Engelhardt v. United States Civil Service Commission

• Decision Date: 31 August 1961
• Docket Number: Civ. A. No. 1727-N.
• Citation: 197 F. Supp. 806
• Parties: Sam M. ENGELHARDT, Jr., and the State of Alabama, Petitioners, v. UNITED STATES CIVIL SERVICE COMMISSION, Respondent.
• Court: U.S. District Court — Middle District of Alabama

197 F. Supp. 806

Sam M. ENGELHARDT, Jr., and the State of Alabama, Petitioners, v. UNITED STATES CIVIL SERVICE COMMISSION, Respondent.

Civ. A. No. 1727-N.

United States District Court M. D. Alabama, N. D.

August 31, 1961.

Smith & Moore, Montgomery, Ala., for petitioners.

Hartwell Davis, U. S. Atty., Montgomery, Ala., and Philip J. LaMacchia, Atty., U. S. Civil Service Commission, Washington, D. C., for respondent.

JOHNSON, District Judge.

The petitioners, Sam M. Engelhardt, Jr., and the State of Alabama, as authorized by § 118k, Title 5 United States Code Annotated, have filed their written petition with this Court, wherein they seek a review of the Report and Order of the United States Civil Service Commission, that Report and Order having been made and entered by said Commission on May 6, 1961, in this case, which was styled on the records of the Commission as "In the Matter of Sam M. Engelhardt, Jr. and the State of Alabama, Docket No. 238." The petitioners seek to have this Court reverse the order of the Civil Service Commission, claiming that the order of the Commission is erroneous in that:

(1) The Commission improperly construed the terms "loans or grants" as used in § 12(a) of the Hatch Act.

(2) The Commission improperly construed the exemptions contained in § 12 (a) of the Hatch Act by holding that said exemptions did not apply to the Alabama Highway Director, Sam M. Engelhardt, Jr., and by failing to recognize that the application of said Act to an officer such as Engelhardt was unconstitutional.

(3) The Commission erred in failing to find that Engelhardt's connection "with any activity * * * financed * * * by the United States" was minimal and therefore controlled by the legal principle of de minimis non curat lex.

The United States Civil Service Commission appears, admits the jurisdiction of this Court, and pleads the general issue by saying that the order of the Civil Service Commission of May 6, 1961, was proper, both as to questions of fact and questions of law. As required by § 118k (c), there has been filed with this Court a certified transcript of the complete record upon which the order of the Civil Service Commission that is now complained of was based. Petitioners do not complain of any of the findings of fact as set out in the order of the Civil Service Commission and have not sought to have any findings of fact as made by the Commission and as set out in its order of May 6, 1961, stricken, amended, or supplemented.

The United States Civil Service Commission in a Letter of Charges and Notice dated August 1, 1960, charged that Sam M. Engelhardt, Jr., was the State Highway Director for the Alabama State Highway Department by appointment by the Governor of the State of Alabama from January 20, 1959 to the date of said charges.¹ The Commission further charged that Engelhardt's principal employment was in connection with an activity financed in whole or in part by grants made by the United States and that while so employed and engaged Mr. Engelhardt took an active part in political management and in political campaigns. Specifically, the Commission charged that Mr. Engelhardt held the office of Chairman of the State Democratic Executive Committee of the Democratic Party of Alabama during all the time pertinent to this litigation; that Mr. Engelhardt called and presided over meetings of the State Democratic Executive Committee on March 20, 1959 and on January 23, 1960; that he also presided over meetings of the Executive Committee members for the Fourth and Fifth Congressional Districts of Alabama on March 11, 1959; and that Mr. Engelhardt used his office in the State Highway Department Building to conduct the business of the Democratic Executive Committee, all as prohibited by § 12 of the Hatch Political Activity Act, codified as § 118k(a) of Title 5 United States Code Annotated.

