Lead Opinion
Appellant, District of Columbia General Hospital (“D.C. General”), appeals from an adverse ruling of the Superior Court in its review of a decision by the District of Columbia Office of Employee Appeals (“OEA”). The Superior Court upheld OEA’s determination that D.C. General failed to carry its burden of proving that appellee, Geraldine Gaines, a security guard at the hospital, was guilty of dishonesty. On appeal, D.C. General’s principal contentions are that (1) the OEA final order is invalid because it was issued by a hearing examiner who had replaced the examiner who actually had heard the testimony, and (2) the OEA decision is not supported by the evidence adduced at the hearing. Although we conclude that D.C. General waived challenge to the substitution of hearing examiners by failing to raise this issue earlier in these proceedings, we hold that the evidence adduced in the administrative hearing is not adequate to support OEA’s decision in favor of Gaines. Accordingly, we reverse.
On December 17,1982, Geraldine Gaines, employed as a security guard at D.C. General Hospital, was dismissed on charges of dishonesty
Bowden went to D.C. General around 8:00 a.m. on August 16, 1982. Some time after he left the hospital he realized that he was no longer in possession of his wallet, which contained a blank money order for $150.00. Gaines had been on duty at the hospital since 7:30 a.m. Later that day, the wallet, but not the money order, was recorded in the hospital’s lost and found log. No name appeared indicating who had found the wallet and turned it in; Gaines denied that she recorded the entry.
Bowden reported the loss to the police, and telephoned the money order company in order to stop payment. The company informed Bowden that it did not have a stop payment policy, but that if he could provide the serial number of the money order, for a two dollar fee the company would mail him a copy of the money order if and when it was cashed. Bowden did not know the number of the money order so he went back to the convenience store where he had purchased it, along with a second one for $50.00, the previous day. Bowden knew the serial number of the $50.00 money order because he had already spent it and retained a receipt which bore the serial number. The clerk at the convenience store readily determined which two money orders Bowden had purchased because the store maintained a log of money order sales in which the clerk would write the date of purchase, serial number, and money order amount. Only one money order had been sold in each of the two amounts purchased by Bowden, and Bowden had the serial number for the $50.00 money order, so it was simple to determine the serial number of the $150.00 money order. At Bowden’s request, the store’s manager reviewed the log to confirm that only one money order each had been sold in the amounts of $50.00 and $150.00.
About a week later, Bowden received a photocopy of the cashed $150.00 money order bearing the serial number Bowden had supplied to the company. The money order bore the name of the individual who cashed it, Benjamin Andrews. Bowden soon ascertained that Benjamin Andrews was an employee of D.C. General Hospital. Bowden turned this information over to the police and explained to Officer Pauline Howard that he was not interested in pressing charges, but only in getting his money back.
Officer Howard contacted Benjamin Andrews, who stated that on August 17,1982, Gaines gave him a blank $150.00 money order which she asked him to cash. Gaines had worked for Andrews in the hospital housekeeping department before she joined the security force. Officer Howard and Roy Bowden,
Gaines testified that she got the money order “from my daughter’s father for child support,” and that she first received it when she went home to check her mail during her lunch hour on August 16. Other testimony by Gaines and the testimony of Andrews support the hearing examiner’s finding that Gaines indicated the time of receipt as August 17th, rather than August 16.
The proceedings that led to this appeal began shortly after D.C. General terminated Gaines’ employment on the basis of dishonesty. On December 27, 1982, Gaines appealed the hospital’s decision to the Office of Employee Appeals (“OEA”), and hearings were held on October 18 and November 6, 1984. By letter dated April 16, 1985, OEA advised the parties that the case had been reassigned to a substituted hearing examiner because the original examiner had resigned. The letter stated that
the fact that cases are being reassigned does not mean that the entire adjudicatory process will begin anew. In some appeals, the record is complete and no further proceedings or documents will be required. In other cases, additional information or supplemental proceedings may be required.
By initial decision dated August 5, 1985, which became final on August 20,1985, the OEA reversed the hospital’s dismissal of Gaines, ordering that she be reinstated with all salary and leave benefits. Notably, D.C. General raised no objection to substitution of hearing examiners throughout the nearly four months between the April letter and the August decision of the substituted hearing examiner.
D.C. General subsequently filed a petition for review in Superior Court, and it was during oral argument before the trial court that the hospital raised for the first time the issue of substitution of examiners.
Pursuant to the trial court’s remand, OEA reviewed its procedure and found that (1) substitution of hearing examiners is permissible where the decision does not turn on determinations of credibility; (2) resolution of the instant cases did not turn on determinations of credibility; and (3) in any event, D.C. General had waived its objection to substitution of hearing examiners by failing to make timely objection. On February 6, 1987, the trial court upheld OEA’s determinations on remand, concluding that “[wjhile the Court still has grave doubts about the validity of the procedure used by OEA, the Hospital never objected to its use and thereby waived all objections to it” (footnote omitted). This appeal followed.
II.
