Mt. Human Rights Div. v. City of Bi ( 1982 )


Menu:
  •          IN THE SUPREME COURT OF THE STATE OF MONTANA
    MONTANA HUMAN RIGHTS DIVISION,
    Petitioner and Appellant,
    v.
    CITY OF BILLINGS, COUNTY OF YELLOWSTONE,
    Respondent and Respondent.
    O R D E R
    The first paragraph of the opinion is amended to read,
    "The Montana Human Rights Commission,
    acting through its staff, the Montana Human
    Rights Division (herein referred to as HRC),
    appeals from summary judgment and a final
    judgment of dismissal in the Thirteenth
    Judicial District Court. We vacate the
    judgment and remand the cause for further
    action by the District Court."
    DATED this & & a
    &dy      of September, 1982.
    For the Court
    %a*%  Chief ~ustice
    NO.    81-453
    I N THE SUPREME COURT O F THE STATE O F M N A A
    OTN
    1982
    M N A A HUMAN RIGHTS DIVISION,
    OTN
    P e t i t i o n e r and A p p e l l a n t ,
    VS.
    CITY O BILLINGS,
    F
    R e s p o n d e n t and R e s p o n d e n t .
    Appeal from:          D i s t r i c t Court of t h e T h i r t e e n t h J u d i c i a l D i s t r i c t ,
    I n and f o r t h e County of Y e l l o w s t o n e
    Honorable Diane G. Barz, Judge p r e s i d i n g .
    C o u n s e l o f Record:
    For Appellant:
    F r e d e r i c k F.     Sherwood a r g u e d , H e l e n a , Montana
    For Respondent:
    McNamer, Thompson and Cashmore, B i l l i n g s , Montana
    C h a r l e s Cashmore a r g u e d , B i l l i n g s , Montana
    K . D. P e t e r s o n a r g u e d , C i t y A t t o r n e y , B i l l i n g s , Montana
    Submitted:           May 20, 1982
    Decided:         August 1 6 , 1982
    Filed:   A e j G I L : j ;982
    Mr. Justice Fred J. Weber delivered the Opinion of the Court.
    The Montana Human Rights Commission (HRC) appeals from
    summary judgment and a final judgment of dismissal in the
    Thirteenth Judicial District Court, in this employment
    discrimination action.   We vacate the judgment and remand
    the cause for further action by the District Court.
    The sole issue before this Court is whether, as a
    matter of law, the HRC may, as part of its investigation of
    a discrimination complaint, require an employer to submit
    certain evidence relating to persons other than the com-
    plainants.
    Four persons filed discrimination complaints with the
    HRC against the City of Billings.   William Wong alleged that
    he was discriminated against because of his Chinese ancestry,
    in his bid for promotion to Sergeant with the Billings
    Police Department.   Jerry Klundt charged that he had been
    denied merit or step increases and had been demoted because
    of his Crow Indian background and in retaliation for union
    activities and for having filed a charge of discrimination.
    Win Poynter alleged that she had been passed over for promo-
    tion at Billings' Logan International Airport because of her
    sex, and jobs for which she was qualified had been filled by
    less qualified male applicants.   Jesse Gonzales (who has
    since withdrawn his complaint) alleged that he was denied
    a five-year pay increase as a civilian employee of the
    Billings Fire Department and assigned undesirable shifts
    despite his seniority because of his sex and his Mexican-
    American background.
    During its investigation of these complaints, the HRC
    submitted a supplemental interrogatory to the city of
    Billings, requesting personnel files, employee evaluations,
    disciplinary records, test scores and application materials
    for complainants and certain other employees and applicants
    for employment with the City of Billings.     When the City did
    not comply with the HRC1s request, the HRC issued subpoenas
    duces tecum, pursuant to section 49-2-203, MCA, demanding
    the information.    The City answered that it "would not
    voluntarily turn over to [the HRC] the personnel files and
    test scores for the individuals requested other than the
    charging parties without consent of the persons that are the
    subjects of the personnel files unless of course there was a
    court order directing us to do so."
    On March 12, 1981, the HRC filed a petition with the
    District Court, for enforcement of the subpoenas duces
    tecum, against the City of Billings.   The City responded
    that the information sought by the HRC is personal, and
    releasing it without prior consent of the individuals in-
    volved "may constitute an invasion of those persons' privacy
    and may render the City liable for that invasion."
