Limon v.Camacho
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledAugust 5, 1996
Docket94-040
JudgeTaylor
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
IN THE SUPREME COURT OF THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
WILFREDO C. LIMON, ) APPEAL NO. 94-040
) CIVIL ACTION NO. 93-0508
Complainant/Appellee, ) LABOR CASE NO. 302-91
)
vs. )
) OPINION
ROSA CAMACHO, )
)
Respondent/Appellant, )
)
and )
)
OFFICE OF THE ATTORNEY GENERAL, )
COMMONWEALTH OF THE )
NORTHERN MARIANA ISLANDS, )
)
Party in Interest. )
___________________________________)
Argued and Submitted May 30, 1996
Counsel for Appellant: Antonio M. Atalig
AAA 122, Caller Box 10001
Saipan, MP 96950
Counsel for Appellee: Jay H. Sorensen
P.O. Box 1148
Saipan, MP 96950
Counsel for Party in Interest: C. Sebastian Aloot
Acting Attorney General
Administration Bldg., 2nd Floor
Saipan, MP 96950
BEFORE: TAYLOR, Chief Justice, VILLAGOMEZ, Justice, and SALAS,
Special Judge.
TAYLOR, Chief Justice:
Appellant, Rosa Camacho, appeals a judgment of the Superior
Court which reversed in part a decision of the Director of Labor,
rendered under the terms of the Nonresident Workers' Act (NWA),
codified at 3 CMC §§ 4411 through 4452. The Superior Court ordered
Ms. Camacho to pay Appellee, Wilfredo C. Limon, a specified amount
of unpaid wages and overtime, assessed an equal amount as
liquidated damages, and awarded Mr. Limon attorney's fees. We have
jurisdiction pursuant to 1 CMC § 3102(a). We affirm.
ISSUES PRESENTED AND STANDARDS OF REVIEW
I. Ms. Camacho's Appeal.
Ms. Camacho presents three1 issues for our review:
A. Whether the Superior Court erred in finding that the
decision of the Director of Labor was arbitrary and capricious2 in
its determination of Mr. Limon's daily and weekend work schedule.
We review de novo the court's determination of whether the decision
of the Director of Labor was based upon substantial evidence. In
re Hafa Adai Beach Hotel Extension, No. 92-020 (Oct. 6, 1993)(slip
op. at 4).
B. Whether the Superior Court erred in determining that the
Director of Labor's omission of any award of liquidated damages or
attorney's fees constituted an unlawful withholding of agency
action. We review de novo the court's determination of whether the
Director of Labor misapplied the law. Id.
C. Whether § 4447(d) of the NWA, which mandates an award of
liquidated damages and attorney's fees to a prevailing employee
without requiring a showing of willfulness, violates the
1
Ms. Camacho's brief combines the first two issues listed here as one,
asserting that the Superior Court found both the determination of hours worked
and the omission of liquidated damages to be "arbitrary and capricious" on the
part of the Director of Labor. Br. for Appellant at 2. However, as discussed
below, the Superior Court did not find the omission of liquidated damages to be
"arbitrary and capricious," but rather "agency action unlawfully withheld."
Because this finding entails a separate legal analysis, we separate the two
issues here.
2
As explained below, the trial court should have applied the "substantial
evidence" standard of review rather than the "arbitrary and capricious" standard.
2
Equal Protection Clause of the Fourteenth Amendment to the U.S.
Constitution and Article 1, section 6 of the Commonwealth
Constitution. We review de novo a challenge to the
constitutionality of a statute. Office of Att'y Gen. v. Deala, 3
N.M.I. 110, 114-15 (1992).
II. The Attorney General's Arguments.
During oral argument the Attorney General's Office (AGO)
raised two additional issues not presented below or briefed by the
parties to this appeal:
A. Whether the Superior Court improperly made findings of
fact in its review of the Director of Labor's decision; and
B. Whether under 3 CMC § 4447(d) only the court -- and not
the Division of Labor -- is authorized to award liquidated damages
and attorney's fees to prevailing employees.
