Federal Circuits, D.C. Cir. (September 12, 1989)
Docket number: 86-5395
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U.S. Supreme Court - Department of Navy v. Egan, 484 U.S. 518 (1988)
U.S. Supreme Court - Webster v. Doe, 486 U.S. 592 (1988)
U.S. Supreme Court - Bishop v. Wood, 426 U.S. 341 (1976)
U.S. Supreme Court - Board of Regents of State Colleges v. Roth, 408 U.S. 564 (1972)
Leonard P. Bienvenu and John G. Gill, Jr., Washington, D.C., were on the brief, for appellant.
Freddi Lipstein, Attorney, Dept. of Justice, with whom Jay B. Stephens, U.S. Atty., and Barbara L. Herwig, Atty., Dept. of Justice, Washington, D.C., were on the brief, for appellees.Before WALD, Chief Judge, and EDWARDS and SILBERMAN, Circuit Judges.Opinion for the Court filed by Chief Judge WALD.WALD, Chief Judge:This case is before us on remand from the Supreme Court. The questions presented are whether the National Security Agency (NSA), in removing appellant John Doe from his job as a cryptographic technician, violated its own regulations and infringed Doe's constitutional rights.This litigation began in 1985 when Doe brought suit in federal district court against Secretary of Defense Caspar Weinberger and Lieutenant General William E. Odom, Director of NSA. Doe claimed that NSA's decision to withdraw his access to classified information and to terminate his employment violated his statutory and constitutional rights. After the district court's award of summary judgment to NSA, a panel of this court reversed and held that Doe was entitled to the procedural protections spelled out in 5 U.S.C. Sec . 7532 for NSA employees removed for national security considerations.The Supreme Court reversed. Carlucci v. Doe, --- U.S. ----, 109 S.Ct. 407, 102 L.Ed.2d 395 (1988). In its decision, the Court held that in cases involving dismissals for national security reasons, Sec. 7532 procedures are neither mandatory nor exclusive; as a result, NSA was not required to afford Doe the process mandated by Sec. 7532. The Court remanded the case for decision of Doe's remaining claims that NSA violated its own regulations in removing him and that his constitutional rights had been infringed by the process. 109 S.Ct. at 414 n. 6.I. STATUTORY AND REGULATORY FRAMEWORKIn order to clarify the past course of events and to provide the necessary background for the legal issues before us, we begin with an overview of the rather complex statutory and regulatory framework for removal of NSA employees. Under the National Security Agency Act of 1959, 50 U.S.C. Sec . 402 note, the Secretary of Defense or his designee is empowered to establish NSA positions and to appoint employees thereto "as may be necessary to carry out the functions of such agency." Under the Act, NSA employees like Doe who are not preferred eligible veterans are not covered by the removal provisions of the Civil Service Reform Act of 1978, 5 U.S.C. Secs . 7511-13. Instead, regulations promulgated by the NSA Director, the designee of the Secretary of Defense, Dep't of Defense Directive No. 5100.23 (May 17, 1967), Joint Appendix (J.A.) at 60, govern the removal of such employees. Chapter 370 of these regulations provides procedures to be applied when removal is "for such cause as will promote the efficiency of the service." National Security Agency Central Security Service Personnel Management Manual 30-2, Ch. 370, Sec. 3-4 (Aug. 12, 1980) [hereinafter cited as Ch. 370], J.A. at 67. Although chapter 370 guarantees various procedural protections, including notice, opportunity to answer, and the right to representation, it does not provide for a hearing or review by the Secretary of Defense or for appeal by non-veterans to the Merit Systems Protection Board. Id., Secs. 3-6, 3-8, J.A. at 68-69. Chapter 370 also states explicitly that it "does not apply to a suspension or removal taken in the interest of national security." Id., Sec. 3-2a, J.A. at 67.The 1964 NSA Personnel Security Procedures Act, 50 U.S.C. Secs . 831-35, requires the Secretary of Defense to promulgate regulations assuring that no person will be employed by NSA or will have access to classified information unless such employment or access is "clearly consistent with the national security." 50 U.S.C. Sec . 831. Chapter 371 of NSA personnel management regulations, promulgated in part pursuant to Sec. 831, includes a regulation requiring security clearance for employment at NSA. National Security Agency Central Security Service Personnel Management Manual 30-2, Ch. 371, Secs. 1-1, 1-3 (July 1976) [hereinafter cited as Ch. 371], J.A. at 228. Under 50 U.S.C. Sec . 832(a), all NSA employees must be subjected to a "full field investigation" and must be "cleared for access to classified information." When the NSA Director "determines that there is a doubt" that an employee's access to classified information "would be clearly consistent with the National Security," the Director may appoint a board of appraisal to assist him in determining the employee's loyalty and suitability. 