    By stipulation, filed June 17, 1981, the parties agreed
    to the consolidation of the HRC's action against the City of
    Billings with a pending action by the HRC against the County
    of Yellowstone.    Katherine Webster had filed a complaint
    with the HRC, alleging that she was discriminated against in
    hiring by the Yellowstone County Sheriff's Department on the
    basis of her sex, race, and marital status.    Like the City,
    the County had refused to produce employment applications
    and other information pertaining to the other individuals
    who had applied for the position(s) for which Ms. Webster
    had applied.
    On August 7, 1981, after a July hearing on the matter,
    the District Court denied the HRC's motion for summary
    judgment, and granted the motion of the City and County for
    summary judgment.     The accompanying memorandum of the Dis-
    trict Court indicated the court's determination that (1) the
    disputed information is subject to the protection of Article
    11, Section 10, Mont. Const.; (2) respondents are not in a
    position to provide the information without the consent of
    the individuals whose right of privacy is affected; and (3)
    the HRC had shown neither a compelling state interest in
    obtaining the information, nor exhaustion of other sources
    of obtaining the information.    The District Court entered
    its judgment of dismissal in favor of the City and County on
    September 28, 1981.    The HRC appeals.
    The complainants have filed complaints with the Federal
    Equal Employment Opportunity Commission alleging that respon-
    dents' actions violated Title VII of the Civil Rights Act of
    1964, as amended, 42 U.S.C.   2000 et seq.   That Commission,
    pursuant to section 706 of Title VII, is awaiting the out-
    come of this action before moving on complainants' charges.
    Article 11, Section 10, of the Montana Constitution
    states:
    "Right of Privacy. The right of individual
    privacyis essential to the well-being of a
    free society and shall not be infringed with-
    out the showing of a compelling state inter-
    est."
    The Transcript of the 1972 Constitutional Convention clearly
    indicates the significance to the delegates of this right,
    which nowhere appears in the Federal Constitution but has
    been judicially inferred from the provisions of the Bill of
    Rights.   Delegate Campbell read into the record an editorial
    statement from the Montana Standard, February 3, 1972, here
    included in part:
    "We think the right of privacy is like a
    number of other inalienable rights; a
    carefully worded constitutional article
    reaffirming this right is desirable. Wade
    Dahood of Anaconda, Chairman of the Bill
    of Rights Committee, hit the nail on the
    head when he said: 'As government functions
    and controls expand, it is necessary to ex-
    pand the rights of the individual.' The
    right to privacy deserves specific protec-
    tion." Tr. of the Montana Constitutional
    Convention, Vol. V, p. 1681.
    Indeed, at one point, the delegates struck out the phrase
    requiring a compelling state interest, because, in the words
    of Delegate Harper:
    ". . . that may be interpreted by whatever
    state agency happens to have an interest in
    invading my privacy at that particular time."
    Tr. at p. 1682.
    David Gorman, in an article entitled "Rights in Collision:
    The Individual Right of Privacy and the Public Right to
    Know," 
    39 Mont. L
    . Rev. 249, 251 (1978), noted that the
    delegates' decision to include the phrase after all was
    intended to strengthen rather than weaken the constitutional
    protection afforded the individual right to privacy:
    "When the amended provision was reported out
    of the Style and Drafting Committee the dele-
    gate who had offered the deleting amendment
    moved for reconsideration, supporting his
    motion by saying that his general intent, to
    strengthen the protection of the individual,
    was not served by his amendment. The debate
    on the motion to reconsider (which passed)
    and the subsequent motion to reintroduce the
    'compelling state interest' test was lively.
    Various delegates took the positions that the
    standard was implicit, that the right of privacy
    had been rendered absolute, that the amended
    provision was meaningless to a court, and that
    in default of any explicit standard the courts
    could choose to apply a mere 'reasonableness'
    test to defeat privacy rights. It was this
    last argument which apparently swayed the con-
    vention as a whole, and the 'compelling state
    interest' test was restored.
