United States of America, Plaintiff-Appellee,

United States of America, Plaintiff-appellee, v. Eugene Donald Schaltenbrand, Defendant-Appellant United States Court of Appeals, Eleventh Circuit. 930 F.2d 1554. May 13, 1991

Key Facts

Defendant-Appellant Colonel Eugene Schaltenbrand was convicted of two violations of the government employee conflict of interest statutes. The first prohibited government employees from working on projects on which they had a financial interest. The second prohibited former government employees from representing private parties before the government regarding matters in which they previously worked for the government. Schaltenbrand, while still a member of the Air Force engaged in discussions with Teledyne Brown Engineering (TBE), a private contractor, informing them that he would like to work for TBE after his (soon-to-be announced) retirement. He even said that he would take a course in Spanish (one of the desired qualifications for the position). When he visited TBE while the organization was involved in negotiations with the government, Schaltenbrand was apparently on inactive duty. Schaltenbrand was a party to some of the talks while still a member of the Air Force but his status as a 'negotiator' was unclear. "Schaltenbrand argues that he had submitted an application to TBE, but TBE did not make him an offer until after he was finished with the Mexican Project" (687).

Legal Issue(s) Presented before Court

Schaltenbrand stated that he did not actively negotiate with TBE while still an officer, but merely 'offered' himself to the company, and used Black Law Book's definition of negotiation as a defense: "Negotiation is process of submission and consideration of offers until acceptable offer is made and accepted. The deliberation, discussion, or conference upon the terms of a proposed agreement; the act of settling or arranging the terms and conditions of a bargain, sale, or other business transaction." (688). He also argued he never acted as an agent for TBE.

Holding of the Court

Schaltenbrand's petition for a rehearing was granted. His conviction on the first statute, prohibiting former government employees from representing private parties before the government on matters in which they previously worked for the government was upheld, but not the second statute which prohibited former government employees from representing private parties before the government on matters in which they previously worked for the government

Court's Rationale or Reasoning for its Decision