Harry M. Schmitt, Complainant,v.Gordon R. England, Secretary, Department of the Navy, Agency.

Equal Employment Opportunity CommissionJul 20, 2005
01a53006 (E.E.O.C. Jul. 20, 2005)

01a53006

07-20-2005

Harry M. Schmitt, Complainant, v. Gordon R. England, Secretary, Department of the Navy, Agency.


Harry M. Schmitt v. Department of the Navy

01A53006

July 20, 2005

.

Harry M. Schmitt,

Complainant,

v.

Gordon R. England,

Secretary,

Department of the Navy,

Agency.

Appeal No. 01A53006

Agency No. 02-62841-001 and 02-62841-002

DECISION

Complainant filed an appeal on March 21, 2005, with this Commission from

a final decision by the agency dated December 13, 2004, finding that

it was in compliance with the terms of the December 12, 2003 settlement

agreement into which the parties entered.

The settlement agreement provided, in pertinent part, that:

A. The agency will do the following:

1. The agency will pay the complainant the sum of Five Thousand dollars

($5,000.00) in a check made payable to the complainant in waiver of

all damages and costs. The agency makes no representations regarding

the tax consequences of this payment to the complainant.

2. Pay attorney's fees to the appellant's attorney . . . in the amount

of Five Thousand Dollars ($5,000.00).

By letter to the agency dated December 10, 2004, complainant alleged

that the agency was in breach of the settlement agreement, and requested

that the agency specifically reinstate his previously settled complaints.

Complainant alleged that the agency failed to pay him $5,000 as agreed.

In its December 13, 2004 decision, the agency concluded that complainant's

attorney had been paid as agreed, and that the agency had requested

complainant's mailing address from complainant's attorney by electronic

mail message. Complainant's attorney, the agency found, provided a

mailing address for complainant, and the agency directed that a check (in

the amount of $5,000.00) be sent to complainant's address in January 2004.

Accordingly, the agency found that no breach of the settlement agreement

occurred.

On appeal, the agency argues that complainant's notice of breach was

untimely, being received nearly a year after the execution of the

settlement agreement and eleven months after the agency had mailed the

checks in satisfaction of the agreement to complainant and his attorney.

The agency further argues that complainant's appeal is untimely in that

complainant failed to file his appeal within 30 days of the agency's

letter of determination of December 13, 2004.

On appeal, complainant states that he waited a reasonable time to receive

the agency's payment, that he informed the agency of his new address,

and that he is entitled to reinstatement of his complaints as requested.

EEOC Regulation 29 C.F.R. � 1614.504(a) provides that any settlement

agreement knowingly and voluntarily agreed to by the parties, reached at

any stage of the complaint process, shall be binding on both parties.

The Commission has held that a settlement agreement constitutes a

contract between the employee and the agency, to which ordinary rules

of contract construction apply. See Herrington v. Department of Defense,

EEOC Request No. 05960032 (December 9, 1996). The Commission has further

held that it is the intent of the parties as expressed in the contract,

not some unexpressed intention, that controls the contract's construction.

Eggleston v. Department of Veterans Affairs, EEOC Request No. 05900795

(August 23, 1990). In ascertaining the intent of the parties with regard

to the terms of a settlement agreement, the Commission has generally

relied on the plain meaning rule. See Hyon O v. United States Postal

Service, EEOC Request No. 05910787 (December 2, 1991). This rule states

that if the writing appears to be plain and unambiguous on its face,

its meaning must be determined from the four corners of the instrument

without resort to extrinsic evidence of any nature. See Montgomery

Elevator Co. v. Building Eng'g Servs. Co., 730 F.2d 377 (5th Cir. 1984).

As a preliminary matter, we note that nothing in the record confirms

complainant's attorney's receipt of the agency's December 13, 2004

determination letter, nor complainant's receipt of payment of the

settlement monies in January 2004. Therefore, we do not find the

appeal or the breach claim untimely. There is no evidence showing that

complainant actually received the $5,000 payment due him under provision

A(1) of the settlement agreement. It appears that the agency, in good

faith, attempted such payment. Under the circumstances, we find that

complainant is still entitled to payment of the settlement monies as

agreed in provision A(1).

We find the agency properly requested that complainant complete the forms

necessary to replace the check that the agency claims to have issued

but complainant claims to not have received. We concur with the agency

that complainant is obliged to cooperate with the agency in fulfillment

of the terms of the settlement agreement. Accordingly, we will direct

the agency to provide the necessary forms again to complainant, so that

the agency may fulfill its obligations under the terms of the settlement

agreement. If complainant fails to return the forms (which the agency

states are required before the Department of Treasury can reissue the

check), within 30 days of receipt of such forms, then the agency is

not obligated to pay complainant the $5,000 due under provision A(1)

of the settlement agreement. Complainant is reminded of his obligation

to act in good faith when implementing the agreement.

We therefore VACATE the agency's determination that no breach of the

settlement agreement of December 12, 2003 has occurred. We REMAND the

matter to the agency for further action as directed herein.

