Woodrum v. Donovan

564 F. Supp. 826, 5 Ct. Int'l Trade 191, 5 C.I.T. 191, 1983 Ct. Intl. Trade LEXIS 2551
CourtUnited States Court of International Trade
DecidedMay 10, 1983
DocketCourt 80-12-00105
StatusPublished
Cited by69 cases

This text of 564 F. Supp. 826 (Woodrum 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
Woodrum v. Donovan, 564 F. Supp. 826, 5 Ct. Int'l Trade 191, 5 C.I.T. 191, 1983 Ct. Intl. Trade LEXIS 2551 (cit 1983).

Opinion

On Plaintiffs’ Motion Pursuant to Rule 56.1 for Review of Administrative Determination upon Agency Record

RE, Chief Judge:

In this action, plaintiffs, on behalf of the former employees of Capital Chrysler Plymouth of Montgomery, Inc., of Montgomery, West Virginia, challenge a determination by the Secretary of Labor denying them certification of eligibility for benefits under the worker adjustment assistance program of the Trade Act of 1974, 19 U.S.C. §§ 2101-2487 (1976). In substance, the Secretary found that plaintiffs were service workers employed by a firm that did not produce an article within the meaning of *827 section 222(3) of the Trade Act of 1974, 19 U.S.C. § 2272(3) (1976).

On July 26, 1982, this court, in Woodrum v. Donovan, 3 CIT -, 544 F.Supp. 202 (1982), rehearing denied, Woodrum v. Donovan, 4 CIT-, Slip Op. 82-78 (September 17, 1982), remanded the case to the Secretary of Labor for further administrative proceedings. This court held that the Secretary’s failure to comply with the procedural requirements of the statute had prejudiced plaintiffs’ rights. Specifically, the Secretary was instructed to conduct a factual inquiry as to the ownership of Capital Chrysler Plymouth and the nature of the work performed by plaintiffs, and make a redetermination regarding plaintiffs’ eligibility for benefits.

In compliance with the court’s order, the Secretary conducted an investigation, and on November 10,1982, submitted a redeter-mination and supplemental administrative record. The Secretary’s investigation disclosed that plaintiffs were engaged in the preparation and servicing of new Chrysler automobiles prior to their retail sale by Capital Chrysler Plymouth. Moreover, it established that plaintiffs’ employing firm was an independently owned and operated automobile dealership. The Secretary again denied plaintiffs’ petition for certification of eligibility for benefits because, in the Secretary’s view, plaintiffs were service workers employed by a firm that did not produce an article within the meaning of section 222(3). 47 Fed.Reg. 49116 (Oct. 29, 1982).

After reviewing the original and supplemental administrative records and the arguments and briefs of the parties, the court holds that the Secretary’s denial of certification is supported by substantial evidence and in accordance with law.

The Secretary of Labor is required to certify a petitioning group of workers as eligible for trade adjustment assistance benefits if he determines:

(1) that a significant number or proportion of the workers in such workers’ firm or an appropriate subdivision of the firm have become totally or partially separated, or are threatened to become totally or partially separated,
(2) that sales or production, or both, of such firm or subdivision have decreased absolutely, and
(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. [Emphasis added.]

Trade Act of 1974, § 222, 19 U.S.C. § 2272 (1976).

Plaintiff’s petition was denied because it failed to satisfy the third eligibility criterion, i.e., plaintiffs’ employer, Capital Chrysler Plymouth, did not produce an article that had been adversely affected by increased imports.

In this action, plaintiffs’ principal contention is that the Secretary of Labor misconstrued section 222(3) by interpreting narrowly the term “produced” to apply only to workers manufacturing the import-impacted articles. In particular, plaintiffs claim that, regardless of the nature of their work, the court should consider them as part of the production process for new Chrysler automobiles because their labor was essential to the final delivery of those automobiles to the general public. Plaintiffs further claim that they actually performed installation and assembly procedures which were a necessary part of the production process.

Plaintiffs also submit that the Secretary’s interpretation of section 222(3), as a practical matter, has resulted in dissimilar treatment of similarly situated workers. Plaintiffs complain that the Secretary’s determination invidiously discriminates, with respect to the receipt of trade adjustment assistance benefits, between employees of automobile dealerships controlled or substantially owned by automobile manufacturing companies, and employees of independently owned dealerships.

*828 On remand, in support of their petition, the named plaintiffs offered affidavits describing the nature and extent of their duties at Capital Chrysler Plymouth. In their affidavits, plaintiffs Woodrum and Johnson stated that they were mechanics for the subject firm. As part of their work, they inspected and prepared new Chrysler cars prior to their retail sale. They made all final adjustments on the automobiles, “including setting the timing, front end alignments, checking the oil, inspecting the rods, tightening the wheels, and other tasks.” If any mechanical defects existed in the automobiles, plaintiffs Woodrum and Johnson repaired them. On occasion, these repairs consisted of the replacement of defective engines, transmissions and differentials. Plaintiffs also were responsible for the installation of some dealer options, such as radios.

Plaintiff Dorsey’s affidavit disclosed that he was a lot boy, who also inspected and prepared new Chrysler cars for Capital Chrysler Plymouth prior to their retail sale. He performed many of the same routine adjustments to the new cars as plaintiffs Woodrum and Johnson. Plaintiff Dorsey stated that employees of Capital Chrysler Plymouth installed various dealer options, such as radios, air conditioning, power steering and brakes, clocks, cruise control and racing stripes. However, nowhere in his affidavit did plaintiff Dorsey indicate that he installed any of these dealer options.

All three plaintiffs indicated that Chrysler Corporation paid Capital Chrysler Plymouth between $40 and $100 per automobile for the final inspection and “prep” work. Plaintiffs claimed that without the work they performed on new Chrysler cars prior to retail sale, those vehicles were unfinished and not suitable for sale as new cars. In essence, plaintiffs argue that their efforts constituted the final link in the production process. Hence, they submit they are entitled to be certified as eligible for worker adjustment assistance benefits. Plaintiffs maintain that their expansive reading of the term “produced” is consistent with the remedial purpose of the trade adjustment assistance program of the Trade Act of 1974.

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Bluebook (online)
564 F. Supp. 826, 5 Ct. Int'l Trade 191, 5 C.I.T. 191, 1983 Ct. Intl. Trade LEXIS 2551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodrum-v-donovan-cit-1983.