We may consider an issue raised for the first time on appeal
in three situations: (1) where the issue is one of law not relying
on any factual record; (2) where a new theory or issue has arisen
because of a change of law while the appeal is pending; or (3)
where plain error occurred and an injustice might result unless we
consider the issue. Castro v. Hotel Nikko Saipan, Inc., No. 94-005
(N.M.I. Apr. 24,1995)(slip op. at 19), appeal docketed, No. 95-
16058 (9th Cir. May 16, 1995).
FACTUAL AND PROCEDURAL HISTORY
Mr. Limon signed a contract on August 6, 1990, to work as a
kitchen helper in Ms. Camacho's bakery for a base hourly wage of
$2.15. On October 2, 1991, he filed a complaint with the Division
of Labor, alleging that Ms. Camacho failed to pay the hourly
contract wage, failed to pay overtime, failed to keep records, and
forced him to work outside his job classification. The Chief of
Labor issued a determination and notice of violation concurring
with these allegations, and setting the matter for hearing.
Determination and Notice of Violation and Notice of Hearing (Mar.
17, 1992), Excerpts R. at___.3 According to the notice of
violation, Mr. Limon was entitled to 2,021.5 hours of overtime pay
during the period from on October 21, 1990 to October 3, 1991. Id.
3
Counsel for Appellant did not paginate, tab or index the Excerpts of Record as Corn. R. App. P. 30(e) requires.
3
The hearing date was continued five times (none of them at Mr.
Limon's request) and was finally held on July 13, 1992. According
to Mr. Limon, several witnesses who had been available for the
earlier dates were not able to attend the July 13th hearing. Only
one supporting witness, Sally Domingo, testified on Mr. Limon's
behalf. Transcript of Labor Hearing at 96-103 (July 13, 1992)
("Labor Tr."). Both Ms. Domingo and Mr. Limon testified that work
in the bakery began at 4:30 a.m. and ended at 6:00 p.m., six days
per week, and that Mr. Limon was told to work on the farm on
Sundays. Id. at 96, 103 (Ms. Domingo); id. at 83 (Mr. Limon). The
Labor Investigator confirmed that this schedule was consistent with
what Mr. Limon had told him originally. Id. at 33-34.
Rosa Camacho, Joe Camacho, David Camacho and Rodney Cruz
testified in opposition to Mr. Limon's claim. They asserted that
Mr. Limon began work at 6:00 a.m. and finished at 2:00 p.m. or 3:00
p.m. Id. at 46 (Mr. Cruz); id. at 57 (Joe Camacho); id. at 67
(Rosa Camacho). However, only Ms. Camacho claimed personal
knowledge of Mr. Limon's work schedule. The other witnesses were
not directly involved in the bakery operation. Ms. Camacho also
claimed that Mr. Limon never did any baking or cleaning, and that
his work was restricted to wrapping food items once they were
prepared. Id. at 80. She stated that the first delivery each
morning was at 8:30 a.m. Id. at 75. Regarding Mr. Limon's
activities on the family farm on Sundays, Ms. Camacho, her son Joe,
and Mr. Cruz testified that Mr. Limon's weekend activities were
voluntary. Id. at 47 (Mr. Cruz); id. at 58 (Joe Camacho); id. at
68 (Rosa Camacho).
In his written Order, the hearing officer confirmed that Ms.
Camacho had failed to keep records and had violated the contract by
paying Mr. Limon on a monthly, rather than an hourly, basis. Order
at 2 (July 21, 1992)("Labor Order"), Excerpts R. at . The hearing
officer nevertheless concluded that Mr. Limon had not worked
weekends as he alleged, and credited the Camacho’s testimony that
Mr. Limon worked from 6:00 a.m. to 3:00 p.m., Monday through
Friday. Id. at 3. As for Mr. Limon's claim that he worked
Saturdays in the bakery and Sundays on Ms. Camacho's farm, the
hearing officer credited Ms. Camacho's testimony that the business
was closed
4
on weekends, and that whatever services Mr. Limon performed on
weekends were "done purely on a voluntary basis." Id. at 4.