50 U.S.C. Sec . 832(b). Section 834 defines classified information as "information which, for reasons of national security, is specifically designated by a United States Government agency for limited or restricted dissemination or distribution."Under 50 U.S.C. Sec . 833(a), the Secretary of Defense may terminate an NSA employee summarily, without allowing recourse to the procedures of any other statute, if those procedures "cannot be invoked consistently with the national security." The Secretary's determinations are final. Ch. 371, Sec. 2-3, J.A. at 230-31. 50 U.S.C. Sec . 835 provides that all uses or exercises of authority granted by Secs. 831-35 are exempt from the Administrative Procedure Act.5 U.S.C. Sec . 7532 allows the head of an agency to suspend an employee "in the interests of national security."1 Although the suspended employee may submit affidavits to explain why he should be reinstated, the agency head's determination is final. Section 7532 also allows an agency head to remove a suspended employee, provided that after suspension but before removal the employee receives a written statement of the charges against him, an opportunity to respond, a hearing, review, and a written statement of final decision. Chapter 371 of the NSA regulations incorporates these procedures and entitles an NSA employee dismissed for national security reasons pursuant to them to a final determination by the Secretary of Defense. Ch. 371, Sec. 2-2, J.A. at 230.II. FACTUAL CONTEXTWith that statutory background in mind, we next review the course of events in this proceeding. In 1982, John Doe, a cryptographic material control technician at NSA for 16 years, revealed to NSA officials that he had engaged in homosexual relationships with foreign nationals. Doe offered this information during an NSA investigation into illegal drug use by another NSA employee. Pursuant to chapter 370 of NSA personnel regulations, governing removal for cause, Virginia Jenkins, NSA's Director of Civilian Personnel, informed Doe in November 1982 that NSA proposed to terminate his access to sensitive compartmented information (SCI)2 and to dismiss him on the grounds that his "indiscriminate personal conduct with unidentified foreign nationals raises grave uncertainties about your judgment, discretion, and personal reliability." As a result, Jenkins wasunable to find that your [Doe's] continued access to sensitive compartmented information is clearly consistent with the national security. You fail to meet the statutory standards for employment in a critical and sensitive position that require [sic] access to highly classified information. Therefore, I am proposing that you be removed from your position with the National Security Agency.J.A. at 82-83.Jenkins' letter advised Doe of his right to appeal, which he exercised through counsel and through a voluntary psychiatric evaluation. The NSA Director referred Doe's case to a board of appraisal. J.A. at 100. The board ultimately concluded that Doe's continued access to classified information was "clearly inconsistent with the national security." While noting Doe's homosexual/bisexual preference, the board said that factor was not material to its decision. J.A. at 108. After a hearing with Doe, the NSA Director accepted the board's recommendation that Doe's access to classified information was not clearly consistent with the national security and he confirmed Doe's proposed removal. This decision was communicated to Doe in February 1984. J.A. at 193. NSA subsequently denied Doe's request for a hearing under 5 U.S.C. Sec . 7532. J.A. at 220-21, 224-25.At this point, Doe brought suit in district court. He maintained in his complaint that NSA unreasonably and unlawfully relied on his own statements regarding his homosexual past in order to discontinue his clearance and remove him. J.A. at 4. The court held that regardless of whether Doe's termination was based solely on his acknowledged homosexual conduct, NSA's decisions to withdraw Doe's access to SCI and to terminate him were rationally related to a permissible purpose and were, therefore, lawful. Doe v. Weinberger, No. 85-1996, slip op. at 3 (D.D.C. Apr. 25, 1986) (memorandum), J.A. at 34. The court determined that in removing Doe pursuant to chapter 370, the NSA Director acted within his authority and in a manner that accorded Doe the procedural safeguards due him. Id. at 4, J.A. at 35. According to the court, NSA did not err by refusing to provide Doe with the process required by 50 U.S.C. Sec . 833 and 5 U.S.C. Sec . 7532 in cases of summary dismissals for national security reasons. Id. at 5, J.A. at 36. The court further found Doe's due process claims meritless. Id. at 3-4, J.A. at 34-35.In reversing the district court's grant of summary judgment, we held that NSA improperly bypassed the review and removal procedures of 5 U.S.C. Sec . 