ORDER

The agency shall take the following actions in order to show that the

agency has complied with provision (A)(1) of the settlement agreement

of December 12, 2003:

The agency shall place into the record documentation verifying whether

complainant has received the $5,000 at issue in provision A(1) of the

settlement agreement. If complainant has not received the $5,000,

then the agency shall place documents in the record indicating that the

agency has verified complainant's mailing address and evidence showing

that the agency has mailed (and proof that complainant has received)

the forms necessary to re-issue a check to complainant in satisfaction of

the agency's obligation under provision A(1) of the settlement agreement.

If the agency finds it necessary to re-issue a check, then the agency

shall send a letter to complainant providing him with instructions to

return the completed forms to the agency within 30 days of his receipt

of the forms and requesting complainant's cooperation therein.

Within 120 days of the date this decision becomes final the agency shall

issue a new decision determining whether the agency breached provision

(A)(1) of the settlement agreement. A copy of the agency's new decision

must be sent to the Compliance Officer referenced herein.

IMPLEMENTATION OF THE COMMISSION'S DECISION (K0501)

Compliance with the Commission's corrective action is mandatory.

The agency shall submit its compliance report within thirty (30)

calendar days of the completion of all ordered corrective action. The

report shall be submitted to the Compliance Officer, Office of Federal

Operations, Equal Employment Opportunity Commission, P.O. Box 19848,

Washington, D.C. 20036. The agency's report must contain supporting

documentation, and the agency must send a copy of all submissions to

the complainant. If the agency does not comply with the Commission's

order, the complainant may petition the Commission for enforcement

of the order. 29 C.F.R. � 1614.503(a). The complainant also has the

right to file a civil action to enforce compliance with the Commission's

order prior to or following an administrative petition for enforcement.

See 29 C.F.R. �� 1614.407, 1614.408, and 29 C.F.R. � 1614.503(g).

Alternatively, the complainant has the right to file a civil action on

the underlying complaint in accordance with the paragraph below entitled

"Right to File A Civil Action." 29 C.F.R. �� 1614.407 and 1614.408.

A civil action for enforcement or a civil action on the underlying

complaint is subject to the deadline stated in 42 U.S.C. 2000e-16(c)

(1994 & Supp. IV 1999). If the complainant files a civil action, the

administrative processing of the complaint, including any petition for

enforcement, will be terminated. See 29 C.F.R. � 1614.409.

STATEMENT OF RIGHTS - ON APPEAL

RECONSIDERATION (M0701)

The Commission may, in its discretion, reconsider the decision in this

case if the complainant or the agency submits a written request containing

arguments or evidence which tend to establish that:

1. The appellate decision involved a clearly erroneous interpretation

of material fact or law; or

2. The appellate decision will have a substantial impact on the policies,

practices, or operations of the agency.

Requests to reconsider, with supporting statement or brief, must be filed

with the Office of Federal Operations (OFO) within thirty (30) calendar

days of receipt of this decision or within twenty (20) calendar days of

receipt of another party's timely request for reconsideration. See 29

C.F.R. � 1614.405; Equal Employment Opportunity Management Directive for

29 C.F.R. Part 1614 (EEO MD-110), 9-18 (November 9, 1999). All requests

and arguments must be submitted to the Director, Office of Federal

Operations, Equal Employment Opportunity Commission, P.O. Box 19848,

Washington, D.C. 20036. In the absence of a legible postmark, the

request to reconsider shall be deemed timely filed if it is received by

mail within five days of the expiration of the applicable filing period.

See 29 C.F.R. � 1614.604. The request or opposition must also include

proof of service on the other party.

Failure to file within the time period will result in dismissal of your

request for reconsideration as untimely, unless extenuating circumstances

prevented the timely filing of the request. Any supporting documentation

must be submitted with your request for reconsideration. The Commission

will consider requests for reconsideration filed after the deadline only

in very limited circumstances. See 29 C.F.R. � 1614.604(c).

COMPLAINANT'S RIGHT TO FILE A CIVIL ACTION (R0900)

This is a decision requiring the agency to continue its administrative

processing of your complaint. However, if you wish to file a civil

action, you have the right to file such action in an appropriate United

States District Court within ninety (90) calendar days from the date

that you receive this decision. In the alternative, you may file a

civil action after one hundred and eighty (180) calendar days of the date

you filed your complaint with the agency, or filed your appeal with the

Commission. If you file a civil action, you must name as the defendant in

the complaint the person who is the official agency head or department

head, identifying that person by his or her full name and official title.

Failure to do so may result in the dismissal of your case in court.

"Agency" or "department" means the national organization, and not the

local office, facility or department in which you work. Filing a civil

action will terminate the administrative processing of your complaint.

RIGHT TO REQUEST COUNSEL (Z1199)

If you decide to file a civil action, and if you do not have or cannot

afford the services of an attorney, you may request that the Court appoint

an attorney to represent you and that the Court permit you to file the

action without payment of fees, costs, or other security. See Title VII

of the Civil Rights Act of 1964, as amended, 42 U.S.C. � 2000e et seq.;

the Rehabilitation Act of 1973, as amended, 29 U.S.C. �� 791, 794(c).

The grant or denial of the request is within the sole discretion of

the Court. Filing a request for an attorney does not extend your time

in which to file a civil action. Both the request and the civil action

must be filed within the time limits as stated in the paragraph above

("Right to File A Civil Action").

FOR THE COMMISSION:

______________________________

Carlton M. Hadden, Director

Office of Federal Operations

July 20, 2005

__________________

Date