Nish & Goodwill Services, Inc. v. Cohen

191 F.R.D. 94, 45 Fed. R. Serv. 3d 1314, 2000 U.S. Dist. LEXIS 988, 2000 WL 130668
CourtDistrict Court, E.D. Virginia
DecidedFebruary 1, 2000
DocketNo. Civ.A. 99-1632-A
StatusPublished
Cited by5 cases

This text of 191 F.R.D. 94 (Nish & Goodwill Services, Inc. v. Cohen) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nish & Goodwill Services, Inc. v. Cohen, 191 F.R.D. 94, 45 Fed. R. Serv. 3d 1314, 2000 U.S. Dist. LEXIS 988, 2000 WL 130668 (E.D. Va. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

LEE, District Judge.

This case involves interpretation of the Randolph-Sheppard Act (the “Act”) and its applicability to appropriated fund contracts for military mess hall services. See 20 U.S.C.A. §§ 107-107Í (West 2000). Currently, seven third-party applicants (“Applicants” or “Intervenors”) seek intervention on behalf of Defendants in an effort to establish adequate representation for blind business vendors employed by the federal government under the auspices of the Act. The issue before the Court is whether Applicants may intervene in this action as third parties with an “interest relating to the [controversy]” strong enough that “disposition of the action may ... impair or impede [their] ability to protect that interest.” Fed.R.Civ.P. 24(a)(2). For the reasons stated below, the Court opines that Applicants meet the requisite criteria and will be allowed to restrictively intervene in the present controversy.

I. BACKGROUND

Applicants are citizen advocacy organizations and government entities that represent the interests of blind business vendors licensed under the Randolph-Sheppard Act. They include all of the following groups, each of which has filed a motion to intervene in the present action: (1) Randolph-Sheppard Vendors of America; (2) American Council of the Blind; (3) National Educational and Legal Defense Services for the Blind; (4) Virginia Facilities Vendors Council; (5) National Federation of the Blind; (6) Texas Commission for the Blind; and (7) Oklahoma Department of Rehabilitation Services.1

The Act is a federal statute designed to ensure that the maximum number of vending facilities are operated by licensed blind individuals on federal and other property. The Act and its implementing regulations require that one or more vending facilities owned or operated by blind entrepreneurs be established on each federal property. See 20 U.S.C.A. § 107(b)(2) (West 2000); 34 C.F.R. § 395.30(a) (1999). The extension of the Act in 1974 to include military dining facilities created an opportunity for blind business owners to develop managerial and entrepreneurial skills.

In the present case, Plaintiffs NISH and Goodwill Services, Inc. (“Plaintiffs”) seek a declaratory judgment that the Act does not apply to contracts for the operation of mili[96]*96tary mess hall services. Not including the aforementioned Applicants, the United States Department of Defense and the United States Department of the Army are the only named Defendants in the suit.

II. STANDARD OF REVIEW

FRCP 24(a)(2) reads:

(a) Intervention of Right. Upon timely application anyone shall be permitted to intervene in an action:
(2) when the applicant claims an interest relating to the property or transaction which is the subject of the action and the applicant is so situated that the disposition of the action may as a practical matter impair or impede the applicant’s ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.

Fed.R.Civ.P. 24(a)(2).

An applicant is entitled to intervention of right if the applicant can demonstrate the following: (1) an interest in the subject matter of the action; (2) that the protection of this interest would be impaired without intervention; and (3) that the applicant’s interest is not adequately represented by existing parties to the litigation. See Teague v. Bakker, 931 F.2d 259, 260-61 (4th Cir.1991); see also Newport News Shipbuilding and Drydock Co. v. Peninsula Shipbuilders’ Ass’n, 646 F.2d 117, 120 (4th Cir.1981). A district court is entitled to the full range of reasonable discretion in determining whether these requirements are met. See Rios v. Enterprise Ass’n Steamfitters Local Union No. 638 of U.A., 520 F.2d 352, 355 (2d Cir. 1975).

Nonetheless, a mere “general” interest in the subject matter of the litigation will not constitute a protectable interest within the meaning of FRCP 24(a)(2). See Dairy Maid Dairy, Inc. v. United States, 147 F.R.D. 109, 111 (E.D.Va.1993). Instead, to be protected, the “intervenor’s claim must bear a close relationship to the dispute between the existing litigants and ... be direct, rather than remote or contingent.” See id. (citing 3B James' Wm. Moore et al„ Moore’s Federal Practice ¶ 24.07[2]).

III. DISCUSSION

Guided by FRCP 24(a)(2) and the Fourth Circuit precedent outlined above, the Court finds that Applicants’ adequately satisfy the benchmark for federal intervention.

A. Interest in the Subject Matter of the Action

To begin, it is clear from the pleadings that Applicants have a direct interest in the subject matter of the ease. One of the primary goals each organization shares is promoting the welfare of the blind. Each advocacy organization’s membership includes blind business owners who have been awarded military dining contracts in the past and prospective blind business owners who intend to bid on such contracts in the future. The income and future job opportunities of these members are, in many ways, contingent on the outcome of this action. For example, Plaintiffs’ success in their quest for injunc-tive and declaratory relief could potentially reduce both the number of blind business owner contracts and the number of jobs available to blind people. This reduction would adversely affect earning capacity which, as a consequence, could directly and negatively impact each of the Applicants— including the state government entities applying for intervention. See generally Feller v. Brock, 802 F.2d 722, 729 (4th Cir.1986).

The interests of the state government applicants, however, do not end there. For instance, state licensing agencies are charged with the duty of implementing the Act in their respective states. They must submit bids for the military dining facilities, negotiate with the facilities, and enter into contracts to manage the facilities. As such, only those same state licensing agencies can properly represent the interests of, for example, Texas and Oklahoma, to ensure that the various programs under the Act are conducted in the states’ best interests. Moreover, eliminating the current military dining facility agreements between the military and blind licensees could cause considerable financial hardship to the state entity applicants since [97]*97each receives a percentage of the net proceeds from these contracts.

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191 F.R.D. 94, 45 Fed. R. Serv. 3d 1314, 2000 U.S. Dist. LEXIS 988, 2000 WL 130668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nish-goodwill-services-inc-v-cohen-vaed-2000.