New York v. United States Postal Service

690 F. Supp. 1346, 1988 U.S. Dist. LEXIS 8273, 1988 WL 80458
CourtDistrict Court, S.D. New York
DecidedAugust 1, 1988
DocketNo. 86 Civ. 2853 (JMC)
StatusPublished
Cited by7 cases

This text of 690 F. Supp. 1346 (New York v. United States Postal Service) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York v. United States Postal Service, 690 F. Supp. 1346, 1988 U.S. Dist. LEXIS 8273, 1988 WL 80458 (S.D.N.Y. 1988).

Opinion

CANNELLA, District Judge:

Defendants’ motion for judgment on the pleadings is denied. Fed.R.Civ.P. 12(c). The action is stayed pending exhaustion of applicable administrative remedies.

BACKGROUND

This action for declaratory and injunctive relief has been brought by The State of New York, Cesar Perales, in his capacity as Commissioner of the New York State Department of Social Services, the New York State Commission for the Blind and Visually Handicapped [“CBVH”], and Gary Serra-pica, Chester Smalley and Murray Dimon, individual blind vendors, to challenge certain policies and practices of defendants United States Postal Service [the “Postal Service”] and the Postmaster General of the United States. The complaint alleges widespread and systemic violations of the Randolph-Sheppard Act, 20 U.S.C. §§ 107-107e [the “Act”] and violations of the Rehabilitation Act of 1973, 29 U.S.C. § 794.

The complaint states two claims for relief. In their first claim, plaintiffs allege that defendants are violating the Act by (1) failing to establish vending facilities for blind vendors wherever feasible on Postal Service properties; (2) failing to grant blind vendors priority in operating vending facilities on these properties; and (3) improperly denying vending machine income to blind vendors and the CBVH. In their second claim, plaintiffs allege that defendants are engaging in a pattern and practice of giving less desirable facilities to blind vendors than those given to private contractors, in violation of section 504 of the Rehabilitation Act of 1973. Plaintiff CBVH is the bureau of the New York State Department of Social Services designated as the State licensing agency under the Act. As such, CBVH operates New York State’s vending program for blind individuals. It obtains the necessary permits to operate facilities on federal property and trains and licenses blind individuals to operate the facilities.

DISCUSSION

A. The Statutory Scheme

The Randolph-Sheppard Act was first enacted in 1936 and was designed to provide employment opportunities to blind vendors operating on federal property. The Act was amended in 1954 and 1974. Under the Act, the Secretary of Education has the responsibility to promulgate regulations designed to implement the Act. 20 U.S.C. § 107(b). For example, the Secretary is [1348]*1348directed to prescribe regulations ensuring that:

(1) priority ... is given to ... licensed blind persons ..., and
(2) wherever feasible, one or more [blind] vending facilities are established on all Federal property to the extent that any such facility or facilities would not adversely affect the interests of the United States.

Id. § 107(b)(1), (2). The Act also provides for the accrual to the State agency of income “obtained from the operation of vending machines on Federal property” where there is no blind licensee operating on the property. Id. § 107d-3(a).

Under the statutory scheme the Secretary designates state licensing agencies, such as the CBVH, which proceed to license blind vendors. Id. § 107a(a)(5); 34 C.F.R. § 395.7. The state licensing agencies then apply to various federal agencies for permits allowing them to establish sites for the blind vendors on federal property. Id. § 107a(c); 34 C.F.R. §§ 395.16, 395.35. When a dispute arises, the Act provides that:

(a) Any blind licensee who is dissatisfied with any action arising from the operation or administration of the vending facility program may submit to a State licensing agency a request for a full evidentiary hearing, which shall be provided by such agency in accordance with section 107b(6) of this title. If such blind licensee is dissatisfied with any action or decision rendered as a result of such hearing, he may file a complaint with the Secretary who shall convene a panel to arbitrate the dispute pursuant to section 107d-3 of this title, and the decision of such panel shall be final and binding on the parties except as otherwise provided for in this chapter.
(b) Whenever any State licensing agency determines that any department, agency, or instrumentality of the United States that has control of the maintenance, operation, and protection of Federal property is failing to comply with the provisions of this chapter or any regulations issued thereunder (including a limitation on the placement or operation of a vending facility as described in section 107(b) of this title and the Secretary’s determination thereon) such licensing agency may file a complaint with the Secretary who shall convene a panel to arbitrate the dispute pursuant to section 107d-2 of this title, and the decision of such panel shall be final and binding on the parties except as otherwise provided in this chapter.

Id. §§ 107d-l(a), (b). Section 107d-2(a) of the Act provides:

Upon receipt of a complaint filed under section 107d-l of this title, the Secretary shall convene an ad hoc arbitration panel as provided in subsection (b) of this section. Such panel shall, in accordance with the provisions of subchapter II of chapter 5 of Title 5, give notice, conduct a hearing, and render its decision which shall be subject to appeal and review as a final agency action for purposes of chapter 7 of such Title 5.

Id. § 107d-2(a).

B. Exhaustion Under the Randolph-Sheppard Act

Defendants do not challenge the merits of plaintiffs’ claims. Instead, they argue that the action must be dismissed because plaintiffs have failed to resort to the administrative remedies provided for in the Act.1 Plaintiffs oppose defendants’ motion essentially on the grounds that resort to administrative remedies is not man[1349]*1349datory under the Act and, given the circumstances, arbitration is not an adequate remedy. Thus, the issue presented is squarely one of whether the Act requires plaintiffs to seek administrative relief prior to commencing an action in federal court.

Defendants point to several cases which support their position, although none emanate from this circuit. In Randolph-Sheppard Vendors of America v. Weinberger, 795 F.2d 90 (D.C.Cir.1986), organizations representing blind vendors challenged two contracts awarded by the Secretary of Defense on the ground that they were not made in accordance with the Act. Reaching the merits, the district court granted summary judgment in favor of the defendants. On appeal, the decision was vacated on the ground that plaintiffs had failed to exhaust their administrative remedies. Id. at 111.

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Cite This Page — Counsel Stack

Bluebook (online)
690 F. Supp. 1346, 1988 U.S. Dist. LEXIS 8273, 1988 WL 80458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-v-united-states-postal-service-nysd-1988.