    "This explicit statement of the weight to be
    accorded to the right guaranteed by the provi-
    sion places a heavy burden on the state. It
    has even been suggested that the task faced by
    the state of showing a compelling interest is,
    in most situations, an impossible one. Clearly
    the delegates placed a very high value on the
    right of privacy, and they forcefully indicated
    that the courts were to accord it every pro-
    tection available under this most stringent
    standard of judicial review." 
    39 Mont. L
    . Rev.
    at 251.
    There can be little doubt that the federal protection
    is less stringent and would allow discovery without requir-
    ing a showing of compelling state interest under these
    circumstances.     The Tenth Circuit Court of Appeals addressed
    the question in the context of privacy rights under the
    Fourth Amendment, in Equal Employment Opportunity Commission
    v. University of New Mexico, Albuquerque (10th Cir. 1974), 
    504 F.2d 1296
    , 1302, a case raising a legal issue similar to
    the present one:
    "The law governing the limits on the adminis-
    trative power of investigation has evolved
    from the earlier judicial condemnation of
    fishing expeditions to that of enforcement of
    the subpoena power 'if the inquiry is within
    the authority of the agency, the demand is not
    too indefinite, and the information sought is
    reasonably relevant.' United States v. Morton
    Salt Co., 
    338 U.S. 632
    , 652, 70 S.Ct, 357,
    369, 
    94 L. Ed. 401
    (1950)."
    The court concluded that, under federal law,
    ". . . today that which we have previously
    considered to be administrative 'fishing
    expeditions' are often permitted; and that
    administrative subpoenas may be enforced
    for investigative purposes unless they are
    plainly incompetent or irrelevant to any law-
    ful 
    purpose." 504 F.2d at 1303
    .
    In the present case, the HRC seeks information which the Dis-
    trict Court recognized as relevant to proper investigation by
    the HRC of the employment discrimination complaints; the
    subpoenas clearly indicate the information which is sought.
    Under the federal standard, discovery of the personnel files
    and records would not be restricted by a penumbral right of
    privacy.
    However, as noted, Montana's constitutional right of
    privacy is explicit.       This Court has recognized that the
    protection it offers is more substantial than that inferred
    from the Federal Constitution.      In State v. Hyem (1981),
    Mont.        ,   
    630 P.2d 202
    , 38 St.Rep. 891, we upheld the
    application of the exclusionary rule to private searches
    which invaded the privacy rights of individuals, a protec-
    tion not found under the Federal Constitution.      Therein we
    stated:
    "Privacy has been defined as the ability to
    control access to information about oneself.
    Fried, Privacy (1968), 77 Yale L.J. 475, 482,
    
    483." 630 P.2d at 209
    , 38 St.Rep. at 898.
    The HRC argues that enforcement of the subpoenas duces
    tecum would not be an infringement of a privacy right here,
    because no privacy right exists where there is no statutory
    privilege (see section 26-1-801, et seq., MCA), and where
    an employee or applicant for employment voluntarily submits
    the information to a third party.      The HRC relies upon
    Hastetter v. Behan (1982),          Mont. - , 
    639 P.2d 510
    , 39
    -
    St.Rep. 100, wherein this Court relied upon federal case law
    in upholding the respondent's disclosure of appellant's
    telephone records.      We quoted Smith v. Maryland (1979), 
    442 U.S. 735
    , 
    99 S. Ct. 2577
    , 
    61 L. Ed. 2d 220
    :
    "'Second, even if petitioner did harbor some
    subjective expectation that the phone numbers
    he dialed would remain private, this expecta-
    tion is not "one that society is prepared to
    recognize as 'reasonable.'" This Court con-
    sistently has held that a person has no legiti-
    mate expectation of privacy in information he
    voluntarily turns over to third parties.'"
    (Citations 
    omitted.) 639 P.2d at 512-513
    , 39
    St.Rep. at 103.
    We find the HRC's reliance upon 
    Hastetter, supra
    ,
    misplaced.    This Court is not bound to give precedential
    value to dicta, State v. Gopher (1981),          Mont.       ,   
    631 P.2d 293
    , 296, 38 St.Rep. 1078, 1081-82, and we must abandon
    that language of --
    
    Smith, supra
    , which, incorporated into
    -
    Hastetter, appears to deny the protection of section 10 to
    --- communications voluntarily given to third parties.
    all
    Hastetter's holding was that the appellant had no reasonable
    expectation of privacy in telephone records justifying
    constitutional protection.     In Hastetter, the disputed
    information was not the contents of the communication, the
    privacy of which was not addressed by this Court, but the
    fact of communication.    That information was known by
    appellant to be recorded by the phone company for a number
    of business purposes.    We were not persuaded that appellant
    could have reasonably expected the numbers he dialed to
    remain secret.
