[00:00:00] Speaker 01: Our first case is Evan Nordby versus the Social Security Agency, 2021-22-80. [00:00:12] Speaker 01: Mr. Marshall. [00:00:15] Speaker 01: These three cases are related and as you know some of the issues are the same. [00:00:22] Speaker 01: the same lawyers. [00:00:24] Speaker 01: So we would ask that you not unduly be repetitious. [00:00:28] Speaker 01: But you have different clients, so take the time that's allocated to you to the extent you need it. [00:00:36] Speaker 01: Please proceed. [00:00:37] Speaker 02: Thank you, Your Honor. [00:00:39] Speaker 02: And good morning. [00:00:40] Speaker 02: And may it please the Court. [00:00:41] Speaker 02: Toby Marshall on behalf of Judge Evan Nordby. [00:00:45] Speaker 02: Federal employees who serve on active duty during a national emergency should not have to take a pay cut. [00:00:52] Speaker 02: Congress remedied that problem by enacting the Reservists Pay Security Act, which requires agencies to bridge the gap between civilian and military pay. [00:01:02] Speaker 02: To establish who qualifies for this differential pay, Section 5538 borrows language from 10 USC 101A13B. [00:01:13] Speaker 02: In O'Farrell, this court properly and broadly construed the borrowed phrase at issue in this case [00:01:20] Speaker 02: any provision of law during a national emergency to include active duty orders issued under 12301D during the national emergency that arose with the September 11th attack. [00:01:33] Speaker 03: When it was in support of a contingency operation, right? [00:01:37] Speaker 02: In that case, it was dealing with 6323, which does have qualifying language that required that it be in support of a contingency operation, correct? [00:01:46] Speaker 02: In Adams, this court held that something more is required. [00:01:51] Speaker 02: It held that active duty service under 12301D must be directly connected to a contingency operation. [00:01:59] Speaker 02: With all due respect, that decision was wrong. [00:02:02] Speaker 03: And we asked that this court- Isn't Adams just following O'Farrell when it said it has to be in support of a contingency operation? [00:02:10] Speaker 03: And in Adams, it wasn't in support of a contingency operation. [00:02:13] Speaker 03: It was routine training. [00:02:16] Speaker 02: I do believe that Adams was following O'Farrell, but mistakenly. [00:02:23] Speaker 02: And that's because Adams... Do you think O'Farrell is wrong too? [00:02:27] Speaker 02: No, Your Honor. [00:02:28] Speaker 02: O'Farrell is really interpreting two different provisions. [00:02:33] Speaker 03: I mean, look at footnote five in O'Farrell. [00:02:35] Speaker 03: It says, we don't hold that every training is subject to this. [00:02:40] Speaker 03: It still has to be in support of a contingency operation. [00:02:44] Speaker 03: That's in O'Farrell. [00:02:45] Speaker 03: What does Adam say that's different than that? [00:02:48] Speaker 02: The problem with Adam says that it has to be directly related. [00:02:52] Speaker 02: So Adam says that it's stricter under 5538 when actually the reverse is true. [00:02:57] Speaker 02: And the reason that the reverse is true is because in O'Farrell, it was dealing with 6323, which has qualifying language that is completely absent from 5538. [00:03:08] Speaker 02: That qualifying language is in support of a contingency operation. [00:03:12] Speaker 02: There's no reference in 5538 to a contingency operation. [00:03:16] Speaker 02: And the people that were arguing before the court in Adams did not make the argument that we're making here today, which is that there is no requirement of a direct connection to a contingency operation. [00:03:31] Speaker 02: Congress was clear with the language that it used, and all that it requires is a temporal relationship. [00:03:39] Speaker 02: As long as the active duty order issues under a provision of law during a national emergency, then the reservist qualifies for differential pay. [00:03:51] Speaker 02: What's key is recognizing that Congress has used both of these phrases, the borrowed phrase from 101A13B and the term contingency operation in numerous other statutes. [00:04:05] Speaker 02: More than 20 statutes specifically cite to that term contingency operation [00:04:10] Speaker 02: and the entire definition found in 