February 26, 2018

In the Matter of the Debt Collection Act Petition

JANE VAN EERDE v. UNITED STATES POSTAL SERVICE

P.S. Docket No. DCA 17-159

APPEARANCE FOR PETITIONER:
Albert E. Lum
Labor Relations Admin Group, LLC

APPEARANCE FOR RESPONDENT:
Lee Zysk
Labor Relations Specialist
United States Postal Service

FINAL DECISION UNDER THE DEBT COLLECTION ACT OF 1982

The United States Postal Service seeks to collect two debts from Jane Van Eerde.  The first debt is for an $8,820.88 unit reserve stock shortage and the second debt is for a $4,730.95 retail floor stock shortage.  As to the unit reserve stock shortage, I deny that part of the Petition.  Because Mrs. Van Eerde was not the accountable employee for the retail floor stock, I grant that part of the Petition.  The Postal Service may collect $8,820.88 from Mrs. Van Eerde.

FINDINGS OF FACT

1. Mrs. Van Eerde was the unit reserve custodian at the Lanoka Harbor, New Jersey, Post Office at all time periods relevant to this litigation (Tr. 38-39).
2. On January 21, 2016, Mrs. Van Eerde and another employee conducted a count of the retail floor stock at the Lanoka Harbor Post Office which revealed an overage of $14,562.97 (Tr. 17, 23; Resp. Exh. 1).
3. On March 2, 2016, Mrs. Van Eerde and another employee counted the stamps in the unit reserve which revealed a $25,064.60 shortage (Tr. 17, 24, 72-73, 99; Pet. Exh. 2).
4. On March 3, 2017, Mrs. Van Eerde and another employee counted the retail floor stock which revealed a $4,730.95 shortage (Tr. 17, 45, 49, 149; Pet. Exh. 4).
5. On March 23, 2016, a box of unit reserve stamps which was not counted during the March 2, 2016 unit reserve count was discovered.  It contained $1,680.78 of stamp stock.  (Tr. 32, 57, 146; Resp. Exh. 5).
6. The acting Post Office Operations Manager for the Area determined that Mrs. Van Eerde was not accountable for the floor stock (Tr. 33, 50-52).  Additionally, at least four employees had access to the retail floor stock (Pet. Exh. 5; Tr. 77-79).
7. By letter of debt determination dated May 19, 2017, the Postal Service assessed Mrs. Van Eerde with a debt of $13,551.80.  The debt is comprised of $25,064.60 for the March 2, 2016 unit reserve shortage and $4,730.95 for the March 3, 2016 retail floor stock shortage.  The Postal Service offset the debt by $14,562.97 for the January 21, 2016 retail floor stock overage, and $1,680.78 for the box of unit reserve stamp stock counted on March 23, 2016.  (Resp. Exh. 8; Tr. 17, 32, 146, 148).¹
8. The Postal Service issued Mrs. Van Eerde a Notice of Involuntary Administrative Salary Offset Under the Debt Collection Act, dated June 29, 2017, for $13,551.80 (Petition).  Mrs. Van Eerde filed a timely Petition challenging the assessed debt.

DECISION

Unit Reserve Shortage
The Lanoka Harbor Post Office unit reserve was short $25,064.60 in stamp stock based on the March 2, 2016 count.  In order to prevail, the Postal Service must prove that Mrs. Van Eerde was the accountable unit reserve custodian and that a stock shortage, representing an actual loss, existed after a properly conducted count of the stock in the unit reserve.  See Ralph v. United States Postal Service, DCA 15-204, 2016 WL 10572240 (January 5, 2016).  If the Postal Service satisfies that initial burden, Mrs. Van Eerde may be held liable for the unit reserve shortage unless she shows circumstances sufficient to alleviate or offset the debt.  Id.
Mrs. Van Eerde was the accountable unit reserve custodian at the Lanoka Harbor Post Office (Finding 1) and the March 2, 2016 unit reserve count showed a $25,064.60 shortage (Finding 3).  The Postal Service gave her credit for the January 21, 2016 floor stock overage of $14,562.97 and the $1,680.78 box of stock counted on March 23, 2016 (Finding 7).  When considering these two credits, the outstanding balance for missing unit reserve stock is $8,820.85.²
Mrs. Van Eerde argues that she should receive additional offset credit because there was no actual loss to the Postal Service.  In particular, Mrs. Van Eerde argues that on March 1, 2016, the floor stock had a system count of 245 coils of Item No. 789900 (Forever) Star Spangled Banner PSA stamps totaling $12,005.  Mrs. Van Eerde testified that she did an informal count of the floor stock and confirmed that the 245 coils were physically on the floor on March 1, 2016.  Then on March 2, 2016, the unit reserve was short 245 coils of this same stamp.  However, on March 3, 2016, the retail floor did not show a single coil of Item No. 789900 (Forever) Star Spangled Banner PSA stamps.
Unlike a situation where stock missing from a unit reserve is found on the retail floor, in this case, none of the 245 coils were found during a proper count of the retail floor stock.  Given that the 245 coils were not found in a retail floor stock count the day after the unit reserve count, I am not persuaded by Mrs. Van Eerde’s argument that she should be credited with an additional $12,005.
Retail Floor Stock Shortage
The Postal Service’s burden of proof in a case of unexplained stamp stock shortage begins with showing that the loss occurred from an account for which the employee is accountable.  Albertha Johnson, DCA 04-71, 2004 WL 7329870 (August 23, 2004).
Although the Postal Service has shown an actual shortage in the retail floor stock after a properly conducted count on March 3, 2016, it did not show that Mrs. Van Eerde was accountable for the floor stock (Finding 6).  See Jesse Boykin, DCA 09-471, 2010 WL 11570308 (July 21, 2010); Ross v. United States Postal Service, DCA 14-308, 2015 WL 13647633 (January 9, 2015) (personal accountability of the postmaster who is not the account’s custodian may only be considered where the postmaster’s misdeeds, such as theft, directly caused the shortage).
The Postal Service argues that Mrs. Van Eerde is liable for the retail floor stock shortage because there were irregularities in transferring stock between the unit reserve and the retail floor.  While Mrs. Van Eerde may have incorrectly transferred stock between the unit reserve and retail floor, we have regularly held that the Debt Collection Act is not a means to punish poor performance.  Zane v. United States Postal Service, DCA 16-217, 2017 WL 5516570 (January 26, 2017).  Because the Postal Service has not shown that Mrs. Van Eerde is accountable for the retail floor stock or that her misdeeds directly caused the retail floor stock shortage, I grant the Petition as to this portion of the debt.  Boykin, DCA 09-471, 2010 WL 11570308.

ORDER

The Petition is denied in part, and granted in part.  The Postal Service may collect $8,820.88 from Mrs. Van Eerde by involuntary administrative salary offset.

Peter F. Pontzer
Administrative Judge