    In the present case, the personal information submitted
    to employers by prospective and current employees, and that
    contained in materials compiled by employers is quite dif-
    ferent from the relatively innocuous telephone records in
    Hastetter.    While we are aware that much of the information
    contained in employment files and records is harmless or is
    already a matter of general knowledge, we are not persuaded
    that the records are entirely free of damaging information
    which the individuals involved would not wish and in fact
    did not expect to be disclosed.    The standard set forth in
    Hastetter is whether the party involved subjectively ex-
    --
    petted the information to be and remain private, and whether
    society is willing to recognize that expectation as reason-
    able.     This standard was adopted by the Supreme Court in
    Katz v. United States (1967), 
    389 U.S. 347
    , 
    88 S. Ct. 507
    , 
    19 L. Ed. 2d 576
    .
    Employment records would reasonably contain, among less
    sensitive information, references to family problems, health
    problems, past and present employers' criticism and observa-
    tions, military records, scores from IQ tests and performance
    tests, prison records, drug or alcohol problems, and other
    matters, many of which most individuals would not willingly
    disclose publicly.   Some testing and disclosure (e.g., past
    employment records, prison records, drug or alcohol use) is
    a necessary part of many applications for employment; other
    information may be compiled by present employers or may be
    submitted by an employee in explanation of absence from work
    or poor performance on the job.   It is clear that there is
    frequently pressure upon an employee to communicate these
    matters to his employer in the privacy of his boss's office
    or on an application for employment or promotion.   And
    while, as far as we know, respondents gave their employees
    no specific assurances of confidentiality, we believe that
    employees would reasonably expect such communication normally
    would be kept confidential.   Therefore, we find that under
    the circumstances of this case, the information requested by
    the HRC is subject to the protection of Montana's constitu-
    tional right of privacy (510).
    The HRC argues that because an employee knows informa-
    tion concerning his employment may be sought by prospective
    employers in the future, he may not reasonably expect it
    will never be divulged to anyone else.   It may well be
    unreasonable for an employee to expect that this information
    will never be divulged to prospective employers.    It does
    not necessarily follow that, therefore, this information is
    unprotected by the right of privacy under all other circum-
    stances, even where an employee can reasonably expect it
    will - be divulged, such as in an investigation or during
    not
    a public hearing in which the employee is only remotely
    involved.    The right of privacy turns on the reasonableness
    of the expectation, which may vary, even regarding the same
    information and the same recipient of that information.
    We hold that the District Court correctly found that
    the information sought by the HRC is protected by Montana's
    constitutional right of privacy.
    We note in passing the HRC's claim that respondents
    have no standing to assert the constitutional rights of
    their employees in refusing to comply with the HRC's sub-
    poenas duces tecum.   One who is neither injured nor jeopar-
    dized by the operation of a statute cannot challenge its
    constitutionality.    State v. Kirkland (1979),      Mon t .
    ,   
    602 P.2d 586
    , 590, 36 St.Rep. 1963, 1966.   Here,
    respondents argue that disclosing personal information about
    employees and applicants for employment without the consent
    of those individuals involved or without a court order
    forcing them to disclose, places them in jeopardy because it
    could lead to their being sued by those individuals for
    revealing private information.   Other courts have held, and
    we agree, that potential economic injury is sufficient to
    establish standing.   In Falcon v. Alaska Public Offices Com-
    mission (Alaska, 1977), 
    570 P.2d 469
    , the court found a
    doctor had the right to deny, on behalf of his patients,
    government access to his files, because such disclosure
    could discourage prospective patients.
    The delegates to the 1972 Constitutional Convention
    recognized that the right of privacy is not absolute, and
    that under certain circumstances, the State's interest in
    obtaining information about individuals may outweigh the
    individuals' right of privacy.       Tr. of the Montana Consti-
    tutional Convention, Vol. VI, p. 1851.
