Oracle Uses Supreme Court Ruling to Attack Regulator's Discrimination Claims
"Secretary Acosta's ratification orders merely rubber stamp some other official's determination that these ALJs should be appointed," Oracle's attorneys at Orrick contend. The case is a test of the scope of the Supreme Court's decision in Lucia v. SEC.
November 20, 2018 at 05:23 PM
4 minute read
The U.S. Labor Department suit alleging discriminatory practices at Oracle America Inc. should be thrown out after a Supreme Court ruling last term questioned the lawfulness of thousands of administrative judges across the federal bureaucracy, lawyers for the tech company are arguing.
Oracle's lawyers at Orrick, Herrington & Sutcliffe contend there is no currently serving administrative judge law at the Labor Department who can lawfully preside over the case, in which labor regulators contend Oracle's compensation practices discriminate against female, African-American and Asian employees. The agency sued Oracle in January 2017 at the end of the Obama administration.
Oracle's attorneys rested their argument in the Supreme Court's ruling in June in Lucia v. SEC, which set new requirements for how in-house judges are appointed. The ruling carried wide implications, setting up fresh arguments for companies and individual at the U.S. Securities and Exchange Commission and across all federal agencies.
Federal officials moved swiftly to “ratify” the appointments of judges who had been serving at the time of the ruling. In some instances, different judges were picked to hear pending cases. Oracle's legal team contends this maneuvering isn't enough to remedy the problem. They argue the Labor Department's case needs to be dismissed outright and refiled, if deemed appropriate, after the department has lawfully appointed its administrative law judges.
“It is not possible for the department to comply with its constitutional obligation to cure the unconstitutionality of the initial proceedings in this matter simply by reassigning the case to another of its ALJs because at present, there are no constitutionally appointed ALJs in the Department of Labor,” Orrick partner Erin Connell and senior counsel Gary Siniscalco said in their latest filing. Siniscalco is co-chair of the firm's equal employment team.
The Labor Department's Office of Federal Contract Compliance Programs is expected to respond Wednesday to Oracle's effort to dismiss the case. A representative declined to comment Tuesday.
Before the Supreme Court court issued its ruling in Lucia v. SEC, U.S. Labor Department Secretary Alexander Acosta ratified all of the agency's administrative law judges, an attempt to head off challenges against the rulings in those courts. The Supreme Court's ruling says agency heads—such as Acosta—do have the power to appoint administrative judges.
“Secretary Acosta's ratification orders merely rubber stamp some other official's determination that these ALJs should be appointed,” Oracle's attorneys wrote. They added: “Moreover, the ratification orders themselves make clear the secretary did not consider what he was doing to be an appointment.”
Reassigning the case to another in-house judge “means substituting one unconstitutional proceeding for another, resulting in Oracle (and OFCCP) spending significant additional time and resources re-litigating this matter just to have it start again once the constitutional questions are resolved.”
The case against Oracle is one of several big carryover matters from the Obama-era agency. In another pending case, against JPMorgan Chase & Co., an agency lawyer asked the administrative law judge to reassign the dispute to a different judge.
“In Lucia, the court held that, where an appropriate and timely appointments clause challenge has been raised, a new hearing before another ALJ who has been properly appointed and has not previously adjudicated the matter is an appropriate remedy,” Labor Department attorney Alexander Kondo wrote in a filing on Sept. 4.
Kondo noted Acosta's move to ratify the appointments of existing DOL judges. All Labor Department in-house judges “are now properly appointed,” Kondo wrote. “Reassignment will be in the service of helping ensure that litigation of this case proceeds to the merits as expeditiously as possible,” Kondo said in the filing.
A Labor Department judge on Oct. 30 reassigned the JPMorgan case to a different judge.
Read more:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFederal Judge Sets 2026 Admiralty Bench Trial in Baltimore Bridge Collapse Litigation
3 minute readA Look Back at High-Profile Hires in Big Law From Federal Government
4 minute read'Appropriate Relief'?: Google Offers Remedy Concessions in DOJ Antitrust Fight
4 minute readTrending Stories
- 1'Largest Retail Data Breach in History'? Hot Topic and Affiliated Brands Sued for Alleged Failure to Prevent Data Breach Linked to Snowflake Software
- 2Former President of New York State Bar, and the New York Bar Foundation, Dies As He Entered 70th Year as Attorney
- 3Legal Advocates in Uproar Upon Release of Footage Showing CO's Beat Black Inmate Before His Death
- 4Longtime Baker & Hostetler Partner, Former White House Counsel David Rivkin Dies at 68
- 5Court System Seeks Public Comment on E-Filing for Annual Report
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250