Mr. Limon filed an administrative appeal, which was heard by
a second hearing officer. The notice of appeal cited the
unavailability of Mr. Limon's supporting witnesses at the hearing
and requested a de novo hearing. The hearing on the appeal was
continued another four times, and was finally held on January 8,
1993. The hearing officer who presided at the appeal refused to
hear the matter de novo, but agreed to hear additional testimony on
the "voluntariness" of Mr. Limon's work and on the "amount of wages
due." Transcript of Labor Hearing at 6 (Jan. 8, 1993)("Appeal
Tr."), Excerpts R. at .
At the appeal hearing, Mr. Limon presented testimony from two
co-workers, Faye Pangelinan and Estrella Gozum, in addition to his
own testimony, that he worked from 4:30 a.m. until 6:00 p.m.,
Monday through Saturday. Id. at 12, 14 (Ms. Pangelinan); id. at 32
(Ms. Gozum); id. at 117 (Mr. Limon). Labor Investigator Alfred
Pangelinan also testified that he had found Mr. Limon to have kept
this work schedule. Id. at 102. Mr. Limon and his supporting
witnesses testified further that Mr. Limon worked at the bakery
from 2:00 p.m. to 6:00 p.m. on Sundays. Id. at 18 (Ms.
Pangelinan); id. at 35 (Ms. Gozum); id. at 121-22 (Mr. Limon).
Finally, Mr. Limon testified that he worked Sunday mornings at Ms.
Camacho's farm from 6:00 a.m. to 10:00 or 11:00 a.m. Id. at 121.
This testimony was corroborated by his two coworkers. Id. at 19
(Ms. Pangelinan); id. at 44-45 (Ms. Gozum). On the issue of
"voluntariness," Ms. Pangelinan testified that if Mr. Limon did not
go to the farm to work on Sundays, Ms. Camacho's son would "get
mad. Very strict." Id. at 19.
Ms. Camacho presented the only contrary testimony at the
appeal hearing. She maintained, as she had in the initial hearing,
that the bakery was closed on weekends. Id. at 48. However, her
other testimony varied from that of the initial hearing. She
stated that Mr. Limon ceased work anywhere between 11 a.m. and 2
p.m. on weekdays. Id. at 77-78. Ms. Camacho also testified that
the first delivery of freshly-baked goods to five stores each
weekday morning left the bakery at 6:45 a.m. for delivery at 7:00
a.m. Id. at 60-61. She claimed that there was sufficient time
between 6:00 a.m. and 6:45 a.m. for these goods to be "baked,
packaged, [and] put on the truck" for this first
5
delivery. Id.4 Moreover, Mr. Limon introduced into evidence the
Labor Investigator's notes of his initial interview with Ms.
Camacho on February 29, 1992, which bear her signature, and which
indicate that Mr. Limon worked in the bakery "Monday to Saturday."
ER's Questionnaire (Feb. 29, 1992) at 2, 4, Suppl. Excerpts R. at
11, 13.5
At the conclusion of the hearing, counsel for Mr. Limon
requested an award of liquidated damages and attorney's fees.
Appeal Tr. at 147. He also submitted a brief to the hearing
officer on the issue. Br. on Issue of Liquidated Damages
(undated), Suppl. Excerpts R. at 14-15.
In her order on appeal, issued on March 28, 1993, the hearing
officer found that Ms. Camacho had "failed to pay at a rate of
$2.15 per hour for regular hours worked, and failed to pay for any
hours worked on Saturdays or Sundays at either the kitchen or the
farm." Order on appeal at 3 (Mar. 28, 1993), Excerpts R. at .
As for the precise hours worked, the hearing officer found that Mr.