    In State ex rel. Zander v. District Court (1979), 
    181 Mont. 454
    , 458-459, 
    591 P.2d 656
    , 660, we recognized the
    rule:
    "From these cases and our constitutional
    language certain principles of law emerge.
    The right of individual privacy is a funda-
    mental constitutional right expressly recog-
    nized as essential to the well-being of our
    society. The constitutional guarantee of
    individual privacy is not absolute. It must
    be interpreted, construed and applied in the
    light of other constitutional guarantees and
    not in isolation. The right of individual
    privacy must yield to a compelling state in-
    terest. "
    See 
    Hyem, supra
    , 630 P.2d at 205-206, 38 St.Rep. at 894:
    "Under the 1972 Montana Constitution, the only
    exception to the restriction against the in-
    vasion of individual privacy is a compelling
    state interest."
    Here we find a compelling state interest which itself
    arises from the Montana Constitution.        Article 11, Section
    4, of the Montana Constitution states:
    "The dignity of the human being is inviola-
    ble. No person shall be denied the equal
    protection of the laws. Neither the state
    nor any person, firm, corporation, or insti-
    tution shall discriminate against any person
    in the exercise of his civil or political
    rights on account of race, color, sex, cul-
    ture, social origin or condition, or politi-
    cal or religious ideas."
    This section was unanimously adopted by the delegates.
    Under the Montana Human Rights Act of 1974, section 49-
    1-102, MCA, provides t h a t t h e r i g h t to be free from dis-
    crimination includes the right to obtain and hold employment
    without discrimination.     The Human Rights Commission, ad-
    ministrative watchdog over discriminatory practices in
    Montana, possesses subpoena power as provided under section
    49-2-203, MCA:
    ' ' 1 ) The commission may subpoena witnesses,
    take the testimony of any person under oath,
    administer oaths, and, in connection there-
    with, require the production for examination
    of books, papers, or other tangible evidence
    relating to a matter either under investiga-
    tion by the commission staff or in question
    before the commission.  . ."
    The investigative powers of the HRC must be broad
    enough to allow a thorough scrutiny of the circumstances
    surrounding complaints of discrimination.   The scrutiny in
    the present case must involve comparison of employee records,
    applications, evaluations, tests, etc.   There is simply no
    other way for the HRC to determine whether the City and
    County discriminated in the ways alleged by complainants.       A
    consideration of the complainants' files alone would not
    yield the comparative data which is essential here.     To deny
    the HRC access to the material it seeks renders ineffectual
    a substantial portion of its statutory investigative powers,
    and is a large step toward drawing the teeth of the HRC.
    That we are unwilling to do.
    Respondents argue, and the District Court found, that
    because the HRC did not seek the consent of the individuals
    involved to its perusal of their employment records, that it
    had not exhausted its means of obtaining the information,
    and thus had not established a compelling state interest.
    We do not agree, for several reasons.    In the first
    place there are well over one hundred files involved.     The
    time, cost, and inconvenience of the search for individual
    employees, past and present, and the attempt to gain their
    consent, would be prohibitive.   Undoubtedly, a good many
    individuals, particularly those who may have been hired or
    promoted because of an employer's discriminatory rejection
    of more qualified or equally qualified applicants, would
    refuse the HRC access to the files.   The respondents have
    suggested that, in that event, the files could be subpoenaed
    directly from the individual employees; that would be imprac-
    ticable and would lead to yet more litigation.   Finally,
    some employees whose files are sought may have died or left
    the area, or simply may be impossible to track down.     The
    only reasonable, thorough and relatively efficient means of
    obtaining access to the files is through the employer.    We
    do not find that the HRC has failed to establish a compel-
    ling state interest by failing to contact and obtain the
    permission of those employees and ex-employees of the City
    and County whose files they seek.   The practical realities
    of the situation, and the greater importance of the protec-
    tion from discrimination convince us that the HRC has made a
    sufficient showing of a compelling state interest, and that
    the disputed files and materials must be made available to
    the HRC.
    The respondents suggest that test scores and other
    arguably sensitive material could be altered in such a way
    that the names of the employees would not be disclosed to
    the HRC, and thus the intrusion would be less objectionable.
