JACKSONVILLE — A federal judge granted a motion to stay a case until the Board for Correction of Naval Records (BCNR) completes its proceedings in the case.
The case was originally brought against Secretary of the Navy Richard V. Spencer, but Acting Secretary James E. McPherson was substituted once he took office earlier this month.
U.S. District Judge Marcia Morales Howard partially granted a motion to stay pending administrative exhaustion and ordered the parties to file a status report with the court on Aug. 14 and every 90 days after that regarding the status of the BCNR proceedings, according to the April 13 order.
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"It would be an inefficient use of judicial recourses, as well as a waste of the parties' time and energy, to address the merits of Plaintiff's APA claim before allowing the Navy to resolve its own administrative review of similar claims," Howard wrote. "Plaintiff can challenge the Navy's final decision with regard to his BCNR petition by amending his complaint again, if necessary."
Dr. John D. McCarthy filed the lawsuit in 2018, alleging that he was wrongfully withdrawn from the Armed Forces Health Professional Scholarship Program (AFHPSP) despite successfully graduating from medical school and the Navy attempted to recoup the costs. He also claims he was wrongfully separated from the Navy without due process and that the Navy violated its own rules by denying him the opportunity to protest the Navy's actions.
McCarthy claims he graduated from the U.S. Naval Academy in 2005 and served more than six years on active duty before being honorably discharged in 2011. Two years later, he elected to continue his service through the military doctor pipeline via the AFHPSP and successfully completed medical school and the military requirements in June 2017.
"In spite of Dr. McCarthy’s notable academic performance and compliance with the AFHPSP Services Agreement, Defendant caused to be sent an electronic communication to Dr. McCarthy, on June 2, 2017—after Dr. McCarthy had successfully completed all medical academic requirements—stating words to the effect that Dr. McCarthy was separated from the Navy," the complaint states.
McCarthy claims the Navy then demanded a recoupment of the costs of medical school in the amount of $251,194.41 within 30 days.
McCarthy was seeking actual and statutory damages. He is represented by Daniel K. Bean of Abel Bean Law in Jacksonville.
U.S. District Court for the Middle District of Florida, Jacksonville Divison case number: 3:18-cv-01213