Bennett v. U.S. Secretary of Labor

20 Ct. Int'l Trade 788
CourtUnited States Court of International Trade
DecidedJune 26, 1996
DocketCourt No. 93-02-00080
StatusPublished

This text of 20 Ct. Int'l Trade 788 (Bennett v. U.S. Secretary of Labor) 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
Bennett v. U.S. Secretary of Labor, 20 Ct. Int'l Trade 788 (cit 1996).

Opinion

Opinion

Musgrave, Judge:

Plaintiff moves this Court for judgment upon the agency record overturning the negative remand determination of the Department of Labor (“Labor”) in this case (Negative Determination On Reconsideration (60 Fed. Reg. 19413 (April 18, 1995)). Plaintiff also requests a second remand ordering a further investigation. Plaintiff contends that Labor’s negative remand determination denying his petition seeking eligibility for certification of trade adjustment assistance benefits is not supported by substantial evidence and is not in accordance with law. On the basis of plaintiffs motion, Labor’s opposition thereto, and plaintiffs reply, the Court finds that Labor’s negative remand determination is based on substantial evidence and is otherwise in accordance with law pursuant to the Trade Act of 1974 as amended, 19Ú.S.C. § 2272 and 19U.S.C. § 2395 (1988). The Court entertains jurisdiction to determine this matter under 19 U.S.C. § 2395 (c).

Negative determinations by Labor denying certification for trade adjustment assistance eligibility are upheld by this Court if they are supported by substantial evidence. 19 U.S.C. § 2395(b). “Substantial evidence is something more than a ‘mere scintilla,’ and must be enough reasonably to support a conclusion.” Ceramica Regiomanta, S.A. v. United States, 10 CIT 399, 405, 636 F. Supp. 961, 966 (1986), aff'd, 5 Fed Cir. (T) 77, 810 F.2d 1137 (1987) (citations omitted). The Court may remand a trade adjustment assistance case and order Labor to conduct further investigations if “good cause [is] shown.” 19 U.S.C. § 2395(b). “‘Good cause’ exists if [Labor’s] chosen methodology is so marred that [the] finding is arbitrary or of such a nature that it could not be based on substantial evidence.” Former Employees of Linden Apparel Corp. v. U.S., 13 CIT 467, 469, 715 F. Supp. 378, 381 (1989) (quotations omitted).

Background

Plaintiff is a former toolmaker at Allied Signal’s Tempe, Arizona plant. Plaintiff made tools that were incorporated into machines such as lathes, and production workers used those tools to produce finished goods. The Tempe plant produces, inter alia, M-1 Abrams tank valve [789]*789systems, jet engine starters, and other hardware for use in military and civilian aircraft. Plaintiff alleged in his petition that the transfer of some tooling and tooling operations to Allied Signal’s Singapore plant caused his unemployment such that he is entitled to relief under 19 U.S.C. § 2272.

In order for a production worker separated from a firm to be certified, 19 U.S.C. § 2272(a)(2) requires that “sales or production, or both, of such firm or subdivision [must] have decreased absolutely”; 19 U.S.C. § 2272(a)(3) further requires that “the increases of imports or articles like or directly competitive with articles produced by such workers’ firm * * * [must have] contributed importantly to such total or partial separation * * * and to such decline in sales or production.” (emphasis added) On October 13, 1992, Labor published the notice of its negative determination basing its finding on § 2272(a)(3): Labor determined pursuant to that provision that “increased imports [of like products] did not contribute importantly to worker separations at the firm.” (Determinations Regarding Eligibility To Apply For Worker Adjustment Assistance, 57 Fed. Reg. 46880 (October 13,1992)). Plaintiff appealed Labor’s negative determination and the Court ordered a remand (Bennett v. United States Secretary of Labor, 18 CIT 1063, Slip Op. 94-179, (November 18, 1994)).

The Court identified several reasons for ordering the remand. The Court found that Labor: (1) failed to interview plaintiffs listed witnesses; (2) relied on unsupported, conclusory statements made by Allied Signal’s Compensation and Benefits Manager, Mr. Roche, in concluding that production was not transferred from the Arizona to the Singapore plant; (3) performed a flawed survey of Allied Signal’s customers in connection with its import substitution investigation; (4) based its determination on imports of military parts even though plaintiff alleged that he worked on civilian applications; and (5) failed to explain how the data it collected demonstrated that production had not decreased or that imports did not cause the unemployment. Accordingly, the remand order declared:

Ordered that in its remand the Department of Labor shall investigate allegations made by plaintiffs eye-witness, Mr. Jack Reese, and plaintiffs list of witnesses provided by Mr. Jeffrey Whitehead; and it is further
Ordered that in its remand the Department of Labor shall request and verify all supporting documentation and explain the relevance of this information as it relates to its determination; * * *

After conducting the further investigations ordered by the Court, Labor published its Negative Determination On Reconsideration at 60 Fed. Reg. 19413 (April 18, 1995).

Discussion

In connection with its reconsideration, Labor sent letters to plaintiffs witnesses whom it could locate, who comprised most of the witnesses [790]*790listed by plaintiff. In response to the letter, plaintiffs eyewitness and former foreman, Mr. Reese, refused to provide sworn testimony to Labor. However, plaintiffs attorney, Mr. Weiss, submitted an affidavit to the Court testifying that statements made by Mr. Reese and attached to his affidavit accurately and truly reflected an interview he conducted with Mr. Reese. During that conversation, Mr. Reese reported to Mr. Weiss that his refusal to supply sworn testimony was based upon a termination agreement with Allied Signal in which he agreed not to disclose certain information. Mr. Reese further reported, [ ] Mr. Reese provided the same information to Labor in a telephonic conversation, and also advised Labor that he was in possession of no extrinsic evidence that would corroborate his assertions. With regard to the other witnesses whom Labor could locate, Labor sent them the initial negative determination along with a request for any information they possessed which would suggest that the initial determination was erroneous. Each witness replied that he possessed no such information. Although plaintiff contends that these latter witnesses would not have been forthcoming with any contradictory evidence due to their reluctance to impugn the assertions by their current superior, Mr. Roche, the form letters made no reference to Mr. Roche and there is no evidence on the record that the alleged intimidation was actual. The Court finds that Labor’s efforts ¿dequately discharged its duty to interview plaintiffs witnesses.

In order to rectify its undue reliance on the conclusory statements of Allied Signal’s Compensation and Benefits Manager, Mr.

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Related

Abbott v. Donovan
570 F. Supp. 41 (Court of International Trade, 1983)
Ceramica Regiomontanam, S.A. v. United States
636 F. Supp. 961 (Court of International Trade, 1986)
Former Employees of Linden Apparel Corp. v. United States
715 F. Supp. 378 (Court of International Trade, 1989)

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Bluebook (online)
20 Ct. Int'l Trade 788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bennett-v-us-secretary-of-labor-cit-1996.