Davis v. US Marshals Srv ( 2021 )

Case: 20-60465 Document: 00515800568 Page: 1 Date Filed: 03/29/2021
United States Court of Appeals
for the Fifth Circuit
United States Court of Appeals
Fifth Circuit
FILED
March 29, 2021
No. 20-60465 Lyle W. Cayce
Clerk
Jeffrey K. Davis,
Plaintiff—Appellant,
versus
United States Marshals Service, an Agency of the United States
of America; United States Department of Justice, an Agency of
the United States of America, both by and through Loretta Lynch, the Attorney
General of the United States of America; Metropolitan Security
Services, Incorporated, doing business as Walden Security;
Thomas Wight; David Harlow,
Defendants—Appellees,
consolidated with
_____________
No. 20-60507
_____________
Jeffrey K. Davis,
Plaintiff—Appellant,
versus
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United States Marshals Service, an Agency of the United States
of America; United States Department of Justice, an Agency of
the United States of America; Metropolitan Security Services,
Incorporated, doing business as Walden Security,
Defendants—Appellees.
Appeal from the United States District Court
for the Northern District of Mississippi
USDC No. 3:16-CV-300
Before Elrod, Willett, and Engelhardt, Circuit Judges.
Per Curiam:*
Jeffrey Davis was offered a position as a district supervisor under a
court security contract between the United States Marshals Service and
Metropolitan Security Services d/b/a Walden Security. Davis brought a
claim against the Department of Justice, United States Marshals Service,
Metropolitan Security Systems, Inc., and two United States Marshals
Service employees in their individual capacity for alleged denial of due
process, breach of contract, and violation of rights under the Whistleblower
Act after his contingent offer of employment was withdrawn. The district
court dismissed the case. We vacate and remand with instructions to dismiss
Davis’s breach-of-contract claim against the Federal Defendants for lack of
jurisdiction, and affirm the district court’s dismissal of Davis’s other claims.
I. Background and Procedural History
Jeffrey K. Davis (Davis) is a former employee of the United States
Marshals Service (Marshals Service). He began working for the Marshals
*
Pursuant to 5th Circuit Rule 47.5, the court has determined that this
opinion should not be published and is not precedent except under the limited
circumstances set forth in 5th Circuit Rule 47.5.4.
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Service in 1991. From 1998 to 2003, Davis was assigned as the Contracting
Officer’s Technical Representative with oversight responsibilities for the
Court Security Officers program in the U.S. District Court for the Northern
District of Mississippi. Davis served in various non-supervisory positions in
the Northern District of Mississippi, until the last three years of his service
with the Marshals Service when he transferred to serve as the Operations
Supervisor for the Memphis, Tennessee office. In June or July 2011, Davis
received written notification that he had been deemed “suitable” for
continued employment. Davis’s suitability determination was to remain
effective for five years. He retired in good standing with top secret security
clearance in January 2013.
While employed by the Marshals Service, Davis lodged various
complaints, first raising contract violations, and subsequently claiming
retaliation by Chief Deputy Marshal Kelly York for having made those
complaints. According to Davis, all grievances were resolved in his favor.
Despite these complaints, Davis continued his employment with the
Marshals Service and was later promoted.
Three years after retiring from the Marshals Service, Davis was
approached by Marshals Service officials from the Northern District of
Mississippi to inquire whether he was interested in the District Supervisor
position, which was staffed under the Marshals Service’s court security
agreement with Walden Security (Walden). Walden is a private security
company that contracts with the Marshals Service to provide court security
personnel as deputized Special U.S. Marshals. Walden provides these
services under a written contract between Walden and the Marshals Service
(the “Walden Contract”). The Walden Contract requires Walden to: (1)
interview applicants, (2) conduct preliminary background checks, and (3)
certify that the selected candidate meets the Marshals Service’s job
qualifications.
