Former Employees of Merrill Corp. v. United States

387 F. Supp. 2d 1336, 29 Ct. Int'l Trade 874, 29 C.I.T. 874, 27 I.T.R.D. (BNA) 2022, 2005 Ct. Intl. Trade LEXIS 100
CourtUnited States Court of International Trade
DecidedJuly 28, 2005
DocketSlip Op. 05-91; Court 03-00662
StatusPublished
Cited by6 cases

This text of 387 F. Supp. 2d 1336 (Former Employees of Merrill Corp. v. United States) 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 Merrill Corp. v. United States, 387 F. Supp. 2d 1336, 29 Ct. Int'l Trade 874, 29 C.I.T. 874, 27 I.T.R.D. (BNA) 2022, 2005 Ct. Intl. Trade LEXIS 100 (cit 2005).

Opinion

Opinion

CARMAN, Judge.

This matter comes before this Court on Plaintiffs’ Motion for Judgment upon an Agency Record pursuant to USCIT Rule 56.1 (“Plaintiffs’ 56.1 Motion”). Plaintiffs challenge the United States Department of Labor’s (“Labor” or “Defendant”) determination regarding the agency’s denial of Plaintiffs’ claim for trade adjustment assistance under the Trade Act of 1974 (“Trade Act”), 19 U.S.C. §§ 2291-2298 (2000). Notice of Determinations Regarding Eligibility to Apply for Worker Adjustment Assistance and NAFTA Transitional Adjustment Assistance (“Initial Results”), 68 Fed.Reg. 43,372 (Dep’t Labor July 22, 2003). After voluntary remand, Labor upheld its initial decision. Merrill Corporation, St. Paul, MN; Notice of Negative Determination on Reconsideration on Remand (“Remand Results”), 69 Fed.Reg. 20,645 (Dep’t Labor Apr. 16, 2004). This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1581(d) (2000).

As set forth below, this Court holds that the Remand Results are not supported by substantial evidence. Accordingly, this matter is REMANDED to Labor for fur *1339 ther investigation consistent with the specific instructions contained herein.

Background

Plaintiffs were employed by Merrill Corporation (“Merrill”). (Former Employees of Merrill Corp.’s Mem. of P. & A. in Supp. of a USCIT R. 56.1 Mot. for J. upon an Agency Rec. (“Pis.’ 56.1 Mot.”) at 1.) As a result of market and technology changes, in June 2003, Merrill announced the elimination of certain positions at its St. Paul, Minnesota, and Boston/Woburn operations. (AR at 3.) The eliminated employees worked as typesetters, proofreaders, and conversion specialists. (Pis.’ 56.1 Mot. at 3.)

Merrill Corporation is a communications and document services company providing printing[,] photocopying and document management services to the financial, legal and corporate markets. Merrill’s services integrate traditional composition, imaging and printing services with online document management and distribution technology for the preparation and distribution of business-to-business communication material.

(AR at 12.) Merrill is organized in four business groups: Financial Document Services (FDS), Document Management Services (DMS), Strategic Communication Services (SCS), and Print and Operations Group. (Pis.’ 56.1 Mot. at 2.) Among the documents that Merrill provides its clients are “SEC compliance documents, annual reports and other financial documents, and promotional materials.” (AR at 13.)

Plaintiffs were part of the FDS group. (Pis.’ 56.1 Mot. at 2.) Plaintiffs’ application for TAA stated that the separated employees produced “typeset and html [sic] financial, corporate & legal documents for printing and filing with the SEC.” (AR at 2.) Typesetters at Merrill received faxed, electronic, and hard copy documents from Merrill’s Customer Service group. (Suppl. AR at 10.) The typesetters then typed, edited, and formatted documents to meet customer and SEC specifications. (Suppl. AR at 10.) Proofreaders audited documents for accuracy. (Suppl. AR at 10.) Once the documents were finalized, Merrill filed them with the SEC. (Suppl. AR at 10.) Merrill provided printed copies of SEC filings at the customer’s request. (Suppl. AR at 10.) Merrill’s Customer Service group arranged for document printing. (Suppl. AR at 10.)