101A13. [00:04:13] Speaker 02: But 5538 and at least eight other statutes do something different. [00:04:19] Speaker 02: All that they do is borrow a list from A13B. [00:04:25] Speaker 02: That list is a set of enumerated statutes. [00:04:28] Speaker 03: Are you saying that when it cross-references A13B and 5538, we don't look to all of 13, we just look to part of 13? [00:04:39] Speaker 02: That is absolutely correct. [00:04:41] Speaker 02: You look at the borrowed phrase, which is either going to be an enumerated statute or it's going to be the phrase, any provision of law during a national emergency. [00:04:51] Speaker 02: And when you do that and you pull that phrase out and you slot it into 5538, it becomes very clear what the statute is requiring. [00:04:59] Speaker 02: It simply requires a federal employee who performs active duty pursuant to an order issued under any provision of law [00:05:08] Speaker 02: during a national emergency declared by the president, that's all that's required. [00:05:14] Speaker 02: If that employee meets those requirements, that employee is entitled to differential pay. [00:05:19] Speaker 02: This is supported not just by the plain language, but by the legislation. [00:05:24] Speaker 03: Even though 13 is talking about the definition of contingency operation, you think 5538 doesn't have anything to do with contingency operations. [00:05:35] Speaker 02: That's correct, Your Honor. [00:05:36] Speaker 02: And I would point the court to one of the statutes we submitted in our 28J submission, 10 USC 1145, because there you see both of these phrases used within the same provision, both of these phrases being in support of a contingency operation. [00:05:55] Speaker 02: That's one. [00:05:56] Speaker 02: and the other being under any provision of law during a national emergency. [00:06:01] Speaker 02: So 1145A2 has several subdivisions in paragraphs B, C, and D, once all said in support of a contingency operation. [00:06:12] Speaker 02: But in 2017, Congress amended subparagraph B to change the language to what you find in 5538, which is under any provision of law during a national emergency. [00:06:24] Speaker 02: Now it left the other two subparagraphs the same, which means they still say in support of a contingency operation. [00:06:32] Speaker 02: That is a critical demonstration that Congress means something different between those two phrases, that they cannot mean one and the same thing, that they cannot mean that one is a contingency operation when it says in support of a contingency operation, and others... Is there any dispute here? [00:06:50] Speaker 03: about whether the orders here are in support of a contingency operation or just for routine training like it was in Adams? [00:06:58] Speaker 02: In Adams, the order specifically said it was a non-contingency operation or a non-contingency duty. [00:07:06] Speaker 02: No such language is found in Judge Evan Nordby's orders. [00:07:09] Speaker 03: Well, that's not really the question I asked. [00:07:11] Speaker 03: Is there a dispute about what his reserve duty was for? [00:07:17] Speaker 02: There's no dispute for a couple reasons. [00:07:20] Speaker 02: First, Adams wasn't decided. [00:07:22] Speaker 02: I'm asking about what was he called to duty? [00:07:25] Speaker 02: He was called to active duty for training. [00:07:29] Speaker 02: That training included, he's a judge, so it included the rule of law in counterinsurgency operations. [00:07:36] Speaker 02: It also included how to shoot a gun. [00:07:38] Speaker 02: So it was doing things that were setting him up and preparing him, should he be called to serve on behalf of our country. [00:07:45] Speaker 04: His orders say in support of? [00:07:48] Speaker 02: No, and most orders don't say insupportive. [00:07:52] Speaker 02: And I would respectfully say to the court that that's not necessary, because insupportive is not found in 5538. [00:07:59] Speaker 02: And again, I would ask the court to look at these 20 other statutes that do use that sort of language. [00:08:06] Speaker 02: And I'm going to give you some specifics. [00:08:10] Speaker 02: while participating in a contingency operation. [00:08:13] Speaker 02: One statute says that. [00:08:14] Speaker 02: Another says in connection with a contingency operation. [00:08:17] Speaker 