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On December 29, 2015, Walden indicated its intent to offer Davis a
position, “contingent upon approval from the [Marshals Service].” Davis
alleges that Walden informed him that he had been approved by the Marshals
Service and allowed Davis to begin his contingent employment on January 5,
2016, so that he could receive training from the retiring district supervisor.
On January 7, 2016, however, Davis was informed by Mark Mancuso of
Walden that the company had received notice from the Marshals Service that
Davis was to be suspended from the contract. Walden employees told Davis
that the “the Acting Director of the [Marshals Service], David Harlow, or
the Office of General Counsel, informed Walden to ‘suspend’ Davis from
the contract” and that “Acting Assistant Director of Judicial Security Tom
Wight” had told Walden that Walden Security could find a more qualified
candidate for the position, but refused to give any further information.
After being notified of Walden’s non-employment decision, Davis
filed a complaint with the Office of Special Counsel (OSC), alleging the
Marshals Service retaliated against him for his prior whistleblowing
activities. The OSC dismissed Davis’s complaint because the OSC does
“not have investigative jurisdiction over complaints filed by contract
employees.” Davis appealed the dismissal to the Merit System Protection
Board (MSPB), which concluded that it had no jurisdiction because Davis
was not an applicant for a position at a federal agency within the meaning of
the federal whistleblower statute on which Davis relied. Davis was informed
he had 30 days to file a petition of review of this decision by the United States
Court of Appeals for the Federal Circuit. Davis did not file a request for
review by the Federal Circuit, but asserts he was not required to do so.
On December 28, 2016, Davis filed this action in the Northern District
of Mississippi against the Marshals Service, the Department of Justice (DOJ)
(collectively, “Federal Defendants”), David Harlow and Thomas Wight
(collectively, “Individual Defendants”), and Walden. He alleged a denial of
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due process under Bivens v. Six Unknown Named Agents of Federal Bureau of
Narcotics, 403 U.S. 388 (1971) against the individually named defendants, a
breach of contract by Walden, and a breach of contract claim and a claim
under the Whistleblower Protection Act of 1989, 5 U.S.C. § 2302(b)(8),
against the Federal Defendants. He sought reinstatement, $500,000 in
damages, and attorney’s fees and costs.
On May 1, 2018, the district court dismissed Davis’s suit with
prejudice as to the Federal Defendants and Individual Defendants for failure
to state a claim. After the Federal Defendants and Individual Defendants
were dismissed and the only remaining claim was against Walden for breach
of contract, Davis sought discovery from the Federal Defendants. In
response to Davis’s request under United States ex rel. Touhy v. Ragen, 340
U.S. 462 (1951), the Marshals Service provided all of its personnel
documents pertaining to Davis while he was employed by the Marshals
Service, as well as the pertinent communications between the Marshals
Service and Walden. Davis next filed a motion to compel a Rule 30(b)(6)
deposition of the Marshals Service.
On July 17, 2019, the district court denied Davis’s motion to compel,
concluding that the internal reasoning behind the Marshals Service’s
communications to Walden was not relevant to Davis’s breach of contract
claims against Walden for terminating him after receiving those
communications.
On January 27, 2020, Walden filed its motion for summary judgment
and memorandum in support. Davis responded to the motion and Walden
replied. On April 23, 2020, the district court granted Walden’s motion for
summary judgment and entered final judgment. Davis appeals several of the
district court’s judgments—the motions to dismiss, the motion to compel,
and the motion for summary judgment.
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II. Government Defendants
Davis first argues the district court erred in dismissing his claims
against Federal Defendants and Individual Defendants under Rule 12(b)(6)
for failing to state a claim. We review the district court’s grant of a motion
to dismiss de novo. See Budhathoki v. Nielsen, 898 F.3d 504, 507 (5th Cir.
2018). Rule 8(a)(2) of the Federal Rules of Civil Procedure provides, in a
general way, the applicable standard of pleading. It requires that a complaint
contain “a short and plain statement of the claim showing that the pleader is
entitled to relief,” FED. R. CIV. P. 8(a)(2), “in order to ‘give the defendant
fair notice of what the . . . claim is and the grounds upon which it rests,’” Bell
Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355
U.S. 41, 47 (1957)). Although a complaint need not contain detailed factual
allegations, the “showing” contemplated by Rule 8 requires the plaintiff to
do more than simply allege legal conclusions or recite the elements of a cause
of action. Twombly, 550 U.S. at 555.
