[Vendorsmi] rb's arbitration panel

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Tue Mar 27 20:40:20 UTC 2012


Rutherford Beard Arbitration Panel

Arbitration Panel Decision Under the Randolph-Sheppard Act, 13311-13312 [2012-5411] :: Department Of Education :: Regulation Tracker :: Justia

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Arbitration Panel Decision Under the Randolph-Sheppard Act, 13311-13312 [2012-5411]

 

Arbitration Panel Decision Under the Randolph-Sheppard Act, 13311-13312 [2012-5411]

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• DEPARTMENT OF EDUCATION

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[Federal Register Volume 77, Number 44 (Tuesday, March 6, 2012)]

[Notices]

[Pages 13311-13312]

>From the Federal Register Online via the Government Printing Office [

www.gpo.gov]

 

[FR Doc No: 2012-5411]

 

 

-----------------------------------------------------------------------

 

DEPARTMENT OF EDUCATION

 

 

Arbitration Panel Decision Under the Randolph-Sheppard Act

 

AGENCY: Department of Education.

 

ACTION: Notice of decision.

 

-----------------------------------------------------------------------

 

SUMMARY: The Department of Education (Department) gives notice that on

October 12, 2011, an arbitration panel rendered a decision in the

matter of the Rutherford Beard v. Michigan Commission for the Blind,

Case no. R-S/08-8.

 

FOR FURTHER INFORMATION CONTACT: You can obtain a copy of the full text

of the arbitration panel decision from Mary Yang, U.S. Department of

Education, 400 Maryland Avenue SW., room 5162, Potomac Center Plaza,

Washington, DC 20202-2800. Telephone: (202) 245-6327. If you use a

telecommunications device for the deaf (TDD) or a text telephone (TTY),

call the Federal Relay Service (FRS), toll-free, at 1-800-877-8339.

Individuals with disabilities can obtain this document in an

accessible format (e.g., braille, large print, audiotape, or compact

disc) by contacting the program contact person listed in this section.

 

SUPPLEMENTARY INFORMATION: This arbitration panel was convened by the

Department under 20 U.S.C. 107d-1(a), after receiving a complaint from

the complainant, Rutherford Beard. Under section 6(c) of the Randolph-

Sheppard Act (Act), 20 U.S.C. 107d-2(c), the

 

[[Page 13312]]

 

Secretary publishes in the Federal Register a synopsis of each

arbitration panel decision affecting the administration of vending

facilities on Federal and other property.

 

Background

 

Rutherford Beard (Complainant) alleged that the Michigan Commission

for the Blind, the State licensing agency (SLA), violated the Act and

implementing regulations in 34 CFR part 395. Specifically, Complainant

alleged that the SLA violated the Act and its implementing regulations

and State rules and regulations governing the Randolph-Sheppard Vending

Facility Program with respect to the closing of his vending facility at

the Lewis Cass Building for renovation and plumbing repairs, resulting

in loss of income for the Complainant's cafeteria.

Complainant further alleged that the Lewis Cass Building Cafeteria

was not a suitable location because the SLA was aware of a history of

plumbing problems in the building. Consequently, when the cafeteria was

closed for renovation and plumbing repairs, Complainant alleged that

this was proof of the lack of suitability for a cafeteria at the Lewis

Cass Building. Thus, the Complainant requested reimbursement from the

SLA for loss of income during the renovation period.

The SLA argued that the Lewis Cass Building Cafeteria was a

suitable vending location and opportunity for a blind vendor. The SLA

acknowledged that, while it was aware that the building had previous

plumbing problems, it was not aware of the severity of the plumbing

issue. Also, the SLA alleged that it had no responsibility to repair

the plumbing in the Lewis Cass Building because the building was under

the jurisdiction of the State's Department of Management and Budget.

The SLA further alleged that Complainant, as a small business operator,

had the responsibility for his own profitability. Moreover, the SLA

alleged that Complainant was unable to provide evidence showing the

amount of lost income during the renovation period.

Complainant filed a request with the SLA for lost income. The SLA

denied Complainant's request. Subsequently, Complainant appealed this

decision with the SLA by filing a request for a State fair hearing. A

hearing was held and the administrative law judge (ALJ) recommended

that Complainant's claim be denied. The SLA adopted the ALJ's

recommendation as a final administrative agency action and

Complainant's grievance was denied.

Complainant then filed a request for Federal arbitration with the

Department. A hearing on this matter was held on March 16, 2011. The

central issue, as determined by the arbitration panel, was whether the

SLA's failure to compensate Complainant for loss of income during the

renovation period of the Lewis Cass Building Cafeteria violated the Act

and its implementing regulations, and State rules and regulations

governing the Randolph-Sheppard Vending Facility Program.

 

Synopsis of the Arbitration Panel Decision

 

After reviewing all of the testimony and evidence, the majority of

the panel found that the Lewis Cass Building Cafeteria was a suitable

opportunity for Complainant and as such, Complainant was responsible

for routine building maintenance. The panel majority concluded that,

although the SLA was aware of the previous building plumbing problems,

the SLA had no authority to repair the plumbing problems. Additionally,

the panel majority found that Complainant did not provide competent

evidence to support his allegation of lost income. Although Complainant

had anticipated larger profits from operating a cafeteria at this

location, this grievance was not substantiated by the evidence provided

to the panel. Thus, the panel majority found that Complainant's

estimate of $70,000 for lost profits was speculative and that it had no

basis to rule that Complainant actually lost income or, if so, how much

income Complainant lost.

One panel member concurred in part and dissented in part. This

panel member concurred with the panel majority's finding that there was

no evidence presented by Complainant to support reimbursement by the

SLA for his alleged loss of income during the renovation period of the

cafeteria. At the same time, this panel member dissented from the panel

majority's findings, suggesting that it was not reasonable to place the

entire burden of property-related losses or damages on operators and

suggested that the SLA undertake rulemaking to clarify such situations,

should they occur in the future.

The views and opinions expressed by the panel do not necessarily

represent the views and opinions of the Department.

Electronic Access to This Document: The official version of this

document is the document published in the Federal Register. Free

Internet access to the official edition of the Federal Register and the

Code of Federal Regulations is available via the Federal Digital System

at:

www.gpo.gov/fdsys.

At this site you can view this document, as well

as all other documents of this Department published in the Federal

Register, in text or Adobe Portable Document Format (PDF). To use PDF

you must have Adobe Acrobat Reader, which is available free at this

site. You may also access documents of the Department published in the

Federal Register by using the article search feature at

www.federalregister.gov.

Specifically, through the advanced search

feature at this site, you can limit your search to documents published

by the Department.

 

Dated: March 1, 2012.

Alexa Posny,

Assistant Secretary for Special Education and Rehabilitative Services.

[FR Doc. 2012-5411 Filed 3-5-12; 8:45 am]

BILLING CODE 4000-01-P

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