02: Another says to support a contingency operation. [00:08:20] Speaker 02: None of this qualifying language is found in 5538. [00:08:24] Speaker 03: And when you look at the legislative history... Does your reading basically mean that everybody that's called to active duty gets this differential pay? [00:08:36] Speaker 03: Because we've been under one national emergency or another since, I don't know what the government points out in their brief, but for a long time. [00:08:44] Speaker 03: If Congress wanted to give differential pay all the time, there's a really easy way to do it. [00:08:52] Speaker 03: They just give it to them, right? [00:08:54] Speaker 03: They don't have this complicated list of a bunch of different provisions and have definitional stuff about contingency operations. [00:09:03] Speaker 03: They just write a statute that says, [00:09:06] Speaker 03: reservists get the differential between their civilian and military pay? [00:09:13] Speaker 02: They did do that. [00:09:14] Speaker 02: They wrote a statute that said that they get the differential if they are called active duty during a national emergency. [00:09:20] Speaker 02: Now that statute was enacted against the backdrop of the 2001 attack. [00:09:27] Speaker 02: Congress knew that this was going to be broadly applied. [00:09:30] Speaker 02: And if you look at the amicus brief submitted in Adams on the certiorari [00:09:35] Speaker 02: petition, which is cited in the next case Feliciano, you'll see that Congress lays out that congressional history that there is no qualifying. [00:09:44] Speaker 02: Isn't that amicus brief post enactment? [00:09:47] Speaker 02: It is post enactment, but it lays out the history. [00:09:50] Speaker 03: I mean, there's lots of precedent saying we don't look at post enactment statements of legislatures to determine statutory. [00:09:59] Speaker 02: Understood, Your Honor. [00:10:00] Speaker 03: Also, doesn't it prove too much? [00:10:03] Speaker 03: I read the [00:10:04] Speaker 03: the quotes from that legislative history, and all it says is we think reservists called to active duty should get differentials. [00:10:12] Speaker 03: They didn't qualify it in terms of national emergencies or life. [00:10:15] Speaker 03: They just thought everybody should get it. [00:10:17] Speaker 03: But if they wanted to do that, again, they just write a statute that says if you're called to duty for reserve training, you get a pay differential. [00:10:25] Speaker 03: You don't qualify it based on a list of about 10 different statutes and this other provision, any other provision of law. [00:10:36] Speaker 02: Respectfully, your honor, what I would say is that they knew that we've been under a national emergency of one kind or another since the seventies. [00:10:44] Speaker 02: And so they knew that this was going to be broadly applied and that's exactly what they intended. [00:10:49] Speaker 02: And I'm asking this court to take a look at the amicus brief, not for the statements within the brief, but for how it lays out the contemporaneous history of comments from a variety of senators. [00:11:00] Speaker 02: This was a bipartisan bill supported by, I believe, 120 different senators. [00:11:06] Speaker 02: And I would also point out that there's not a budget problem here because in Mr. I'm sorry, Judge Nordby's case is a good example. [00:11:14] Speaker 02: His civilian pay has already been appropriated. [00:11:18] Speaker 02: So when he goes on military leave, it's a windfall to the social security administration because they get to retain a hundred percent of his pay. [00:11:28] Speaker 02: All that we're asking for is that he get paid the differential. [00:11:31] Speaker 02: It's not going to cost the Social Security Administration anything extra, because those funds have already been appropriated. [00:11:37] Speaker 03: And the Congressional Budget Office... Does this apply only to federal employees, or does it apply to all employees? [00:11:46] Speaker 02: Only federal employees. [00:11:47] Speaker 02: The statute's absolutely clear. [00:11:48] Speaker 02: It's only federal employees, which is approximately 10% of the 1.2 million reservists that we have in this country. [00:11:56] Speaker 02: So it's about 120,000. [00:11:57] Speaker 02: I've seen estimates up to 