FINAL DECISION AND ORDER ON
DAMAGES AND ATTORNEY FEES
Before me for review is the Recommended Decision and Order (R.D. and
O.) issued on February 26, 1990, by Administrative Law Judge (ALJ) James J. Butler in the
above-captioned case which arises under the Surface Transportation Assistance Act of 1982, 49
U.S.C. app. § 2305 (1982). The ALJ's R.D. and O. was issued in response to the
Secretary's Decision and Order of Remand of January 16, 1987, which directed the ALJ to
determine the date on which Respondent Western Truck Management (WTM) refused to
reemploy Complainant and to determine the amount of compensation due to Complainant. In his
R.D. and O., the ALJ recommended the sums of money which Respondent should pay for back
wages, health and medical benefits, pension fund contributions, early IRA withdrawal, vacation
pay and interest. The ALJ also found that reinstatement was not an appropriate remedy since
WTM had dissolved its affairs on December 31, 1986. Finally, the ALJ approved fees for two of
Complainant's attorneys and directed a third attorney to file a fee petition.
On review before me, WTM objects to the ALJ's determinationof
overtime pay due Complainant, to the award of any vacation pay, and to the assessment of any
prejudgment interest. Brief of Respondent Western Truck Manpower, Inc. in opposition to
Recommended Decision and Order of Administrative Law Judge James J. Butler (WTM Brief),
[Page 2]
March 30, 1990. Complainant has filed no brief on review. The case record, however, contains
a letter from Complainant's counsel to the ALJ stating that the ALJ's order contains an error in
the total dollar amount of back wages. Letter of March 14, 1990, from Patricia D. Barrett to the
ALJ. inasmuch as the record does not reflect any action by the ALJ in response to this letter, I
treat this letter as Complainant's brief on review.
In determining whether to accept the ALJ's recommendations, the record
has been reviewed to determine whether there is substantial evidence to support the ALJ's
findings and whether the ALJ's decision is in accordance with law. Where the ALJ's
"findings of fact are supported by substantial evidence on the record considered as a whole,
[they are] considered conclusive." 29 C.F.R. § 1978.109(c)(3) (1989). Based on this
review, I accept the findings and conclusions of the ALJ, except as corrected and clarified below.
DATE OF REFUSAL OF REEMPLOYMENT
I adopt the ALJ's finding that Complainant was refused reemployment on
October 15, 1984. R.D. and 0. at 4. The record reveals that, at the hearing on remand, the parties
stimulated that Complainant, who had been disabled since his discharge, was released to work on
October 15, 1984, and that notice of this re-lease was given to WTM no later than October 18,
1984. Complainant's uncontradicted testimony was that his doctor gave oral notice of
Complainant's medical release to WTM prior to October 15th, and that the oral notice was
followed by written notice. Complainant also testified that he reported for work at WTM on
October 15th, and that Respondent did not return him to work. Transcript of Hearing, January
10, 1989 (T.), at 85-87.
BACK PAY
Period of Liability
I also adopt the ALJ's finding that Respondent is liable for back wages to
Complainant for the period of October 15, 1984, through December 31, 1986, when WTM was
dissolved. The record contains no basis for assessing back pay beyond this date.1
1During the hearing, counsel for
Complainant argued that Complainant was entitled to back pay past this date because, allegedly,
there was a successor to WTM. The, ALJ ruled that the scope of the Secretary's remand was
limited to determining WTM's liability and questioning on the successor issue was abandoned.
T. at 96. In his R.D. and O. at 4, the ALJ appears to rule that there is no successor to WTM
because WTM "discharged all of its employees upon dissolution and did not assist them in
finding other employment." I do not adopt this finding since the issue of whether there was
a successor corporation was not litigated.
In its post-hearing brief to the ALJ, Complainant argues that WTM, under California law on
corporate dissolutions, is liable for back pay past the date of its dissolution. Brief of
Complainant Hubert L. Palmer in Support of Proposed Findings of Fact and Conclusions of Law
(Complainant's Brief) at 6-7. The possibility that under state law Complainant may recover
monies due to him is not, however, a factor in assessing remedial back pay under the STAA.