Committee of Blind Vendors v. District of Columbia

736 F. Supp. 292, 1990 U.S. Dist. LEXIS 4429, 1990 WL 52574
CourtDistrict Court, District of Columbia
DecidedApril 17, 1990
DocketCiv. A. 88-0142-OG
StatusPublished
Cited by6 cases

This text of 736 F. Supp. 292 (Committee of Blind Vendors v. District of Columbia) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Committee of Blind Vendors v. District of Columbia, 736 F. Supp. 292, 1990 U.S. Dist. LEXIS 4429, 1990 WL 52574 (D.D.C. 1990).

Opinion

MEMORANDUM

GASCH, Senior District Judge.

This is a class action lawsuit brought by blind vendors and their representatives against the District of Columbia Rehabilitation Services Administration and other District of Columbia agencies. Plaintiffs claim that defendants have mismanaged the District’s Randolph-Sheppard program to the detriment of plaintiffs and the class. Plaintiffs seek a writ of mandamus to compel defendants to adhere to the Randolph-Sheppard Act, and damages of more than $800,000 for breach of contract. 1

On October 7, 1988, the Court denied defendants’ motion to dismiss or, in the alternative, for summary judgment. The Court rejected defendants’ arguments, holding that plaintiffs had standing and were not barred from seeking relief in a judicial forum for failure to exhaust their administrative remedies. Committee of Blind Vendors v. District of Columbia, 695 F.Supp. 1234, 1237-40 (D.D.C.1988). The Court also held that monetary damages were available to aggrieved vendors under the Randolph-Sheppard Act, and rejected defendants’ argument that plaintiffs’ claims were improper since the named agencies had the sole discretion to allocate agency resources. Id. at 1240-42. Finally, the Court concluded that this action met the requirements of Federal Rule of Civil Procedure 23(b)(3) and that a class action was appropriate. Id. at 1242-44.

Following an allowance of time for discovery and other pretrial matters, the Court held a five-day bench trial from December 18 to December 22, 1989. Approximately 175 exhibits comprising many hundreds of pages were received into evidence. The most significant exhibits consisted of financial audits, program compliance reviews, and correspondence between the blind vendors and the agencies. On February 8, 1990, the parties submitted their proposed findings of fact and conclusions of law. Upon consideration of the testimony of the witnesses at trial, the exhibits filed with the Court, and the entire record herein, the Court has now made its findings of fact and conclusions of law. Before elaborating these findings, however, it is necessary first to outline in broad contours the relevant provisions of the Randolph-Sheppard Act and the nature of plaintiffs’ claims.

I. THE STATUTORY FRAMEWORK

The Randolph-Sheppard Vending Stand Act, 20 U.S.C. §§ 107-107f (“the Act”), was first enacted in 1936. Its purpose was to provide employment opportunities on federal property to blind vendors, to afford them self sufficiency, and to further federal rehabilitative efforts on their behalf. 20 U.S.C. § 107(a); H.R.Rep. No. 1094, 74th Cong., 1st Sess. 2 (1936); S.Rep. No. 937, 93d Cong., 2d Sess. 5 (1974). The Act was twice amended, in 1954 and 1974. As several courts have chronicled, Congress intended through these amendments to strengthen the Act in several important respects and to confer on the blind vendors legally enforceable rights. Texas State Comm’n for the Blind v. United States, 796 F.2d 400, 402-03 (Fed.Cir.1986), cert. denied, 479 U.S. 1030, 107 S.Ct. 874, 93 L.Ed.2d 828 (1987); Delaware Dep’t of Health and Social Servs. v. United States Dep’t of Educ., 112 F.2d 1123, 1126-31 (3rd Cir.1985).

For the purposes of this lawsuit, several broad aspects of the Randolph-Sheppard program are relevant. First, the Act authorizes blind persons to operate vending facilities on federal property, and requires that blind vendors licensed under the Act be given priority to operate such facilities. 20 U.S.C. § 107(b). In the District of Columbia, vending stands are located on both federal and District government property. *296 Once a vendor becomes licensed to operate a facility, the vendor is assigned a vending stand to operate as a sole proprietor. The vendor is given an initial stock of inventory and a petty cash fund. 20 U.S.C. § 107b(2). Thereafter, the vendor is entitled to profits and responsible for losses. The vendor is also responsible for other operating expenses, including the replacement of inventory and the payment of sales tax. Management services, such as the maintenance and repair of vending equipment, are paid for through an administrative levy assessed on the net proceeds of each vendor. 34 C.F.R. § 395.9 (1988). Should the vendor choose to leave the stand or transfer to another, the vendor is required to return the start-up inventory and petty cash.

Another aspect of the program relevant to this lawsuit concerns the collection and distribution of vending machine income. The Act requires that a percentage of vending machine income obtained from machines located on federal or District property be turned over for the benefit of the blind vendors. 20 U.S.C. 107d-3. 2 This requirement was added to the Act in 1954, following congressional dissatisfaction with the limited expansion of the blind vendor program which stemmed in part from the competition presented by automatic vending machines. See Texas State Comm’n for the Blind v. United States, 6 Cl.Ct. 730, 732-34 (Ct.Cl.1984) (reviewing legislative history of the Act), rev’d on other grounds, 796 F.2d 400 (Fed.Cir.1986). If the vending machine directly competes with a vending facility, the blind licensee who operates that facility is entitled to 100% of the vending machine income. 20 U.S.C. § 107d-3(a). If the vending machine does not directly compete with a vending facility, the vendors are entitled to either 30% or 50% of the income, depending on the nature and use of the property. Id. § 107d-3(b). When no licensee is operating a facility on the property, the vending machine income is deemed “unassigned” and accrues to the blind vendors’ pension fund. Id. § 107d-3(c). See also 34 C.F.R. § 395.32.

At the federal level, the Act delegates to the Secretary of Education (“Secretary”) the responsibility for interpreting and enforcing its provisions. In turn, the Secretary is authorized to designate state licensing agencies (“SLA’s”) to operate the program at the state and local levels. The SLA’s are designated following an application and approval process through which they agree to adhere to the requirements of federal law.

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Bluebook (online)
736 F. Supp. 292, 1990 U.S. Dist. LEXIS 4429, 1990 WL 52574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/committee-of-blind-vendors-v-district-of-columbia-dcd-1990.