D.C. General’s first argument on appeal is that because the final OEA decision involved the credibility of witnesses, it was entitled to a de novo hearing upon the substitution of hearing examiners. Appel-lee Gaines argues that D.C. General waived challenge to this issue by not raising its objection prior to issuance of the new examiner’s final decision. At the outset, we note that our standard of review in considering these arguments is not affected by the fact that this appeal is taken from a decision of the Superior Court, rather than directly from an agency decision: “[w]e conduct the identical review that we would undertake if this appeal had been heard initially in this court.” Kegley v. District of Columbia,
In Stevens Chevrolet, Inc. v. Comm’n on Human Rights,
By contrast, in the instant case neither party objected to the substitution of hearing examiners until after the decision of the replacement examiner became known. The parties were advised by letter dated April 16, 1985, that OEA would be substituting hearing examiners. Gaines argues that by not objecting to the substitution of hearing examiners before issuance of the replacement examiner’s decision, D.C. General waived objection to this procedure. We agree. “Simple fairness to those who are engaged in the tasks of administration, and to litigants, requires as a general rule that courts should not topple over administrative decisions unless the administrative body not only has erred but has erred against objection made at the time appropriate under its practice.” United States v. L.A. Tucker Truck Lines,
The instant case is similar to Millar v. Federal Communications Comm’n,
In its opinion on remand, OEA reasoned that its letter of April 16,1985, had put the hospital on notice that a rehearing was not automatic upon reassignment of hearing examiners, and that if the hospital wished to object to a decision without a rehearing before the replacement examiner, it should have objected at the time of the substitution. D.C. General’s response to this argument is not persuasive. In its brief, D.C. General cites various inapposite criminal cases standing for the proposition that “courts indulge every reasonable presumption against waiver of fundamental rights and do not presume acquiescence in the loss of fundamental rights.” Brief of Appellant at 11 (citing Taylor v. United States,
We conclude that D.C. General cannot attribute its decision to stand silent rather than challenge the substitution of hearing examiners to any failure of notice or other defect in the proceedings before OEA. “[T]he issue was an obvious one for appellant to raise if [appellant] thought it worthwhile.” Anaya v. Romero,
Based upon the foregoing discussion, we conclude that appellant waived challenge to the substitution of hearing examiners by not objecting before issuance of the substitute examiner’s decision. In light of this conclusion, it is unnecessary for us to reach the question whether OEA’s decision depended “to any extent on the credibility of witnesses,” Stevens Chevrolet, supra,
III.
Following termination of her employment, Gaines filed an appeal with OEA, and in response to the appeal D.C. General both explained and defended its action as follows:
Ms. Gaines was found to be dishonest in that she was responsible for the cashing of a money order that was later determined to have been in a wallet that was lost or stolen on the grounds of D.C. General Hospital. Ms. Gaines in her October 7, 1982 statement asserts that the money order was mailed to her several months earlier by her boyfriend. However, the purchaser of the money order, Larry Bowden, states that the money order was lost or stolen on August 16, 1982 and the money order was subsequently give [sic] to Ben Andrews by Ms. Gaines to cash on August 17, 1982. It is not possible that Ms. Gaines could have received in the mail on August 17,1982 a*76 money order that was lost the previous day.
This statement embraced D.C. General’s theory of Gaines’ dishonesty.
was unable to establish: 1) that the wallet was lost in an area accessable [sic] to Employee at the time; 2) that Employee found the wallet; 8) that Employee turned the wallet into the lost and found or; 4) that the handwriting in the entry log was that of Employee.
Accordingly, OEA found, D.C. General’s circumstantial evidence was “reduced to nothing more than a string of unsubstantiated allegations.” The Superior Court, in a brief memorandum opinion and order, upheld OEA’s decision because it found “substantial evidence to support the four key findings underlying OEA’s conclusion.”
It is well settled that “the function of the court in reviewing administrative action is to assure that the agency has given full and reasoned consideration to all material facts and issues.” Tenants Council of Tiber Island-Carrollsburg Square v. District of Columbia Rental Accommodations Comm’n,
In the instant case, both OEA and the Superior Court apparently took the view that it was necessary that D.C. General connect Gaines directly with Bowden’s recovered wallet as a predicate for a determination that Gaines had (1) wrongfully caused the money order to be converted to cash for her own use, and (2) then offered an untruthful story as to how she came into possession of the money order. We are persuaded this view is erroneous, and that in focusing on this aspect of D.C. General’s case against Gaines both OEA and the Superior Court overlooked compelling evidence sustaining D.C. General’s principal contention: that Gaines had acted dishonestly. In our view, even assuming arguendo that OEA was correct in concluding that D.C. General fell short of its evi-dentiary burden to the extent it attempted to prove that Gaines personally found the wallet, removed the money order, and then sought anonymously to record the wallet in the lost and found log, there remains the crucial fact that Gaines came to possess and then converted to her own use a recently lost or stolen money order that indisputably belonged to Bowden, and thereafter offered a wholly implausible explanation as to how she came to possess the money order.
