Source: https://law.justia.com/cases/federal/appellate-courts/F2/749/856/359494/
Timestamp: 2019-08-23 00:33:18
Document Index: 569600330

Matched Legal Cases: ['§ 231', '§ 231', '§ 351', '§ 231', '§ 231', '§ 231', '§ 231', '§ 231', '§ 231', '§ 3201']

Railway Labor Executives' Association, Petitioner, v. United States Railroad Retirement Board, Respondent, 749 F.2d 856 (D.C. Cir. 1984) :: Justia
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Railway Labor Executives' Association, Petitioner, v. United States Railroad Retirement Board, Respondent, 749 F.2d 856 (D.C. Cir. 1984)
US Court of Appeals for the District of Columbia Circuit - 749 F.2d 856 (D.C. Cir. 1984)
Argued Oct. 30, 1984. Decided Dec. 5, 1984
The Railway Labor Executives' Association ("RLEA") seeks review, pursuant to 45 U.S.C. §§ 231g and 355(f), of a decision of the Railroad Retirement Board ("the Board") which determined that Canadian employees of United States railroads operating in Canada ceased to be covered by the Railroad Retirement Act of 1974 ("RRA"), 45 U.S.C. §§ 231-231t, and the Railroad Unemployment Insurance Act ("RUIA"), 45 U.S.C. §§ 351-367, as of April 10, 1978, the effective date of certain Canadian immigration regulations. The issue on review is whether the Board properly construed the Canadian Immigration Act, 1976 2d Sess., ch. 52, Sec. 10, and the 1978 regulations issued thereunder, as requiring United States railroads operating in Canada to employ, in whole or in part, Canadian citizens or residents, so as to bring such workers within the exceptions to covered service found in section 231(d) (3) of the RRA and section 351(e) of the RUIA. We find that the Board's decision lacked any coherent articulation of what types of foreign law restrictions on hiring are sufficient to satisfy the requirement language found in sections 231(d) (3) and 351(e) and consequently lacked any reasoned analysis of why these Canadian regulations come within the meaning of these two sections. We also find that the record on which the Board acted is inadequate to support its apparent conclusion concerning the actual effects of the Canadian law and regulations. We vacate the Board's decision and remand for further proceedings.
Together the RRA and RUIA provide a system of retirement and unemployment benefits for railroad workers. Both Acts define an employee as an individual in the service of an employer for compensation or an employee representative. 45 U.S.C. §§ 231(b) (1), 351(d). An individual in the service of an employer is covered under the Acts whether the service is performed inside or outside the United States. 45 U.S.C. §§ 231(d) (1), 351(e). Both Acts, however, contain the following exception to covered service:
45 U.S.C. §§ 231(d) (3), 351(e) (emphasis added). It is this exception, contained in both Acts, that is at the heart of the controversy. The Board asserts that Canadian immigration regulations require United States railroads operating in Canada to employ Canadians. Consequently, the Canadian employees are excepted from coverage under RRA and RUIA by virtue of sections 231(d) (3) and 351(e), respectively. The RLEA asserts that the Canadian regulations in question do not require the railroads to hire Canadians, hence the exceptions to covered service do not apply.
The Canadian Immigration Act provides that any noncitizen or nonresident of Canada seeking to enter Canada for the purpose of engaging in employment must obtain an employment authorization prior to appearing at a port of entry.1 Immigration Act, 1976 2d Sess., ch. 52, Sec. 10. Regulations issued by the Canadian Minister of Employment and Immigration pursuant to the Immigration Act, 1976 2d Sess., ch. 52, Sec. 115(1) (j), establish the guidelines for the issuance of employment authorizations. See 112 Can.Gaz., Part II, No. 5, Secs. 18-20 (March 8, 1978). Section 20 of the regulations provides in relevant part:
(3) In order to form an opinion for the purposes of paragraph (1) (a), an immigration officer shall consider
(4) For the purpose of considering the question set out in paragraphs (3) (a) and (c), an immigration officer shall consult an officer of the National Employment Service serving the area in which the person seeking an authorization wishes to engage in employment.2
I am of the opinion that this statute constitutes a law requiring the employment of Canadian citizens or permanent residents "in whole or in part" for railroad operations in Canada. Consequently, for [sic] months after April 9, 1978, service in Canada by Canadian citizens and permanent residents of Canada employed by United States railroads operating in Canada is not covered under the Railroad Retirement Act and the Railroad Unemployment Insurance Act by virtue of sections 1(d) (3) of the Railroad Retirement Act and 1(e) of the Railroad Unemployment Insurance Act.
