William L. Greene v. Neil H. McElroy Secretary of Defense

254 F.2d 944, 103 U.S. App. D.C. 87, 1958 U.S. App. LEXIS 5210
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 17, 1958
Docket13978_1
StatusPublished
Cited by43 cases

This text of 254 F.2d 944 (William L. Greene v. Neil H. McElroy Secretary of Defense) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William L. Greene v. Neil H. McElroy Secretary of Defense, 254 F.2d 944, 103 U.S. App. D.C. 87, 1958 U.S. App. LEXIS 5210 (D.C. Cir. 1958).

Opinion

WASHINGTON, Circuit Judge.

This case challenges the revocation of a “security clearance” by the Secretary of the Navy. The Secretary’s act withdrew from appellant Greene, an employee of a private corporation holding Defense Department contracts, access to classified defense information. The instant appeal seeks reversal of an order of the District Court, 150 F.Supp. 958 (D.C.D.C.1957), dismissing appellant’s complaint for lack of a justiciable controversy between appellant Greene on the one hand, and the Secretary of Defense and his subordinate the Secretary of the Navy on the other.

I.

The facts of the case are these: Upon graduation from the Guggenheim *946 School of Aeronautics at New York University in 1937, appellant Greene was hired as a junior engineer by Engineering & Research Corporation (Erco), a manufacturing company. From that time until he was dismissed by the corporation in April 1953, he worked for Erco continuously (save for a short period in 1940 not here relevant). At the time of his dismissal he was Erco’s Vice President in charge of Engineering and General Manager at an annual salary of $18,000 plus bonuses. He then possessed Government clearance for access to “secret” information. 1 His dismissal followed receipt by Erco’s President of the following letter dated April 17, 1953, from appellee Secretary of the Navy:

“I have reviewed the case history file on William Lewis Greene and have concluded that his continued access to Navy classified security information is' inconsistent with the best interests of National security.
“In accordance with paragraph 4.e. of the Industrial Security Manual for Safeguarding Classified Security Information, 2 therefore, you are requested to exclude William Lewis Greene from any part of your plants, factories or sites at which classified Navy projects are being carried out
and to bar him access to all Navy classified security information.
“In addition, I am referring this case to the Secretary of Defense recommending that the Industrial Employment Review Board’s decision of 29 January 1952 be overruled.”

One week later the President of Erco, acting pursuant to the security agreement which Erco had executed, 3 replied to the Secretary, in part:

“In accordance with your request, please be advised that since receipt of your letter this company has excluded Mr. Greene from any part of our plants, factories or sites and barred him access to all classified security information.”

Appellant subsequently requested, and was accorded, extensive administrative hearings, the details of which need not be recounted here. At these hearings appellant was given a thirteen count specification of the reasons for the revocation of his clearance. The Government put on no witnesses, nor did it disclose the investigative reports on which the specifications were based. Appellant took the stand, and presented a number of witnesses. He was finally advised, as of May 28,1954, that “the granting of clearance to you for access to classified infor *947 mation is not clearly consistent with the interests of national security.”

In August 1954 appellant filed this action in the District Court seeking a judgment (1) declaring “illegal, null, void and of no effect * * * the acts of the defendant [Secretary of the Navy] Anderson and all acts of the defendants in pursuance thereof, in advising plaintiff’s employer that plaintiff could not be employed,” and (2) ordering the appel-lees “to advise the plaintiff’s employer, Engineering and Research Corporation, that the letter of April 25 [17?] signed by * * * Anderson * * * is illegal, null, void, and of no effect.”

In February 1955 — before Greene’s lawsuit had come to issue — the Department of Defense issued its Industrial Personnel Security Review Regulation, Department of Defense Directive 5220.6, 20 Fed.Reg. 1553 (1955), superseding the joint directive under which Greene’s clearance had been revoked. The new directive, inter alia, established revised procedures for screening industrial personnel, and the Board set up thereunder was given authority to review prior decisions of regional boards “on the grounds of newly discovered evidence or for other good cause shown.” 4 The standard under the new regulation remained that “clearance shall be denied or revoked if it is determined, on the basis of all the available information, that access to classified information by the person concerned is not clearly consistent with the interests of the national security.” 5 At Greene’s request the new Board undertook to reexamine his case. After submission of further briefs, the Director, Office of Industrial Personnel Security Review, notified appellant’s attorney on March 12, 1956, that the Review Board had affirmed the May 1954 decision.

After this adverse decision the case in the District Court proceeded to trial. A stipulation of facts was entered. Both parties moved for summary judgment; the Government also moved to dismiss. It was admitted that appellant had exhausted his administrative remedies. The District Court denied appellant’s motion and granted appellees’ motions in a memorandum opinion. The court held, relying on paragraph 4.e. of the Industrial Security Manual, see note 2, supra, that there was no justiciable controversy:

“It is fundamental when one presumes to accept a contractual offer then that offer must be accepted in terms, and one of the terms here, as has been said, related to security controls. The necessity for such is obvious. If the plaintiff’s employer did not see fit to accept and conform it had perfect freedom not to enter into the contract. On acceptance of the offer in terms, it was obliged in the circumstances to carry out its essentials, the presumed result of which was the loss by the plaintiff of his position. But this cannot be said in any degree to be the fault of the Government, for here, through properly constituted authority, it was exercising its right to protect itself against threats to its survival, and as far as the action of an individual was concerned, this action taken, even envisioning the result to the plaintiff, fails to set forth any invasion of his legal rights and, therefore, as has been said, there is no justiciable controversy and the Government’s motion for summary judgment is granted.
“Assuming arguendo he was entitled to hearing and review, he was accorded such and an examination of the extensive and repetitive record fails to show any violation of procedural due process. It should be noted also that the hearings held in the instant case apparently are exempted from the requirements of the Administrative Procedure Act, 5 U.S.C.A. § 1001 et seq., as hearings held ‘by regulation, rule, custom, or special dispensation; not * * * held by compulsion.’ Wong Yang *948 Sung v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Boyce v. United States
Federal Claims, 2023
Fuentes v. United States
Federal Claims, 2021
Doyon v. United States
Federal Claims, 2021
Avery v. United States
Federal Claims, 2020
West v. United States
Federal Claims, 2019
Exnicios v. United States
Federal Claims, 2018
Lippmann v. United States
127 Fed. Cl. 238 (Federal Claims, 2016)
Miller v. United States
120 Fed. Cl. 772 (Federal Claims, 2015)
Kelley v. Mayhew
973 F. Supp. 2d 31 (D. Maine, 2013)
Hinck v. United States
64 Fed. Cl. 71 (Federal Claims, 2005)
David C. Roth v. United States
378 F.3d 1371 (Federal Circuit, 2004)
Agwiak v. States
347 F.3d 1375 (Federal Circuit, 2003)
Agwiak, Alf v. United States
347 F.3d 1375 (Federal Circuit, 2003)
Roth v. United States
56 Fed. Cl. 239 (Federal Claims, 2003)
Haselrig v. United States
53 Fed. Cl. 111 (Federal Claims, 2002)
Gavin v. United States
47 Fed. Cl. 486 (Federal Claims, 2000)
Thomas v. United States
47 Fed. Cl. 560 (Federal Claims, 2000)
Scarseth v. United States
46 Fed. Cl. 406 (Federal Claims, 2000)
Hoskins v. United States
40 Fed. Cl. 259 (Federal Claims, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
254 F.2d 944, 103 U.S. App. D.C. 87, 1958 U.S. App. LEXIS 5210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-l-greene-v-neil-h-mcelroy-secretary-of-defense-cadc-1958.