Kennedy v. United States, No. 16-1512 (Fed. Cir. 2017)Annotate this Case
Kennedy enrolled at George Washington University (GWU) in 2003. He obtained a Navy Reserve Officer Training Corps (NROTC) scholarship in 2005, agreeing to complete Officer Candidate School (OCS), a requirement which is not waivable. The scholarship provided that if Kennedy failed to complete the requirements, he could become liable to reimburse the program. Kennedy subsequently suffered trauma and began to act abnormally. During his OCS course, his platoon commander recommended that Kennedy be disenrolled as emotionally unstable. In June 2006, a Commanding Officer’s Board disenrolled Kennedy from OCS without opportunity to return. NROTC stopped funding Kennedy’s education. In February 2007, the Assistant Secretary approved disenrollment with recoupment of $50,675. After graduation from GWU in 2007, Kennedy graduated from law school, was admitted to the bar, and filed suit. The Claims Court directed the case to the Board for Correction of Naval Records (BCNR), a civilian body that exists to correct Naval Records. The BCNR upheld Kennedy’s disenrollment, but held that Kennedy should be relieved from reimbursement because he had been dissuaded from appearing at a hearing. The Claims Court held that Kennedy’s disenrollment was lawful and that his breach-of-contract claims for monetary relief lacked merit. The Federal Circuit reversed. Given the government’s concession that Kennedy’s due process rights were violated when he was dissuaded from attending his hearing, the Claims Court erred in concluding that Kennedy’s disenrollment was inevitable. The court directed the case be returned to the BCNR.