The Board frames the issue in this case as: " [W]hether the Board's interpretation of the RRA and the RUIA, the statutes which it administers, as they are affected by Canadian law and regulations and Canada's application of them to United States companies, has a reasonable basis in law." Brief for Board at 10. The RLEA, on the other hand, argues that the Board's decision was based upon a determination of foreign law and as such is entitled to no deference. The RLEA asserts that the "question involved in the case at bar is a pure question of statutory and regulatory construction of Canadian law in determining the applicability of the exceptions from covered service contained in 45 U.S.C. §§ 231(d) (3), 351(e), [thus] this court should review the matter de novo." Brief for RLEA at 7. We cannot accept the RLEA's contention that the issue in this case is solely an issue of the determination of foreign law. Clearly, what is at issue here is the interplay between the exception to coverage provisions of the RRA and RUIA and Canadian law. Although we basically accept the Board's statement of the issue in this case, that does not bring in its wake an acceptance of the Board's idea of the high level of deference to be accorded its decision.
The Board's determination of Canadian law is entitled to no deference from this court. Bamberger v. Clark, 390 F.2d 485, 488 (D.C. Cir. 1968) (overturning agency's determination of German law). This is purely a question of law and the court is free to make its own independent determination of Canadian law.7 In the present case, however, we are not being asked to make an isolated determination of foreign law but rather to determine whether the relevant provisions of foreign law come within the meaning of sections 231(d) (3) and 351(e). To make this latter determination, we must first know the meaning of sections 231(d) (3) and 351(e), i.e., the standard or criteria to be used in assessing and evaluating Canadian law.
It is well established that an agency's construction of its own governing statutes is entitled to considerable deference. Chevron U.S.A., Inc. v. Natural Resources Defense Council, --- U.S. ----, 104 S. Ct. 2778, 2782-83, 81 L. Ed. 2d 694 (1984). In Chevron, the Supreme Court articulated the appropriate framework for analysis:
Congress, in the RRA and RUIA, has granted the Board broad authority to exercise the duties and powers necessary to administer and enforce the Acts, including the authority to determine which employees are covered. See 45 U.S.C. §§ 231f(b) (1), 362(l) . Thus the Board has been implicitly delegated the task of elaborating the standard in question. The principal argument advanced by the RLEA, however, is that the plain meaning of the requirement language in Secs. 231(d) (3) and 351(e) is controlling, and that no reasonable construction of the Canadian regulations can be deemed to create a requirement in whole or in part to hire Canadians. See Brief for RLEA at 8-12. Specifically, the RLEA argues that the word "require," as defined in the dictionary and construed in the case law,8 connotes the idea of compulsion--an act which is mandatory or compelled. Brief for RLEA at 10. Moreover, the RLEA appears to assert that the terms "in whole or in part" mean a quota or absolute percentage. See Brief for RLEA at 12. Given this construction of sections 231(d) (3) and 351(e), the RLEA asserts that the Board made an erroneous determination of Canadian law because the Canadian regulations do not on their face require the hiring of Canadians but merely "set forth criteria for immigration officers to use in making a determination as to whether an employment authorization shall issue in a specific instance." See Brief for RLEA at 9.
