Michael T. Noble, Esq.
Assistant Chief Counsel
For the Respondent
Before: DAVID W. DI NARDI Administrative Law Judge
RECOMMENDED DECISION AND ORDER
GRANTING
SUMMARY JUDGMENT AND DISMISSING COMPLAINT
This case arises under the Energy Reorganization Act of 1974
as amended, 42 U.S.C. § 5851 ("Act" or "ERA"), and the
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implementing regulations found in 29 C.F.R. Part 24, whereby employees of licensees of
or applicants for a license from the Nuclear Regulatory Commission and their contractors
and subcontractors may file complaints and receive certain redress upon a showing of being
subjected to discriminatory action for engaging in a protected activity. The undersigned
scheduled a hearing in New London, Connecticut to begin on September 30, 1996 (ALJ EX
2), and the hearing was CANCELLED by ORDER issued on September 13, 1996. (ALJ
EX) The following abbreviations shall be used herein: "ALJ"-Administrative
Law Judge Exhibits, "CX"-Complainant Exhibits "RX"-Respondent Exhibits.
Summary of the Evidence
Douglas N. Majors ("Complainant" herein) has
filed his complaint seeking the so-called whistle blower protection of the Energy
Reorganization Act ("ERA"or the "Act") because he was fired for
having engaged in protected activity (i.e., raising safety concerns) at Combustion
Engineering Company, now a part of Asea Brown Boveri, Inc. ("ABB").
In his May 30, 1996 Complaint, Complainant states as follows
(CX 1):
"I work for Asea Brown Boveri, formerly Combustion Engineering. I have been on
long term disability and come to realize that the Company is discriminating against me
because of nuclear safety issues I raised while working as a principal nuclear engineer for
the Company.
"In 1984, I tried to issue a 10 CFR 21 for safety concerns with operating nuclear
power plants. I was not allowed to complete the issuance of this document and was
directed to issue info-bulletins instead which later I was also prevented from issuing.
"My evaluation went from exceptional and exceeding requirements in all areas of my
job to one of being totally unsatisfactory. I was reassigned to a non-nuclear position where
personnel problems continued to mount against me.
"I dissociated in 1985, as a result of these problems with my job, during a
neighborhood conflict and was left with post traumatic stress disorder. This resulted in my
going on long term disability starting in 1986.
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"As shown in Enclosure (a), the Company cut my long term disability Benefits to
offset my Social Security award which came six years after I became disabled. As shown
in Enclosure (b), my attorney informed the Company this is in violation of the insurance
policy in effect at the time I went on disability. As shown in enclosure (c), my attorney
requested the Company to provide the plan-document for the insurance policy in effect
when I went on disability and the Company has failed to do so to date.
"The Company has made no effort to return me to work. I asked to return to work
under the disability status but the Company has stated through its agent that it has no
intention of taking me back. Instead, as may be seen in Enclosure (d), the Company has
placed a stipulation on me stating I must do volunteer work before I pursue competitive
work anywhere and makes no mention whether this would lead to my returning to work at
ABB. The only motive the Company has is for me to do volunteer work so I return to work
elsewhere and lose my disability status. It is not willing to accept responsibility for the fact
that it was its nuclear safety issues that caused my disability to start with. This volunteer
work' has been made a condition for me to return to work and is not part of the insurance
policy in effect when I went on disability.
"In addition, I am a Vietnam Era Veteran. I feel many of the personal problems I
experienced in the workplace and my neighborhood as well as the lack of justice that was
afforded me to clear my name over the neighborhood incident is because I am a Vietnam
Vet. For the Company to stipulate that I do this volunteer work so that I now lose the
disability status and the use of my doctor is being irresponsible and reckless. Proof to that
is that I had to go back under medication, after being off for six months, just so I could cope
with writing this very paragraph. Where would I be without a doctor to fall back on?
