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Du Jardin v. Morrison Knudsen Corp., 93-TSC-3 (ALJ Nov. 29, 1993)


U.S. Department of Labor
Office of Administrative Law Judges
800 K Street. N W.
Washington. D.C. 20001-8002

DATE: 11/29/93

CASE NO.: 93-TSC-3

In the Matter of

CHRIS J. DU JARDIN
    Complainant

    v.

MORRISON KNUDSEN CORPORATION
    Respondent

ORDER DENYING RESPONDENT'S MOTION
FOR SUMMARY DECISION

   On June 14, 1993, Chris J. DuJardin filed a complaint with the U.S. Department of Labor (hereinafter "DOL") under the Comprehensive Environmental Response Compensation and Liability Act (hereinafter "CERCLA"), 42 U.S.C. § 9610, and the Solid Waste Disposal Act, 42 U.S.C. § 6971 (referred to by the parties as the Resource Conservation and Recovery Act), alleging that he had been constructively discharged from his employment as a maintenance technician at the Vertac Superfund site in Jacksonville, Arkansas on May 14, 1993.1 On July 16, 1993, Mr. DuJardin filed a request for hearing on that complaint with the Office of Administrative Law Judges.2

   On October 5, 1993, Morrison Knudsen filed a Motion for Summary Decision on grounds that there are no genuine issues of material fact remaining and that Mr. DuJardin's complaint fails to state a claim for relief under either the employee protection provisions of CERCLA or the Resource Conservation and Recovery Act. (Resp. Mtn. at 1-2.) Mr. DuJardin submitted a response to the motion on October 22, 1993, and Respondent submitted a reply on October 27, 1993. On November 23, 1993, Mr. DuJardin filed a Motion for Leave to File a Response to Respondent's Reply on the grounds that no response to a reply shall be filed unless the administrative law judge provides otherwise, 29 C.F.R. § 18.6, that Morrison Knudsen's Reply raised grounds not originally raised in its motion for summary decision, and that Morrison Knudsen's Reply "recklessly mischaracterizes" an argument advanced by Mr. DuJardin in his Response. (C1. Mtn. at 1-2.) Because, as will be discussed later in this opinion, the grounds raised for the first time in Morrison Knudsen's Reply will not be considered, and because the movant, Morrison Knudsen,


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has the burden of persuasion and therefore should be the last party to file a responsive document, I do not grant Mr. DuJardin leave to file a response to Morrison Knudsen's Reply.

   In a Brief filed in support of its Motion for Summary Decision, Morrison Knudsen asserted that the specific bases for its claim are that internal safety complaints are not covered by the whistleblower statutes, (Resp. Br. at 4), and that Mr. DuJardin's complaints did not result from the enforcement of CERCLA or the Resource Conservation and Recovery Act, (Resp. Br. at 11). Concerning this second basis, Morrison Knudsen more specifically asserted that the whistleblower provisions provide protection to employees who institute or assist with the enforcement or administration of the Resource Conservation and Recovery Act and CERCLA, and since all Federal authority under the Resource Conservation and Recovery Act has been delegated to the State of Arkansas, and since CERCLA applies only when a release of a reportable quantity of hazardous substances has occurred, Mr. DuJardin's actions did not, as a matter of law, pertain or relate to the administration or enforcement of either of these two statutes. (Resp. Br. at 12, 14.) Therefore, Morrison Knudsen contended that Mr. DuJardin's claim must fail as a matter of law.

INTERNAL SAFETY COMPLAINTS

   In support of its contention that internal safety complaints are not covered by the whistleblower statutes, Morrison Knudsen cited Brown & Root v. Donovan, 747 F.2d 1029 (5th Cir. 1984), and its progeny, asserting that this case was "the leading decision in this area." (Resp. Br. at 6.)

   Of the United States Courts of Appeal that have addressed this issue, only the Fifth Circuit has held that internal complaints are not protected activity, whereas the Tenth, Ninth and Second Circuits have held that internal safety complaints are protected whistleblower activity.3 Kansas Gas and Elec. Co. v. Brock, 478 U.S. 1011, 1011-12; 106 S. Ct. 3311, 331-12 (1986)(White, J. dissenting to denial of certiorari). In addition, while not specifically addressing the issue of internal safety complaints, the U.S. Court of Appeals for the Eighth Circuit upheld the Secretary of Labor's determination that an employee who "threatened to bring various safety and quality control complaints to the attention of the Nuclear Regulatory Commission, and had raised these kinds of concerns with his supervisors," had engaged in protected activity. Couty v. Dole, 886 F.2d 147, 148 (8th Cir. 1989). Furthermore, the Secretary of Labor has consistently held that internal safety complaints are protected activity, Keith E. Conaway, No. 91-SWD-4 (Sec'y Jan. 5, 1993). See also Chilton D. Williams, No. 88-SWD-3 (Sec'y June 24, 1992); Wagoner v. Technical Products, Inc., No. 87-TSC-4 (Sec'y Nov. 20, 1990).