200,000, but you're in that range. [00:12:01] Speaker 03: You're getting close to your rebuttal time, I think. [00:12:04] Speaker 03: I just want to ask you, do you think Adams is controlling here? [00:12:07] Speaker 03: I know you said it was wrong, but we have to go en banc to overturn it if it's wrong. [00:12:12] Speaker 02: Correct. [00:12:13] Speaker 02: And I think that there's a path by which this court can say Adams is distinguished or can refer back to O'Farrell as the primary case. [00:12:26] Speaker 02: But to the extent that this court thinks it has to overturn Adams, we do respectfully ask [00:12:30] Speaker 02: that you refer this case to an en banc hearing. [00:12:34] Speaker 02: This is an important issue. [00:12:35] Speaker 02: This is the only court that can decide this question. [00:12:39] Speaker 02: And in Adams, we do believe a mistake was made. [00:12:43] Speaker 02: There were an understandable reason for that, because you were looking at O'Farrell, which does have this in support of contingency operation language. [00:12:51] Speaker 02: But that language is not found in Adams. [00:12:53] Speaker 02: That mistake needs to be remedied, and I'll reserve the remainder of my time. [00:12:57] Speaker 01: Thank you, counsel. [00:12:58] Speaker 01: We will save it for you. [00:12:59] Speaker 01: Ms. [00:13:00] Speaker 01: Johnson? [00:13:01] Speaker 03: Good morning, Your Honors, and may it please the Court. [00:13:04] Speaker 03: Can you just respond to that last point that O'Farrell has the insupportive language and 5538 doesn't? [00:13:12] Speaker 00: Correct. [00:13:12] Speaker 00: So the 6232 statute under which O'Farrell was decided, that's a different provision of benefits. [00:13:21] Speaker 00: It's a leave statute as opposed to differential pay. [00:13:24] Speaker 00: So the statutory language there defines who gets benefits in terms of who is called to duty in support of a contingency operation. [00:13:31] Speaker 00: That language appears directly in the statute. [00:13:33] Speaker 00: 5538, however, is the differential pay statute. [00:13:41] Speaker 00: And that only talks about reservists being entitled to differential pay. [00:13:47] Speaker 00: And so by incorporation, it looks to the scenarios in which a reservist could be entitled to pay. [00:13:52] Speaker 00: And this court decided [00:13:54] Speaker 00: in Adams at 1378 that the definition of contingency operation was incorporated into the differential case statute by reason of that reference. [00:14:08] Speaker 00: So that has been decided by the court. [00:14:10] Speaker 00: That was considered. [00:14:12] Speaker 00: I think there was an argument that the court didn't analyze that. [00:14:14] Speaker 03: Well, yeah. [00:14:15] Speaker 03: I guess I want you to respond to his argument that when 5538 cross-references 13B, [00:14:24] Speaker 03: It's not incorporating the entire section of 13B. [00:14:28] Speaker 03: It's just incorporating a list of provisions, and they don't have to be contingency operations. [00:14:36] Speaker 00: Well, I think the argument, in fact, that Council is making in order for his reading of the statute to work for Mr. Norby is that it's incorporating more than that. [00:14:45] Speaker 00: It's not just the list of referenced law. [00:14:49] Speaker 00: It's also the catch-all phrase that comes after it. [00:14:52] Speaker 00: So it has to work a little bit more broadly in order for NordWeed to get relief here. [00:15:01] Speaker 00: But if we look at what A13 does, that is, broadly speaking, the definition of contingency operation that applies to all military regulations that come under Title X. That's a very, very broad set of regulations. [00:15:20] Speaker 00: is one way of defining contingency operations by way of a military operation that generally the United States gets involved in against its foreign enemies. [00:15:31] Speaker 00: Section B then includes more narrowly where reservists could be involved in a contingency operation. [00:15:38] Speaker 00: So it defines [00:15:39] Speaker 00: a contingency operation in terms of reservists called to active duty. [00:15:43] Speaker 00: So it makes sense then that the differential pay statute that only applies to reservists would look to the portion of a contingency operation that only applies to