OFFICE OF PERSONNEL MANAGEMENT V. RICHMOND
496 U.S. 414 (1990)
NATURE OF THE CASE: This was a dispute over whether the government will be held responsible
for misinforming a citizen.
FACTS: Richmond (P) was retired under a disability for vision impairment as a welder at
the Navy Public Works Center. Provisions of retirement disability rendered a party
ineligible for the disability annuity if actual income equaled at least 80% for two
consecutive calendar years of the current rate of pay of the position occupied immediately
before retirement. That provision was amended in 1982 with the measuring period changed to
one year instead of two. P undertook part-time employment as a school bus driver and earned
monies that were under the 80% limit. In 1986, he worked overtime and earned extra money and
asked the Employee Relations Specialist for information about how much he could earn without
exceeding the 80% limit. The specialist gave P the wrong advice by relying on the pre-1982
statute; this was confirmed by form writing. P worked the overtime and exceeded the 80%
limit and his disability annuity was discontinued in 1987. The annuity was restored in 1988,
as P did not earn more than allowed by statute. D lost benefits for six months for a total
of $3,993. The MSPB board rejected P’s contention that the government should be held
responsible because it misinformed P. The Court of Appeals ordered the government to pay the
money holding that the misinformation from Navy personnel estopped the Government and thus
entitled P to payment of the benefits.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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