A. Federal Defendants
The district court dismissed the claims against Federal Defendants
after finding that “Davis [was] not a party to the contract. Nor can he be
considered a third-party beneficiary who would be entitled to enforce the
contract, as the background investigation provisions are clearly not a promise
made for Davis’ benefit.” Davis asserts the Walden Contract conferred
procedural rights to Davis in the event of the Marshals Service’s unsuitability
determination. For the purposes of his employment with Walden, Davis
argues, the Marshals Service was a joint employer based on its degree of
control over Walden’s employees and he was a third-party beneficiary under
the Walden Contract. While Davis concedes that his employment as District
Supervisor does not meet the technical definition of “covered position” set
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forth in 5 U.S.C. § 2302(a)(2)(B), he argues that he should be able to proceed
with his claim to “comport with the meaning and spirit of the Act.”
1. Subject Matter Jurisdiction
Davis’s breach-of-contract claim raises a jurisdictional issue. For a
cause of action to proceed against the United States and its agencies or
officials in their official capacities, there must be a clear waiver of sovereign
immunity, or the court lacks subject matter jurisdiction. See United States v.
Sherwood, 312 U.S. 584, 586 (1941). Claims against the Government based in
contract are within the exclusive jurisdiction of the Court of Federal Claims
pursuant to the Tucker Act, 28 U.S.C. § 1491(a)(1). U.S. Marine, Inc. v.
United States, 478 F. App’x 106, 108 (5th Cir. 2012).
Davis’s complaint with the OSC was dismissed for lack of jurisdiction
as a contract employee. Davis appealed the dismissal to the MSPB, which
came to the same conclusion. Appellate jurisdiction over an adverse decision
by the agency board is vested exclusively with the United States Court of
Appeals for the Federal Circuit. 41 U.S.C. § 7107(a)(1); 28 U.S.C.
§ 1295(a)(10). Alternatively, after an initial adverse decision by the
contracting official, the contractor may seek de novo review in the Court of
Federal Claims, with appellate review in the Federal Circuit. 28 U.S.C. §
1295(a)(3). Davis did not appeal that decision to either this Court or the
Federal Circuit, as required by 5 U.S.C. § 7703(b)(1)(A).
Davis asserts that the Tucker Act, 28 U.S.C. § 1346(a), provides that
the district courts have subject matter jurisdiction over claims brought
against the United States founded on express or implied contracts, and in
support cites Awad v. United States, 2001 U.S. Dist. LEXIS 8989 (N.D. Miss.
2001) (Apr. 27, 2001). But Awad, unlike Davis, was directly contracting with
the federal government. The Tucker Act, which waives the immunity of the
United States for certain damages suits in the Court of Federal Claims, does
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not create substantive rights, and a plaintiff relying on the Tucker Act must
premise his damages action on other sources of law, like statutes or contracts.
28 U.S.C. § 1491(a)(1); Maine Cmty. Health Options v. United States, 140 S.
Ct. 1308 (2020).
This court has previously examined a similar argument with a plaintiff
attempting to invoke a statute implicated in her contract with a government
agency (Title VII in her settlement agreement with her employment agency).
See Charles v. McHugh, 613 F. App’x. 330, 332 (5th Cir. 2015). We held that
her claims were not Title VII claims, but contractual claims, and dismissed
the contract claim against the government agency for lack of jurisdiction.
