TRW, INC. v. Superior Court

25 Cal. App. 4th 1834, 31 Cal. Rptr. 2d 460, 94 Cal. Daily Op. Serv. 4798, 94 Daily Journal DAR 8735, 1994 Cal. App. LEXIS 643
CourtCalifornia Court of Appeal
DecidedJune 22, 1994
DocketB072479
StatusPublished
Cited by11 cases

This text of 25 Cal. App. 4th 1834 (TRW, INC. v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TRW, INC. v. Superior Court, 25 Cal. App. 4th 1834, 31 Cal. Rptr. 2d 460, 94 Cal. Daily Op. Serv. 4798, 94 Daily Journal DAR 8735, 1994 Cal. App. LEXIS 643 (Cal. Ct. App. 1994).

Opinions

Opinion

VOGEL (C. S.), J.

TRW, Inc., petitioned this court for a writ of mandate seeking relief from the trial court’s orders that TRW was a government actor when it requested an interview of an employee regarding an alleged violation of security regulations and that an employee has a Fifth Amendment right to counsel at any such interview. The trial court’s rulings were in response to motions in limine of the real party in interest, Jack Ma, who filed this action for tortious termination. The trial has been stayed by agreement of the parties and pending review of this matter.

Factual Background

TRW’s Security System

TRW is a privately owned company and a defense contractor producing goods and services for the United States Government. Some government contracts involve classified information and require TRW to sign a separate contract with the Defense Investigative Service (DIS), an administrative agency within the Department of Defense. The contract with DIS obligates TRW to safeguard classified information and to maintain a security system in accordance with the DIS’s Industrial Security Manual (ISM). The ISM provides that TRW report information coming to its attention of any of its employees who have been cleared for access to classified information indicating such access may not be clearly consistent with the national interest.

To fulfill its obligations according to the ISM, TRW is required to establish procedures to allow employees to report the loss, compromise, or suspected compromise of classified information to TRW’s Facility Security Officer (FSO).1 If a suspected compromise is reported, TRW is required to report it to the Defense Industrial Security Clearance Office (DISCO) and must initiate a preliminary inquiry to ascertain the circumstances surrounding the suspected compromise. If the preliminary inquiry confirms that a suspected compromise of classified information occurred, then TRW is required to make a report of the incident to the Cognizant Security Office [1838]*1838(CSO)2 and the FBI and undertake a complete investigation unless directed not to do so by the CSO.

The procedures for implementing reporting preliminary inquiries and investigations for any suspected breaches of security are established by TRW, subject only to periodic audits by DIS to verify their effectiveness.3

[1839]*1839Compliance with the established procedures is administered and executed entirely by TRW employees. Members of TRW’s security department do not make arrests, carry weapons, or wear uniforms or law enforcement badges, and the ISM does not require or authorize them to do so. There is no participation by government agents in TRW’s preliminary inquiries pertaining to a suspected compromise of security. Other factual references to TRW’s security program will be provided in the analysis of the issues that follow.

Preliminary Inquiry About Ma

The real party in interest, Jack Ma, was hired as a physicist by TRW in January of 1985. He obtained the necessary security clearance and was assigned to the Electromagnetic Survivability and Vulnerability Department (ESV) involving the protection from nuclear attack. Ma was initially assigned to a section under the supervision of Dr. Tim Rynne. In June of 1985, over his objection, Ma was reassigned to another section supervised by Dr. Mike Schmidt.

In November 1985, the head of the ESV, Charles S. Wuller, was contacted by TRW employee George Hoffman who expressed concerns that Ma may have violated security regulations and exhibited bizarre behavior. The following day, Hoffman sent Wuller a followup memorandum reporting that Ma had made telephone contacts with foreign nationals and had been heard using the terms and phrases “ ‘warheads,’ ” “ ‘silo penetration,’ ” “ ‘space weaponry,’ ” and “ ‘TRW is working on . . . .’” Hoffman’s report also states that Ma informed another TRW employee he “is ‘working on a system that would cause hostile missiles to turn around and return to the point of launch and explode,’ ” and that Ma is program manager of 100 to 1000 persons on a project to analyze “trajectory reversal.” The memorandum attributes to Ma the claim that he traveled to Europe to meet with “non-US” nationals to discuss quantum gravity reversal and is a sales agent shipping computer hardware to Europe. Hoffman had expressed his concerns about Ma to section heads Schmidt and Rynne in mid-July, several months before contacting Wuller.

[1840]*1840Wuller regarded Hoffman’s report about Ma as an indication of “[an] alleged security violation^ and . . . bizarre behavior.” He consulted with the director of personnel, Karen D. Wolff. Wuller was not satisfied that Ma had committed any violation of security since the terms and phrases attributed to him appeared in newspapers and magazines. He was more concerned about Ma’s failure to report his purported contacts with foreign nationals. Although he thought the incident was “sort of a red flag,” he did not believe Ma had committed any crime and did not report the incident to any law enforcement agencies. However, Wuller sent Hoffman’s memorandum to TRW’s security department asking for an investigation and determination if any action should be taken with regard to Ma’s clearance and access to secret material.

Wuller summoned Ma to his office and met with him, Schmidt, and Wolff. Wuller inquired if Ma was ill or having any personal problems and carried on a brief conversation about quantum gravity. Wuller asked Ma to see Valerie Miller, a TRW nurse. Wuller never told Ma anything regarding his alleged violation of security regulations.

When Ma met with Miller, he thought she was an ombudsman and did not realize she was in TRW’s medical department. She indicated she was aware of some controversy between Ma and Schmidt and asked for information about it. Ma told her Schmidt was stonewalling him on Ma’s request for classified materials.

Miller informed Ma an appointment had been made for him to see a TRW psychiatrist, Dr. Purchard, that afternoon and to not report to work on the following Monday. Ma doubted Miller’s directions and telephoned Wuller, who told Ma to see Dr. Purchard that evening and they would contact him about returning to work after they received the psychiatrist report.

Ma was disturbed about the way he was treated. He did not know Miller was a nurse when he was referred to her and was unaware that anyone scheduled an appointment for him to see a psychiatrist. He was apprehensive about the suggestion that he was mentally ill and he was concerned he might end up in a mental institution. He thought it was “probably a trump up” and cancelled his appointment with Dr. Purchard and considered hiring a lawyer.

On Monday, he went to TRW to see Dr. Plebuch, the head of the laboratory and Wuller’s boss. A meeting with Plebuch took place with Wuller and Wolff in attendance. Ma informed Plebuch about his difficulties at work and the direction to see a psychiatrist before returning to work. Dr. Plebuch told Ma to not return to work until he was contacted. On Wednesday, Ma received a certified letter from TRW advising him that “management” referred him to Dr. Purchard for an evaluation and “suggested]” he [1841]*1841schedule an appointment by the following Friday.

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TRW, INC. v. Superior Court
25 Cal. App. 4th 1834 (California Court of Appeal, 1994)

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Bluebook (online)
25 Cal. App. 4th 1834, 31 Cal. Rptr. 2d 460, 94 Cal. Daily Op. Serv. 4798, 94 Daily Journal DAR 8735, 1994 Cal. App. LEXIS 643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trw-inc-v-superior-court-calctapp-1994.