Craft v. MSPB ( 2021 )


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  • Case: 21-1516   Document: 35     Page: 1   Filed: 07/14/2021
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    BETTEY SUE CRAFT,
    Petitioner
    v.
    MERIT SYSTEMS PROTECTION BOARD,
    Respondent
    ______________________
    2021-1516
    ______________________
    Petition for review of the Merit Systems Protection
    Board in No. AT-1221-20-0829-W-1.
    ______________________
    Decided: July 14, 2021
    ______________________
    BETTEY SUE CRAFT, Tracy, CA, pro se.
    KATHERINE MICHELLE SMITH, Office of the General
    Counsel, United States Merit Systems Protection Board,
    Washington, DC, for respondent. Also represented by
    TRISTAN L. LEAVITT.
    ______________________
    Before MOORE, Chief Judge, LINN and CHEN, Circuit
    Judges.
    Case: 21-1516    Document: 35     Page: 2    Filed: 07/14/2021
    2                                             CRAFT   v. MSPB
    PER CURIAM.
    Ms. Bettey Sue Craft appeals from a decision of the
    Merit Systems Protection Board (Board) dismissing her
    whistleblower individual right of action appeal for lack of
    jurisdiction. Because Ms. Craft alleges retaliation for po-
    tential whistleblowing activity—a claim over which the
    Board has jurisdiction—we vacate the decision and remand
    for further proceedings.
    BACKGROUND
    In 1983, Ms. Craft, an employee of the Defense Infor-
    mation Systems Agency, incurred a work-related injury for
    which she was awarded workers’ compensation benefits by
    the Department of Labor (DOL). Resp’t App’x at 37. 1
    Ms. Craft has since contested a variety of issues associated
    with this award. Resp’t App’x at 24. On March 19, 2019,
    she filed an appeal with the Board, contesting previous de-
    cisions from the DOL’s Office of Workers’ Compensation
    (OWC) that issued between 2001 and 2012. Resp’t App’x
    at 69. While that appeal was pending, on September 18,
    2020, the OWC terminated Ms. Craft’s workers’ compensa-
    tion benefits, reasoning that Ms. Craft had fully recovered
    from her injuries and did not require further compensation.
    See Resp’t App’x at 36–39.
    Ms. Craft filed a second (and separate) appeal with the
    Board on September 16, 2020. This second appeal involves
    a whistleblowing individual right of action regarding the
    OWC’s termination decision. 2 Ms. Craft claims that the
    1   Citations to “Resp’t App’x at [page number]” refer
    to the appendix submitted with the government’s informal
    brief.
    2   Though the OWC did not issue its final termination
    until September 18, 2020, Ms. Craft filed suit after being
    notified of OWC’s consideration of such termination on Au-
    gust 11, 2020.
    Case: 21-1516      Document: 35     Page: 3    Filed: 07/14/2021
    CRAFT   v. MSPB                                              3
    OWC’s rescission of benefits decision was made in retalia-
    tion for her whistleblowing activities. Resp’t App’x at 21.
    The Board issued a Jurisdiction Order, notifying Ms. Craft
    that it lacked jurisdiction over her claims unless she pro-
    vided proof of administrative exhaustion at the Office of
    Special Counsel (OSC) and made nonfrivolous allegations
    that her disclosures were protected whistleblowing activity
    contributing to the OWC’s decision. Resp’t App’x at 3.
    Ms. Craft subsequently filed three submissions detailing
    her interactions with OSC, elaborating that, in her belief,
    the OWC’s decision was due to her disclosures and appeals
    of prior determinations. See Resp’t App’x at 49–53.
    On October 15, 2020, the Board dismissed Ms. Craft’s
    appeal for lack of jurisdiction, explaining that “OWC[]’s
    proposed termination of the appellant’s OWC[] benefits
    and its subsequent decision to terminate those benefits[] is
    not a matter that is directly appealable to the Board.”
    Resp’t App’x at 3. The Board did not make any factual find-
    ings in its decision as to OSC exhaustion, stating that it
    lacked jurisdiction as a matter of law in view of Kerrigan v.
    Dep’t of Labor, 
    122 M.S.P.R. 545
     (2015). Resp’t App’x at 3.
    Ms. Craft timely appeals. We have jurisdiction pursu-
    ant to 
    5 U.S.C. § 7703
    (b)(1)(B) and 
    28 U.S.C. § 1295
    (a)(9).
    DISCUSSION
    On appeal, the government asks us to vacate and re-
    mand, acknowledging that the Board erred as a matter of
    law in finding it lacked jurisdiction. Resp’t Br. at 8. We
    agree.
    We may set aside a decision by the Board only when it
    is arbitrary, capricious, an abuse of discretion, does not fol-
    low the law, or is not supported by substantial evidence.
    See 
    5 U.S.C. § 7703
    (c); see also Forest v. Merit Sys. Prot.
    Bd., 
    47 F.3d 409
    , 410 (Fed. Cir. 1995). The Board’s deter-
    mination that it lacks jurisdiction is a legal question that
    this court reviews de novo. § 7703(c); see also Herman v.
    Case: 21-1516     Document: 35      Page: 4   Filed: 07/14/2021
    4                                              CRAFT   v. MSPB
    Dep’t of Justice, 
    193 F.3d 1375
    , 1378 (Fed. Cir. 1999). This
    court is bound by the Board’s factual findings on which a
    jurisdictional determination is based “unless those findings
    are not supported by substantial evidence.” Bolton v. Merit
    Sys. Prot. Bd., 
    154 F.3d 1313
    , 1316 (Fed. Cir. 1998).
    The issue of an individual’s entitlement to workers’
    compensation benefits is within the exclusive jurisdiction
    of the OWC under 
    5 U.S.C. § 8128
    (b). See Pueschel v.
    United States, 
    297 F.3d 1371
    , 1374–77 (Fed. Cir. 2002).
    Ms. Craft, however, does not seek review of the underlying
    merits of the OWC decision, but rather contends that the
    OWC retaliated against her following protected whistle-
    blowing activity. This kind of whistleblowing retaliation
    claim is within the scope of the Board’s jurisdiction. Kerri-
    gan v. Merit Sys. Prot. Bd., 
    833 F.3d 1349
    , 1352 (Fed. Cir.
    2016) (“The question of whether the DOL retaliated
    against Mr. Kerrigan in reprisal for whistleblowing activ-
    ity is a different one than whether the DOL correctly ter-
    minated his benefits for failure to attend vocational
    training. Section 8128(b) only precludes the Board’s review
    of the latter.”).
    CONCLUSION
    Because the Board’s decision was contrary to law, the
    decision is vacated and remanded. The Board suggested,
    though it never affirmatively concluded, that Ms. Craft
    may have failed to exhaust administrative remedies at the
    OSC or failed to state a nonfrivolous claim. We remand for
    the Board to make factual findings on these points in the
    first instance.
    VACATED AND REMANDED
    COSTS
    No costs.