Former Employees of Henderson Sewing MacHines v. United States Secretary of Labor

265 F. Supp. 2d 1346, 27 Ct. Int'l Trade 513, 27 C.I.T. 513, 25 I.T.R.D. (BNA) 1466, 2003 Ct. Intl. Trade LEXIS 35
CourtUnited States Court of International Trade
DecidedMarch 25, 2003
DocketSLIP OP. 03-35; Court 01-00883
StatusPublished
Cited by1 cases

This text of 265 F. Supp. 2d 1346 (Former Employees of Henderson Sewing MacHines v. United States 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 Henderson Sewing MacHines v. United States Secretary of Labor, 265 F. Supp. 2d 1346, 27 Ct. Int'l Trade 513, 27 C.I.T. 513, 25 I.T.R.D. (BNA) 1466, 2003 Ct. Intl. Trade LEXIS 35 (cit 2003).

Opinion

OPINION

TSOUCALAS, Senior Judge.

Plaintiffs, Former Employees of Henderson Sewing Machines (“plaintiffs”), *1348 move pursuant to USCIT R. 56.1 for judgment upon the agency record or, in the alternative, for a re-remand of this case for further investigation, challenging the United States. Secretary of Labor’s (“Labor”) determinations entitled: (1) Notice of Negative Determination on Remand of Henderson Sewing Machine Company, Inc. Andalusia, Georgia (“Negative Determination II”), 67 Fed.Reg. 18,927 (April 17, 2002); and (2) Notice of Determinations Regarding Eligibility To Apply for Worker Adjustment Assistance and NAFTA Transitional Adjustment Assistance {“Negative Determination I”), 66 Fed. Reg. 47,240 (Sept. 11, 2001). Specifically, plaintiffs contend that Labor erred in denying plaintiffs’ certification of eligibility for trade adjustment assistance.on the basis that plaintiffs did not produce an article, plaintiffs did not qualify as support service workers and Henderson did not produce an article affected by increased imports that contributed importantly to plaintiffs’ separation from Henderson.

JURISDICTION

The Court has jurisdiction over this matter pursuant to 19 U.S.C. § 2395(c) (2000) and 28 U.S.C. § 1581(d)(1) (2000).

STANDARD OF REVIEW

In reviewing a challenge to Labor’s determination of eligibility for trade adjustment assistance, the Court will uphold Labor’s determination if it is supported by substantial evidence on the record and is otherwise in accordance with law. See 19 U.S.C. § 2395(b) (2000); Former Employees of Marathon Ashland Pipeline v. Chao, 26 CIT -, -, 215 F.Supp.2d 1345, 1350 (2002) (citing Woodrum v. Donovan, 5 CIT 191, 193, 564 F.Supp. 826, 828 (1983), aff'd, Woodrum v. United States, 737 F.2d 1575 (Fed.Cir.1984)); Former Employees of Barry Callebaut v. Herman, 25 CIT -, -, 177 F.Supp.2d 1304, 1308-09 (2001). Pursuant to 19 U.S.C. § 2395(b), Labor’s findings of fact are conclusive if they are supported by substantial evidence. See 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 Regiomontana, S.A v. United States, 10 CIT 399, 405, 636 F.Supp. 961, 966 (1986), ajfd, 810 F.2d 1137 (Fed.Cir.1987); see also Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938). “Additionally, ‘the rulings made on the basis of those findings [must] be in accordance with the statute and not .be arbitrary and capricious, and for this purpose the law requires a showing of reasoned analysis.’ ” Former Employees of Marathon Ashland, 26 CIT at -, 215 F.Supp.2d at 1350 (quoting Former Employees of General Electric Corp. v. U.S. Dep’t of Labor, 14 CIT 608, 610-11 (1990) (citation omitted)).

Moreover, although “ ‘the nature and extent of the investigation are matters resting properly within the sound discretion of [Labor,]’ ” Former Employees of Galey & Lord Indus, v. Chao, 26 CIT-,-, 219 F.Supp.2d 1283, 1286 (2002) (quoting Former Employees of CSX Oil & Gas Corp. v. United States, 13 CIT 645, 651, 720 F.Supp. 1002, 1008 (1989) (citation omitted)), ‘“[g]ood cause [to remand] exists if [Labor’s] chosen methodology is so marred that [Labor’s] finding is arbitrary or of such a nature that it could not be based on substantial evidence.’” Former Employees of Galey & Lord Indus., 26 CIT at-, 219 F.Supp.2d at 1286 (quoting Former Employees of Barry Callebaut, 25 CIT at -, 177 F.Supp.2d at 1308 (citations omitted)). “However, in evaluating the evidence underlying [Labor’s] conclusions, the court may consider only the administrative record before it.” Former Employees Marathon Ashland, 26 CIT at -, 215 F.Supp.2d at 1350.

*1349 DISCUSSION

I. Labor’s Decision to Deny Plaintiffs Trade Adjustment Assistance

A. Background

On June 29, 2001, Henderson’s vice president signed a petition for tráde adjustment assistance (“TAA”) under Section 221(a) of the Trade Act of 1974, as amended (that is, 19 U.S.C. § 2271(a) (2000)), which was filed with Labor on behalf of plaintiffs who were separated from employment with Henderson on June 22, 2001. 1 See Admin. R. at 1.

In response to the petition, Labor initiated an investigation to determine whether plaintiffs were entitled to-TAA. During the investigation, Labor: (1) reviewed the June 29, 2001, petition and accompanying attachments, see Def.’s Resp. Opp’n Pis.'’ Mot. J. Agency R. (“Def.’s Resp. Opp’n”) at 2; (2) sent a “Business Confidential Data Request” form to Henderson, see Admin. R. at 11-13 (confidential version); and (3) “surveyed [Henderson’s] major declining customers.” Def.’s Resp. Opp’n at 3; see also Admin. R. at 14-17 (confidential version). The June 29, 2001, petition signed by Henderson’s vice president described plaintiffs’ jobs at Henderson as “accounting” 2 and indicated a response of “textile industry” to a question asking for “a description of the articles (products) produced by the firm ... [to] include such information as the common and technical names of the articles, [as well as] the method of manufacture.” Admin. R. at 1. On July 16, 2001, Henderson’s vice president completed the “Business Confidential Data Request” form providing sales and employment data, but no production data. See Admin. R. at 11 (confidential version). Additionally, Henderson’s vice president' indicated that Henderson manufactures sewing machine parts. See id.; see also Admin. R. at 3.

Subsequent to the investigation, Labor in its “Findings of the Investigation” revealed in pertinent part that

[w]orkers [that is, the plaintiffs in this action] at the Henderson Sewing Machine Company, Inc. in Andulusia, Alabama were engaged in accounting services for the company. The subject firm is involved in sales and distribution of industrial sewing machine parts.

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265 F. Supp. 2d 1346, 27 Ct. Int'l Trade 513, 27 C.I.T. 513, 25 I.T.R.D. (BNA) 1466, 2003 Ct. Intl. Trade LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-henderson-sewing-machines-v-united-states-secretary-of-cit-2003.