"I would appreciate anything your office can do to resolve this problem. The
insurance policy states I can file suit in federal court over this matter but I don't have the
resources to fight companies like ABB and Travelers and most attorneys will not take the
case for that reason." (CX 1)
On the other hand, the Respondent submits that the complaint
must be denied because Complainant has failed to file a timely complaint and Respondent
has filed a Motion for Summary Judgment, pursuant to 20 C.F.R. Part 18 of our Rules of
Practice. In support of the motion, Respondent states as follows, (RX 1):
1. The Complainant, Douglas N. Majors, became a salaried employee of Combustion
Engineering, Inc. in 1978.
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2. Complainant notified Respondent that he was mentally disabled from performing
his job effective October 15, 1986 (see Attachment 1 to RX 1).
3. In October, 1986, Respondent had a disability plan in effect which was composed
of two types of disability coverage:
1. A salary continuation benefit which continued an
employee's full pay from the beginning of their disability
up to a maximum of 26 weeks, depending on their length
of service, and
2. Long- Term disability Benefits which continued a
portion of the employee's pay if they were disabled for
more than 26 weeks.
The details of these Benefits were set forth in the Combustion
Engineering - Life, Disability and Medical plan for Salaried Employees Summary Plan
Description, pp. 9-11 (see Attachments 2 and 3). Copies of Attachment 3 were distributed
to all salaried employees on or about July, 1984 (see back cover of Attachment 3).
5. In attachment 3, the Long-Term Disability Benefits are as follows:
6. Attachment 3 was in effect from 1984 to 1989 and the reduction of Long-Term
Disability Benefits by amounts received from social security has remained unchanged to
present (see Attachment 2 and 4).
7. In 1990, Combustion Engineering, Inc. was acquired by Asea Brown Boveri Inc. and
Asea Brown Boveri Inc. continued the Long-Term Disability Benefits unchanged.
8. On April 24, 1987, Complainant was sent a Long-Term Disability Benefits
application along with a cover letter (see Attachment 5) specifically stating that the Long-Term Disability Plan provided that Company-paid Benefits would be reduced by any Social
Security Disability Benefits received (note the year on Attachment 5 is incorrectly typed in
as 1986).
9. On April 29, 1987, Complainant returned the competed Long-Term Disability
application (see Attachment 6) sent with Attachment 5 to the Company requesting Long-Term Disability Benefits. On Attachment 6, Question 28 asks whether the claimant is
entitled to disability Benefits from a variety of sources, including specifically the Social
Security Administration. On Attachment 6, in the Authorization and Assignment section
directly above the Complainant's signature, the application states, "I hereby agree to
refund any monies due the Plan as a result of payment of disability Benefits from any
source listed in Item 28 above." Complainant completed and signed Attachment 6
and, thus, had additional knowledge on April 29, 1987 that his Long-Term Disability Plan
provided that Company-paid Benefits would be reduced by any Social Security Disability
Benefits he received.
10. On or about June 2, 1987, Complainant received notice that his application for Long-Term Disability from the Company had been approved (see Attachment 7). The letter of
approval states that Social security Disability Benefits, if received, are to be deducted from
the Long-Term Disability Benefits and that overpayment of Long-Term Disability Benefits
due to retroactive awards of Social Security Disability Benefits must be refunded. Thus,
Complainant had additional knowledge on or about June 2, 1987 that the Long-Term
Disability Plan provided that Benefits would be reduced by any Social Security Disability
Benefits he received.
11. Complainant's initial claim for Social Security Disability was denied (see
Attachment 8), and the Respondent's insurance company became aware of this denial
several years later (see Attachment 9).
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12. On May 13, 1991, its insurance carrier, who administered the Long-Term Disability
plan, wrote to Complainant offering to assist in his appeal or reapplication for Social
Security Disability Benefits (see Attachment 9). In that letter it was stated to Complainant:
Although Benefits under our plan are normally offset by Social
Security Benefits, the Social Security benefit amount which we
deduct in most cases is usually at the level of the initial award.
Subsequent periodic Social Security benefit increases do not
result in an increase in the offset amount. This allows you to
receive the full advantage of periodic increases in the Social
Security benefit.
Thus, on or about May 13, 1991, Complainant was again
informed that his Long-Term Disability Plan provided that Company-paid Benefits would
be reduced by and Social Security Disability benefit he received.
