Kenneth R. Martinez, Etc. v. F. Ray Marshall, Successor to John T. Dunlop, Secretary, Department of Labor

This is an appeal from an order of the United States District Court for the Northern District of California (Orrick, J.) granting summary judgment and class certification to plaintiff Martinez. The issue on appeal is whether the district court erred in holding that the Secretary of Labor (the “Secretary”) exceeded his authority under the Emergency Jobs and Unemployment Assistance Act of 1974, Pub.L.No. 93-567, 88 Stat. 1845 (the “Act”) in promulgating regulation 20 C.F.R. § 619.13 (1975) (“Regulation 619.13”) with respect to overpayments of Supplemental Unemployment Assistance (“SUA”) benefits.

Factual Background

In early 1975, Martinez was unemployed and became eligible to receive SUA benefits in California. In March and April 1975, he was overpaid a total of $165.00 through no fault of his own. The other 1,962 members of the class also received such overpayments of SUA benefits. The California Employment Development Department, acting pursuant to Regulation 619.13, recouped Martinez’ overpayment by withholding his weekly SUA benefits. Martinez sought declaratory and injunctive relief contending that the Secretary abused his authority and discretion under the Act and violated…