   Therefore, because the Secretary has held that internal complaints are protected activity under the whistleblower statutes, because this case


[Page 3]

arises in the Eighth Circuit, which has not specifically ruled on the issue but has upheld the Secretary's decision that internal complaints are covered, and because a majority of the circuits have held that internal safety complaints are protected activity, I find that an employee who directed a complaint concerning a safety matter to his or her employer has engaged in activity that is protected under the whistleblower statutes.

FEDERAL JURISDICTION

   In its motion, Morrison Knudsen asserted that any action initiated to enforce hazardous waste regulatory standards must be brought under the Arkansas Hazardous Waste Management Act, not the Resource Conservation and Recovery Act, because all Federal authority has been delegated to the Arkansas Department of Pollution Control & Ecology. (See Resp. Br. at 12-13.) However, after reviewing the arguments and authorities provided by the parties as well as previous decisions by the Secretary of Labor, I find no support for the proposition that Federal whistleblower protection has been preempted by or delegated to the State of Arkansas. For instance, while 42 U.S.C. § 6926 provides that once a state has obtained authorization from the U.S. Environmental Protection Agency (hereinafter "E.P.A."), its hazardous waste program operates in lieu of the Resource Conservation and Recovery Act's subchapter on Hazardous Waste Management, Dague v. City of Burlington, 732 F. Supp. 458, at 465 (D. Vt. 1989) (citing 40 C.F.R. § 271.3(b)), the Hazardous Waste Management subchapter is contained in 42 U.S.C. §§ 6921-6934, and this case was brought under the employee protection provisions found in section 6971. Accordingly, I find that this Office has jurisdiction to hear Mr. DuJardin's claim under the Solid Waste Disposal Act.

APPLICABILITY OF CERCLA

   In its motion, Morrison Knudsen asserted that "[i]n order for CERCLA to apply to the alleged salt release on May 13, 1993, there must have been a release of hazardous substances in a reportable quantity, CERCLA § 103(a), 42 U.S.C. § 9603(a)"; that the E.P.A. found that "any salts which were released from the stack contained a total equivalent value for dioxin of 247 parts per trillion (ppt), with metals in the low parts per billion range"; that CERCLA requires the report of releases of one pound of dioxin or greater; and that since Morrison Knudsen's calculations show that this amount was not released, CERCLA does not apply. (Resp. Br. at 14-15.) Therefore, Morrison Knudsen asserted that it was legally impossible for Mr. DuJardin to engage in conduct resulting in the enforcement or administration of CERCLA, and therefore, "as a matter of law, [Mr. DuJardin] is not covered by its employee protection provisions." (Resp. Br. at 15.)

   The Secretary of Labor and the Federal courts considering this issue have found that complaints regarding "possible violations," Kansas Gas & Elec. Co., 780 F.2d 1505, 1512 (l0th Cir. 1985) cert. denied, 478 U.S. 1011, 106 S. Ct. 3311 (1986), as well as "quality problems,"


[Page 4]

Mackowiak v. University Nuclear Sys., Inc., 735 F.2d 1159, 1162 (9th Cir. 1984), are considered protected activity. Therefore, the fact that an employee may be mistaken as to whether an employer's actions were actual violations is not dispositive of the issue of whether the employee engaged in protected activity. In addition, the issue does not turn on whether the employee is actually successful in proving a violation. Rather, the primary consideration is whether the complaint was based upon possible violations. See Yellow Freight Sys., Inc. v. Martin, 954 F.2d 353, 357 (6th Cir. 1992). Accord Richard Adams, No. 89-ERA-3 (Sec'y Aug. 5, 1992).

