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Randolph-Sheppard Act Violation – Arbitration

By: Derek Hawkins//January 19, 2021//

Randolph-Sheppard Act Violation – Arbitration

By: Derek Hawkins//January 19, 2021//

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7th Circuit Court of Appeals

Case Name: State of Wisconsin, Department of Workforce Development-Division of Vocational Rehabilitation v. United States Department of Education, et al.,

Case No.: 20-1016; 20-1115

Officials: WOOD, BRENNAN, and SCUDDER, Circuit Judges.

Focus: Randolph-Sheppard Act Violation – Arbitration

The Randolph-Sheppard Act provides economic opportunities by granting blind persons priority to operate vending facilities at certain government properties. When a blind vendor, Jocelyn Belsha, was awarded certain vending operations in Racine County, Wisconsin, a different blind vendor, Theresa Taylor, became unhappy and challenged the award.

The Act is a federal law administered by state licensing agencies, so Taylor’s challenge traveled first through Wisconsin’s regulatory process, and then through federal administrative proceedings. Eventually an arbitration panel, convened to resolve Taylor’s federal grievance, awarded her money damages and a permanent vending machine services contract for a site in Racine. Federal courts review such an award as a final action of a federal agency under the Administrative Procedure Act.

The district court vacated the arbitration panel’s decision, ruling that there were no material deficiencies in the choice of Belsha for the Racine site, the arbitration panel’s key factual findings were not supported by substantial evidence, and the arbitration panel’s ultimate conclusion was arbitrary and capricious. We agree with the district court and affirm its decision for the state licensing agency and against Taylor.

Affirmed

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