April 13, 1992

Appeal of

BONNIE DOLIN

Under Contract No. HCR 25179

PSBCA No. 2394

 

APPEARANCE FOR APPELLANT

Belinda S. Morton, Esq.

 

APPEARANCE FOR RESPONDENT

Deborah A. Davis, Esq.

 

OPINION OF THE BOARD

 

            Bonnie Dolin (Appellant) has filed an appeal from a decision of a Contracting Officer terminating for default her highway transportation contract with the United States Postal Service (Respondent).  The issue presented on appeal is whether the contract was properly terminated for default for obstruction and theft of the mail. 

FINDINGS OF FACT

            1.  On June 9, 1988, Appellant was awarded Contract No. HCR 25179, requiring the transportation of mail between Seth, WV, and Racine, WV, with intermediate stops and box delivery along the route.  Performance under the contract began on July 1, 1988, and was to extend to June 30, 1992 (Appeal File (AF), Tab N at 24-27).

            2.  The contract contained the United States Postal Service "Basic Surface Transportation Services Contract General Provisions" PS Form 7407 (Oct., 1986) (AF, Tab N at 35-44).  General Provision 4, "Service Requirements and Prohibitions," required Appellant to carry all mail "with certainty, celerity, and security" and to "protect the mail from loss, depredation or damage" (AF, Tab N at 36, ¶¶4(a) & (c)).  General Provision 8, "Accountability of the Contractor," made Appellant accountable for "loss, rifling, damage, wrong delivery, depredation upon and other mistreatment of mail . . . ."  (AF, Tab N at 40, ¶8(c)).

            3.  The "Termination by the Postal Service for Default" clause, General Provision 16(a), provided that the Contracting Officer could terminate the contract for default:

                        "(1) for Contractor's failure to perform service according to the

                        terms of the contract;

 

                        (2) if the Contractor is the subject of administratively determined

                        violations of the Postal laws and regulations and other laws related

                        to the performance of the service;

 

* * *

:                       (6) for the Contractor's failure properly to account, deliver, and pay

                        over moneys, mail and other property pursuant to Clause 8 of this

                        contract" (AF Tab N at 42-43).

 

            4.  Although Appellant had been performing work on the route for another contractor since 1974, she began performance of the route on a full-time basis in 1985 and under her renewal contract on July 1, 1988 (Tr. at 60).

            5.  As part of a program to routinely monitor the mail, Postal Inspectors at Charleston, WV, sent a test mailing of two first class letters containing $5.00 bearer rebate checks to undeliverable addresses in the Seth, WV, area on March 11, 1988 (Tr. 9).  The two test mailings were not returned to sender or otherwise treated as undeliverable mail s required by the Postal Service Domestic Mail Manual (DMM) (Tr. 10, 35, 46-48 & 113; DMM §§159.1-159.151, Exhs. (a)-(f)).  On April 7, 1988, the issuer bank returned to the Postal Inspection Service the cancelled $5.00 bearer rebate checks which had been endorsed in the names of Appellant and her husband (Tr. 9).

            6.  On July 15, 1988, five first class controlled mailings containing $5.00 bearer rebate checks were placed in the United States mail for delivery to undeliverable addresses in the Seth, WV, area (Tr. 10-11 & 15-16; Respondent's Exh. 2).  These controlled mailings were received at the Seth Post Office on July 16, 1988, but were missing from the mail returned to the Seth Post Office after Appellant completed her route (Tr. 10 & 15-16).  On August 8, 198, the issuer bank returned to the Postal Inspection Service the cancelled checks included in the July 15 1988, mailing.  The checks had been endorsed in the names of Appellant or members of her family (Tr. 15-17, 21, 23 & 86-87).

            7.  On July 22, 1988, the Postal Inspection Service again caused four undeliverable controlled mailings to be sent through the United States mail for delivery in the Seth, WV, area (Tr. 11).  These mailings, consisting of three first class letters and one first class parcel arrived at the Seth Post Office on Saturday, July 23, 1988 (Tr. 11 & 86-87).

            8.  Appellant delivered the mail on her route on July 23, but did not return any of the test mailings to the Seth Post Office (Tr. 11-12 & 17).  After completing her route, Appellant dropped off her mail bags at the Seth Post Office, locked the post office door and returned to her truck.  While seated in her truck, Postal Inspectors approached Appellant and observed the first class test mailings on the front seat of her vehicle (Tr. 11-12, 23-24, 69 & 86-87).  Two of the first class mailings, one letter and the parcel, had been rifled and were lying open in plain view on the front seat of Appellant's truck.  The cash contents of the opened letter were not in the envelope (Tr. 11-1, 69 & 87).