7532. Doe v. Weinberger, 820 F.2d 1275 (D.C.Cir.1987). We found that unless the Secretary of Defense determines in a given case that the Sec. 7532 procedures are inconsistent with national security, Sec. 7532 governs the removal of all NSA employees. Id. at 1282. Because the government acknowledged that a Sec. 7532 hearing for Doe would not undermine national security, we concluded that Doe was legally entitled to such a hearing. We did not consider Doe's constitutional claims on the grounds that until he received his Sec. 7532 hearing, he had not exhausted his administrative remedies. Id. at 1283.In reversing our decision, the Supreme Court determined that Sec. 7532, as well as Sec. 833, are discretionary removal mechanisms in cases involving dismissals for national security reasons: NSA is not required, however, to apply either procedure and can act under ordinary dismissal procedures whenever it wishes. 109 S.Ct. at 411. In addition, the Court affirmed the general principle that for cause dismissals afford the employee greater protections than the summary procedures of Sec. 7532 or of Sec. 833. Doe's own experience, according to the Court, bore out this generalization. 109 S.Ct. at 413.III. NSA's ALLEGED REGULATORY VIOLATIONSWe now turn to the first of the two questions that must be dealt with on remand--whether NSA violated its own regulations in its dismissal of Doe. We note initially that this claim of Doe raises questions of reviewability. If the reviewability barrier can be overcome, Doe's claim requires resolution of an issue that none of the earlier opinions in this case dealt with explicitly--whether Doe's removal was "for cause," as NSA contends, or whether his removal was an action taken by NSA in the interests of national security, as Doe himself maintains. The answer to this question determines which set of regulations NSA was required to follow.A. NonreviewabilityThe first question that we must confront in this case is whether NSA's decision to revoke Doe's security clearance and to dismiss him is reviewable. Our reading of the relevant statutes and regulations suggests that while the access revocation is nonreviewable, the dismissal is reviewable.50 U.S.C. Sec . 835 provides that the Administrative Procedure Act "shall not apply to the use or exercise of any authority granted by this subchapter." "Use or exercise of ... authority" refers by implication to both termination of security clearances and dismissals for national security reasons. At issue, then, is whether the nonreviewability provided by Sec. 835 governs either Doe's clearance revocation or his dismissal, or both. We consider the two matters in turn.1. Clearance RevocationSection 831 states that the Secretary of Defenseshall prescribe such regulations relating to continuing security procedures as he considers necessary to assure-- (1) that no person shall be employed in, or detailed or assigned to, the National Security Agency ... or continue to be so employed, detailed, or assigned; and (2) that no person so employed, detailed, or assigned shall have access to any classified information;unless such employment, detail, assignment, or access to classified information is clearly consistent with the national security.50 U.S.C. Sec . 832(a), moreover, requires that all NSA employees be "cleared for access to classified information in accordance with the provisions of this subchapter." Under Sec. 832(b), a board of appraisal appointed by the NSA Director "shall appraise the loyalty and suitability of persons for access to classified information, in those cases in which the Director of the Agency determines that there is a doubt whether their access to that information would be clearly consistent with the national security." In addition, "[n]o person shall be cleared for access to classified information, contrary to the recommendations of any such board," absent a determination by the Secretary of Defense or his designee that such access is in the national interest. 50 U.S.C. Sec . 832(b).Chapter 371, promulgated in part pursuant to Secs. 831-35, "prescribes policies and procedures governing actions to limit access to classified information ... for reasons of national security." Ch. 371, Sec. 1-1, J.A. at 228. Chapter 371 further provides that:The Director shall refer to a duly constituted Board [of Appraisal] those cases in which he determines that there is a doubt as to an employee's eligibility for access to classified information. Authority to refer such cases has been delegated to the Assistant Director for Personnel and Security. The Board shall proceed in accordance with the provisions of NSA Regulation No. 30-4.Id., Sec. 1-5, J.A. at 229.Regulation 30-4 "establishes boards of appraisal ... as required by Public Law 88-290 [50 U.S.C. Secs . 