Although the RLEA's plain meaning argument is plausible and even superficially appealing, we ultimately reject it. The language of sections 231(d) (3) and 351(e) simply does not compel the narrow, literal interpretation advanced by the RLEA. The statutory terms at issue, "required under the laws" and "in whole or in part," do not have one plain meaning in the context of this case, but rather are subject to varying interpretations. For instance "required under the laws" may refer to express provisions mandating the hiring of Canadians, or provisions which on their face create such a strong preference so as to in effect compel the hiring of Canadians, or provisions which appear facially neutral but, as implemented, operate to compel the hiring of Canadians. Similarly, a requirement "in part" may be interpreted to mean a requirement that an absolute percentage or quota of Canadians must be hired or that Canadians must be hired to fill certain types of jobs.
In sum, the plain words contained in the RRA and RUIA exceptions to covered service do not compel us to adopt any particular meaning. Moreover, nothing in the legislative history of these provisions gives us any clue as to the meaning Congress intended.9 Finally, this appears to be the first time the Board has been called upon to interpret these provisions, hence we have no past Board interpretations to consider. Thus, we must defer to the Board's interpretation of its own governing statutes, provided its interpretation has a reasonable basis. See Itel Corp. v. United States Railroad Retirement Board, 710 F.2d 1243, 1245 (7th Cir. 1983).
Our task in determining the reasonableness of the Board's decision is not to interpret the statutes as we think best but only to inquire as to whether the Board's interpretation is " 'sufficiently reasonable' to be accepted by a reviewing court." Federal Election Commission v. Democratic Senatorial Campaign Committee, 454 U.S. 27, 39, 102 S. Ct. 38, 46, 70 L. Ed. 2d 23 (1981). Nonetheless, "the thoroughness, validity, and consistency of an agency's reasoning are factors that bear upon the amount of deference to be given an agency's ruling." Id. at 37, 102 S. Ct. at 44. In the present case, the Board's reasoning is so lacking in thoroughness that we are unable to discern the Board's basic path of analysis and consequently we are unable to determine the reasonableness of the Board's decision.
At a minimum, the Board's path of analysis should have included an articulation of its interpretation of sections 231(d) (3) and 351(e), including the standard to be used in assessing provisions of foreign law, followed by an application of that standard to the relevant provisions of Canadian law, resulting in a final determination.10 Instead, the Board has given no definitive interpretation of sections 231(d) (3) and 351(e), articulated no coherent standard as to what kinds of foreign law provisions come within the requirement language of those sections, and thus given no consistently reasoned analysis of how the Canadian regulations qualified under the requirement language of the exceptions.
(4) Where an immigration officer considers the questions set out in paragraphs (3) (a) and (c), he shall take into consideration the opinion of an officer of the office of the National Employment Service serving the area in which the person seeking an employment authorization wishes to engage in employment.
The Board is given authority under both RRA and RUIA to determine which employers and employees are covered. See 45 U.S.C. §§ 231f(b), 355(b), 355(c) & 362(l) . At the time L-83-79 issued, the Board's General Counsel was vested with the authority to make initial determinations as to employer and employee status. 20 C.F.R. Sec. 259.1. This regulation has since been amended to vest such authority in the Board's Deputy General Counsel