   The record indicates that E.P.A. Region 6, which has management responsibility for the incinerator, investigated the alleged "intentional and illegal disposal of hazardous waste" and as a result issued a seventeen page report (with additional attachments) entitled "Vertac Incineration Project." (E.P.A. Memo Aug. 16, 1993 at 1, 3.) E.P.A. reported that at about 10:30 a.m. on the date in question VSC performed scheduled maintenance on the duct work between the spray dryer and the baghouse, where salt tends to accumulate and needs to be manually removed.4 (E.P.A. Memo at 3.) According to E.P.A., a larger than usual amount of salt had accumulated, and some salt spilled to the pad and ground below. (Id. at 3.) No plastic sheeting was in place to catch the salt or prevent it from becoming airborne. ( Id. at 3-4.) VSC cleaned the spill, and on its second attempt to clean the duct work VSC put up plastic sheeting to catch any salt spills and to reduce the chance for airborne salt. (Id. at 4.)

   According to E.P.A., in an attempt to more quickly cool down the salt in the system, VSC turned on the induced draft fan at 2:32 p.m. (Id. at 4.) The wet scrubber had been drained for maintenance and was not in operation; however, approximately four inches of water remained in the scrubber. (Id. at 4.) According to E.P.A.,

VSC's position is that the emissions from the stack were most likely a combination of steam, water vapor, and possibly salt. When looking at the Westronix strip chart data, exit stack temperature went from 83.75 F at 2:32 pm to 172.4 F at 3:04 pm. It is uncertain whether those temperatures could have produced steam from the stack. It is possible, however, that the water could have been picked up from the scrubber and exited as water vapor.

(Id. at 4.) Meteorological data for that day showed that the wind was blowing from the north-northeast for most of the day, indicating that "if there was a salt release it would have had a high potential to have remained on-site." (Id. at 4.)

   According to E.P.A., Gentry/ETC, the oversight engineers, were not present at the time of the spill; however, on May 14, 1993, VSC reported the salt discharge as having spilled onto the pad area below the baghouse and adjacent


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gravel areas. ( Id. at 4.) Further, E.P.A. opined that

[t]he decision to turn on the induction draft fan without the venturi and wet scrubber operating demonstrated poor judgement on the operations manager[']s part and the consequences were not well thought out. Had the high pressure venturi and wet scrubber been operational at that time, the potential for particulate emissions from the system would have been minimal. Dan Fuller, the VSC operations manager at the site at that time, who approved using the ID fan to cool down the system without the wet system operating, has been relieved from duty by VSC because of this event.

(Id. at 5.) Spills and unusual incidents are now reported to URS Consultants (the prime contractor) and E.P.A. immediately. (Id. at 4.)

   Based upon the fact that E.P.A. investigated the incident and filed an extensive report embodying the results of its investigation, the fact that E.P.A. found that the decision to turn on the induction fan under the specified circumstances "demonstrated poor judgment," (E.P.A. at 5), and the fact that Mr. Fuller was relieved of duty because of this event, I infer that it was reasonable for Mr. DuJardin to believe that a possible violation of Federal environmental protection statutes had occurred. Accordingly, I find that Mr. DuJardin's claim falls within the subject matter jurisdiction of CERCLA.

WHISTLEBLOWER COVERAGE AFTER EMPLOYMENT TERMINATES

   In its motion, Morrison Knudsen asserted that Mr. "DuJardin is not an employee covered by the employee protection provisions of either" CERCLA or the Resource Conservation and Recovery Act. In addition, in its Reply Morrison Knudsen stated that Mr. DuJardin failed to qualify as a whistleblower because he "voluntarily resigned his employment and did not ask to be reinstated until some three weeks later" and "testified repeatedly that he told his employer he 'quit' and that it was important for him to let his employer know that he 'quit."' (Resp. Reply Br. at 8-9.) Mr. DuJardin did not address this issue in his Response. Because Morrison Knudsen raised this issue originally in its motion for summary decision but did not provide legal argument until its Reply, and because reply briefs are for the purpose of rebuttal and not raising new legal arguments, I will not consider the arguments provided in Morrison Knudsen's Reply.

   In Ronald Cowan, No. 87-ERA-29 (Sec'y Aug. 9, 1989), the Secretary held that the employee protection provision of the Energy Reorganization Act covered an employee who was applying for reemployment after having been laid off more than one-half of a year earlier. Moreover, in Michael W. Flanagan, No. 81-ERA-7 at 9 (Sec'y June 27, 1986), the Secretary found that the employee protection provision covered a Complainant who left his job during a training


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session, referring "to the instruction at the training session by a scatological epithet downgrading its value," and provided an address to which his pay should be sent, even though the employer subsequently refused to rehire him because of a standard practice not to rehire individuals within sixty days of a prior voluntary termination. Thus, the Secretary of Labor has interpreted the term "employee' to include former employees, extending whistleblower protection to employees after termination of their employment.5

ISSUES OF MATERIAL FACT

   In support of its contention that there are no genuine issues of material fact remaining and that Morrison Knudsen is entitled to a summary decision as a matter of law, (Resp. Mtn. at 1), Morrison Knudsen submitted excerpts of testimony before the Arkansas Appeal Tribunal (hereinafter "A.A.T."), a letter and two memorandums from the E.P.A., and the affidavits of Robert Apa and Mack Mofidi.

