July 10, 2007

In the Matter of the Petition by

KHALID W. SHAHEED

P.S. Docket No. AO 07-156

APPEARANCE FOR PETITIONER:

Charles Scialla

Scialla Associates, Inc.

APPEARANCE FOR RESPONDENT:

Judith K. Zehner, Esq.

Law Department, Southwest Office

United States Postal Service

P.O. Box 227078

Dallas, TX 75222-7078

DISMISSAL

Respondent, the United States Postal Service, filed a Motion to Dismiss on the ground that the Petition was filed prematurely because Petitioner has not been issued the formal notice that is required by 39 C.F.R. §966.4(a)(2), and that triggers his right to a hearing.

Respondent also acknowledged that money was withheld from Petitioner’s retirement account without the notice having been issued. Attached to the motion was a June 21, 2007 letter to Petitioner, informing him that any money withheld will be refunded to him and that the letter of indebtedness issued to him on August 30, 2005 is rescinded.

Respondent further asked that the dismissal be without prejudice to Respondent’s right to re-initiate debt collection action in the future, following the procedures prescribed in 39 C.F.R. §966.4.

Petitioner was given an opportunity to reply if he opposed dismissal on the terms stated above. There being no reply, the motion is granted and this case is dismissed without prejudice.

Petitioner retains his right to file a new Petition if the Postal Service issues him the required notice and the procedural steps described in §966.4(a)(2) and (3) are followed. In the meantime, no money may be taken from Petitioner’s retirement account involuntarily to collect the alleged debt.

Bruce R. Houston

Chief Administrative Law Judge