Freeman & Bass, P.A. v. State of New Jersey Commission of Investigation

486 F.2d 176
Court of Appeals for the Third Circuit·Decided October 1, 1973·No. 73-1405·Published·Cited by 5 cases

Opinion

*177 OPINION OF THE COURT

PER CURIAM:

Appellant, the State of New Jersey-Commission of Investigation (hereinafter “SCI”) appeals, pursuant to 28 U.S.C. § 1292(a)(1), from an interlocutory order entered by the district court on May 14, 1973, 1 restraining the SCI from referring by name to appellees and others during public hearings conducted by the SCI in its investigation of possible abusive practices and procedures in the New Jersey Workmen’s Compensation program.

This appeal arises out of appellees’ civil rights suit under 42 U.S.C. § 1983 2 charging the SCI, among other things, with having conducted an unconstitutionally broad investigation for the purpose of harassing and intimidating appellees and their clients, resulting in serious impairment of appellees’ professional reputation as well as deprivation of appellees’ right to petition for the redress of grievances on behalf of their clients.

The Supreme Court of New Jersey in 1969 and this court in 1972 had occasion to examine the nature and function of the SCI and to assess the constitutional sufficiency of the procedural safeguards it accords those whom it investigates. Zicarelli v. New Jersey State Commission of Investigation, 55 N.J. 249, 261 A.2d 129 (1969); United States ex rel. Catena v. Elias, 465 F.2d 765 (3d Cir. 1972). In Zicwrelli; the Supreme Court of New Jersey, after reviewing the enabling legislation, 3 held that the statute created a commission with investigatory powers “to the end that helpful legislation may be proposed and receive needed public support.” 4 *Furthermore, the court stressed that the SCI “is in no sense an ‘accusatory’ body” and is not empowered “to make and publicize findings with respect to the guilt of specific individuals.” 5 Thus, it was because of this essentially investigatory character of the SCI that we held in Catena that the statutorily prescribed procedures of the SCI, while not providing for the full panoply of procedures *178 accorded a criminal defendant, comports with due process as that concept was interpreted in Hannah v. Larche, 363 U.S. 420, 80 S.Ct. 1502, 4 L.Ed.2d 1307 (1960).

In view of Catena, which we reaffirm, we disagree with the apparent position of the district court that due process requires that any individual referred to adversely in SCI hearings must remain anonymous so long as no legislative purpose can be shown for divulging his name. As noted in Catena, any person who feels adversely affected by evidence submitted at a public hearing, has at minimum an absolute right under the rules of the SCI to file a personal statement for incorporation into the record. 6 Moreover, merely because evidence received by the SCI at public hearings may adversely affect certain individuals, may disclose wrongdoing or may be used in a criminal prosecution, neither alters the essentially investigatory nature of the SCI nor requires judicial imposition of anonymity of those being investigated. Doe v. McMillan, 412 U.S. 306, 93 S.Ct. 2018, 36 L.Ed.2d 912 (1973); Hannah v. Larche, 363 U.S. 420, 443, 80 S.Ct. 1502, 4 L.Ed.2d 1307 (1960); Sinclair v. United States, 279 U.S. 263, 295, 49 S.Ct. 268, 73 L.Ed. 692 (1929); McGrain v. Daugherty, 273 U.S. 135, 179-180, 47 S.Ct. 319, 71 L.Ed. 580 (1927). Cf. Anonymous v. Baker, 360 U.S. 287, 79 5. Ct. 1157, 3 L.Ed.2d 1234 (1959); In re Groban, 352 U.S. 330, 77 S.Ct. 510, 1 L.Ed.2d 376 (1957). Nor does it offend due process for the New Jersey legislature to empower the SCI Commissioners to determine whether testimony received in executive session should be heard at a public hearing. 7

Insomuch therefore as the order of the district court applies to the adverse public reference to named individuals not parties to this action, it is without basis in law.

As to appellees, Freeman and Bass, however, we are keenly aware that in any investigation of this kind there is potential for abuse and harm to one’s reputation, since the informing function of a commission presupposes the possibility of its uncovering improprieties, abuses or wrongdoing. New commissions such as the SCI would be established if there were not reason to believe that state programs have been functioning inadequately or improperly. The very purpose of the SCI is to ascertain the state of affairs in New Jersey’s Workmen’s Compensation program to the end that the public and the legislature might be awakened to possible needs for reform. The resulting conflict between private rights and the public interest is precisely what confronted the Supreme Court in Hannah and again in Jenkins v. Mc-Keithen, 395 U.S. 411, 89 S.Ct. 1843, 23 L.Ed.2d 404 (1969), where the Court, while reaffirming Hannah, held that when an inquiry goes beyond an investigation in aid of a valid legislative function and becomes “accusatory” in nature, due process requires certain procedural safeguards.

Conceivably, a commission such as the SCI might conduct its inquiry vis-a-vis an individual or association in bad faith with the purpose of harassment and of ultimately making and pub *179 licizing findings with respect to the guilt of such individual in transgression of its statutory mandate and in violation of .42 U.S.C. § 1988. In such event, a court is not without power to protect a person whose civil rights are being violated. Jenkins, supra.

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Freeman & Bass, P.A. v. State of New Jersey Commission of Investigation, 486 F.2d 176 (3d Cir. 1973).

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