Federal Times Blogs
Nearly a decade after he died, the complicated marital turnabouts of a U.S. Forest Service employee named Don King gave rise Friday to a ruling by the U.S. Court of Appeals for the Federal Circuit.
First, some background. Try to follow along, it’s complicated.
In 1967, King married a woman named Diana. They divorced in 1980. They remarried in 1981. Then, they divorced again 18 months later. And yet they held themselves out to be married for years afterward, living in the same house, keeping joint accounts and even celebrating their (original) anniversary.
But in 2002, Don moved out. He married another woman, Kathryn. Before he died in 2004, Don designated Kathryn to receive his lump sum accrued annuity.
That’s when things got messy.
Both Kathryn and Diana claimed to be Don’s wife and, after litigation, the pair struck a deal.
Diana agreed to pay Kathryn $50,000 to resolve Don’s medical and funeral expenses. And Kathryn agreed that if she got Don’s annuity payments, the money would belong to Diana.
Then, Kathryn changed her mind. And the matter ended up in court again. Meanwhile, she applied to the Office of Personnel Management for survivor annuity funds. OPM made payments from 2004 to 2007.
But after a court ruled the settlement deal enforceable, Diana applied for survivor payments, too, prompting OPM to revoke Kathryn’s payments.
It hardly ends end there. Along came settlement No. 2, in which Kathryn released any claim to any payment Diana owed–including for Don’s expenses–while Diana waived “all claims to any future payment” that Kathryn might receive. Kathryn also turned over more than $40,000 that she received from OPM into a trust account for Diana.
Meanwhile, back at OPM, officials eventually found Diana was entitled survivor benefits. And then OPM went after Kathryn, seeking to recover the money she’d received. Kathryn didn’t deny she received the money, but argued she’d already transferred the money to Diana.
OPM didn’t back down. Once more, the matter ended up in litigation. Ultimately, Kathryn couldn’t receive a waiver from the Merit Systems Protection Board.
But, in a ruling one would cautiously assume to be the last word, the Court of Appeals for the Federal Circuit Friday overturned the MSPB.
The court found, first of all, that Kathryn wasn’t at fault, as she was collecting benefits at a time when she thought she was entitled to them. It also ruled that she deserved a waiver, saying she’d aimed all along to transfer Don’s retirement benefits back to Diana.
“Because the Board failed to address the substantial evidence demonstrating that recovery of the overpayment to Kathryn was against equity and good conscience, we reverse,” the court ruled.
Like the Don himself, the case is pretty complicated. So you read the ruling for yourself here.