Giant Food, Inc. v. Department of Labor, Licensing & Regulation

722 A.2d 398, 124 Md. App. 357, 1999 Md. App. LEXIS 1
CourtCourt of Special Appeals of Maryland
DecidedJanuary 4, 1999
Docket201, Sept. Term, 1998
StatusPublished
Cited by12 cases

This text of 722 A.2d 398 (Giant Food, Inc. v. Department of Labor, Licensing & Regulation) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giant Food, Inc. v. Department of Labor, Licensing & Regulation, 722 A.2d 398, 124 Md. App. 357, 1999 Md. App. LEXIS 1 (Md. Ct. App. 1999).

Opinion

*361 ROBERT F. FISCHER, Judge,

Retired, Specially Assigned.

In this appeal, Giant Food, Inc. (“Giant”), the appellant, challenges a determination by the Board of Appeals of the Department of Labor, Licensing and Regulation (“the Board of Appeals” or “the Board”), as affirmed by the Circuit Court for Montgomery County. The determination permits truck drivers who engaged in a strike against Giant from December 15, 1996 to January 18, 1997, as well as other workers who participated in a sympathy strike, to collect unemployment benefits. Appellees are the various claimants as well as the Board of Appeals.

FACTS

Giant operates 174 grocery stores in Maryland, Delaware, Pennsylvania, Virginia, New Jersey, and the District of Columbia. The stores are supplied primarily by way of Giant’s two warehouse/distribution centers, one located in Landover, Maryland and the other located in Jessup, Maryland. Giant also operates its own beverage plant and ice cream plant in Jessup, its own dairy in Landover, and its own bakery in Silver Spring.

The evidence presented before the Board of Appeals established that Local 639 of the Teamsters Union represents the truck drivers who drive tractor trailers from the warehouse/distribution centers to the stores and who jockey trailers around inside Giant’s facilities. It was local 639 that went on strike against Giant on December 15, 1996. Based on the facts before it, the Board determined that members of the following union locals “actively participated in the Local 639 strike, by refusing to come to work and/or picketing in sympathy with 639”:

— Teamsters Local 730, which represents, among others, warehousemen, bakery sanitors, cafeteria and vending workers, ice plant workers, and salvage workers,
*362 — Teamsters Local 67, which represents workers at the beverage plant,
— Teamsters Local 355, which represents truck drivers who deliver pharmaceuticals,
— Teamsters Local 922, which represents, among others, garage helpers and facility maintenance workers,
— Teamsters Local 246, which represents dairy workers, ice cream workers, bakery drivers, and depot workers,
— Local 1486 of the International Association of Machinists, which represents garage mechanics, and
— Local 118 of the Bakery, Confectionery and Tobacco Workers International Union, which represents the bakers at the Silver Spring bakery as well as the in-store bakers.

As a result of the strike, Giant was unable to supply its grocery stores by way of its warehouse/distribution centers. Instead, it used outside wholesalers and suppliers to stock the stores. The ice cream plant, beverage plant, and dairy were shut down for the duration of the strike. The bakery was closed initially but reopened after three weeks, when the bakery workers returned. Giant estimated that it lost about $4 million in manufacturing profits. The Board found that the evidence before it established that, during the period of the strike,

(1) Giant incurred increased costs of approximately $3.9 million [to replace goods it ordinarily manufactured] ...;
(2) Giant experienced an overall decrease in customer count that ranged from 6% to 10%, depending on how it is calculated ...;
(3) Giant experienced a decrease in aggregate sales of food and drugs of 14.82% ....

The Board nevertheless determined that Giant had failed to establish that a “stoppage of work” necessary to disqualify the strikers from receiving unemployment benefits had occurred. The circuit court affirmed and commented, inter alia,: “I cannot say that the Board who is charged with the responsibility of interpreting the law at first is clearly erroneous on the law, that one could not come to that result.” The court added:

*363 “[T]he law has always been in administrative proceedings, that the gloss put on a statute by the administrator, unless it is clearly wrong, should be followed.”

ISSUES

Giant contends that the circuit court erred in applying the clearly erroneous standard to the Board’s determination and argues:

“I. The statutory disqualification of an individual from receiving unemployment benefits if ‘unemployment results from a stoppage of work ... that exists because of a labor dispute at the premises where the individual last was employed’ requires only a substantial curtailment of operations of the employer at the [specific workplace] where the individual applicant for unemployment was last employed and not of overall operations of the employer at all locations, and
II. Even assuming that a curtailment of the overall operations of an employer is legally required for the statutory disqualification to apply, the lower court erred in upholding a determination by the Board of Appeals that there was not a substantial curtailment of Giant’s overall operations as a result of the strike in question.”

STANDARD OF REVIEW

Recently, in Consumer Protection Division v. Luskin’s, Inc., 120 Md.App. 1, 22, 706 A.2d 102, cert. granted, 350 Md. 280, 711 A.2d 871 (1998), we reiterated:

Our role in reviewing the decision of an administrative agency “is precisely the same as that of the circuit court.” ... We, therefore, do not evaluate the findings of fact and conclusions of law made by the circuit court. We review the administrative decision itself, ... and not the decision of the trial court ....

(Citations omitted.) Thus, whether the circuit court applied the wrong standard of review is of no consequence if our own review satisfies us that the Board’s decision was proper.

*364 In light of the expertise of administrative agencies, “ ‘decisions of administrative agencies are prima facie correct,’ ... and ‘carry with them,the presumption of validity’ ....” Bulluck v. Pelham Wood Apartments, 283 Md. 505, 513, 390 A.2d 1119 (1978) (citations omitted). A reviewing court “may substitute its own judgment for that of the agency when resolving questions of law.” Luskin’s, 120 Md.App. at 22-23, 706 A.2d 102. See also Ramsay, Scarlett & Co., Inc. v. Comptroller of the Treasury, 302 Md. 825, 837, 490 A.2d 1296 (1985). When the question is one of fact, however, judicial review

is narrow in scope and requires the exercise of restrained and disciplined judicial judgment. ...

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722 A.2d 398, 124 Md. App. 357, 1999 Md. App. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giant-food-inc-v-department-of-labor-licensing-regulation-mdctspecapp-1999.