Bao Zhu Chen v. Chao

587 F. Supp. 2d 1292, 32 Ct. Int'l Trade 1221, 32 C.I.T. 1221, 30 I.T.R.D. (BNA) 2321, 2008 Ct. Intl. Trade LEXIS 122
CourtUnited States Court of International Trade
DecidedNovember 18, 2008
DocketSlip. Op. 08-123; Court 06-00337
StatusPublished
Cited by5 cases

This text of 587 F. Supp. 2d 1292 (Bao Zhu Chen v. Chao) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bao Zhu Chen v. Chao, 587 F. Supp. 2d 1292, 32 Ct. Int'l Trade 1221, 32 C.I.T. 1221, 30 I.T.R.D. (BNA) 2321, 2008 Ct. Intl. Trade LEXIS 122 (cit 2008).

Opinion

OPINION AND ORDER

STANCEU, Judge.

Plaintiffs, three former employees of Advanced Electronics, Inc., contest a determination by the United States Department of Labor (“Labor” or the “Department”) denying them eligibility for benefits under the Trade Adjustment Assistance (“TAA”) and Alternative Trade Adjustment Assistance (“ATAA”) programs administered under Title II of the *1294 Trade Act of 1974, as amended (the “Act”). 19 U.S.C. §§ 2271-2321, 2395 (Supp. V 2005). The Department concluded that the employees did not meet statutory eligibility requirements, based on its finding that plaintiffs’ separations from employment at Advanced Electronics, Inc. (“Advanced Electronics,” “AEI,” or the “Company”), which previously manufactured printed circuit boards in Boston, Massachusetts, were attributable neither to increases in imports of like products nor to a shift in production to a foreign country. Before the court is the Department’s second notice announcing a negative determination of eligibility for TAA and ATAA benefits, which Labor issued in response to the court’s order effecting a voluntary remand sought by the Department. Also before the court is plaintiffs’ motion for judgment on the agency record, in which plaintiffs seek an order compelling Labor to issue an affirmative determination of eligibility. For the reasons stated below, the court concludes that the Department’s investigation was inadequate to allow the Department to make findings of fact that were essential to a negative determination. Specifically, the investigation did not determine whether, and to what extent, an increase in imports into the United States of articles like or directly competitive with the Company’s printed circuit boards caused the Company to lose business from a significant foreign customer. The court again remands this matter to the Department, which must reopen its investigation and issue a new determination grounded in appropriate findings of fact that are supported by substantial evidence.

I. Background

The Act authorizes various forms of adjustment assistance to workers who have lost their jobs as a result of increased imports or shifts of production out of the United States. 19 U.S.C. §§ 2291-98, 2318. These benefits, provided under federal and related state programs, include training, re-employment services, and various allowances, such as income support, job search, and relocation allowances. Id.

The Complaint indicates that plaintiffs lost their jobs at Advanced Electronics when the Company ceased its Boston manufacturing operations on September 30, 2005. Compl. ¶¶ 7-8, 10, Attach. 2 at 1 (Petition for Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (A TAA) (“Petition”)). Prior to their separations, plaintiffs had assembled and tested “subassembly” printed circuit boards and provided product support to the Company’s customers. Id. ¶ 9. On June 6, 2006, plaintiffs sought the Department’s certification of eligibility to apply for TAA and ATAA benefits. Id. ¶ 11, Attach. 2 (Petition). In July of that year, the Department issued its first notice announcing a negative determination (“First Notice”), concluding that the statutory requirements for eligibility had not been satisfied because the separations were the result of neither increases in imports of like products nor a shift in production to a foreign country. Negative Determinations Regarding Eligibility To Apply for Worker Adjustment Assistance And Alternative Trade Adjustment Assistance (July 18, 2006) (Admin. R. at 60-62) (“First Notice ”).

Plaintiffs brought this action on October 2, 2006, alleging that the negative determination was unsupported by substantial evidence or was otherwise not in accordance with law. Compl. ¶ 18. Plaintiffs moved on June 29, 2007 to supplement the administrative record in this case with additional evidence and for a remand of the case to the Department for further investigation. Pis.’ Mot. to Supplement the Admin. R. and to Remand this Case to the Department of Labor for the Consideration of All *1295 Relevant Factors (“Pis.’ Remand Mot.”) 1-2. Defendant responded with a motion for a voluntary remand, to which plaintiffs consented. Def.’s Consent Mot. for Voluntary Remand. 1 The court granted defendant’s consent motion, ordering the Department to “reopen its administrative record and investigation, reconsider its negative determination, and issue a rede-termination as to whether plaintiffs are eligible for worker adjustment assistance benefits and alternative trade adjustment assistance.” Order (Oct. 23, 2007).

Rather than setting forth a new decision upon remand, the Department’s second notice affirmed the First Notice but also announced two new findings of fact. Notice of Negative Determination On Remand (Dec. 19, 2007) (Supplemental Admin. R. at 8-10) (“Second Notice”). Plaintiffs responded to the Second Notice by moving for judgment on the agency record pursuant to USCIT Rule 56.1. Pis.’ Mot. for J. on the Admin. R. (“Pis.’ Mot. for J.”); Pis.’ Resp. to Def.’s Notice of Negative Determination on Remand in Supp. of Mot. for J. on the Admin. R. (“Pis.’ Remand Resp.”). Arguing that another remand would be futile, plaintiffs seek a court order directing Labor to certify all workers of Advanced Electronics who were laid off in September 2005. Pis.’ Mot. for J. 1; Pis.’ Remand Resp. 1. Defendant opposes plaintiffs’ motion, maintaining that Labor’s Second Notice is supported by substantial evidence and is otherwise in accordance with law. Def.’s Mem. in Opp’n to Pis.’ Mot. for J. on the Admin. R. 1 (“Def.’s Mem. in Opp’n”). Defendant requests that the court affirm Labor’s determination and dismiss this action. Id.

II. Discussion

The court exercises jurisdiction under 28 U.S.C. § 1581(d)(1), which grants the Court of International Trade exclusive jurisdiction over any civil action commenced to review final determinations by Labor on the eligibility of workers for adjustment assistance under the Act. See 28 U.S.C. § 1581(d)(1) (2000). Upon review, Labor’s findings of fact are deemed conclusive if they are supported by substantial evidence. 19 U.S.C. § 2395(b). Labor’s decisions on certification for TAA benefits are affirmed upon judicial review if they are supported by substantial evidence contained in the administrative record and are otherwise in accordance with law. Woodrum v. Donovan, 5 CIT 191, 193, 564 F.Supp. 826, 828 (1983), aff'd sub nom. Woodrum v. United States, 737 F.2d 1575, 1576 (Fed.Cir.1984).

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Bluebook (online)
587 F. Supp. 2d 1292, 32 Ct. Int'l Trade 1221, 32 C.I.T. 1221, 30 I.T.R.D. (BNA) 2321, 2008 Ct. Intl. Trade LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bao-zhu-chen-v-chao-cit-2008.