ILWU LOCAL 142 v. Donovan

678 F. Supp. 307, 12 Ct. Int'l Trade 87, 12 C.I.T. 87, 1988 Ct. Intl. Trade LEXIS 5
CourtUnited States Court of International Trade
DecidedJanuary 28, 1988
DocketCourt 83-5-00779
StatusPublished
Cited by9 cases

This text of 678 F. Supp. 307 (ILWU LOCAL 142 v. Donovan) 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
ILWU LOCAL 142 v. Donovan, 678 F. Supp. 307, 12 Ct. Int'l Trade 87, 12 C.I.T. 87, 1988 Ct. Intl. Trade LEXIS 5 (cit 1988).

Opinion

MEMORANDUM OPINION AND ORDER

RE, Chief Judge:

Pursuant to Rule 56.1 of the rules of the court, plaintiff has moved for an order directing that judgment in this action be entered in its favor upon the agency record.

In response to plaintiff’s motion, defendant moved for an order remanding this action to the Department of Labor for a period of 60 days, pursuant to Rule 1 of the rules of the court. Plaintiff has cross-moved for denial of defendant’s motion for remand, and submits that the court render judgment upon the record now before it.

In ILWU Local 142 v. Donovan, 9 CIT 620 (1985), plaintiff, on behalf of former employees of the Puna Sugar Company, challenged the Secretary of Labor’s denial of certification of eligibility for benefits under the trade adjustment assistance program of the Trade Act of 1974, tit. II, §§ 221-249, 284, 19 U.S.C. §§ 2271-2321, 2395 (1982). 9 CIT at 620. The court held that the Secretary’s determination that increases in raw sugar imports did not contribute importantly to the workers’ separation from employment was not supported by substantial evidence contained in the record, and was not in accordance with law. Id. On plaintiff's motion, the court vacated the Secretary’s determination, and remanded the case to the Secretary for a redetermination of eligibility for trade adjustment assistance benefits. Id. at 625-26.

Contending that the court failed to consider several issues raised in defendant’s opposition to plaintiff’s motion, the defendant moved for a rehearing. ILWU Local 142 v. Donovan, 10 CIT -, Slip Op. 86-28, at 2 (Mar. 13, 1986). After due consideration, the court held that the defendant had not satisfied the requirements for the granting of a rehearing and denied the defendant’s motion. ILWU Local 142 v. Donovan, 10 CIT -, Slip Op. 86-28, at 12. In its motion for a rehearing, the defendant urged the contention or argument which is now the subject of its motion for remand. In essence, the defendant justified the Secretary’s denial of benefits under the trade adjustment assistance program, 19 U.S.C. §§ 2271-2321 (1982), because of its finding or conclusion that the 1981 increase in imports of raw sugar was ultimately exported under the government’s drawback program. Slip Op. 86-28,. at 2-3; see 19 U.S.C. § 1313 (1982). In customs law, a drawback is a repayment of duties paid upon goods previously imported into the United States and used in the manufacture or production of articles which are then exported. See Nicholas & Co. v. United States, 7 Ct.Cust.App. 97, 110 (1916), aff'd, 249 U.S. 34, 39 S.Ct. 218, 63 L.Ed. 461 (1919).

Under the drawback program, the full amount, less 1 percent, of the import duties paid for merchandise used in the manufacture or production of goods exported, is refunded. Hence, the defendant concluded that the imported raw sugar was simply being refined in the United States and then exported, thus having no effect on the domestic production of raw sugar. On judicial review, however, this court held that the Secretary, in effect, had done no more *309 than to present certain data on the drawback program without having evaluated it or explained its relevance to the Secretary’s determination. ILWU Local 142 v. Donovan, 10 CIT -, Slip Op. 86-28, at 11.

After having denied the defendant’s motion for rehearing, the court remanded the case to the Secretary for a redetermination of the question of the certification of eligibility. In compliance with the court’s order, the Secretary conducted a further investigation, and submitted a redetermination. The Secretary also submitted a supplemental administrative record, together with a copy of the Notice of Further Determination which reaffirmed the initial denial of certification of the former employees of the Puna Sugar Company. 51 Fed.Reg. 18,388 (1986). The Secretary, however, all but abandoned an earlier emphasis on the availability of High Fructose Corn Syrup (HFCS) as a more important cause of worker separations than raw sugar imports. See id.; see also ILWU Local 142 v. Donovan, 9 CIT at 624-25. (Secretary’s emphasis on HFCS as more important cause of worker separation not supported by evidence). The Secretary’s redetermination focused instead on the drawback argument.

In response to the Secretary’s redetermination, on remand, the plaintiff moved for judgment upon the agency record, contending, that defendant’s reliance on the drawback program, was unfounded. Defendant responded to plaintiff’s motion by cross-moving for a remand.

The court is empowered to review a decision by the Secretary which denies certification of eligibility for trade adjustment assistance benefits to assure that the determination is supported by substantial evidence, and is in accordance with law. 19 U.S.C. § 2395(c) (1982). After careful review of the administrative record and of the briefs of the parties, the court again remands the action to the Secretary for further proceedings in accordance with this opinion.

For the Secretary to certify a petitioning group of workers as eligible, his investigation must disclose, among other things:

(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.

19 U.S.C. § 2272(3) (Supp.III 1985).

In ILWU v. Donovan, 9 CIT 620, the court vacated the determination of the Secretary of Labor and remanded the case to the Secretary for a thorough inquiry, and redetermination. In remanding the case, the court stated, “[sjince the Secretary may wish to take additional evidence on matters pertaining to the workers’ petition, it is noted that ‘the Secretary’s latitude on remand extends to the full scope of his function under the Act.’ ” 9 CIT at 625-26 (quoting International Union v. Marshall, 584 F.2d 390, 396 (D.C.Cir.1978)).

After reviewing the workers’ petition on remand, the Secretary redetermined that the petition should be denied. The redetermination issued by the Secretary, however, abandoned the earlier emphasis on the increased use of HFCS, and focused instead on the effect of the government’s drawback program on the increased importation of raw sugar in 1981 and the separation of workers from employment. Conceding that reconsideration is within the Secretary’s authority on remand, the plaintiff does not dispute the use of a new rationale.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Peer Bearing Co. v. United States
57 F. Supp. 2d 1200 (Court of International Trade, 1999)
Bethlehem Steel Corp. v. United States
27 F. Supp. 2d 201 (Court of International Trade, 1998)
D & L Supply Co. v. United States
19 Ct. Int'l Trade 698 (Court of International Trade, 1995)
ILWU Local 142 v. Donovan
15 Ct. Int'l Trade 584 (Court of International Trade, 1991)
Koyo Seiko Co., Ltd. v. United States
746 F. Supp. 1108 (Court of International Trade, 1990)
Borlem S.A.-Empreedimentos Industriais v. United States
710 F. Supp. 797 (Court of International Trade, 1989)
Serampore Industries Pvt. Ltd. v. United States Department of Commerce
696 F. Supp. 665 (Court of International Trade, 1988)
Alhambra Foundry Co., Ltd. v. United States
685 F. Supp. 1252 (Court of International Trade, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
678 F. Supp. 307, 12 Ct. Int'l Trade 87, 12 C.I.T. 87, 1988 Ct. Intl. Trade LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ilwu-local-142-v-donovan-cit-1988.