Congress’s waiver of sovereign immunity for another statute could not
confer jurisdiction on the contract case, and the plaintiff had no basis to
enforce her contract with a government agency. Id.Davis further argues that Federal Defendants are incorrect that the
Contract Disputes Act of 1978 (CDA), 41 U.S.C. § 7101 et seq., applies to his
breach of contract claim because Davis is not a “contractor” within the
meaning of the Act. The Walden Contract is a federal contract between the
United States and a government contractor for services. State law or a
contract with a third party does not convey jurisdiction to sue the United
States, because the right “can be acquired only by the specific consent of
Congress,” which is not present in this case. United States. v. Transocean Air
Lines, Inc., 386 F.2d 79, 81 (5th Cir. 1967) (denying jurisdiction for a suit
against the U.S. government by third-party attorneys with a right to a portion
of a government contractor’s claim against the United States, based on
sovereign immunity).
The CDA applies to “express or implied” contracts,
41 U.S.C. § 7102(a), and establishes a multi-tiered administrative review
process. Congress expressly limited potential relief to “a party to a Federal
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Government contract other than the Federal Government.” 41 U.S.C. §
7101(7). Davis’s invocation of the Tucker Act does not confer jurisdiction
over his breach of contract claim in light of the administrative and judicial
scheme to resolve disputes between contractors and the federal government
in the CDA, which imposes particular jurisdictional limitations upon suits
involving government contracts for the performance of services.
Our sister circuit recently analyzed a factually similar case. In
Atterbury, a former employee of a private security contractor brought an
action against the Marshals Service and a contracting officer regarding the
Marshals Service’s removal of the employee from a court security program,
in which he served as a court security officer, which led to termination of his
employment. Atterbury v. U.S. Marshals Serv., 805 F.3d 398 (2d Cir. 2015).
Davis, like Atterbury, is not in privity with the United States. In its holding,
the Second Circuit found that the provisions of the CDA apply only to
contractors, i.e., a party to a federal government contract other than the
federal government. Id; 41 U.S.C. § 7101(7). We agree.
The CDA exclusively governs government contracts and government
contract disputes and, when the CDA applies, it provides “the exclusive
mechanism for dispute resolution.” Tex. Health Choice, L.C. v. Office of Pers.
Mgmt., 400 F.3d 895, 898-99 (Fed. Cir. 2005). Further, the CDA does not
permit appeals by anyone who is not a party to a Government contract other
than the Government. Winter v. FloorPro, Inc., 570 F.3d 1367, 1371 (Fed. Cir.
2009). Because Davis has not demonstrated his standing to enforce the terms
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of the Walden Contract, we vacate and remand with instructions to the
district court to dismiss Davis’s breach-of-contract claim without prejudice. 1
2. Whistleblower Protection Act of 1989
Davis concedes that his employment as district supervisor does not
meet the definition of “covered position” set forth in
5 U.S.C. § 2302(a)(2)(B), but argues he should be allowed to proceed with
his claim “to comport with the spirit and meaning of the Act.” Davis cites
no legal authority for this court to go beyond the clear intent of Congress to
define a ‘covered position’ under 5 U.S.C. § 2302(a)(2)(B).
We review questions of statutory interpretation de novo. In re Glenn,
900 F.3d 187, 189 (5th Cir. 2018). The ordinary-meaning rule is the most
fundamental semantic rule of interpretation. A. Scalia & B. Garner, Reading
Law: The Interpretation of Legal Texts 69 (2012). “The task of statutory
interpretation begins and, if possible, ends with the language of the statute.”
Trout Point Lodge, Ltd. v. Handshoe, 729 F.3d 481, 486 (5th Cir. 2013).
“When the language is plain, we ‘must enforce the statute’s plain meaning,
unless absurd.’” Id. (quoting In re Nowlin, 576 F.3d 258, 261–62 (5th Cir.
2009)); see also BedRoc Ltd. v. United States, 541 U.S. 176, 183 (2004) (“The
preeminent canon of statutory interpretation requires [the court] to
‘presume that [the] legislature says in a statute what it means and means in a
statute what it says there.’” (quoting Conn. Nat’l Bank v. Germain, 503 U.S.
249, 253–54 (1992)). Because Davis is not covered under the statute, we
affirm dismissal of this claim.
