U.S. Department of Labor
Office of Administrative Law Judges
211 Main Street
San Francisco, California 94105
Suite 600
(415) 974-0514
FTS 8-454-0514
CASE NO. 82-ERA-8
In the Matter of
ROBERT MACKOWIAK,
Complainant,
v.
UNIVERSITY NUCLEAR SYSTEMS, INC.,
Respondent.
Ann Cross Eschenbach, Esq.
5700 Columbia Center
701 Fifth Avenue
Seattle, WA 98104
For the Complainant
Frank E. Drachman, Jr., Esq.
University Industries Building
3430 Camino Del Rio North, Suite 200
San Diego, CA 92108
For the Respondent
Before: EDWARD C. BURCH
Administrative Law Judge
DECISION AND ORDER ON REMAND
STATEMENT OF THE CASE
This case arises under the Energy Reorganization Act (ERA),
42 U.S.C. § 5851. Complainant Robert Mackowiak was employed by
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respondent University Nuclear Systems, Inc. (UNSI) from January 13,
1981 through January 29, 1982 as a quality control inspector
(QCI) in the construction of a nuclear power plant in Richland,
Washington. Mackowiak filed a claim under the ERA, alleging that
he was laid off by UNSI on January 29, 1982, because he was an
overzealous QCI, and because he had reported safety problems to the
Nuclear Regulatory Commission (NRC).
Respondent alleged that Mackowiak was laid off in a legitimate
reduction in force (RIF) ordered by the prime contractor in the
construction of the power plant, Bechtel Corporation.
Following an administrative hearing on June 8 and July 26,
1982, a recommended decision and order was issued denying
Mackowiak's complaint on the ground that he had not made out a
prima facie case of discrimination.
On April 29, 1983, the Secretary of Labor issued a decision
and final order denying the complaint. The Secretary found that
Mackowiak had made out a prima facie case of discrimination, and
that an employee is protected by 42 U.S.C. § 5851 not only when
reporting safety violations to the NRC, but also when he/she makes
internal complaints of safety problems. However, the Secretary
also found that UNSI also had legitimate business reasons for
laying off Mackowiak, and that it had met its burden, under Mt.
Healthy City School District v. Doyle, 429 U.S. 274, 97 S.Ct. 568,
of proving that Mackowiak would have been discharged even if he had
not engaged in protected conduct.
Mackowiak petitioned the Ninth Circuit Court of Appeals for
review of the Secretary's decision and final order.
In a decision rendered on June 22, 1984, the Ninth Circuit
upheld the Secretary's findings that Mackowiak had made out a prima
facie case of discrimination, and that § 5851 of the ERA protects
quality control inspectors from retaliation for internal reports of
safety and quality control violations as well as from retaliation
for reports to the NRC. However, the Court also held that there
was insufficient evidence in the record from which to determine if
Mackowiak would have been terminated even if he had not engaged in
protected activity. Hence this case was remanded to the Secretary
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for determination of this issue, either by holding evidentiary
hearings, or by remanding for a new hearing before an administrative
law judge. The Secretary chose to remand for a new hearing,
which was held in Seattle, Washington on January 23 and 24, 1986.
ISSUES AND CONCLUSIONS
I. The Admissibility of Shackleton's Testimony:
Before addressing the main issue in this case, it is necessary
to determine, as a preliminary matter, whether the testimony of
Ohlen Shackleton should be stricken from the record.
Ohlen Shackleton, the Director of the Field Office of
Investigations (Region 5) of the NRC, testified as to allegations of
deliberate wrongdoing by UNSI management personnel which he had
received from other UNSI employees on or around the time that
Mackowiak was terminated. On cross examination, he declined to
state the names of the informing employees. Respondent contends
that Mr. Shackleton's testimony should be stricken, since his
testimony is hearsay upon hearsay, and since the lack of the
informers' identities deprives respondent of the right to ascertain
whether or not they were actually UNSI employees, whether or not
they had first hand knowledge of the allegations they made, and on
what authority they based their allegations (Remand Transcript - RT
- pp. 269-270).
Complainant contends that Mr. Shackleton, as a government
investigator, has a limited privilege not to reveal his sources,
particularly where, as here, employees would be discouraged from
reporting safety violations to the NRC for fear of economic
retaliation if their anonymity were not preserved (Complainant's
Memorandum of Legal Authorities, pp. 7-8). In support of this
position, complainant cites 10 C.F.R. § 9.201, which prohibits NRC
employees from disclosing information in NRC files without prior
approval of the NRC's General Counsel (Complainant's Memorandum of
Legal Authorities, p. 6). Apparently, Mr. Shackleton received
permission to testify as to the substance of his investigation, but
was not permitted to reveal the names of his sources (RT pp.
263-264).
To begin with, since this is an administrative proceeding, the
fact that Mr. Shackleton's testimony contains hearsay upon hearsay,
does not, by itself, bar its admission. As stated in Calhoun v.
