# 2013-008 Pay and Benefits, Imposed Restriction (IR), Promissory Estoppel, Recovery of Overpayment/Debt Write-Off, Separation Expense (SE)

Case Summary

F&R Date: 2013–03–27

The grievor was granted separation expense benefits. Fifteen months into his approved imposed restriction, he was advised that he was not entitled to the benefit. This resulted in a substantial overpayment and recovery action was initiated.

The grievor argued that it was not his intent to receive benefits to which he was not entitled and that the circumstances leading to the overpayment were the result of misinformation he had received from the integrated relocation program representatives. The grievor disputed the expectation that he should repay the benefits received, given that he originally sought and was denied a no-cost move back to his family. He stated that he only requested imposed restriction status based on the information and advice he received. The grievor requested that the recovery be stopped and that any monies paid to date be refunded to him.

The Board confirmed that the grievor did not meet the condition found in article 209.997 (2) b) of the Compensation and Benefits Instructions and concluded that he was not entitled to separation expense benefits. The Board also confirmed that when the Canadian Forces (CF) authorized and provided the separation expense benefits to the grievor, it was an error on the part of the CF and not the fault of the grievor.

As the Board has explained in other recent cases [2012-105 and 2012-134], the automatic recovery of overpayments resulting from CF errors is unfair. In such cases, the Board has found that the doctrine of estoppel is applicable and that the Crown may be estopped from recovering an overpayment when the Crown has made an erroneous representation and the other party has relied on that representation to their detriment.

In this case, the Board found that the CF and its representatives made erroneous representations to the grievor who relied on them to his detriment. The Board also found that the Chief of the Defence Staff (CDS) has the authority to determine that the CF is estopped from recovering the grievor's overpayment and that the grievor should be reimbursed all amounts previously recovered from him.

The Board recommended that the CDS uphold the grievance by stopping any current recovery action and by reimbursing to the grievor any money already recovered.

CDS Decision Summary

CDS Decision Pending