   Motions for summary decision in whistleblower cases are governed by 29 C.F.R. §§ 18.40, 18.41 and under the analogous Fed. R. Civ. P. 56(e). J. Marshall Trieber, No. 87-ERA-25 (Sec'y Sept. 9, 1993). "Summary judgment may be rendered only when the court finds that the papers submitted in support of and in opposition to the motion reveal that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law." Jack H. Friedenthal, et al., Civil Procedure § 9.3, at 439 (1985) (citing Fed. R. Civ. P. 56(c)). Under this rule, the non-moving party "may not rest upon mere allegations or denials of his pleading, but must set forth specific facts showing that there is a genuine issue for trial." J. Marshall Trieber, No. 87-ERA-25 (Sec'y Sept. 9, 1993), (quoting Anderson v. Liberty Lobby, 477 U.S. 242, 256-57 (1986)). In his response brief, Mr. DuJardin asserted that several material facts were in dispute, as follows: (1) whether he reported the alleged pollution release to Morrison Knudsen management at the site; (2) whether he raised the issue of reinstatement earlier than three weeks after the incident; and (3) whether he yelled and cursed prior to termination of his employment. (C1. Br. at 4-5.)

   On the issue of whether Mr. DuJardin reported the alleged pollution release to management, the record before me, which includes the original complaint to DOL, reports issued by DOL's Wage and Hour Division (hereinafter "Administrator"), the pleadings and memoranda submitted by the parties, and the documents submitted by Morrison Knudsen in support of its motion, 29 C.F.R. § 18.40(d); Fed. R. Civ. P. 56(c), indicates that Morrison Knudsen employed Mr. DuJardin as a maintenance technician at the Vertac Superfund site in Jacksonville, Arkansas, where Morrison Knudsen was chosen by E.P.A. to incinerate approximately 30,000 drums of hazardous substances. (Resp. Br. at 1; C1. Br. at 1.) On May 13, 1993, while at work, Mr. DuJardin became aware that salts were being released from


[Page 7]

the incinerator stack, and he reported the incident to Dan Fuller, the Operations Manager at the Site. (Resp. Br. at 2; C1. Br. at 1-2.) When Mr. Fuller rebuffed his assertions, Mr. DuJardin resigned his position with Morrison Knudsen. (Resp. Br. at 2; C1. Br. at 2; A.A.T. at 149, 171.)

   In its brief Morrison Knudsen asserted that Mr. DuJardin's statements to Mr. Fuller did not constitute reporting the incident to management, since "Mr. Fuller did not, as a matter of law, constitute 'management.'" (Resp. Reply Br. at 2-3.) However, the record indicates that notwithstanding the fact that Mr. Fuller "had no authority to hire or fire employees, promote or demote personnel nor give salary adjustments" without the consent of Robert Apa, the plant manager, (Affidavit of Mr. Apa), Mr. Fuller was the operations manager for Morrison Knudsen, he provided "recommendations and advice" to Mr. Apa, (id.), he appears to have been in a position of high authority and responsibility at the site, and he was part of Morrison Knudsen's management team at the plant. Therefore, I find that reporting the alleged release of pollutants to Mr. Fuller constituted a report to Morrison Knudsen.

   Whether Mr. DuJardin requested reinstatement earlier than three weeks after resigning does not appear to be material to the resolution of this case. Morrison Knudsen argued that "DuJardin was considered ineligible for reinstatement, not because of making purely internal safety complaints, but because of using profanity and exhibiting insubordination during the May 13, 1993 incident." (Resp. Br. at 15-16.) From this statement I infer that the length of time between when Mr. DuJardin resigned and when he asked to be reinstated was not a ground for him not being reinstated. Because an issue is "material" if proof of the fact would have the effect of establishing or refuting one of the essential elements of a cause of action or the defense asserted by one of the parties, Black's Law Dictionary 505 (Abridged 5th Ed. 1983), and because the question of when Mr. DuJardin raised the issue of reinstatement will not establish or refute an essential element of Morrison Knudsen's defense, the question is not an issue of material fact.