1
We must always be sure of our appellate jurisdiction and, if there is doubt, we
must address it, sua sponte if necessary. In re Cortez, 457 F.3d 448 (5th Cir. 2006) (quoting
In re Chunn, 106 F.3d 1239, 1241 (5th Cir.1997)).
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B. Individual Defendants
Next, Davis argues the district court erred in dismissing Davis’s due
process claim against Harlow and Wight. Davis’s claim that he was denied
Fifth and Fourteenth Amendment due process rights is brought pursuant to
42 U.S.C. § 1983 and Bivens. The district court found that Davis failed to
state a claim against the Individual Defendants and that Section 1983 cannot
serve as a basis for Davis’s constitutional claims against the Individual
Defendants. Section 1983 only applies to state actors. Davis concedes his
Section 1983 claim and is no longer pursuing this claim because there are no
state actors involved. As for Bivens, Davis has conceded that his claim
“should be dismissed.” 2
2
The Supreme Court has admonished the courts to exercise caution in the
disfavored judicial activity of extending Bivens to any new set of facts. See Cantú v. Moody,
933 F.3d 414, 421–22 (5th Cir. 2019) (citing Ziglar v. Abbasi, 137 S. Ct. 1843, 1857 (2017)).
Davis argues that his case is analogous with the claims raised in Davis v. Passman, 442 U.S.
228 (1979). In Passman, the equal protection component of the due process clause
conferred on a female congressional staff member a federal constitutional right, personal to
her, to be free from gender-based discrimination which was not substantially related to the
achievement of an important governmental objective. Id. Davis asserts, under Passman,
that he is not a “new category of defendant” nor would this case be a “new context” in
applying Bivens.
Davis’s claim would present a new Bivens context, despite the caution expressed
in Cantú. “[T]he existence of a statutory scheme” governing breach of contract claims
against the United States and for claims of reprisal in limited circumstances is, itself, a
special factor counseling against recognizing an implied right under Bivens to sue individual
officers. See Cantú, 933 F.3d at 423; Ziglar, 137 S. Ct. at 1858 (noting “that alone may limit
the power of the Judiciary to infer a new Bivens cause of action”). That Congress has
chosen not to provide a Bivens-type remedy against individuals in this highly regulated
context weighs heavily against implying such a remedy here. Accordingly, Davis’s claims
against Individual Defendants were properly dismissed.
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III. Discovery Ruling
Davis next argues that the district court abused its discretion by
denying his motion to compel the DOJ to comply with a Rule 45 subpoena.
The denial of this motion was made after the district court had dismissed the
Federal Defendants and Individual Defendants from the case, leaving only
the breach-of-contract claim against Walden remaining. We review the denial
of a motion to compel discovery for abuse of discretion, Barrett v. Indep.
Order of Foresters, 625 F.2d 73, 75 (5th Cir. 1980), mindful that a district court
is afforded “broad discretion when deciding discovery matters.” Crosby v.
La. Health Serv. & Indem. Co., 647 F.3d 258, 261 (5th Cir. 2011).
After dismissal, the only remaining claim was whether Walden had
breached any contractual relationship with Davis. Davis contends a
deposition of the DOJ is the only means by which he can discover why he was
found unsuitable. Davis sought to “obtain information concerning why the
[DOJ] required his termination, information only the [DOJ] has in its
possession.” Davis explains the DOJ objected to the Rule 30(6)(b)
deposition of the Marshals Services because Davis could discover all the
communication being sought “from other sources” and the requests were
“unduly burdensome.”
This court recognizes broad and liberal treatment of the federal
discovery rules. U.S. v. Holley, 942 F.2d 916, 924 (5th Cir. 1991). In civil
cases, parties are entitled to discover all information relevant to any party’s
claim or defense that is not privileged. FED. R. CIV. P. 26(b)(1).
