Ortega v. Usery

441 F. Supp. 100, 1977 U.S. Dist. LEXIS 13145
CourtDistrict Court, D. Connecticut
DecidedNovember 2, 1977
DocketCiv. No. B-76-296
StatusPublished
Cited by1 cases

This text of 441 F. Supp. 100 (Ortega v. Usery) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ortega v. Usery, 441 F. Supp. 100, 1977 U.S. Dist. LEXIS 13145 (D. Conn. 1977).

Opinion

RULINGS ON PLAINTIFFS’ APPLICATION FOR A PRELIMINARY INJUNCTION AND DEFENDANTS’ MOTION TO DISMISS

ZAMPANO, District Judge.

Plaintiffs commenced this class action, pursuant to 42 U.S.C. § 1983 and 28 U.S.C. §§ 2201 and 2202, to challenge the allegedly excessive delays in the processing of claims for unemployment compensation by the State of Connecticut.

In their application for a preliminary injunction, the plaintiffs seek orders to compel: 1) the Connecticut Department of Labor to issue benefits to all unemployment compensation claimants within 14 days of the end of the first week in which the claimants certify that benefits are due; 2) the federal defendant to condition unemployment compensation subsidies to the State of Connecticut on the assurance that the State will pay benefits to all interstate and intrastate claimants within those 14 days; and 3) the state defendant to provide the Court and plaintiffs’ counsel with monthly reports verifying compliance with the requested injunctive relief. The defendants counter with motions to dismiss on the ground that the complaint fails to state a claim upon which relief can be granted.

I

The general scheme of the federal-state program for the payment of unemployment compensation to eligible persons was established by Titles III and IX of the Social Security Act of 1935 (hereinafter the “Act”), as amended by the Employment Security Amendments of 1970. See 42 U.S.C. §§ 501-504 and 26 U.S.C. §§ 3301-3311. The Act provides that federal funds shall be made available to the states to assist in the administration of their unemployment compensation laws. In Connecticut, pursuant to the Unemployment Compensation Act, Conn.Gen.Stat. § 31-222 et seq., the program is administered through the Connecticut Department of Labor.

Under the Act, a state may not receive federal funding unless the Secretary of Labor is satisfied that, among other things, the state’s laws include provisions for “methods of administration . . . reasonably calculated to insure full payment of unemployment compensation when due ” (emphasis supplied), and an opportunity for a fair hearing for all claimants whose applications for benefits are denied. 42 U.S.C. § 503(a)(1) and (a)(3). However, the Act only requires that the Secretary find that the state, in the administration of its unemployment compensation laws, be in “substantial compliance” with the requirements of § 503(a). 42 U.S.C. § 503(b).

On July 23, 1976, in order to establish guidelines for benefit payment promptness by a state, the Secretary promulgated certain regulations which announced a standard that required benefit claims to be processed “with the greatest promptness that is administratively feasible”, and which set forth percentage criteria to enable the Secretary to determine whether the state was in substantial compliance with the “when due” mandate of the Act as interpreted by the Secretary’s standard. 20 C.F.R. §§ 640.4-5. According to the regulation, “substantial compliance” is deemed [103]*103satisfied if a state, within 14 days after the end of the first compensable week, has issued 60 percent of first benefit payments on all interstate claims and 80 percent of first benefit payments on all intrastate claims.

The plaintiffs contend 1) that the clear command of the “when due” provision of § 503(a)(1) is that all claims must be processed by the State within 14 days from the end of the first weekly period for which benefits are due, and 2) that the percentage standards set forth in the regulations are violative of their rights under the Due Process and Equal Protection Clauses of the Constitution.

II

The well-established rule for the issuance of a preliminary injunction is whether there has been “a clear showing of either (1) probable success on the merits and possible irreparable injury, or (2) sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly toward the party requesting the preliminary relief.” Sonesta Int’l Hotels Corp. v. Wellington Associates, 483 F.2d 247, 250 (2 Cir. 1973) (emphasis in original); Pride v. Community School Board, 482 F.2d 257, 264 (2 Cir. 1973); cf. Doran v. Salem Inn, Inc., 422 U.S. 922, 931, 95 S.Ct. 2561, 45 L.Ed.2d 648 (1975); Checker Motors Corp. v. Chrysler Corp., 405 F.2d 319, 323 (2 Cir.), cert. denied, 394 U.S. 999, 89 S.Ct. 1595, 22 L.Ed.2d 777 (1969).

The Court accepts the plaintiffs’ argument that a showing of irreparable harm has been made. While it is true that eligibility for unemployment compensation is not based solely on need and that claimants in general can tolerate delays without the hardship suffered, for example, by welfare recipients whose payments are unreasonably withheld, cf. Mathews v. Eldridge, 424 U.S. 319, 340-341, 96 S.Ct. 893, 47 L.Ed.2d 18 (1976), it must also be recognized that many unemployed persons depend on prompt aid to obtain the basic necessities of life. Cf. California Dept. of Human Resources v. Java, 402 U.S. 121, 130, 91 S.Ct. 1347, 28 L.Ed.2d 666 (1971). Moreover, the obvious Congressional intent expressed in § 503(a)(1) is to insure punctual payments of unemployment compensation to help stabilize the economy by providing support to the jobless while they seek new work. Id. at 131-132, 91 S.Ct. 1347.

However, the Court is convinced, on the basis of the present record, that the plaintiffs will not succeed on the merits at trial. The Supreme Court in Java construed the “when due” provision in § 503(a)(1) “to mean at the earliest stage of unemployment that such payments were administratively feasible after giving both the worker and the employer an opportunity to be heard.” 402 U.S. at 131, 91 S.Ct. at 1354. It seems evident that an “administratively feasible” period involves a sufficient time to make a reasonably reliable determination of eligibility. On the one hand, a state cannot delay payment for several months until all appeals have been exhausted by employers, id. at 133, 91 S.Ct.

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Bluebook (online)
441 F. Supp. 100, 1977 U.S. Dist. LEXIS 13145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortega-v-usery-ctd-1977.