831-35.]" NSA Regulation No. 30-4, Sec. I-1 (June 22, 1964) [hereinafter cited as NSA Reg. 30-4], J.A. at 77. In addition, Department of Defense Directive 5210.45 states that its purpose "is to prescribe policies and procedures to implement Public Law 88-290...." Dep't of Defense Directive No. 5210.45, Sec. I-1 (May 9, 1964) [hereinafter cited as DoD Dir. 5210.45], J.A. at 73. Both documents state that the NSA Director shall refer to these boards of appraisal "those cases in which he determines that there is a doubt as to [the] eligibility for access to classified information of an employee or person assigned or detailed to [NSA]." DoD Dir. 5210.45, Sec. IV-B, J.A. at 74; NSA Reg. 30-4, Sec. II-4, J.A. at 78. Regulation 30-4 goes on to mandate that "[n]o person shall be cleared for access to classified information contrary to the recommendation of a board" except on authority of the NSA Director or, upon referral, of the Secretary of Defense. NSA Reg. 30-4, Sec. II-6, J.A. at 78. Directive 5210.45 uses similar language but refers to "access or continued access" and to "Agency classified information." DoD Dir. 5210.45, Sec. IV-C, J.A. at 74-75.NSA's revocation of Doe's security clearance followed these regulations. NSA's 1982 letter to Doe proposing to remove his access to SCI and to terminate his employment stated that NSA considered his continued access to classified information not "clearly consistent with the national security." The letter concluded that Doe's contacts with foreign nationals raised doubts about his judgment and, consequently, about his suitability for access to SCI. J.A. at 82-83. Subsequently, the NSA Director appointed a board of appraisal pursuant to Regulation 30-4. J.A. at 99. The board determined that Doe did not meet the minimum standards for access to SCI, J.A. at 106-08, as laid out in Director of Central Intelligence Directive 1/14 (Sept. 1, 1983), Govt. Br. at 1a, which is intended to apply to all United States Government personnel with access to SCI, id. at 3a. In the wake of this finding, Regulation 30-4 and Directive 5210.45 required the NSA Director or the Secretary of Defense either to revoke Doe's SCI clearance or to make a finding that Doe's continued access to SCI was in the interests of national security. NSA Reg. 30-4, Sec. II-6, J.A. at 78; DoD Dir. 5210.45, Sec. IV-C, J.A. at 74-75. Since the Regulation and Directive were both implemented pursuant to Secs. 831-35 and the NSA Director explicitly accepted the board's recommendation, J.A. at 193, the Director's revocation of Doe's clearance is an "exercise of ... authority granted by [Secs. 831-35]," 50 U.S.C. Sec . 835.3 Section 835 makes such decisions unreviewable. Thus, we are precluded from reviewing NSA's revocation of Doe's access to SCI.42. Employment TerminationWe come now to the reviewability of NSA's decision to terminate Doe's employment. The parties agree that Doe was not removed under Sec. 833. Appellant's Brief (Doe Br.) at 18 n. 6; Govt. Br. at 13; J.A. at 220. Consequently, the only possible legal bases for his removal are regulations, promulgated pursuant to Secs. 831-35, governing nonsummary dismissals; chapter 371, as it incorporates the provisions of Sec. 7532; or chapter 370. The Secretary of Defense has not, however, issued regulations under Secs. 831-32 governing nonsummary dismissals.5 In fact, Directive 5210.45 states that when the conditions for summary removal under Sec. 833 do not exist, the NSA Director "shall, when appropriate, take action pursuant to other provisions of law, as applicable, to terminate the employment of a civilian officer or employee." DoD Dir. 5210.45, Sec. V-B, J.A. at 75. Thus, NSA must have removed Doe under either chapter 371/Sec. 7532 or chapter 370, neither of which is governed by a nonreviewability clause. We conclude, therefore, that NSA's decision to remove Doe is reviewable and that we must reach the merits of Doe's claim that NSA violated or misapplied its regulations in removing him.The Supreme Court's decision in Carlucci is consistent with this conclusion. In noting the "discretionary aspect of Sec. 833 and Sec. 7532," the Court determined that Sec. 833 and Sec. 7532 "are not the exclusive means to remove NSA employees for national security reasons, but instead contemplate alternative recourse to NSA's ordinary removal mechanisms pursuant to the 1959 NSA Act." 109 S.Ct. at 411. These mechanisms are codified in chapter 370. Carlucci in no way forecloses the determination that we must now make--whether Doe was removed for cause under chapter 370 or in the interests of national security under Sec. 7532 and chapter 371.B. Merits of Doe's Removal Claim1. General ConsiderationsNSA asserts that Doe was dismissed for cause because he failed to meet the statutory standard of employment--eligibility for access to SCI. Govt.Br. at 17. For that reason, it contends, Doe's removal was processed in adherence with chapter 370 of the NSA regulations, which governs for cause removals. NSA points to the letter informing Doe of his proposed removal, which specifically stated that notice was being provided to Doe pursuant to chapter 370. Govt.Br. at 24 (citing J.A. at 82). Doe claims, however, that he was dismissed for national security reasons--and therefore was entitled to procedures laid out in 5 U.S.C. Sec . 