The DOJ sufficiently demonstrated that Davis’s discovery request
was overly broad and not relevant to Davis’s remaining breach-of-contract
claim against Walden. The DOJ’s decision that Davis was not suitable to
perform under the contract might be questionable to Davis, but the contract
gave Walden no right of input to nor oversight of the government’s suitability
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decision. The DOJ’s reasoning does not have anything to do with whether
Walden Security breached its contract with Davis.
In light of the circumstances at the time of the ruling, 3 including the
reasonableness of the discovery after Federal Defendants had been
dismissed, we find that the district court did not abuse its discretion in
denying Davis’s motion to compel discovery.
IV. Walden
Lastly, Davis argues the district court erred in granting Walden’s
motion for summary judgment and dismissing the breach of contract claim.
We review the district court’s grant of a motion for summary judgment de
novo, and we apply the same standard as the district court, viewing the
evidence in the light most favorable to the nonmovant. First Am. Title Ins.
Co. v. Continental Cas. Co., 709 F.3d 1170, 1173 (5th Cir. 2013). Summary
judgment is appropriate where “there is no genuine dispute as to any material
fact and the movant is entitled to judgment as a matter of law.” FED. R.
CIV. P. 56(a).
3
There is also a procedural defect in Davis’s motion. Subpoenas seeking to compel
government employees to produce information have been quashed where a Touhy
determination has been made by a federal agency that information should not be provided,
as occurred here. See Boron Oil Co. v. Downie, 873 F.2d 67, 69 (4th Cir. 1989) (quashing
subpoena against EPA employees on the basis of a Touhy determination); State of La. v.
Sparks, 978 F.2d 226 (5th Cir. 1992) (Touhy regulations give DOJ authority to refuse to
comply with a subpoena ordering disclosure of confidential files when the United States is
not a party to a legal action). Once the government issued a decision under Touhy, Davis
was required to file a separate suit under the Administrative Procedure Act to challenge
that final decision made by the agency. See Moore v. Armour Pharm. Co., 927 F.2d 1194,
1197–98 (11th Cir. 1991). He failed to do so, instead filing a motion to compel in the District
of Columbia.
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1. Suitability Determination
Davis’s Amended Complaint and testimony allege that the Marshals
Service wrongfully caused his removal from his employment with Walden.
Other than following the Marshals Service’s order to remove him, Davis
asserts no other grounds that Walden wrongfully removed him. It is
undisputed that Walden sent Davis a letter stating that Walden removed him
because the Marshals Service did not approve his recommendation for
employment after concluding their final review.
The suitability determination in the Walden Contract is not made for
Davis’s benefit. Rather, it is made for the Marshals Service to “determine
whether the individual’s presence or performance under this contract could
pose a potential threat or risk to the U.S. Courts, the Marshals Service, or the
public.” Walden was not responsible for conducting a suitability
determination—or for ensuring that the Marshals Service conducted one.
2. Breach of Contract
Davis does not allege that he had a written contract with Walden.
Because Davis did not have a written contract with Walden and was not a
third-party beneficiary of the Walden Contract, he argues that the
contractual obligations of the Walden Contract were incorporated through
his offer letter from Walden which expressly stated (1) that it was not an
employment contract, (2) that his employment was at-will, and (3) that it was
“contingent upon approval by the Marshals Service.” The offer letter did
not mention the Walden Contract.
It is undisputed that Walden was Davis’s employer. Davis bases his
breach of contract claim entirely on the Walden Contract, and claims to be a
third-party beneficiary of the Walden Contract. The right of the third-party
beneficiary to maintain an action on the contract must spring from the terms
of the contract itself. Burns v. Washington Sav., 251 Miss. 789, 796, 171 So.
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2d 322, 325 (1965). Here, the terms did not include Davis, and Davis does
not argue that Walden breached the Walden Contract. Davis’s claims against
Walden were properly dismissed.
V. Conclusion
For the foregoing reasons, we VACATE and REMAND with
instructions for the district court to dismiss Davis’s breach-of-contract claim
against the Federal Defendants without prejudice for lack of jurisdiction, and
AFFIRM the district court’s dismissal of the remainder of Davis’s claims.
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