Former Employees of Hawkins Oil & Gas, Inc. v. U.S. Secretary of Labor

15 Ct. Int'l Trade 653
CourtUnited States Court of International Trade
DecidedDecember 23, 1991
DocketCourt No. 90-02-00083
StatusPublished

This text of 15 Ct. Int'l Trade 653 (Former Employees of Hawkins Oil & Gas, Inc. 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
Former Employees of Hawkins Oil & Gas, Inc. v. U.S. Secretary of Labor, 15 Ct. Int'l Trade 653 (cit 1991).

Opinion

Opinion

Tsoucalas, Judge:

Pursuant to Rule 56.1 of the Rules of this Court, plaintiffs, former employees of Hawkins Oil and Gas, Inc. (“Hawkins”),1 move for judgment upon the agency record. Plaintiffs maintain there is insufficient evidence on the administrative record to sustain the U. S. Department of Labor’s (“Labor”) decision to deny their petition for certification of eligibility for trade adjustment assistance as provided in 19 U.S.C. § 2371 (1988). Labor maintains its determination is supported by substantial evidence on the administrative record and, therefore, should be affirmed.

The Court’s jurisdiction is properly grounded on 19 U.S.C. § 2395 (1988) and 28 U.S.C. § 1581(d)(1) (1988). In accordance with the standard of review set forth therein, the Court cannot, in good conscience, affirm a determination based on what appear to be questionable investigative procedures. The administrative record developed during the investigation, notably scant, strongly indicates that Labor’s investigative endeavors were, at best, lax. This, despite the fact that the action was initially remanded at Labor’s request. Consequently, this case must be remanded once again.

Background

In response to a petition filed by plaintiffs, Labor, on October 23, 1989, initiated an investigation to determine whether they were entitled to trade adjustment assistance. Plaintiffs’ petition, denied on December 18,1989, noted that plaintiffs had failed to fulfill the necessary criteria. Specifically, Labor determined that increased imports of like or directly competitive articles had not contributed importantly to the [654]*654workers’ separation. On December 28, 1989, Mr. Rowell, on behalf of the separated workers, requested reconsideration of Labor’s determination. This appeal was dismissed on January 17, 1990, because Labor deemed the request for reconsideration did “not present evidence that the Department erred or new facts of a substantive nature bearing on the determination.” Administrative Record (Public) (“AR”) at 49. The instant action followed.

Labor’s investigation, conducted by Ms. Bettyjane Coker, reveals that plaintiffs had been employed by Hawkins, a company principally engaged in the exploration and production of crude oil and natural gas. A significant portion of Hawkins’ revenues, however, flowed from management services it provided for unaffiliated oil companies. Sometime between June 1989 and July 1989, Hawkins placed plaintiffs on lay-off status, citing economic setbacks in the oil business as the reason for their separation.

Labor’s investigation consisted primarily of a short questionnaire completed by a Hawkins representative and a survey of a majority of the firm’s customers. Hawkins’ responses to the questionnaire appear obviously careless and incomplete. Pertinent questions such as whether the separated workers were identifiable by group, and whether the firm perceived that imports had an adverse effect on its sales and employment needs were answered inconclusively. Confidential Administrative Record at 28-38. Additionally, no inquiry was made as to what impact, if any, imports of oil and natural gas had made on Hawkins’ exploration activities. Finally, although the questionnaire appears to have been returned unsigned or otherwise authenticated, Labor made no effort to verify the information contained therein.

The survey of Hawkins’ patrons consisted of a telephonic survey of a majority of Hawkins’ major customers. Each company was interviewed via a contact person who apparently was asked only one question: Whether, in lieu of purchasing oil and gas from Hawkins, they engaged in the importation of crude oil or natural gas during the period of investigation. The companies contacted responded negatively. Here again, no effort was made to verify the data received.

The administrative record also includes statistical data on the state of the national oil and gas industry during the period of investigation. AR at 23-24. Ironically, Labor’s investigation determined that aggregate U.S. imports of like or directly competitive articles increased during the period studied. AR at 39.

On the basis of this limited investigation, Labor reached its initial negative determination. Upon the commencement of this action, Labor agreed to a remand to allow reevaluation of plaintiffs’ petition. The supplemental administrative record developed on remand indicates that although Labor collected additional financial information on the subject firm, vital areas of inquiry were again disregarded.

[655]*655Discussion

Congress introduced trade adjustment assistance in the Trade Act of 1974, codified at 19 U.S.C. § 2271 et seq. (1982 & Supp. II 1984). The law was designed to provide temporary financial assistance for workers who have been partially or totally displaced as a result of increased imports. Former Employees of Parallel Petroleum. v. U.S. Secretary of Labor, 14 CIT 114, 118, 731 F. Supp. 524, 527 (1990); Former Employees of Linden Apparel Corp. v. United States, 13 CIT 467, 715 F. Supp. 378, 379 (1989). Entitlement to the benefits is governed by 19 U.S.C. § 2272 (1988). That section provides in pertinent part:

Group eligibility requirements; agricultural workers; oil and natural gas industry
(a) The Secretary shall certify a group of workers (including workers in any agricultural firm or subdivision of an agricultural firm) as eligible to apply for adjustment assistance under this part if he determines—
(1) that a significant number or proportion of the workers in such workers’ firm or an appropriate subdivision of the firm have become totally or partially separated, or are threatened to become totally or partially separated,
(2) that sales or production, or both, of such firm or subdivision have decrease absolutely, and
(3) that increases of imports of articles like or directly competitive with articles produced by such workers’ firm or an appropriate subdivision thereof contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production.

Because the 1984 provision was perceived to exclude a group of workers most affected by increased imports — those employed by firms engaged exclusively in oil and gas exploration activities, Congress amended 19 U.SU. § 2272 to specifically encompass such workers. The amendment, embodied in the Omnibus Trade and Competitiveness Act of 1988, states:

(2) (A) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas, shall be considered to be a firm producing oil or natural gas.

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Related

Cherlin v. Donovan
585 F. Supp. 644 (Court of International Trade, 1984)
Woodrum v. Donovan
564 F. Supp. 826 (Court of International Trade, 1983)
Former Employees of Linden Apparel Corp. v. United States
715 F. Supp. 378 (Court of International Trade, 1989)
Former Employees of Parallel Petroleum Corp. v. U.S. Secretary of Labor
731 F. Supp. 524 (Court of International Trade, 1990)
Stidham v. United States Department of Labor
669 F. Supp. 432 (Court of International Trade, 1987)

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Bluebook (online)
15 Ct. Int'l Trade 653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-hawkins-oil-gas-inc-v-us-secretary-of-labor-cit-1991.