Bailar, 626 F.2d 145 (9th Cir. 1980). at 148:
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Not only is there no administrative rule of
automatic exclusion for hearsay evidence, but
the only limit to the admissability of hearsay
evidence is that it bear satisfactory indicia of
reliability ... [T]he test of admissibility
[requires] that the hearsay be probative and its
use fundamentally fair. (citations omitted).
Under 20 C.F.R. Part 18, "Rules of Practice and Procedure For
Administrative Hearings Before the Office of Administrative Law
Judges":
all relevant, material and reliable evidence is
admissable, but may be excluded if its probative
value is substantially outweighed by unfair prejudice
... 20 C.F.R. § 18.44(b).
The leading case on the subject of the so-called informer's
privilege is Roviaro v. United States 353 U.S. 53; 77 S.Ct. 623.
In that case, the Supreme Court defined the privilege as the
Government's privilege to withhold from disclosure the identity of
persons who furnish information of violations of law to officers
charged with enforcement of that law," Roviaro, at 59. The Court
held that where the disclosure of an informer's identity ... is
essential to a fair determination of a cause, the privilege must
give way." Roviaro, at 60-61.
Although Roviaro was a criminal case, its principles have been
applied to civil cases in general [see In Re Coordinated Pretrial
Proceedings, 747 F.2d 1303 (9th Cir. 1984) in the administrative
context, to claims arising under the Fair Labor Standards Act
29 U.S.C. § 201 et seq. (see Donovan v. Forbes, 614 F.Supp. 124).
The burden of demonstrating the need for disclosure of an
informer's identity rests with the defendant. United States v.
Fixen, 780 F.2d 1434 (9th Cir. 1986).
Applying both the principles surrounding the application of
the informer's privilege and those regarding the admission of
hearsay evidence in an administrative proceeding, it is apparent that
the question of whether or not Shackleton's testimony should be
stricken depends on: (1) its reliability, (2), whether its use will
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unduly prejudice the defendant, and (3) whether the NRC's need to
protect its sources outweighs the defendant's need for their
disclosure.
In considering these factors, it is also necessary to bear in
mind whether the underlying purpose of section 5851 of the ERA will
be served by the admission of this testimony.
In Calhoun v. Bailor, supra, at 149, the Ninth Circuit
outlined some indicia of reliability which may be considered when
contemplating the admission of hearsay evidence in an administrative
proceeding. Among these are (1) the bias of the declarant,
(2) whether the statements are signed and sworn to as opposed to
anonymous, oral, or unsworn, (3) whether or not the statements are
contradicted by direct testimony, (4) whether or not the declarant
is available to testify, and if not, whether no other evidence is
available, (4) the credibility of the witness testifying to the
hearsay, and (5) whether or not the hearsay is corroborated by
other evidence.
Here, the declarants are all employees of UNSI; however, they
are otherwise unknown and so it is unclear whether they were
particularly biased against UNSI. Although these employees apparently
submitted sworn statements to the NRC (see complainant's exhibit
C-AA), none of these statements are of record. However, the only
allegations which were directly contradicted by other testimony are
the rather conclusory statements that UNSI's management was
deliberately violating procedures and mistreating its quality
control inspectors (QCI's). (RT pp. 242 & 245).
Since the employees in question are unknown, they are unavailable
to testify. There is other evidence available, namely the
testimony of Mr. and Mrs. Mackowiak and other witnesses for the
complainant. On the other hand Mr. Shackleton appeared to be a
very credible witness, and there is no reason to believe that he
would report anything other than what he heard.
1 For example, allegations of
improper training of UNSI personnel
(RT p. 241) were corroborated by Barry Sachs on pages 87-88 (craft
personnel were not properly trained on IPI documentation
procedures), and 91 ["QC inspection personnel appear(ed) to be unsure
of their responsibilities ..." -- see also exhibit C-H, pp. 2-3],
and by Conrad Holt on pages 136-137 ("Part of the fault (re:
incorrect documentation of IPI'S) was in the training program"].
2 A duct run is an enclosure
through which air flows through the nuclear power plant.
4 Mackowiak's rate of pay,
including benefits, is calculated to be $154.85 per (eight hour) day (see Exhibit C-Y). Apparently
he worked 5 days per week (Complainant's Memorandum of Legal Authorities, p. 47).
5 Mackowiak submitted evidence
that he worked a total of 82 hours
in March of 1982 for Owens-Corning in New Mexico, without specifying
the amount he earned during that time period (Exhibit C-GG, p.
1). Because of this inadequate proof of his loss of earnings, his
back pay award for the period from January 29, 1982 - May 13, 1982
shall be reduced by 82 hours at the same rate of pay as that which
he had earned at UNSI.
6 Although Lorna Mackowiak
testified that the total job search-related telephone calls amounted to more than $700.00
(Transcript, June 8, 1982 p. 35; RT p. 303), Exhibit C-HH, which purports to
mark the business related calls, only demonstrates a total of $429.38.
7 Exhibits C-NN and C-00
appear to be duplicates of C-QQ, since all of these exhibits purport to show gasoline expenses
incurred by Mackowiak in pursuit of work in New Mexico in March, 1982.