UNITED STATES of America, Plaintiff-Appellee, v. NEW ORLEANS PUBLIC SERVICE, INC., Defendant-Appellant

723 F.2d 422, 33 Fair Empl. Prac. Cas. (BNA) 1489, 1984 U.S. App. LEXIS 26163, 33 Empl. Prac. Dec. (CCH) 34,079
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 23, 1984
Docket83-3097
StatusPublished
Cited by9 cases

This text of 723 F.2d 422 (UNITED STATES of America, Plaintiff-Appellee, v. NEW ORLEANS PUBLIC SERVICE, INC., Defendant-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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UNITED STATES of America, Plaintiff-Appellee, v. NEW ORLEANS PUBLIC SERVICE, INC., Defendant-Appellant, 723 F.2d 422, 33 Fair Empl. Prac. Cas. (BNA) 1489, 1984 U.S. App. LEXIS 26163, 33 Empl. Prac. Dec. (CCH) 34,079 (5th Cir. 1984).

Opinion

GARZA, Circuit Judge:

I.

FACTS

New Orleans Public Service, Inc. (NOP-SI) is a private Louisiana corporation and public utility that produces, distributes, and sells electric power and natural gas to consumers in New Orleans. Until June 30, 1970, NOPSI had a contract with the National Aeronautics and Space Administration (NASA) that contained a nondiscrimination clause specifically limited to NOP-SI’s facilities at NASA’s Michoud Assembly Facility (MAF). The MAF facilities were not staffed by NOPSI employees. When the limited MAF contract expired NOPSI and NASA failed to agree on a new contract with an expanded nondiscrimination clause. Negotiations continued for an undetermined time period and NOPSI officials testified that the talks never concerned expansion of the nondiscrimination clause or rate changes. Although no contract agreement was reached, NOPSI continued to supply gas and electric service to NASA pursuant to its obligation as a public utility.

Executive Order (E.O.) 11,246 prohibits employment discrimination by contractors with the federal government. The order requires that all covered government contracts contain a nondiscrimination clause and that contractors agree to take affirmative action to ensure the equal employment opportunity goals of the order are attained.

E.O. 11,246, as amended, 3 C.F.R. § 339 (1964) assigns responsibility for assuring compliance with its terms to the Secretary of Labor, who promulgated guidelines codified at 41 C.F.R. § 60-1 et seq. (1983). When the events leading to this litigation occurred, the Labor Secretary had delegated enforcement responsibility to the Director of the Office of Federal Contract Compliance. 41 C.F.R. § 601.2 (1972). The OFCC assigned enforcement responsibility for various industries (including utilities) to the General Services Administration.

At the time NOPSI was selected for an E.O. 11,246 compliance review, contractors were chosen in one of two ways. First, Edward Mitchell, Contract Compliance Officer for GSA, established a list of companies from which regional GSA officials could schedule compliance reviews from October 1970 through June 1971. Second, by applying certain criteria, Regional officers could select companies not on Mitchell’s list and then submit their proposed reviews to Washington, D.C. for approval.

On March 15, 1971, Kenneth Patton, a Senior Assistant Regional Contract Compliance Officer, notified NOPSI that they had been selected for a compliance review. Patton proposed to visit NOPSI to examine their employment statistics and records. NOPSI refused to comply with this request. On March 15, 1972, GSA sought a preaward compliance review of NOPSI because the company was negotiating a government contract in excess of a million dollars. Again, NOPSI refused to cooperate with GSA.

II.

JUDICIAL PROCEEDINGS

On May 17, 1973, the Attorney General sought injunctive relief to require NOPSI to permit access to its records and to comply with all other rules and regulations issued pursuant to E.O. 11,246. The District Court permanently enjoined the utility from failing or refusing to 1) comply with the executive order; 2) implement regulations; 3) allow the government to conduct compliance reviews of NOPSI. United *425 States v. New Orleans Public Service, Inc., 8 FEP Cases 1089 (E.D.La.1974). NOPSI appealed, arguing that the E.O. and its regulations could not be imposed on the company without its contractual consent and that the fourth amendment protected its records from government inspection. The Fifth Circuit rejected these arguments and held that the regulations were proper and did apply to NOPSI, and that the proposed inspections were properly limited in scope, but we vacated the district court’s injunction. The court required NOPSI’s compliance but allowed it to do so voluntarily through the regular GSA administrative process. United States v. New Orleans Public Service, Inc., 553 F.2d 459 (5th Cir.1977) . The Supreme Court then granted cert, and vacated the Fifth Circuit decision for reconsideration in light of Marshall v. Barlow’s Inc., 436 U.S. 307 (1978), 98 S.Ct. 1816, 56 L.Ed.2d 305 (1978). Consequently, the Fifth Circuit remanded the case to the district court for reconsideration in light of Barlow’s. United States v. New Orleans Public Service, Inc., 577 F.2d 1030 (5th Cir.1978) . The district court concluded that Barlow’s did not require a change in its earlier ruling, and entered an order authorizing the government to proceed against NOPSI through its administrative process. United States v. New Orleans Public Service, Inc., 480 F.Supp. 705 (E.D.La.1979).

Again NOPSI appealed to the Fifth Circuit, which vacated and remanded. United States v. Mississippi Power & Light Co., 638 F.2d 899 (5th Cir.1981). In that decision the Fifth Circuit held that at least three elements are essential to justify the reasonableness of the proposed search under the fourth amendment. Id. at 908. These are 1) whether the proposed search is authorized by statute; 2) whether the proposed search is properly limited in scope and; 3) how the agency chose to initiate the particular search. Id. at 907. 1 The first two elements are questions of law and the last element one of fact. In an earlier opinion involving this case, the Fifth Circuit held that the first two elements had been satisfied. 553 F.2d 459. In Mississippi Power we remanded for a factual determination of the third element. In this regard the Court stated that:

The search will be reasonable if based either on (1) specific evidence of an existing violation, (2) a showing that “reasonable legislative or administrative standards for conducting an ... inspection are satisfied with respect to a particular [establishment],” 436 U.S. at 320-21, 98 S.Ct. at 1824, 56 L.Ed.2d at 316, (quoting Camara [v. Municipal Court of City and County of San Francisco], 387 U.S. [523] at 538, 87 S.Ct. [1727] at 1736, 18 L.Ed.2d [930] at 940), or (3) a showing that the search is “pursuant to an administrative plan containing specific neutral criteria”. 436 U.S. at 323, 98 S.Ct. at 1826, 56 L.Ed.2d at 318.

638 F.2d at 907. On remand the District Court held that both the 1971 and 1972 attempts to review NOPSI were reasonable under the fourth amendment. The Court then entered an injunction requiring NOP-SI to submit to a compliance review. United States v. New Orleans Public Service, Inc., 550 F.Supp.

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723 F.2d 422, 33 Fair Empl. Prac. Cas. (BNA) 1489, 1984 U.S. App. LEXIS 26163, 33 Empl. Prac. Dec. (CCH) 34,079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-plaintiff-appellee-v-new-orleans-public-ca5-1984.