13. On May 17, 1991, Complainant wrote to the Travelers Insurance Company
acknowledging receipt of the May 13, 1991 (see Attachment 9) letter and declined to reapply
for Social Security Disability Benefits at that time (see Attachment 10).
14. On May 26, 1993, Complainant wrote to the Travelers Insurance Company with
several questions relative to his status and benefits (see Attachment 11), specifically:
whether he was required to perform volunteer work as a prerequisite to beginning
rehabilitation processes; whether the Company was required to provide him employment
upon completion of a rehabilitation program; and whether or not his Long-Term Disability
Benefits would be reduced by an award of Social Security Disability Benefits related to his
disability and rendered subsequent to his initial receipt of Long-Term Disability Benefits.
Complainant included with that letter, a copy of the cover and page 10 of Attachment 3 and
quoted a small portion of the benefits section page, which is quoted in its entirety in
Paragraph 5 herein.
15. On July 15, 1993, Complainant's May 26, 1993 letter was answered by the Travelers
Insurance Company (see Attachment 12), stating that: Rehabilitation and expenses were
voluntary and that volunteer work was, as its term states, voluntary'; that the Travelers had
no opinion as to his re-employment; that the receipt of Social Security Disability Benefits
was taken into consideration in determining the Long-Term Disability Benefits due; and that
the portion of the disability language he had referred to in his letter meant that subsequent
cost-of-living increases to monthly Social Security Disability Benefits were not deducted
from Company-paid benefits. Thus, on or about July 15, 1993, Complainant was again
informed that his Long-Term Disability Plan provided that company-paid benefits would be
reduced by any Social Security Disability Benefit he received (cost-of-living increases
excepted).
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16. On August 16, 1993, the Complainant's case manager at Travelers Insurance Company
sent the Complainant additional correspondence (see Attachment 13) explaining in detail
why and how his Long-Term Disability Plan provided that Social Security Disability awarded
to him would be offset against his Long-Term Disability Benefits and quoted the applicable
sections of the same Summary Plan Description Complainant had referred to in his letter (see
Attachment 11). Thus, on or about August 16, 1993, Complainant was again informed that
his Long-Term disability Plan provided that company-paid benefits would be reduced by any
Social Security Disability Benefits he received.
17. On September 27, 1993, Complainant wrote to Ms. R. Da Silva (Attachment 14) at
Asea Brown Boveri, Inc., reiterating the questions of his May 26, 1993 letter (Attachment
11).
18. Ms. Da Silva replied on October 15, 1993, (Attachment 15), again informing
complainant that the rehabilitation plan was voluntary, that voluntary work is not mandatory,
that the Americans with Disabilities Act was applicable to him and that the Long-Term
Disability Plan provided that Social Security Disability Benefits (but not cost-of-living
increases) would be an offset against his Company-paid Long-Term Disability Plan provided
that his Company-paid Benefits would be reduced by any Social Security Disability Benefit
he received.
19. On October 7, 1993, Travelers wrote to Complainant notifying him that they were
aware that Social Security Disability Benefits had been awarded to him retroactive to August,
1992 and that those Benefits were being credited as an offset against the Long-Term
Disability Benefits he had received from the Company pursuant to the Long-Term Disability
Plan (see Attachment 16). Thus, Complainant was again informed that his Long-Term
Disability Plan provided for such reduction and that his Benefits would be reduced by and
Social Security Disability benefit he had received.
1 Italics are as they appear in
the Summary Plan Description.
2 Respondent does not admit
that this occurred, but for the limited purpose of this Motion, considers the allegation of its
occurrence in the light most favorable to him.
3 Prior to 1992, the period for
filing a complaint was thirty (30) days.
4 The plan in question and
the Benefits thereunder are governed by ERISA, and that law, besides pre-empting other laws
with regard to the determination of plan Benefits and their administration, requires that plan
Benefits must be determined and provided to employees in compliance with the terms of the
plan on penalty of substantial penalties for such non-compliance.
5 The Final Order herein shall
be issued by the Administrative Review Board and the Board will establish an appropriate
briefing schedule for the parties.