On June 10, 2003, Plaintiffs filed for Trade Adjustment Assistance (“TAA”). Investigations Regarding Certifications of Eligibility To Apply for Worker Adjustment Assistance, 68 Fed.Reg. 41,182, 41,-183 (July 10, 2003). Labor issued a negative determination for worker adjustment assistance after finding that Plaintiffs’ former employer did not produce an “article” as required for certification under the Trade Act. Initial Results, 68 Fed.Reg. at 43,372-73.

On September 9, 2003, Plaintiffs requested judicial review from this Court of Labor’s negative determination. (Suppl. AR at 1.) This Court granted Defendant’s motion for voluntary remand for further investigation. Former Employees of Merrill Corp. v. U.S. Dep’t of Labor, 28 CIT -, 2004 WL 34548 (CIT2004). In its remand notice, Labor affirmed its original determination, denying Plaintiffs’ request for certification for TAA because the items produced by Merrill “have no commercial value and the company is a service provider....” Remand Results, 69 Fed.Reg. 20,645. Plaintiffs’ objected to the Remand Results and filed Plaintiffs’ 56.1 Motion. Plaintiffs’ 56.1 Motion is fully briefed, and the case is now ready for this Court’s determination.

*1340 Parties’ Contentions

I. Plaintiffs’ Contentions

Firstly, Plaintiffs contend that the Labor concluded that Merrill was a service provider after an inadequate investigation. (Pis.’ 56.1 Mot. at 4.) Plaintiffs charge that Labor ignored Merrill’s statements that it produced printed materials. (Pis.’ 56.1 Mot. at 4.) Plaintiffs also argue that Merrill considers itself a manufacturer rather than a service provider. (Pis.’ 56.1 Mot. at 4.)

Secondly, Plaintiffs allege that Labor applied an incorrect standard in determining that Merrill did not produce an article for purposes of the Trade Act. (Pis.’ 56.1 Mot. at 4.) Plaintiffs stated that there is no basis in law, statute, or legislative history for Labor’s position that because the documents Merrill produced had no commercial value they were not articles under the Trade Act. (Pis.’ 56.1 Mot at 4-5.)

Thirdly, application of existing case law to the facts of this case makes clear that Merrill produces an article for purposes of the Trade Act. (Pis.’ 56.1 Mot. at 5.) The documents that Merrill produces are “tangible commodities” and “new and different articles.” (Pis.’ 56.1 Mot. at 5.) As such, the displaced workers produced an “article” as the term is contemplated in the Trade Act. (Pis.’ 56.1 Mot. at 5.)

II. Defendant’s Contentions

Labor argues that the Court should sustain the remand results because they are in accordance with the law and supported by substantial evidence. (Def.’s Mem. in Opp’n to Pis.’ Mem. of P. & A. in Supp. of USCIT R. 56.1 Mot. for J. upon the Agency R. (“Def.’s Resp.”) at 6.) Labor asserts that a threshold requirement of the Trade Act is that the company from which the affected workers were separated produce an “article.” (Def.’s Resp. at 7.) From the information Labor compiled during its investigation, it concluded that the documents Merrill produces are “not commercially marketable and are not sold or marketed individually or as a component to an article as required by the Trade Act” and that “Merrill is a service provider.” (Def.’s Resp. at 8.) Labor notes that there is no dispute between the parties about “what product petitioners created.” (Def.’s Resp. at 8.) According to Labor, “the only issue before the Court is whether Labor properly applied the law in concluding that Merrill did not create an ‘article’.... ” (Def.’s Resp. at 8.)

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387 F. Supp. 2d 1336, 29 Ct. Int'l Trade 874, 29 C.I.T. 874, 27 I.T.R.D. (BNA) 2022, 2005 Ct. Intl. Trade LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-merrill-corp-v-united-states-cit-2005.