Lockheed Martin Energy Systems, Inc. v. Slavin

190 F.R.D. 449, 1999 U.S. Dist. LEXIS 21180, 1999 WL 1295984
CourtDistrict Court, E.D. Tennessee
DecidedDecember 6, 1999
DocketNo. 3:98-CV-613
StatusPublished
Cited by8 cases

This text of 190 F.R.D. 449 (Lockheed Martin Energy Systems, Inc. v. Slavin) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lockheed Martin Energy Systems, Inc. v. Slavin, 190 F.R.D. 449, 1999 U.S. Dist. LEXIS 21180, 1999 WL 1295984 (E.D. Tenn. 1999).

Opinion

MEMORANDUM

COLLIER, District Judge.

On October 25, 1999, the Court held a hearing on Plaintiff Lockheed Martin Energy Systems, Inc.’s (“Lockheed”) Motion for Sanctions pursuant to Fed.R.Civ.P. 11 (Court File No. 14). After hearing arguments of counsel, considering the memoranda in support of and in opposition to the motion, and the applicable law, the Court orally granted Plaintiffs Motion and summarized its reasons for so doing from the bench. At that time the Court stated it would issue an expanded written explanation of its decision later. This memorandum opinion is that fuller decision.

I. BACKGROUND

A. Procedural History

Unfortunately, this litigation has a long history, and an extensive summary of that history is necessary to explain what lead to the Rule 11 motion and the Court’s decision. This case was brought by Plaintiff Lockheed against Defendant Edward A. Slavin, Jr. to compel Mr. Slavin to comply with a September 6, 1996 order from the United States Department of Labor (“DOL”). Mr. Slavin is an attorney licensed to practice law in Tennessee. The DOL order required Mr. Slavin to repay Lockheed over $27,000 in attorney fees.

The initial DOL litigation involved a charge of discrimination and retaliation filed by Mr. Slavin and other attorneys on behalf of C.D. Varnadore against Mr. Varnadore’s employer, Lockheed. This charge was filed with the DOL on November 20, 1991. According to the charge, Lockheed subjected Mr. Varnadore to a hostile work environment as a result of Mr. Varnadore engaging in federal statutorily protected activity. This litigation became known as Varnadore I. See Varnadore v. Secretary of Labor, 141 F.3d 625, 628 (6th Cir.1998).

In June 1993, after holding a hearing on the matter, the DOL Administrative Law [452]*452Judge (“ALJ”) issued a decision in Mr. Var-nadore’s favor. Lockheed exercised its right to appeal the decision to the Secretary of Labor. Two days after the first decision was rendered, on June 9, 1993, Mr. Slavin filed a second charge of discrimination against Lockheed on behalf of Mr. Varnadore. This second charge, Varnadore II as it came to be known, was filed pursuant to the Energy Reorganization Act of 1974 (“ERA”), 42 U.S.C. § 5851. This second charge prompted the DOL order that Lockheed sought to enforce in this lawsuit in this Court. A third charge of retaliation, Varnadore III, was filed on August 2,1994.

The ALJ held a hearing on the Varnadore II claims in May 1994. Mr. Slavin represented Mr. Varnadore at the hearing. Following the hearing, the ALJ issued a recommended decision and order which found in favor of Lockheed on all but one of Mr. Varnadore’s claims. After receiving a favorable ruling on behalf of Mr. Varnadore, Mr. Slavin filed a petition for attorney fees. The ALJ granted Mr. Slavin’s request in a June 23, 1995 recommended order. Mr. Slavin then moved the Secretary to issue a “Preliminary Order” requiring Lockheed to pay him the attorney fees and expenses recommended by the ALJ. Lockheed objected to the payment of attorney fees, however the Secretary ordered Lockheed to pay Mr. Slavin $27,174.83 in attorney fees and expenses. Lockheed complied with the order and paid Mr. Slavin the ordered amount.

On January 26, 1996, the Secretary of Labor issued a Decision and Order reversing the ALJ’s decision in Varnadore I, but deferred full consideration of two issues in the case pending the ALJ’s ruling in Varnadore II and Varnadore III. In April 1996, the Secretary established the Administrative Review Board (“ARB”) which was responsible for “issuing final agency decisions on question of law and fact arising in review or on appeal” under a number of laws, including the whistleblower statutes at issue in this lawsuit.

Two months later, on June 14, 1996, the ARB issued a final decision in all three Var-nadore cases. Ultimately, the ARB ruled in favor of Lockheed in all three cases. Subsequent to this ruling, on June 21, 1996, Lockheed filed a motion with the ARB to order Mr. Slavin to repay the $27,174.83 in attorney fees and expenses previously paid to him. Lockheed’s motion was granted on September 6, 1996. The ARB rescinded the ALJ’s September 11, 1995 preliminary order granting Mr. Slavin $27,174.83 in attorney fees and expenses and ordered Mr. Slavin to repay that amount to Lockheed.

With a final decision in the Varnadore cases in June 1996 Mr. Slavin petitioned the United States Court of Appeals for the Sixth Circuit to review the ARB’s June 14, 1996 decision in favor of Lockheed on the merits. In December 1996, Mr. Slavin petitioned the Sixth Circuit to review the ARB’s September 6, 1996 order rescinding the award of attorney fees and ordering Mr. Slavin to repay the attorney fees and expenses paid to him by Lockheed. The Sixth Circuit consolidated both petitions for review. Following oral argument the Sixth Circuit affirmed the ARB’s ruling in a published decision. Var-nadore v. Secretary of Labor, 141 F.3d 625 (6th Cir.1998). The Sixth Circuit further held the Secretary of Labor lawfully created and delegated authority to the ARB to issue final agency decisions. In June 1998, the Sixth Circuit denied Mr. Slavin’s request for a rehearing en banc. Mr. Slavin did not file a petition for certiorari with the United States Supreme Court.

On October 5,1998, Lockheed initiated this action in this Court seeking an order requiring Mr. Slavin to comply with the September 6, 1996 order of DOL ordering him to repay the attorney fees and expenses he had received. In the complaint Lockheed states “[b]y letters dated June 23, 1998 and August 3, 1998, [it] requested [Mr. Slavin] repay the sum of $27,174.83.” The complaint alleges Mr. Slavin failed to respond to the letters. Four days later, Mr. Slavin filed a motion with a DOL ALJ to reopen the Varnadore cases. This motion was denied on December 28,1998.

B. Factual Background for Rule 11 Motion

Based upon the history of the case and the facts, the Court was faced with a relatively [453]*453straight-forward, routine collection issue. The factual issues relating to the repayment of the attorney fees and expenses were uncomplicated and in large measure had been resolved by the ARB. The Sixth Circuit had determined many of the underlying legal issues and those remaining did not appear to be particularly complex.

In light of the relatively uncomplicated nature of the case, on June 18, 1999, the Court entered a Memorandum and Order granting Plaintiffs Motion for Summary Judgment and ordering Mr. Slavin to comply with the DOL order. In addition, the Court ordered Mr. Slavin to pay all costs associated with this action and all prejudgment interest accruing from the date of the DOL order. Mr. Slavin filed a Motion to Reconsider which the Court denied on August 17, 1999 (Court File No. 27).

What took this case out of the routine was Mr. Slaviris Answer to the complaint filed on November 2, 1998 (Court File No. 3). Mr.

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190 F.R.D. 449, 1999 U.S. Dist. LEXIS 21180, 1999 WL 1295984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lockheed-martin-energy-systems-inc-v-slavin-tned-1999.