reservists. [00:15:54] Speaker 00: I don't think there's any inconsistency there. [00:15:56] Speaker 00: And I think this court correctly held that and described that in Adams. [00:16:03] Speaker 04: 5538 doesn't have the words in support of, unlike the statute that was at issue in Adams. [00:16:08] Speaker 04: Isn't that right? [00:16:09] Speaker 04: That's correct. [00:16:10] Speaker 04: So why isn't that a very meaningful distinction here? [00:16:14] Speaker 00: Well, Discord and Adams made that same distinction, said 5538 requires direct participation in a contingency operation, whereas section 6232 does not, because it does not have that language. [00:16:29] Speaker 04: 6232 is at issue in O'Farrell, I think. [00:16:31] Speaker 04: Correct. [00:16:32] Speaker 00: That's correct. [00:16:36] Speaker 00: In a case where the petitioner, and I apologize for getting ahead of the court here a little bit, but in Mr. Flynn's appeal, his orders, what he is alleging his duty was, was in support of other operations. [00:16:51] Speaker 00: And so this court did hold in Adams that in such a case, that wouldn't come under the 5538s. [00:16:59] Speaker 04: Is it true that here for Judge Nordby, his orders don't specifically say in support of? [00:17:06] Speaker 00: No, his orders are far more broad. [00:17:09] Speaker 00: I think they just referenced 12301D and describe the training that he's taking part in. [00:17:14] Speaker 04: Do we, is it, maybe not on this record, but could there be a factual dispute as to whether under Adams, someone like Judge Norby is ordered directly into a contingency operation or is ordered only to support [00:17:32] Speaker 04: the contingency operation, and could that be dispositive in any particular case? [00:17:37] Speaker 00: Yes, it could. [00:17:38] Speaker 00: And in fact, that was the issue similarly raised in O'Farrell. [00:17:41] Speaker 00: The court was under a different statute, but the court was actually called upon to answer the question of whether Mr. O'Farrell's orders were or the duty performed was in support of a contingency operation. [00:17:52] Speaker 00: The parties there didn't actually dispute that there was a contingency operation going on because it was [00:17:58] Speaker 00: the hostilities in Afghanistan were what he was supporting. [00:18:02] Speaker 00: So there was a factual dispute there, and that's what the court was looking to. [00:18:07] Speaker 00: Here, however, what the parties are disputing is whether or not there was even a contingency operation implicated by the orders and by the duty that was being performed. [00:18:18] Speaker 00: So to conclude, as Mr. Norby's counsel pointed out, that [00:18:24] Speaker 00: The presidential decision to Adams does control the outcome here, and in order for Mr. Norby to get around that holding, this court would have to sit in bonk in order to revisit those issues. [00:18:36] Speaker 00: The court, of course, had the opportunity to do so in Adams when Mr. Adams moved for a petition for rehearing and a rehearing on bonk. [00:18:43] Speaker 00: The court declined to do so subsequent to that. [00:18:47] Speaker 00: The Supreme Court of the United States also had the opportunity to take up these issues in a tertiary petition, but also declined to do so. [00:18:56] Speaker 00: And so with that, Adams is the subtle law of this circuit, which must control the outcome here and in the companion cases. [00:19:05] Speaker 04: If I'm understanding Mr. Marshall correctly, he says the key argument here wasn't actually made in Adams. [00:19:11] Speaker 04: Is that correct? [00:19:12] Speaker 00: If I understand that correctly, I'm saying that the parties didn't actually dispute whether or not 50538 incorporated the definition of a contingency operation. [00:19:27] Speaker 00: And I believe that wasn't an issue that was significantly briefed because I think the parties agreed that by reference, 5538 did presume that a contingency that reserves would have to be taking part in a contingency operation. [00:19:43] Speaker 00: So that wasn't an issue that was heavily disputed or briefed, but the court did hold in Adams that 5538 contemplates a contingency operation. [00:19:54] Speaker 00: So it was an issue that was [00:19:56] Speaker 00: resolve, nonetheless. [00:19:59] Speaker 04: Do you have any