Upon the record now presented to this Court, it appears that Sam M. Engelhardt, Jr., was appointed by the Governor of the State of Alabama and qualified to act as State Highway Director for the State of Alabama on January 20, 1959; that Mr. Engelhardt has served continuously, full time, as said director since the date of his appointment, at an annual salary of $15,000. It further appears that on or about the 19th day of January, 1959, Mr. Engelhardt was elected Chairman of the State Executive Committee of the Democratic Party of Alabama, a position he has also held continuously since that date. The record further reflects that since January, 1959, Mr. Engelhardt, as Chairman of the Executive Committee of the Democratic Party of Alabama, has officially informed the Secretary of State for the State of Alabama of qualified candidates of the Democratic Party for the State of Alabama and for federal offices; that he has officially informed the Secretary of State of the number of votes received by, the nomination of, and the election of respective candidates for party nomination to public and party offices in the Democratic Party primary elections held in 1960; that he has officially informed and authorized the Secretary of State to withdraw the names of certain persons who had been previously certified as candidates for the Democratic Party; and that he has called and presided over meetings of the Executive Committee of the Democratic Party of Alabama, in one of which the "Rules of the Democratic Party of Alabama" were established and adopted. The evidence in this case further reflects that Mr. Engelhardt called and presided over a meeting of the Fourth and Fifth Congressional Districts for the State of Alabama on March 11, 1959, which meeting was for the purpose of nominating a democratic nominee for a State senatorial district in which a vacancy existed. The evidence was without dispute that the State Executive Committee, headed by Mr. Engelhardt, prescribed the rules for the Democratic Party primary election in May, 1960. Mr. Engelhardt presided over the meeting which prescribed such rules, the meeting being held January 20, 1960. The evidence further discloses that the Democratic Executive Committee's stationery lists the office of the Committee as "116 Highway Building, Montgomery, Alabama"; further, that an individual by the name of Mrs. Nell Benton was listed on the official stationery as treasurer of the Executive Committee. Neither Mr. Engelhardt nor Mrs. Nell Benton testified before the Commission. It was revealed, however, that Mrs. Benton was a State of Alabama employee, who served as secretary to Mr. Engelhardt in his position as the Alabama State Highway Director.

The evidence in this case clearly reflects that the State of Alabama Highway Department, headed by Mr. Engelhardt, is responsible for the construction and repair of roads in the State of Alabama; that during the period pertinent to this litigation the State Highway Department of Alabama has engaged in the construction of highways under agreements with the United States Department of Commerce, Bureau of Public Roads, these agreements being signed on behalf of the State Highway Department by Mr. Engelhardt. Under these agreements, the State of Alabama has been reimbursed an agreed portion of the cost of the construction, which it has paid to the contractors building the roads within the State. It appears without dispute that in a substantial number of specific projects the amount paid to the State of Alabama by the United States Government has amounted to 90% of the cost of the construction of the road. In other projects, the amount the State has been reimbursed by the United States Government was for 50% of the cost of the road. It appears from the evidence in this case that these "Federal-aid" projects are required to meet certain standards of the Federal Government, with the State of Alabama Highway Department being the agency primarily responsible for the completion of each project. The funds reimbursed to the State of Alabama on such projects are paid to the State Treasurer, the State Highway Department, itself, not directly handling any of the money. All payments out of such reimbursed funds are made by the Treasurer for the State of Alabama, who maintains various Highway Department accounts against which the funds are charged or credited upon notification from the Alabama Highway Department. It further appears that during the period from January, 1959 to June, 1960, over fifty-two million dollars was paid to the State of Alabama by the United States Government as a result of specific agreements for the construction of roads in Alabama by the State Highway Department. In addition to the above practice of reimbursement, the State of Alabama has during the period pertinent to this case received what was described as a "revolving fund" under procedures authorized by the Congress of the United States, in order that there might be no delay in road construction by reason of inadequate State finances. This money, insofar as it is pertinent to this case, was in excess of four million dollars and was repaid, as required by the law, to the United States Government in June, 1959.

The provisions of the Hatch Political Activity Act, herein referred to as § 118k (a), Title 5 United States Code Annotated, under which Mr. Engelhardt was charged, are as follows:

"No officer or employee of any State or local agency whose principal employment is in connection with any activity which is financed in whole or in part by loans or grants made by the United States or by any Federal agency shall (1) use his official authority or influence for the purpose of interfering with an election or a nomination for office, or affecting the result thereof, or (2) directly or indirectly coerce, attempt to coerce, command, or advise any other such officer or employee to pay, lend, or contribute any part of his salary or compensation or anything else of value to any party, committee, organization, agency, or person for political purposes. No such officer or

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