7532 as incorporated in chapter 371--because the letter removing him stated that his "access to classified information is not clearly consistent with the national security." J.A. at 193. Doe also notes that the NSA Director's internal memorandum detailing the reasons for his removal stated that Doe is "a potential security risk" and that his behavior invited a "risk of security exploitation." Doe Br. at 12 (citing J.A. at 191-92). Doe contends that because chapter 370 on its face is not applicable to national security dismissals, NSA violated its own regulations by not providing for a final determination by the Secretary of Defense, to which Doe would have been entitled under chapter 371. Doe Br. at 12-14.The Supreme Court's decision in Carlucci bears out NSA's position. Carlucci determined that Sec. 7532 was intended to apply primarily to suspended employees in cases involving " 'an immediate threat of harm to the "national security" ' in the sense that the delay from invoking 'normal dismissal procedures' could 'cause serious damage to the national security.' " Carlucci, 109 S.Ct. at 412 (quoting from Cole v. Young, 351 U.S. 536, 546, 76 S.Ct. 861, 868, 100 L.Ed. 1396 (1956)). This language indicates that the procedures of Sec. 7532--and, by implication, of chapter 371--are available only when NSA has suspended an employee, with the intention of removing him, in order to respond to an immediate threat to national security. In such a case, normal for cause dismissal procedures could cause serious damage to national security.Carlucci added another step to the process, begun in Cole, of placing limits on the definition of "national security" in the context of employee dismissals. In Cole, the Court considered the meaning of the term "national security" in the 1950 Act that vested in the heads of specified government agencies summary suspension and unreviewable dismissal powers over civilian employees whose jobs involved sensitive national security matters. The Court there explicitly chose not to construe "national security" "in a sense so broad as to be involved in all activities of the Government, for then the relationship to the 'national security' would follow from the very fact of employment." Cole, 351 U.S. at 543, 76 S.Ct. at 866. Rather, it said, "national security" "relates only to those activities which are directly concerned with the Nation's safety, as distinguished from the general welfare." Id. Thus, Carlucci's reading of "national security" to refer to a threat of immediate harm leads to a further narrowing of the range of suspension or removal situations that genuinely fall under the rubric of "national security."In the present case, the passage of some fifteen months from the original letter notifying Doe of his proposed removal to the actual removal suggests that NSA did not consider him to pose an immediate threat to national security. The NSA Director based his decision to remove Doe on the arguments set forth by the board of appraisal that Doe's access to classified information was inconsistent with national security. J.A. at 193. The board's decision about Doe's "suitability" resulted from its finding that "a risk exists concerning the stability of [Doe's] character and discretion." J.A. at 106. The board supported that conclusion with reference to the alleged illegal drug use of one of Doe's companions, Doe's allegedly poor judgment vis-a-vis security in view of his liaisons with foreign nationals, and his supposed lack of enduring relationships. J.A. at 106-07. These considerations suggest the board's long-term concerns about Doe's suitability for access to classified information and do not indicate that the board believed that Doe's security clearance posed an immediate threat to national security. Thus, in view of Cole v. Young and Carlucci v. Doe, NSA acted properly in dismissing Doe according to standard for cause procedures, rather than according to national security dismissal procedures.A further legal flaw in Doe's position is his presumption that NSA's failure to follow chapter 371 deprived him of "very important procedural benefits." Doe Br. at 17. Doe's argument is based on the assumption that he was dismissed in the interests of national security; as a result, he claims that Executive Order 10450, which requires agency heads to apply the procedures of Sec. 7532 to all employees whose retention of employment "may not be clearly consistent with national security," Exec. Order No. 10,450,Try vLex for FREE for 3 days
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