McDonough v. United States Department of Labor

646 F. Supp. 478, 8 I.T.R.D. (BNA) 1909, 1986 U.S. Dist. LEXIS 18738
CourtDistrict Court, D. Maine
DecidedOctober 22, 1986
DocketCiv. 86-0262-P
StatusPublished
Cited by7 cases

This text of 646 F. Supp. 478 (McDonough v. United States Department of Labor) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonough v. United States Department of Labor, 646 F. Supp. 478, 8 I.T.R.D. (BNA) 1909, 1986 U.S. Dist. LEXIS 18738 (D. Me. 1986).

Opinion

MEMORANDUM OF DECISION AND ORDER

GENE CARTER, District Judge.

This matter, a declaratory judgment action to resolve a dispute between Plaintiffs, Patricia M. McDonough, Commissioner of Labor, Maine Department of Labor, and Seth W. Thornton, Executive Director, Bureau of Employment Security, Maine Department of Labor (Maine), and Defendants, United States Department of Labor (DOL), William Brock, Secretary of the DOL, and Robert J. Semler, Acting Regional Administrator of the Employment and Training Administration, DOL, regarding the meaning of title II, section 231 of the Trade Act of 1974, as amended in 1981 by P.L. 97-35, 19 U.S.C. § 2291 (1982), is now before the Court on Plaintiff-Intervenors’ Motion for a Temporary Restraining Order. Plaintiff-Intervenors are individuals who receive Trade Readjustment Assistance (TRA) benefits under the Act. They seek to restrain DOL from taking any action: (1) requiring the termination of their TRA benefits; (2) requiring the redetermination of their eligibility for TRA benefits; and (3) *480 requiring the assessment of overpayments against them because of their prior receipt of TRA benefits pending final determination of this action. For the reasons set forth below, the Court denies the Motion for a Temporary Restraining Order.

I.

The TRA program was originally enacted by Congress as part of the Trade Act of 1974. Under the Act, TRA benefits are payable to eligible workers who lose their jobs as a result of competition from foreign imports. As authorized by the Act, 19 U.S.C. § 2311(a), DOL entered into an agreement with Maine on March 28, 1975, under which Maine administers the TRA program within the State. Maine is bound by the agreement to perform its functions and duties “in accordance with the Act and the regulations and procedures prescribed thereunder.” The applicable regulations are currently found at 29 C.F.R. §§ 91.1-91.66 (1986).

In 1981, Congress amended the statutory provisions relating to TRA by enacting the Omnibus Budget Reconciliation Act of 1981, P.L. No. 97-35. Among the other changes made by the ■ 1981 amendments was the omission of the word “last” from the phrase “[s]uch worker’s [last] total or partial separation.” 19 U.S.C. § 2291(a)(1). 1 It is this omission that has culminated in the current dispute between Maine and DOL.

The Maine Unemployment Insurance Commission, which makes final agency decisions on individual claims for TRA benefits, has interpreted the amended statutory language as effecting no change in meaning from the 1974 Act. In other words, Maine interprets the current statute to require that eligibility be based on the most recent or last separation. The DOL has notified Maine of its position that the amended language should be read to mean “first separation” and has instructed Plaintiff Thornton not to apply the Maine interpretation of the statutory language. DOL has also proposed, but has never adopted, regulations implementing the DOL interpretation of this statutory language. Plaintiff-Intervenors claim that they will remain eligible to receive benefits under the interpretation urged by Maine but will be ineligible for benefits under the DOL interpretation.

In order to resolve this dispute, Maine filed the present declaratory judgment action. Subsequent to Maine’s initiation of this action, the Secretary of Labor, as authorized by 19 C.F.R. § 91.63(e), has scheduled an administrative hearing for Wednesday, October 22, 1986 on the issue of Maine’s compliance with the Act. At this hearing, Maine will be permitted to argue in favor of its interpretation of section 2291. If as a result.of this hearing the Secretary finds that his interpretation of the 1981 amendment is controlling and that Maine has consequently breached its obligations under the agreement between the parties, Maine is subject to automatic sanctions under 26 U.S.C. § 3302(c). 29 C.F.R. § 91.63(e).

The Plaintiff-Intervenors specifically ask this Court to enjoin this administrative pro *481 ceeding. In support of their request, they allege that DOL has instituted the proceedings: (1) in retaliation for the filing by Maine of its request for declaratory judgment; (2) in order to remove jurisdiction from this Court to its own forum in Washington, D.C.; (3) to force Maine to give up its request for declaratory judgment in this Court due to the “threat” of severe monetary sanctions; and (4) to eliminate the participation of Plaintiff-Intervenors as a party in the resolution of this matter.

II.

A. Justiciability

In order to maintain its action for injunctive relief against an administrative proceeding, Plaintiff-Intervenors must demonstrate that their action is ripe for resolution and not “abstract or hypothetical or remote.” K. Davis, Administrative Law Treatise § 25.1, at 350 (2d ed. 1983). Although issues of ripeness tend to overlap with issues of standing, reviewability, and exhaustion, the ripeness doctrine focuses on the types of functions that courts should perform; its foundation lies in the Article III requirement of a ‘case’ or ‘controversy.’ Id. Consequently, ripeness is a predicate upon which the Court’s jurisdiction in its absolute, and not discretionary, sense is based.

The United States Supreme Court has discussed the concept of ripeness as applied to requests for injunctive relief against agency action. In Abbott Laboratories v. Gardner, 387 U.S. 136, 87 S.Ct. 1507, 18 L.Ed.2d 681 (1967), the Court noted that the basic rationale of the doctrine “is to prevent the courts, through avoidance of premature adjudication, from entangling themselves in abstract disagreements over administrative policies, and also to protect the agencies from judicial interference until an administrative decision has been formalized and its effects felt in a concrete way by the challenging parties.” Id. at 148-49, 87 S.Ct. at 1515. The Court went on to describe the doctrine as encompassing two aspects: one, “the fitness of the issues for judicial decision,” and two, “the hardship to the parties of withholding court consideration.” Id. at 149, 87 S.Ct. at 1515. Plaintiff-Intervenors’ request fails both tests.

First, there is no controversy between Plaintiff-Intervenors and DOL that is fit for decision. The administrative hearing that is to begin this very day is designed to formalize DOL’s position regarding its interpretation of the controlling statutory language.

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Bluebook (online)
646 F. Supp. 478, 8 I.T.R.D. (BNA) 1909, 1986 U.S. Dist. LEXIS 18738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonough-v-united-states-department-of-labor-med-1986.