We add that it would be extraordinary, in any event, for a father to transmit child support money in the form of a blank money order, thereby creating absolutely no record of his having paid the support. Further, the short time span between Bow-den’s loss of the money order on August 16, and Gaines’ alleged receipt of it with the mail she received on August 17 (or, as Gaines testified, August 16), hardly is sufficient to have allowed time for the father or another benefactor to have acquired Bowden’s money order and mailed it in such fashion that Gaines would have received it as she claims. On cross-examination Gaines was asked about
how the U.S. mail works so well for you. Did you receive it in any special way? Was it Express Mail?
She replied, “No. It was in the mailbox with all the other mail that I get out.”
For all the reasons we have stated, Gaines’ version of the events cannot withstand scrutiny. It is so “highly questionable in the light of common experience and knowledge” that it was unworthy of belief. Jackson v. United States,
In light of these observations, we conclude that the hearing examiner’s conclusion that,
with regard to the Agency’s finding that Employee was responsible for cashing the money order, the Employee presented testimony as to how the money order came into her possession which is plausible and, contrary to the Agency’s position, within the realm of possibility,
is neither supported by substantial evidence of record nor a rational conclusion flowing from the hearing examiner’s findings of fact. Although “we should not disturb a decision if it rationally flows from the facts relied upon, and those facts or findings are substantially supported by the evidence,” Kramer v. District of Columbia Department of Employment Services,
On the facts before us, and for the reasons given above, we conclude that as regards the OEA decision in favor of appel-lees, the evidence is not such “as a reasonable mind might accept as adequate to support [OEA’s] conclusion.” Consolidated Edison Co. v. NLRB,
REVERSED.
Notes
. D.C. General Hospital Regulation No. 108-4 provides that a permanent employee may be "removed from the Hospital only for cause. Cause is defined as ... (6) Dishonesty.” See D.C.Code § 1 — 617.1(d)(6) (1987).
. There does not appear to be any relationship between Larry Bowden, who lost his wallet, and Roy Bowden, D.C. General Hospital Investigator.
.On direct examination, Gaines testified that prior to this incident she had received child support payments in the form of "cash and money orders....” Asked whether Gaines had “any way of contacting [the child’s father],” Gaines replied, “No, I didn't.” Indeed, at no time during these proceedings has Gaines identified the father by name.
. Some confusion exists as to the exact date Gaines received the money order. Although the hearing examiner concluded that she received it and gave it to Andrews on August 17, Gaines herself testified as follows:
Q. When did you receive it, what day?
A. It was about the 16th.
Q. You received it on the 16th?
A. Yes.
Q. You also stated—
A. I think, yes, maybe. I don't know.
Q. Could you take some time to remember?
A. God. Yes, it was the 16th. Because I remember going home for lunch that day. It was the 16th.
Q. When did you give it to Mr. Andrews to cash?
A. The 16th.
Gaines never testified that she found the money order in her mailbox on August 17. The hearing examiner apparently based her finding that she did so on Ben Andrews’ testimony that he received it from Gaines and cashed it on August 17, together with Gaines’ testimony that she gave it to Andrews to cash shortly after she received it.
. Gaines testified that a commission is a license that permits a special police officer to detain and arrest people. She needed a waiver in order to obtain the commission because, she said, in 1973 she had been tried and convicted of assault, for which she served fourteen months in prison.
. The trial court also remanded to OEA the question of whether OEA possessed authority to award attorneys’ fees. The trial court subsequently held, on the basis of this court’s ruling in District of Columbia v. Hunt,
. In her brief, Gaines avers that the hospital’s "representative throughout the proceedings” (one Ms. Lavedas) was "a graduate of law school and presumably experienced in the legal profession.” Brief of Appellee at 24.
. Furthermore, the statement comports with D.C. General's November 1, 1982, letter notifying Gaines of her proposed termination. That letter, written by the Director of the hospital’s Operations Division, set forth the whole chain of events implicating Gaines, including but not limited to the circumstances focused upon by the OEA, and then stated in part as follows: I am concluding that you have misrepresented the facts concerning this serious incident and am proposing your removal to maintain the integrity of the Security Section and confidence of the employees, patients and visitors we must serve. Dishonesty will not be condoned nor tolerated.
Concurrence Opinion
concurring:
While I agree with the majority’s analysis in Section II, I write separately to clarify that in reversing the decision of the District of Columbia Office of Employee Appeals (“OEA”), this court is not engaging in credibility determinations properly left to the hearing examiner. In ruling against the hospital, OEA found that, viewing the record as a whole, the hospital had failed to prove dishonesty by a preponderance of the evidence. While professing to rely upon the correct legal standard, OEA actually placed a much higher burden of proof on the hospital. This is clear from the hearing examiner’s discussion of the shortcomings of the hospital’s case.
Here, the hospital presented a prima fa-cie case of dishonest conduct by Gaines; Gaines cashed a money order which did not belong to her. Gaines then failed to rebut this showing. Her explanation as to how she came to possess the check was wholly incredible, and in fact, tended to reinforce the hospital’s case. As a matter of law, therefore, we can say that the hospital should have prevailed.
