the Correction of Military Records [ABCMR] denied a
    claim by Melson for disability retirement benefits, and, if
    it did, when it first denied such a claim.” Melson v. United
    States, No. 18-1386 (Fed. Cir. May 13, 2019), ECF No. 39.
    The parties agree that “claims of entitlement to disability
    MELSON v. UNITED STATES                                        5
    retirement pay generally do not accrue until the appropri-
    ate military board either finally denies such a claim or re-
    fuses to hear it.” Chambers v. United States, 
    417 F.3d 1218
    , 1224 (Fed. Cir. 2005); Real v. United States, 
    906 F.2d 1557
    , 1560 (Fed. Cir. 1990); Friedman v. United States, 
    310 F.2d 381
    , 395–96 (Ct. Cl. 1962). There is an exception: if a
    service member has “sufficient actual or constructive notice
    of his disability . . . at the time of discharge,” then the stat-
    ute of limitations begins to run on the date of discharge.
    Chambers, 
    417 F.3d at
    1226 (citing Real, 
    906 F.2d at 1562
    ).
    Once the disability retirement claim accrues, the claimant
    has six years to file that claim in the Claims Court. See
    Chambers, 
    417 F.3d at
    1223 (citing 
    28 U.S.C. § 2501
    ). This
    six-year limitations period is jurisdictional in nature. John
    R. Sand & Gravel Co. v. United States, 
    552 U.S. 130
    , 134
    (2008).
    The government argues that Melson’s disability retire-
    ment claim based on his discharge from the Army Reserve
    is time-barred. The government urges that Melson first
    asked an appropriate military board, the Army Discharge
    Review Board (ADRB), to re-characterize his discharge
    from the Army Reserve to reflect that “he was discharged
    due to a service connected disability.” S.A. 39. The ADRB
    denied Melson’s claim on April 1, 2011. The government
    contends that this occurred more than six years before Mel-
    son filed his complaint in the Court of Federal Claims on
    April 17, 2017, and that his disability retirement claim is
    therefore time-barred. The government alternatively con-
    tends that Melson’s claim is time-barred because it accrued
    upon Melson’s discharge, even before the ADRB denied his
    claim, because Melson “knew of his disability and knew
    that it was permanent and service-connected at the time of
    his discharge” in 2005. Appellee’s Supp. Br. at 3; see Cham-
    bers, 
    417 F.3d at 1226
    .
    Melson’s supplemental brief argues that Melson’s dis-
    ability claim accrued when the ABCMR denied his claim
    on November 25, 2014, or when it denied his request for
    6                                  MELSON v. UNITED STATES
    reconsideration on January 19, 2016. Melson’s theory is
    that he filed in the Claims Court within six years of these
    dates, and thus the Claims Court had jurisdiction over this
    claim. Melson does not address the government’s alterna-
    tive argument that his disability claim accrued upon his
    discharge because he had sufficient knowledge of his disa-
    bility at that time.
    We think these issues are best addressed by the Claims
    Court in the first instance and therefore vacate and re-
    mand. On remand, the court should determine when the
    limitations period began to run for any disability claim
    based on Melson’s discharge from the Army Reserve and
    whether such a claim is time-barred. If the court concludes
    that the claim is not time-barred, the court should proceed
    to the merits of the claim. In all other respects, we affirm
    the Claims Court’s dismissal of the claims.
    AFFIRMED-IN-PART, VACATED-IN-PART, AND
    REMANDED
    COSTS
    No costs.
    

Document Info

Docket Number: 18-1386

Filed Date: 7/17/2019

Precedential Status: Non-Precedential

Modified Date: 7/17/2019