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1-Supreme Court REUTERS Larry Downing

Supreme Court seeks U.S. views in Trade Act case

1/8/2013 COMMENTS (0)

By Brendan O'Brien

Jan 8 (Reuters) - The U.S. Supreme Court on Monday asked the Solicitor General to file a brief in a case over Michigan's interpretation of a federal program to help workers displaced by foreign competition.

The request signals the justices' interest in the case, which was brought by Michigan's Department of Licensing and Regulatory Affairs.

At the center of the case is the Trade Act of 1974, which provides aid to workers who lose their jobs because of foreign competition. In order to receive aid, the workers must be enrolled in a retraining program within a certain period of time or receive a state waiver.

Courts in some other states have interpreted the act as saying that workers must ask for a waiver within the same time frame as required for workers who enroll in retraining, Michigan said in its petition to the Supreme Court. But Michigan courts have required the state to provide benefits no matter when a displaced worker chooses to petition for a waiver, the petition said.

"Multiple state court rules have created conflict among the states," said Joy Yearout, a spokeswoman for Michigan Attorney General Bill Schuette. "Whether you can obtain these benefits and when depends upon which state you live in. Clearly this is not what Congress intended when it created this program," she added.

The person in the case, Dawn Gerstenschlager, was a displaced worker who was unaware of the Trade Act program and its deadlines because her former employer failed to give the state her contact information, according to the state's petition.

She applied for the program after the deadlines passed, and the state denied her application.

On June 15, 2011, the Huron County Circuit Court reversed the state's decision, granting Gerstenschlager aid under the program. The Court of Appeals in Michigan denied the state's application for leave to appeal and in March of 2012 the Michigan Supreme Court declined to take the case.

Like Michigan, Minnesota has no deadline for seeking waivers, while Nebraska and Wisconsin have implemented the deadlines.

In an order on Monday, the Supreme Court invited the U.S. Solicitor General to file a brief expressing the views of the United States.

Attorneys for Gerstenschlager were unavailable to comment Monday.

The case is Michigan Department of Licensing and Regulatory Affairs v. Gerstenschlager, U.S. Supreme Court, No. 12-379.

For Michigan: Attorney General Bill Schuette, Solicitor General John Bursch and Assistant Attorneys General Susan Przekop-Shaw, Peter Kotula, Sarah Barnes.

For Gerstenschlager: Clifford Sloan of Skadden, Arps, Slate, Meagher & Flom.

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