Lockheed Martin Corp. v. Administrative Review Board
717 F.3d 1121
10th Cir.2013Background
- Brown, Lockheed's Communications Director, reported concerns about Owen's alleged use of company funds and improper activities in 2006.
- Brown informed Moncallo and Pleasant; an anonymous ethics complaint led to an internal investigation of Owen (May–Aug 2006).
- After the investigation, Owen was confronted; Brown's performance ratings declined and she faced escalating perceived hostility and retaliation.
- A reorganization in 2007 relocated Brown, reduced her role, and she ultimately lost her office, title, and responsibilities, with ongoing uncertainty about employment.
- Brown filed an OSHA complaint alleging SOX Section 806 retaliation; ALJ found protected activity, adverse actions, and causation; back pay and damages were awarded.
- ARB affirmed, and the court reviews under APA deferential standards; the matter was remanded for certain monetary-related determinations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether reporting mail/wire fraud falls within §1514A(a)(1) protection | Brown reported mail/wire fraud; such reports should be protected. | Only shareholder-fraud related reports are protected for broader categories. | Statute unambiguously protects reports of mail/wire fraud independent of shareholder fraud. |
| Whether Brown's belief of fraud was reasonable | Brown reasonably believed Owen diverted funds and engaged in fraud. | Belief lacks specific intent; not reasonable as a matter of law. | Brown's belief was reasonable; both subjective and objective components satisfied. |
| Constructive discharge as the adverse employment action | Brown faced intolerable working conditions constituting constructive discharge. | Other actions less severe; insufficient to show intolerable conditions. | Evidence supports a constructive-discharge finding under the totality of circumstances. |
| Contributing factor standard under §1514A(b)(2)(C) | Protected activity contributed to Brown's discharge; proximity and evidence show causation. | Temporal gap undermines causal link; reliance on alternative explanations. | Brown established a contributing factor; temporal proximity plus biased evaluators support causation. |
| Remedial relief and remedies | Relief including back pay, medical expenses, and reinstatement is appropriate. | Award quantification and reinstatement details may require further determination. | Remand to agency for precise quantification and reinstatement review; damages supported. |
Key Cases Cited
- Hall v. U.S. Dep’t of Labor, 476 F.3d 847 (10th Cir. 2007) (APA standard for review of ARB decisions; de novo legal review; substantial evidence for facts)
- Trimmer v. Dep’t of Labor, 174 F.3d 1098 (10th Cir. 1999) (deference to Board credibility and factual determinations)
- San Juan Citizens Alliance v. Stiles, 654 F.3d 1038 (10th Cir. 2011) (presumption of regularity; burden on challenger)
- Hibbs v. Winn, 542 U.S. 88 (Supreme Court 2004) (statutory interpretation; avoid superfluities; context matters)
- Staub v. Proctor Hosp., 131 S. Ct. 1902 (2011) (subordinate bias (cat’s paw) theory in causation claims)
- Garrett v. Hewlett-Packard Co., 305 F.3d 1210 (10th Cir. 2002) (evidence of discriminatory action and retaliation factors)
- Meiners v. University of Kansas, 359 F.3d 1222 (10th Cir. 2004) (causation in retaliation cases; temporal proximity considerations)
- Exum v. U.S. Olympic Committee, 389 F.3d 1130 (10th Cir. 2004) (alternatives to quitting; not dispositive on constructive discharge)
- Pacheco v. Whiting Farms, Inc., 365 F.3d 1199 (10th Cir. 2004) (causation and motivating factors in retaliation claims)