   As previously stated, Morrison Knudsen contends that Mr. "DuJardin was considered ineligible for reinstatement, not because of making purely internal safety complaints, but because of using profanity and exhibiting insubordination during the May 13, 1993 incident." (Resp. Br. at 15-16.) From this statement, I infer that Morrison Knudsen might assert this issue as a defense in this cause of action. Accordingly, the question of whether Mr. DuJardin yelled and cursed prior to when his employment terminated is material.

   In testimony before the Arkansas Appeal Tribunal, Mr. Apa testified:

Q. When did you first learn about the stack release?


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A. When two personnel came into my office, Mr. Dan Fuller, and they were informing me that allegations had been made by Mr. DuJardin as to a release of material. This is what he was claiming. And that he had subsequently cursed out a number of people as he left the site. . . .

Q. Would you say that it's not common for people to curse on the site?

A. I personally don't condone that. But my understanding is that Mr. DuJardin had cursed out each person individually and then left.

(A.A.T. at 39-41.) Mr. DuJardin testified:

Q. Did you cuss at Mr. Fuller?

A. I did not cuss at Mr. Fuller.

Q. Did you cuss at any other employees or management?

A. I did not cuss at anybody. I did not curse anybody out. Now, I may have said some curse words, but I did not direct anything at anybody.

(A.A.T. at 150.) In view of the conflicting testimony there appears to be a genuine dispute of material fact. Whether the alleged profanity occurred and whether it constitutes a ground for refusing to rehire a worker, such as Mr. DuJardin, will have to be established at an evidentiary hearing.

   Furthermore, Federal Rule of Civil Procedure 56(d) requires that when a case is not fully adjudicated on motion for summary judgment the court shall make an order specifying the facts that appear without substantial controversy and directing further proceedings, and upon trial the facts so specified shall be deemed established, and the trial shall be conducted accordingly. 6

ORDER

   WHEREFORE, for the reasons set forth above, it is ORDERED that Respondent's Motion for Summary Decision be and hereby is DENIED; and it is

   FURTHER ORDERED that the hearing will be held on Wednesday, December 15, 1993, at the National Labor Relations Board Building, Hearing Room 375, 425 West Capitol Avenue, in Little Rock, Arkansas, as previously scheduled; and it is


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   FURTHER ORDERED that the facts set forth in this order are deemed established and that the hearing shall be conducted accordingly.

      DAVID A. CLARKE, JR.
      Administrative Law Judge

Washington, D.C.

DAC/cal

[ENDNOTES]

1While Mr. DuJardin originally reported that this incident had occurred on May 14, 1993, the evidence contained in the record, including subsequent statements made by Mr. DuJardin, indicate that the incident more likely than not occurred on May 13, 1993.

2When he originally filed his complaint with DOL, Mr. DuJardin named Vertac Site Contractors (VSC) as his employer. However, sometime before reaching this Office Mr. DuJardin amended his complaint to indicate that his employer had been Morrison Knudsen. Morrison Knudsen is a separate legal entity engaged in a joint venture with Vertac Site Contractors.

3While these courts ruled on this issue in the context of the whistleblower provision of the Energy Reorganization Act, 42 U.S.C. § 5851, and this case was not brought under that statute, the Secretary of Labor has determined that the same general principles apply to all retaliatory adverse action cases arising under 29 C.F.R. Part 24 and the whistleblower statutes enumerated therein. Dean Dartey, No. 82-ERA-2 at 6 (Apr. 25, 1983).

4In the process of incinerating chlorinated material, Morrison Knudsen uses sodium hydroxide to make sodium chloride, or salt, which is listed as a hazardous material. (A.A.T. at 2526.) The baghouse is a section of the incineration area where gas is forced through cloth bags for the purpose of capturing the sodium chloride and dropping it to the bottom of the hopper, where it can be conveyed out. (A.A.T. at 25-26.)

5I make no finding, however, with respect to whether Morrison Knudsen constructively discharged Mr. DuJardin or whether reinstatement was a condition or privilege of Mr. DuJardin's employment after resigning. Also, the facts of this case reflect that Mr. DuJardin reported the release of contaminated materials to management prior to announcing the termination of his employment.

6Because the Rules of Practice and Procedure for Administrative Hearings Before the Office of Administrative Law Judges, 29 C.F.R. Part 18, do not provide for a situation such as this, the Rules of Civil Procedure for the District Courts of the United States are applicable. 29 C.F.R. § 18.1(a).



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