response to the supplemental filing and the statutes that are cited there? [00:20:05] Speaker 00: I do. [00:20:05] Speaker 00: I don't believe it supports an argument that would change the outcome here. [00:20:12] Speaker 00: Of course, there are multiple references to this 101A13 definition in other parts of the law. [00:20:20] Speaker 00: That is unsurprising, given the fact that section 101 is the definition section that applies very, very broadly to many different [00:20:26] Speaker 00: regulations and statutes. [00:20:29] Speaker 00: But Mr. Norby has not made any claim that that definition has been interpreted any differently than the way this court has interpreted the definition when applied to a differential pay statute, or this differential pay statute. [00:20:45] Speaker 00: So unless there is an argument that there has been some inconsistency here, I don't see how that furthers the argument in favor of Mr. Norby. [00:20:55] Speaker 00: If there are no further questions, we respectfully request that this court affirm the MSPB is holding in this case. [00:21:02] Speaker 00: Thank you. [00:21:02] Speaker 01: Thank you, counsel. [00:21:04] Speaker 01: Mr. Marshall has some more bottle time. [00:21:08] Speaker 02: Thank you, Your Honor. [00:21:08] Speaker 02: Just a few brief points. [00:21:10] Speaker 02: First, this is what was quoted in the Adams decision. [00:21:14] Speaker 02: Mr. Adams argues that every military reservist ordered to duty is performing a contingency operation so long as the national emergency continues. [00:21:24] Speaker 02: a very different argument than what we're making here, which is that there is no requirement for a direct relationship to a contingency operation. [00:21:31] Speaker 02: And that, again, is because Section 5538 simply borrows some language from A13B. [00:21:40] Speaker 02: It does not cite to contingency operation. [00:21:43] Speaker 02: It does not use the words contingency operation. [00:21:46] Speaker 02: And the numerous examples of statutes [00:21:50] Speaker 02: that have those two different approaches show that there's something meaningful there. [00:21:56] Speaker 02: We would also point out that 5538 says a law referred to in 101A13B. [00:22:06] Speaker 02: A law referred to, again, is just pointing out that we're borrowing from one of these laws. [00:22:12] Speaker 02: Now, one of the things I would like to address that sort of came up here just now is [00:22:19] Speaker 02: The point about our 28-J submission is about the juxtaposition of these two different phrases in some of the same statutes. [00:22:28] Speaker 02: Again, it must mean something different. [00:22:32] Speaker 02: I would also point to the court that we're dealing with benefits for reservists here, and the United States Supreme Court has held that statutes that provide such benefits must be construed broadly. [00:22:44] Speaker 02: And again, the plain language is any provision of law during a national emergency. [00:22:49] Speaker 02: That's just a temporal requirement, nothing more. [00:22:53] Speaker 02: Finally, I would say that when the court drills down on 101A13B, I'm not sure whether this was an issue in Adams or not, but the last antecedent rule applies such that the final provision, any provision of law during a national emergency [00:23:12] Speaker 02: That during a national emergency only applies to any provision of law. [00:23:16] Speaker 02: It does not apply to the enumerated lists of statutes. [00:23:20] Speaker 02: And as we've pointed out in our brief, I believe at page 35, those statutes apply in many situations other than emergencies, other than contingency operations. [00:23:33] Speaker 02: So when you look at 101A13B and you consider the fact that the enumerated statutes apply in numerous situations, [00:23:41] Speaker 02: And you apply the last antecedent rule, which is that there's no comma, so that final during a national emergency does not modify the earlier antecedents. [00:23:51] Speaker 02: It only modifies the last antecedent that further supports our position. [00:23:56] Speaker 02: We respectfully ask this court to reverse or to refer this case for non-bond carrying. [00:24:00] Speaker 02: Thank you very much. [00:24:02] Speaker 01: Thank you, counsel. [00:24:03] Speaker 01: We will take the case under advisement.