Fogo De Chao (Holdings) Inc. v. United States Department of Homeland Security

769 F.3d 1127, 413 U.S. App. D.C. 39, 2014 U.S. App. LEXIS 20107, 2014 WL 5327688
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 21, 2014
Docket13-5301
StatusPublished
Cited by88 cases

This text of 769 F.3d 1127 (Fogo De Chao (Holdings) Inc. v. United States Department of Homeland Security) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Fogo De Chao (Holdings) Inc. v. United States Department of Homeland Security, 769 F.3d 1127, 413 U.S. App. D.C. 39, 2014 U.S. App. LEXIS 20107, 2014 WL 5327688 (D.C. Cir. 2014).

Opinions

Opinion for the Court filed by Circuit Judge MILLETT.

Dissenting opinion filed by Circuit Judge KAVANAUGH.

MILLETT, Circuit Judge:

Fogo de Chao (Holdings), Inc., operates numerous Brazilian steakhouse restaurants, known as churrascarías, in Brazil and the United States. According to Fogo de Chao, a critical component of its success has been the employment in each of its restaurants of genuine gaucho chefs, known as churrasqueiros, who have been raised and trained in the particular culinary and festive traditions of traditional barbecues in the Rio Grande do Sul area of Southern Brazil.

[1130]*1130But of late, Fogo de Chao’s efforts to bring authentic Brazilian churrasqueiro chefs into its United States restaurants have hit a legal roadblock. Federal immigration law provides what are known as L-1B visas to qualifying multinational businesses, which permit them to temporarily transfer foreign employees possessing “specialized knowledge” into the United States. From 1997 to 2006, the Department of Homeland Security granted Fogo de Chao over 200 L-1B visas for its churrasqueiros. In 2010, Fogo de Chao sought to transfer another churras-queiro chef, Rones Gasparetto, to the United States, reasoning that his distinctive cultural background and extensive experience cooking and serving meals in the churrasco style constitute “specialized knowledge.” The Administrative Appeals Office within the Department of Homeland Security concluded, however, that Gasparetto’s cultural background, knowledge, and training could not, as a matter of law, constitute specialized knowledge. Unable to discern either (i) a sufficiently reasoned path in the Appeals Office’s strict bar against culturally based skills, or (ii) substantial evidence supporting its factual finding that Gasparetto did not complete the company training program, we reverse and remand the district court’s grant of summary judgment to the government.

I. Background

A. Statutory and Regulatory Framework

1. In 1970, Congress amended the Immigration and Nationality Act, 8 U.S.C. §§ 1101 et seq., to create a nonimmigrant visa program for qualifying employees of multinational companies that are being transferred to the United States. See Pub.L. No. 91-225, 84 Stat. 116, 116 (1970). As amended, the Act provides that a temporary, nonimmigrant visa may be issued to an alien who, after being employed continuously by the sponsoring employer for at least one year in the three years preceding his or her application, seeks to enter the United States to continue working for that employer (or an affiliate) “in a capacity that is managerial, executive, or involves specialized knowledge^]” 8 U.S.C. § 1101(a)(15)(L).1 A visa granted to an employee whose work entails specialized knowledge is commonly referred to as an L-1B visa, while a visa for managerial or executive employees is known as an L-1A visa. The “specialized knowledge” L-1B visa is at issue in this case.

The 1970 Act did not define “specialized knowledge,” and the term has been subject to varying regulatory definitions. By 1987, the formal regulatory definition of “specialized knowledge” was “knowledge possessed by an individual whose advanced level of expertise and proprietary knowledge of the organization’s product, service, research, equipment, techniques, management, or other interests of the employer are not readily available in the United States labor market.” 52 Fed.Reg. 5738, 5752 (Feb. 26, 1987) (codified at 8 C.F.R. § 214.2(i)(l)(ii)(D) (1988)).

In 1990, Congress displaced that regulation with its own statutory definition, providing that an employee has specialized [1131]*1131knowledge “if the alien has a special knowledge of the company product and its application in international markets or has an advanced level of knowledge of processes and procedures of the company.” 8 U.S.C. § 1184(c)(2)(B); see also Immigration Act of 1990, Pub.L. No. 101-649, § 206(b)(2)(B), 104 Stat. 4978, 5023.

The Immigration and Naturalization Service has since promulgated a regulatory definition of “specialized knowledge” that essentially tracks the new statutory language, defining it as “special knowledge possessed by an individual of the petitioning organization’s product, service, research, equipment, techniques, management, or other interests and its application in international markets, or an advanced level of knowledge or expertise in the organization’s processes and procedures.” 8 C.F.R. § 214.2(Z )(l)(ii)(D).2

2. Under the current regulations, a company seeking to classify an alien as eligible for an L-1B visa must file a petition with the Secretary. 8 C.F.R. § 214.2(l)(2)(i). Included with the petition must be:

(ii) Evidence that the alien will be employed in [a] * * * specialized knowledge capacity, including a detailed description of the services to be performed[;]
(iii) Evidence that the alien has at least one continuous year of full-time employment abroad with a qualifying organization within the three years preceding the filing of the petition[; and]
(iv) Evidence that the alien’s prior year of employment abroad was in a position that * * * involved specialized knowledge and that the alien’s prior education, training, and employment qualifies him/ her to perform the intended services in the United States; however, the work in the United States need not be the same work which the alien performed abroad.

Id. § 214.2(l)(3).

While no other regulatory definition of “specialized knowledge” has been promulgated, internal agency memoranda have provided additional guidance. Specifically, in March 1994, James Puleo, the Acting Executive Associate Commissioner of the Immigration and Naturalization Service, issued a memorandum elaborating on the proper interpretation of “specialized knowledge.” The Puleo Memorandum counseled that common dictionary definitions of the key terms “special” and “advanced” should be used. “Special” thus signifies “surpassing the usual; distinct among others of a kind” or “distinguished by some unusual quality; uncommon; .noteworthy.” Memorandum of James A. Puleo, Acting Executive Assoc. Comm’r, Immigration and Naturalization Service, Interpretation of Special Knowledge at 1 (March 9, 1994), reproduced in J.A. 42 (quoting Webster’s II New RiveRside University DictionaRY and Webster’s Third New International Dictionary). While an employee’s knowledge need not be proprietary or unique, the Puleo Memorandum explained, the knowledge must still be different or uncommon and not generally found in the particular industry. Id.

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769 F.3d 1127, 413 U.S. App. D.C. 39, 2014 U.S. App. LEXIS 20107, 2014 WL 5327688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fogo-de-chao-holdings-inc-v-united-states-department-of-homeland-cadc-2014.