Fired SEC Lawyer Reverses Penalty by Submitting Post-penalty Evidence

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Fired SEC Lawyer Reverses Penalty by Submitting Post-penalty Evidence The case of Norris v. SEC, U.S. Federal Circuit Court of Appeals, No. 2011-3129 has established a new precedent in civil service law by allowing admission and consideration of post-penalty evidence. As Michael Kator, a lawyer for the plaintiff told the media, “It resolves an important issue in civil service law that was ambiguous: whether post-removal medical evidence could be considered in determining an appropriate penalty. It’s important to be able to say the reasons that an action was taken are no longer valid.”

Norris was a veteran Securities and Exchange

During the arbitration over his dismissal in November

Commission trial lawyer serving the SEC for more

2010, Norris submitted that his circumstances

than 17 years, and was fired for sending inappropriate

had substantially improved, and according to his

emails.

psychiatrist there was no possibility of recurrence of errant activity. However, the arbitrator did not take the

On Tuesday, the U.S. Federal Circuit Court of Appeals in

new evidence properly into consideration and held that

Washington, D.C. overturned the ruling of an arbitrator

“if sympathy were the sole deciding factor,” only then

that upheld the August 2009 dismissal of Jeffrey Norris

Norris would deserve to regain his job. The arbitrator

from service.

also held that the SEC had the right to fire Norris based on what the SEC knew at the time.

The three-judge panel of the Court of Appeals wrote, “We hold that where new evidence in mitigation of the

The Federal Court of Appeals overturned the arbitrator’s

penalty imposed is presented … the evidence must

decision and in effect set a precedent whereby

be considered in determining whether the agency’s

evidence of a change of state of the individual following

imposed penalty was reasonable.” The order of the

discipline over his/her behavior can be admitted to

court required the arbitrator to consider whether Norris’

argue against the original penalty.

dismissal was “a responsible balance within tolerable limits of reasonableness” in light of the new evidence.

The court held that a reading of relevant law showed that it was the intention of the Congress that

Norris had been dismissed from service for sending

arbitrators, like in the case of

three emails in late 2008, including one with his political views sent to the Washington Post, one

Norris’, should review “all aspects” of a case including

containing a confidential report and one internal email

new evidence that might suggest the original penalty to

demeaning SEC staff.

be excessive. Norris, however, has quite a track record concerning

Norris had argued that the emails were influenced

emails. In 2007, he had been suspended for two weeks

by his Attention Deficit Hyperactivity Disorder, and

for sending emails questioning the patriotism of Mark

from personal troubles arising out of his daughter’s

Cuban, the owner of the Dallas Mavericks basketball

Asperger’s Disorder and the fact of his wife becoming

team. Norris got inflamed over Cuban’s support of a

disabled.

movie that suggested the U.S. government had planned the 9/11 attacks to create a pretext for the Iraq war.

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