            9.  On July 25, 1988, Appellant was suspended from performing any further work on her contract (Tr. 32-33; AF, Tab L a 22).  By final decision dated August 16, 988, the Contracting Officer notified Appellant that effective close of business, July 23, 1988, her contract had been terminated pursuant to General Provisions 16(a)(1), (2) and (6) for obstruction and theft of identifiable first class letters and a first class parcel (Tr. 33-34; AF, Tab B at 3 & 4).

Decision

            Appellant admitted at the hearing that she opened controlled first class mailings and took and cashed bearer rebate checks contained in those mailings to purchase gas for her truck.  Appellant however contends that the Postal Service is estopped from terminating her contract since her supervisors had voluntarily and repeatedly given her undeliverable mail and advised her that such mail could be kept for her own use.  Appellant further claims she is excused from opening and taking mail because she never received formal training or instruction on the procedures for handling undeliverable mail.  Finally, Appellant contends Postal Inspectors violated her constitutional rights by subjecting her to an unreasonable search and seizure and then coercing her into making a confession.

            Appellant has not established that her conduct was excusable or that any other basis exists for finding the termination for default improper.  Under the terms of her contract, Appellant was required to carry all mail with "certainty, celerity and security" and the Contracting Officer was authorized to terminate for default for loss, rifling or other depredation of the mail.  Appellant's appropriation of first class mail for her own use justifies the Contracting Officer's determination to terminate the contract for default.  See, e.g., Karen L. Wilson, PSBCA No. 194, 86-3 BCA ¶19,256 at 97,389; Francine E. Fekkers, PSBCA No. 1259, 84-3 BCA ¶17,557 at 87,476.

            Although Appellant contends the evidence supporting the termination for default was tainted by an unreasonable search and seizure and a coerced confession, there is ample additional evidence to support the termination action.  Moreover, the Board is not persuaded that the mailings found on the front seat of Appellant's truck were the product of an unreasonable search and seizure[1] or that Appellant's confession was coerced.[2]

            Although Appellant claims she was told by Postal Service supervisors she could have undeliverable mail, we are not persuaded she was ever told she could take and open any first class mail.  In addition, Postal Service employees are not authorized to take for themselves or to authorize others to take mail for their own use.  See 39 C.F.R. §447.25 and 18 U.S.C. §§1701-170333 & 1708.  Thus, even if Appellant was told she could take the mail, Respondent cannot be estopped from terminating the contract for default since Respondent is not bound by the unauthorized acts or representations of its employees.  See OPM v. Richmond, 496 U.S. ___, 110 L.Ed.2d 387, 396-400, reh'g denied, 111 L.Ed.2d 821 (1990); Jana, Inc. v. United States, 936 F.2d 1265, 1270 (Fed. Cir. 1991); USA Petroleum Corp. v. United States, 82 5041 F.2d 622, 625-627 (Fed. Cir. 1987); Emeco Indus., Inc. v. United States, 485 F.2d 652, 657 (Ct.Cl. 1973); F & B Realty, PSBCA No. 2529, 91-2 BCA 23,788 at 19,142.

            Appellant's contention that she received no training or instruction on the handling of undeliverable mail does not excuse her failure to perform in accordance with the terms of her contract.  Even in the absence of such training, it was not reasonable for Appellant to believe she was entitled to take undeliverable first class mail for her own use.

            Appellant's contract was properly terminated for default.  Accordingly, Appellant's appeal from the Contracting Officer's decision terminating her contract for default is denied.

 

James A. Cohen

Administrative Judge

Chairman

 

I concur

James D. Finn, Jr.

Administrative Judge

Vice Chairman

 

David I. Brochstein

Administrative Judge

Board Member

 



[1]  Appellant's Fourth Amendment rights were not violated by the search and seizure conducted by the Postal Inspectors since the opened letter and parcel were in plain view of the Inspectors who had probable cause to believe that a crime had been committed by Appellant.  See Arizona v. Hicks, 480 U.S. 321, 325-38 (1987); Colorado v. Bannister, 449 U.S. 1, 3-4 (1980); Effler v. Rose, 535 F2.d 980, 981 (6th Cir.), cert. denied, 429 U.S. 982 (1976)(rifled Christmas packages seen on auto floor); United States v. Ocampa, 492 F. Supp. 1211, 1233 (E.D.N.Y. 1980), aff'd 650 F.2d 421 (2d Cir. 1981) (open bag of currency viewed in rear of vehicle); United States v. Kinebrew, 507 F. Supp. 17, 19-20 (E.D.N.Y. 1980) (postal service mail bag seen on front seat floor of car).

 

[2]  Prior to the hearing, Appellant objected to the inclusion of the confession in the appeal file.  The Board reserved ruling on the admissibility of the confession, but Respondent did not thereafter attempt to introduce the confession into evidence.  Accordingly, the Board did not consider the confession to be a part of the evidentiary record and did not rely on the confession in arriving at its decision.  See Arizona v. Fulminante, ___U.S.___ 113 L.Ed.2d 302, 329-333 (1991).