[Federal Register: August 14, 1997 (Volume 62, Number 157)] [Notices] [Page 43520] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr14au97-40] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Arbitration Panel Decision Under the Randolph-Sheppard Act AGENCY: Department of Education. ACTION: Notice of Arbitration Panel Decision Under the Randolph- Sheppard Act. ----------------------------------------------------------------------- SUMMARY: Notice is hereby given that on May 28, 1996, an arbitration panel rendered a decision in the matter of Leslie Lessard v. Washington Department of Services for the Blind (Docket No. R-S/95-6). This panel was convened by the U. S. Department of Education pursuant to 20 U.S.C. 107d-1(a), upon receipt of a complaint filed by petitioner, Leslie Lessard. FOR FURTHER INFORMATION CONTACT: A copy of the full text of the arbitration panel decision may be obtained from George F. Arsnow, U. S. Department of Education, 600 Independence Avenue, S.W., Room 3230, Mary E. Switzer Building, Washington DC 20202-2738. Telephone: (202) 205- 9317. Individuals who use a telecommunications device for the deaf (TDD) may call the TDD number at (202) 205-8298. SUPPLEMENTARY INFORMATION: Pursuant to the Randolph-Sheppard Act (20 U.S.C. 107d-2(c)), the 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 In 1978, after completing training, Leslie Lessard, complainant, was assigned to operate a vending facility at the Jackson Federal Building in Seattle, Washington, for a six-month period while the vendor at that location was away pursuing additional education. In 1984, complainant learned of an opportunity to operate several vending machines at other Federal facilities in the Seattle area, including the Terminal Annex Building of the U.S. Postal Service. Mr. Lessard discussed with the Washington Department of Services for the Blind, the State licensing agency (SLA), the possibility of the SLA obtaining a permit to operate these vending machines. The SLA informed the complainant that, if a permit were to be obtained to operate the vending machines, complainant would need to supply the machines. The SLA secured the permit and subsequently the complainant purchased vending machines for the various locations. In 1988, the complainant began informal discussions with the SLA concerning the SLA's purchase of the complainant's vending machines. On January 9, 1989, the complainant sent a letter to the SLA outlining an alleged agreement with it to purchase his vending machines. By letters dated May 3 and October 3, 1989, the SLA responded. The SLA acknowledged its awareness of the purchase option available to it, but stated that, due to lack of funds, it would be unable to purchase all of the machines. By letter dated December 12, 1989, the SLA requested that the complainant provide it with invoices for two vending machines. In early 1990, the SLA purchased six machines from Mr. Lessard. Subsequently, by letter dated August 24, 1992, the complainant offered for sale to the SLA his remaining machines and equipment. By letter dated May 20, 1994, the SLA waived its purchase option. On September 24, 1994, a requested State fair hearing was held concerning this matter. A decision was rendered on April 24, 1995, by an Administrative Law Judge (ALJ). The ALJ ruled that there was no contract between the complainant and the SLA for the sale of the machines, notwithstanding complainant's assertion of an existing oral agreement between himself and the SLA. The ALJ further ruled that the agreement in a transaction of this nature must be in writing and signed by the person against whom enforcement is being sought. The SLA adopted the ALJ's decision as final agency action. Mr. Lessard sought review of this decision by a Federal arbitration panel. A hearing of this case was held on May 28, 1996. Arbitration Panel Decision The issue before the arbitration panel was whether, pursuant to 20 U.S.C. 107 et seq. of the Randolph-Sheppard Act, the SLA had a contractual obligation to purchase Mr. Lessard's vending machines. The majority of the panel ruled that the SLA never entered into an oral or written contractual agreement to acquire Mr. Lessard's vending machines. The majority of the panel further determined that the complainant and the SLA had never reached an understanding as to what would be purchased, when, or for how much, and, therefore, there was no meeting of the minds or agreement that was enforceable by law. According to the panel, the SLA had merely agreed to purchase vending machines from the complainant on a case-by-case basis as funds were available. Finally, the panel noted that Washington State law requires that a contract for the sale of goods with a value of more than $500 must be in writing and that the statute was applicable with respect to this complaint because the goods at issue were valued at more than $500. Therefore, the majority of the panel denied complainant's claim in its entirety. One panel member dissented from the majority opinion. The views and opinions expressed by the panel do not necessarily represent the views and opinions of the U.S. Department of Education. Dated: August 8, 1997. Judith E. Heumann, Assistant Secretary for Special Education and Rehabilitative Services. [FR Doc. 97-21437 Filed 8-13-97; 8:45 am] BILLING CODE 4000-01-P