    The HRC correctly points out that many names are indicators
    of racial origin, frequently of sex, and in some cases of
    marital status, which information might not be available in
    the file itself.   Furthermore, the HRC objects to any altera-
    tion of files because, at that point, the accuracy of the
    HRC's investigation depends upon the good faith of the
    employer, the very party charged with discriminatory beha-
    vior, whose temptation to doctor files undoubtedly increases
    with the likelihood the HRC will find that employer guilty
    of discriminatory practices.
    We agree with the HRC, that all information in the
    employers' personnel files, which could reasonably cast some
    light on the truth or falsity of complainants' allegations,
    and which is included under section 49-2-203, MCA, should be
    subject to the investigative subpoena of the HRC.
    We have concluded that it is necessary that respondents
    provide the requested information to the HRC.    It is also
    necessary to establish some substantial protection of the
    privacy of those individuals whose files are made available
    to the HRC.    It is apparent that there must be a step by
    step learning process involved, in which the administrative
    agencies and the courts will determine on a case by case
    basis how the right to privacy and the right to know should
    be balanced.
    The HRC argues that its regulation providing for
    confidentiality in investigations sufficiently protects the
    individuals involved.   The regulation states:
    "Confidentiality. (1) Neither a charge nor
    information obtained in the investigation of
    a charge, nor any records required by the
    Commission to be filed with the Commission
    shall be made matters of public information
    by the Commission prior to the certifying
    of a case for public hearing (including hearing
    on a no cause finding, a default hearing or
    a hearing alleging violation of a conciliation
    agreement). This provision does not apply to
    such earlier disclosures to the Charging Party,
    the Respondent, witnesses, counsel, and repre-
    sentatives of interested Federal, State and
    local agencies as may be appropriate or neces-
    sary to the carrying out of the Commission's
    functions under the act, nor to the publication
    of data or abstracts derived from such informa-
    tion in a form which does not reveal the iden-
    tity of the charging party, respondent, or
    person supplying the information. The Commis-
    sion may enter into agreements with any federal,
    state, or local governmental agency for the
    deferral of complaints or sharing of informa-
    tion regarding complaints which agreements may
    require more stringent standards of confiden-
    tiality with regard to such complaints or such
    information." Administrative Rules of Montana
    $24.9.212.
    There is very limited protection in this regulation so
    far as the right of privacy is concerned.    The restriction
    on the Commission does not apply to an early disclosure to
    the charging party, the respondent, witnesses, counsel, and
    representatives of interested agencies.     In itself, this
    disclosure could be sufficient to eliminate the effective
    protection of the right of privacy.   In addition, if the HRC
    certifies a case for public hearing, then it is up to the
    Commission to decide the extent and nature of the informa-
    tion to be given at the public hearing.   We do not find this
    regulation to be an adequate protection of the right of
    privacy.
    We are aware that clamping too tight a lid on the HRC's
    freedom to disseminate the information obtained from respon-
    dents establishes yet another constitutional conflict.
    ,
    In Kuiper v. District Court (1981), - Mont. - 
    632 P.2d 694
    , 696-698, 38 St.Rep. 1288, 1290-1292, this Court
    reversed a District Court order forbidding use of certain
    documents already in the possession of the appellant "for
    any purpose whatsoever," finding the order unconstitutionally
    proscribed appellant's freedom of expression.    We agreed
    that First Amendment protection extended to litigation and
    to the fruits of 
    discovery, 632 P.2d at 698
    , 38 St.Rep. at
    1291, and agreed with Judge Bazelon in In re Halkin (D.C.
    Cir. 1979), 
    598 F.2d 176
    , 186, that while a protective order
    is not automatically a prior restraint, "the fact that [it]
    poses many of the dangers of a prior restraint is sufficient
    to require close scrutiny of its impact on protected First
    Amendment 
    expression." 632 P.2d at 697
    , 38 St.Rep. at 1291.
    We referred to the three-prong test used in Nebraska Press
    Ass'n.    v. Stuart (1976), 
    427 U.S. 539
    , 
    96 S. Ct. 2791
    , 
    49 L. Ed. 2d 683
    , and 
    Halkin, supra
    , requiring the court to find
    that the harm posed by dissemination is substantial and
    serious, the restraining order is narrowly drawn and pre-
    cise, and there is no less intrusive alternative means of
    protecting the public interest.
