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Pillow v. Bechtel Construction, 87-ERA-35 (ALJ Dec. 7, 1993)


DATE:     DECEMBER 7, 1993

CASE NO:  87-ERA-0035


In The Matter of

JAMES CARROLL PILLOW, JR., 
     Complainant

     v.

BECHTEL CONSTRUCTION, INC.,
     Respondent


Appearances:

MICHAEL R. SEWARD, ESQ.
Coconut Grove, Florida
     For the Complainant

WILLIAM F. HAMILTON, ESQ.
Holland & Knight
Miami, Florida
     For the Respondent


Before:  E. EARL THOMAS
         District Chief Judge


             RECOMMENDED DECISION AND ORDER ON DAMAGES

     The case before me on remand from the Secretary of Labor
arises under the employee protection provision of the Energy
Reorganization Act of 1974, as amended (ERA or the Act),
42 U.S.C. §5851 (1988).  In his Decision and Order of
Remand, the Secretary directed a hearing on the issue of damages,
which in this case are limited to back pay, compensatory damages,
costs and attorney fees.  D&O at 25-28.

     A hearing was scheduled for November 9, 1993.  Prior
thereto, the parties exchanged information and engaged in 

[PAGE 2] mediation in an effort to agree on the amount of damages and attorney fees. Numerous pleadings were filed, and on the eve of the hearing, the parties announced that they had reached agreement on all outstanding issues. At the hearing, each side presented its position and an explanation as to why the settlement was fair and reasonable. The parties did not submit a separate settlement document, but instead rely upon statements made on the record to encompass the entire agreement. The parties condition their agreement upon its full acceptance by the Secretary. If any part is rejected, they request that the case be remanded for full evidentiary hearing on all issues of damages and attorney fees. The parties have stipulated that the agreement is limited to the issues on remand and will not prejudice their right to appeal any other issues. The agreement provides for Respondent to pay the sum of $25,000 in back pay and interest to the Complainant, plus $25,000 in compensatory damages. Respondent agrees to pay Complainant's attorney fees and costs in the amount of $250,000. The undersigned' review of this agreement is limited to a determination of whether its terms are fair, adequate and reasonable. Fuchko and Yanker v. Georgia Power Co., 89 ERA 9 and 10 (Sec'y, Mar. 23, 1989). The basic criteria is whether or not the settlement adequately protects and compensates the whistleblower. Virginia Electric and Power Co., 19 FERC §61,333 (Federal Energy Regulatory Commission, 1982). Also, the agreement must not be contrary to the public interest. Heffley v. NGK Metals Corp., 89 SDW 2 (Sec'y, Mar. 6, 1990). While I recognize that there is a considerable disparity between Complainant's personal recovery and his attorney's fee, I cannot say that the latter is excessive, considering the amount of time his attorney represents to have spent in the various phases of this litigation. In this regard, I rely in large measure upon Respondent's acceptance of the negotiated amount. Moreover, I know of no stated policy or case law which would limit the amount of attorney fees to a percentage of an award for damages in a settlement situation. Considering what Complainant would have earned plus overtime and interest, the amount agreed upon for back pay appears reasonable. When the compensatory damages for pain and suffering, mental anguish, embarrassment and humiliation are considered, the total compensation amount ($50,000) appears generous. After consideration of the settlement agreement and the
[PAGE 3] representations of the parties, I find the agreement to be fair, adequate and reasonable, and I recommend its acceptance and incorporation in the Secretary's final decision and order. __________________________ E. Earl Thomas District Chief Judge EET/pc Ft. Lauderdale, FL SERVICE SHEET Case Name: James Carroll Pillow, Jr. Case No.: 87-ERA-0035 Title of Document: RECOMMENDED DECISION AND ORDER ON DAMAGES A copy of the above-entitled document was sent to the following: Acting Administrator Employment Standards Administration Wage and Hour Division U.S. Department of Labor Room S-3502, FPB 200 Constitution Avenue, N.W. Washington, DC 20210 District Director U.S. Department of Labor, ESA Wage and Hour Division 1150 S.W. First Street Miami, FL 33130 Cornelius Donoghue Deputy Associate Solicitor Division of Fair Labor Standards Office of the Solicitor U.S. Department of Labor Room N-2716 200 Constitution Avenue, N.W. Washington, DC 20210
[PAGE 4] Office of Enforcement & Compliance Monitoring Environmental Protection Agency 401 M Street, S.W. Washington, DC 20460 Director Enforcement and Investigation Coordination Staff, Region II U.S. Nuclear Regulatory Commission 101 Marietta Street, N.W. Suite 2900 Atlanta, GA 30323 Director Office of Enforcement U.S. Nuclear Regulatory Commission Washington, DC 20555 Deputy Assistant General Counsel for Enforcement Office of the General Counsel U.S. Nuclear Regulatory Commission Washington, DC 20555 Regional Administrator U.S. Nuclear Regulatory Commission 101 Marietta Street, N.W. Suite 3100 Atlanta, GA 30303 William H. Berger Deputy Regional Solicitor U.S. Department of Labor Room 339 1371 Peachtree Street, NE Atlanta, GA 30367 Donald McCoy, Esq. Associate Regional Solicitor U.S. Department of Labor Federal Building, Room 408 299 East Broward Boulevard Fort Lauderdale, FL 33301 James C. Pillow, Jr. P.O. Box 741 Marianna, FL 32447 SERVICE SHEET CONTINUED (87-ERA-0035) Michael R. Seward, Esq. 2621 Natoma Street Coconut Grove, FL 33133 W.G. Bell, Vice President Labor Relations & Safety Bechtel Construction, Inc. P.O. Box 3965 San Francisco, CA 94119 William F. Hamilton, Esq. Holland & Knight 701 Brickell Avenue Suite 3000 P.O. Box 015441 Miami, FL 33101 ________________________ Paula C. Cuba Legal Technician



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