The RLEA also challenges the appropriateness of the Board's inclusion of Canadian union representatives within its decision claiming that the Canadian regulations relate only to the employment situation. See Brief for RLEA at 11. The Board does not address this issue in its brief. The Deputy General Counsel did address this challenge in his denial of the RLEA's request for reconsideration. He conceded that it is doubtful that the Canadian regulations apply to elected union officials, however, he goes on to assert that the exceptions to covered service nonetheless apply. Although somewhat obscure, the Deputy General Counsel's rationale for this assertion appears to be that the union is subject to the restrictions of the Canadian regulations in its hiring of personnel in Canada (e.g., support staff), thus the union, as an employer, is required in part to hire Canadians and consequently the exceptions to covered service apply to all employees, including union representatives even though they are not specifically covered by the Canadian regulations. See Appendix at 33-34. We decline to resolve this issue on the basis of briefing which consisted of only three sentences in the RLEA's brief and no discussion of the relevant statutory text, legislative history, or relevant case law. See Carducci v. Regan, 714 F.2d 171, 177 (D.C. Cir. 1983)
See Kalmich v. Bruno, 553 F.2d 549, 552 (7th Cir.) ("Irrespective of the deference to which a district court judge's determination of the local law is entitled, we regard the matter of foreign country law as purely a 'question of law,' as it is characterized in Rule 44.1, the resolution of which we are free to arrive at on the basis of our own independent research and analysis."), cert. denied, 434 U.S. 940, 98 S. Ct. 432, 54 L. Ed. 2d 300 (1977). Accord, De Los Santos v. I.N.S., 690 F.2d 56, 59 (2d Cir. 1982); United States v. Vetco, Inc., 691 F.2d 1281, 1285 (9th Cir. 1981). See generally Fed. R. Civ. P. 44.1; 9 C. Wright & A. Miller, Federal Practice and Procedure Sec. 2446, at 414-15 (1971). The Court in Bamberger notes that courts do in some instances defer to an agency's view of a question of law. The court is referring, however, to the deference owed to an agency construing and applying its own governing statutes. See 390 F.2d at 488 & n. 7
The RLEA cites two cases construing the term "require." United States v. Henricks, 388 F.2d 677, 679 (7th Cir. 1968) (" 'Require' suggests the authority and duty to impose sanctions for noncompliance and is not satisfied by a mere request."); Mississippi River Fuel Corp. v. Slayton, 359 F.2d 106, 119 (8th Cir. 1966) (" 'Required' implies something mandatory, not something permitted by agreement."). These cases are distinguishable from the present case, however, because the Board is not asserting that the requirement language of the statutes would be met if the Canadian regulations merely permitted or requested U.S. railroads to hire Canadians
Section 351(e) was added to the RUIA in 1939. Pub. L. No. 76-141, Sec. 1, 53 Stat. 845 (1939). There is a one paragraph explanation of the addition of Sec. 351(e) in H.R.Rep. No. 686, 76th Cong., 1st Sess. 3 (1939). The provision was added to exclude 400 Mexican employees of the Pullman Company employed exclusively in Mexico because "the service is completely divorced from American soil and it would be extremely difficult to make satisfactory arrangements for administering the Unemployment Insurance Act in such places." Id
Section 231(d) (3) was added to the RRA in 1940 by H.R.J.Res. 496, 76th Cong., 3d Sess. (1940). The addition of Sec. 231(d) (3) was also in response to Pullman's employment of Mexicans in Mexico. See H.R.Rep. No. 2029, 76th Cong., 3d Sess. 1 (1940). The House Report accompanying the H.R.J.Res. 496 contains only a 3 paragraph letter from the Railroad Retirement Board explaining the need for the amendment. After noting the earlier amendment of the RUIA, the Board's letter reads:
The General Counsel apparently issued Legal Opinion L-83-79 solely on the basis of the fact that the Internal Revenue Service had ruled in a private letter ruling to Conrail that Canadian law required the employment of Canadians within the meaning of Sec. 3231(d) of the Railroad Retirement Tax Act (RRTA), 26 U.S.C. §§ 3201-3233, a provision substantially equivalent to Sec. 231(d) (3) of the RRA and Sec. 351(e) of the RUIA. See Brief for Board at 5-6. The Board notes in its brief that the railroad retirement system is funded through an employment tax levied under the RRTA and collected by the Internal Revenue System. Brief for Board at 4. The RRA, RUIA, and RRTA all contain substantially similar definitions of employer and employee, thus for the sake of consistency, determinations implementing these definitions are coordinated between the Board and IRS. Id. The Board, however, may not totally abandon its independent responsibility to construe and administer the RRA and RUIA on the basis of the recognized need for coordinating their implementation with the IRS' implementation of the RRTA.