    In Mountain States Telephone   &   Telegraph Company v.
    Department of Public Service Regulation (1981),            Mont.
    ,   
    634 P.2d 181
    , 38 St.Rep. 1479, this Court issued a
    protective order to prevent the public disclosure of "trade
    secrets" which the Court held could be obtained by the
    agency during its investigation.      The broad rationale ap-
    plies to this case: During an appropriate investigation, the
    agency is entitled to all pertinent information possessed by
    an entity subject to its regulating power; when the public
    right to know collides with that entity's right to protect
    certain private information, a balancing of rights is neces-
    sary; a protective order may be fashioned which allows the
    agency the "fullest available information," while providing
    the public with "all information required to enable citizens
    to determine the propriety of governmental actions affecting
    them."    We relied upon Pennzoil Co. v. Federal Power Commis-
    sion (5th Cir. 1976), 
    534 F.2d 627
    , 631:
    "Implicit in [F.C.C. v. Schreiber (1965), 
    381 U.S. 279
    , 
    85 S. Ct. 1459
    , 
    14 L. Ed. 2d 3831
    is
    the proposition that the balancing of the pub-
    lic and private interests might compel secrecy.
    . . Therefore, in reviewing this case we must
    likewise determine whether the Commission abused
    its discretion in balancing the public and pri-
    vate 
    interest." 634 P.2d at 187
    , 38 St.Rep. at
    1485.
    We found that the District Court's failure to protect the
    trade secrets was improper because a satisfactory balancing
    of interests could have been achieved, and we issued a
    directive for a protective order.    The order allowed full
    disclosure to the PSC and sought to limit the release of
    private information by "provisions which protect the confi-
    dentiality of the trade secret 
    information." 634 P.2d at 187
    , 38 St.Rep. at 1485-1486.
    In the case at bar, much of the problem with restrict-
    ing dissemination by the HRC, or public access to the information
    in the disputed personnel files, lies in the fact that some
    of that information is undoubtedly neither sensitive nor
    private information, and, if viewed apart from the more
    damaging information, as it must be if a protective order is
    to be narrowly drawn, is neither subject to the protection
    of the privacy right, nor particularly relevant to the
    investigation at hand.
    We conclude that the needs and rights of the parties
    and the persons whose files are sought, as well as the
    general public, are best met by allowing broad discovery to
    the HRC, but restricting the release of information which
    suggests the identity of employees whose files may be used
    in investigating the alleged discriminatory practices by
    respondents.   We therefore direct the District Court to
    prepare an order requiring respondents to furnish the re-
    quested information to the HRC, but providing that the HRC
    shall not disclose the information to any individual, agency
    or party (other than respondents) outside of the HRC except
    under the following circumstances:
    (1) In the event that the HRC deems it necessary to
    hold a public hearing on the alleged discriminatory prac-
    tices, or to disclose the information to anyone outside the
    HRC (other than respondents), it shall protect the privacy
    of any person(s) as to the elements of such information by
    altering the information to provide for the anonymity of the
    person(s) involved.     This will include the elimination of
    names, specific ethnic designations and other classifica-
    tions which reasonably might allow identification of the
    person(s) whose privacy right is to be protected; except
    that
    (2) In the event that the HRC determines that the
    release of information reasonably subject to a right of
    privacy claim is required in a way which may disclose the
    identity of person(s) involved; then prior to the release of
    that information the HRC shall obtain from the District
    Court a further order of authorization and protection.
    The orders of the District Court shall provide that
    failure by the HRC or other persons or agencies to whom the
    information is released to comply with the above order(s)
    shall make the offending party subject to contempt proceed-
    ings.
    We suggest to the legislature that it consider legisla-
    tion similar to 42 U.S.C.   52000e8(e) which would protect the
    right of privacy by fines and penal sanctions.
    We vacate the judgment of the District Court and remand
    to the District Court for such further proceedings, includ-
    ing the entry of a protective order, as are required under
    this opinion.
    We concur:
    d, % &
    e
    Chief Justice
    c l - Justices
    d + k.sdn~d,