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Justia Daily Opinion Summaries

US Court of Appeals for the Seventh Circuit
November 13, 2020

Table of Contents

Wisconsin Department of Workforce Development v. Taylor

Arbitration & Mediation, Government & Administrative Law, Public Benefits

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US Court of Appeals for the Seventh Circuit Opinions

Wisconsin Department of Workforce Development v. Taylor

Dockets: 20-1115, 20-1016

Opinion Date: November 12, 2020

Judge: Brennan

Areas of Law: Arbitration & Mediation, Government & Administrative Law, Public Benefits

The Randolph-Sheppard Act, 20 U.S.C. 107(a), provides economic opportunities by granting blind persons priority to operate vending facilities at certain government properties. When a blind vendor, Belsha, was awarded certain vending operations in Racine County, Wisconsin, a different blind vendor, Taylor, became unhappy and challenged the award. The Act is administered by state licensing agencies; Taylor’s challenge traveled first through Wisconsin’s regulatory process. Although Taylor achieved some success through the Wisconsin Division of Vocational Rehabilitation, she commenced federal administrative proceedings with the Secretary of Education. An arbitration panel awarded Taylor money damages and a permanent vending machine services contract for a site in Racine. The district court vacated the arbitration decision, ruling that there were no material deficiencies in the choice of Belsha for the Racine site, that the arbitration panel’s key factual findings were not supported by substantial evidence, and the arbitration panel’s ultimate conclusion was arbitrary and capricious. The Seventh Circuit affirmed. The arbitration panel mistakenly substituted the APA standard of review for the burden of proof of a disappointed vendor under the Act.

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