Limon "help[ed] in food preparation prior to the actual cooking
which begins at 6:00 a.m." Id. at 2 (emphasis added). However,
the order on appeal did not disturb -- or even mention -- the
initial hearing officer's determination that Mr. Limon had worked
from 6:00 a.m. to 3:00 p.m. on weekdays. The order on appeal
addressed only weekend work, stating that Mr. Limon worked in the
bakery from 6:00 a.m. to 4:30 p.m. on Saturdays and 2:00 p.m. to
6:00 p.m. on Sundays, and at the farm between 7:00 a.m. and 11:00
a.m. on Sundays. Id. at 2. The order found that none of this work
was "voluntary." Id. at 2-3. Lastly, while the order on appeal
found that Ms. Camacho had underpaid Mr. Limon in the amount of
$1,603.47, it did not mention any award of attorney's fees or
liquidated damages to Mr. Limon.
4
Mr. Limon testified that it would have been impossible to accomplish all
of the necessary tasks, from lighting the ovens to loading the trucks, in forty-
five minutes. Id. at 123.
5
In her brief, Ms. Camacho attempts to characterize the testimony of Faye
Pangelinan as supporting the contention that the bakery was closed on weekends.
Br. for Appellant at 11-12. The full transcript does not support this reading.
Ms. Pangelinan clearly testified prior to the passage cited in the brief that the
bakery operated on weekends. Appeal Tr., supra, at 17-19. Moreover, the
citation in the brief ends just before the witness clarifies that the bakery was
not closed "all day Saturday and Sunday," but, rather closed at 6:00 p.m. on
those days. Id. at 25. Selective editing of transcripts is a time-honored
lawyering skill, but this citation is misleading at best.
6
Mr. Limon timely appealed to the Superior Court. He argued
that the order on appeal failed to address the proper computation
of hours and failed to award liquidated damages and attorney's
fees. In its decision, the trial court held that the agency's
order on appeal was arbitrary and capricious in failing to address
the initial hearing officer's determination that Mr. Limon worked
only from 6:00 a.m. to 3:00 p.m. on weekdays. Limon v. Camacho,
Civ. Action No. 93-0508 (N.M.I. Super. Ct. Jul. 1, 1994)
(memorandum decision and order at 10). In particular, the court
found the 6:00 a.m. starting time to be inconsistent with the
finding in the same order that Mr. Limon performed services prior
to 6:00 a.m., when cooking began. Id. at 9. The court also noted
that there was no testimony from any witness that Mr. Limon's work
schedule was different on Saturdays from his schedule on weekdays
(other than Ms. Camacho's testimony that he did not work on
Saturdays at all). Id. The court deemed arbitrary and capricious
the finding that Mr. Limon had worked from 6:00 a.m. to 4:30 p.m.
on Saturdays, because all of the witnesses at the hearing (other
than Ms. Camacho) maintained that he worked from 4:30 a.m. to 6:00
p.m. In the view of the court, the work schedule set forth in the
order on appeal was the result of a clerical error that transposed
"a.m." and "p.m." Id. at 7-8. In sum, the court determined that
Mr. Limon worked from 4:30 a.m. until 6:00 p.m., Monday through
Saturday, and left undisturbed the Director of Labor's finding that
Mr. Limon worked eight hours on Sundays. Id. at 11.
The court also held that § 4447(d) of the NWA mandates an
award of liquidated damages and attorney's fees, and that the
failure of the Director of Labor to make such an award constituted
“agency action unlawfully withheld." Id. at 13. Further, the
court ruled that even if it were to apply the provisions of the
Minimum Wage and Hour Act6 instead of the NWA, an award of
liquidated damages and attorney's fees would still be required.
Pointing out that § 9243 of the Minimum Wage and Hour Act mandates
payment of liquidated damages for willful violations of the wage
laws, the court found that Ms. Camacho willfully underpaid Mr.
Limon. Id. at 17.
6
4 CMC § 9211 et seq.
7
At the conclusion of its decision, the trial court ordered the
parties to stipulate to the number of weeks Mr. Limon worked for
Ms. Camacho and to agree upon a calculation of wages due, based
upon a formula provided by the court. Id. at 18-19. Ms. Camacho
instead moved for reconsideration of the trial court's decision,
raising for the first time the argument that the liquidated damages
provision of the NWA violates constitutional equal protection
guarantees. The trial court held a hearing on Ms. Camacho's motion
at which her counsel did not appear. See Transcript of Proceedings
at 2 (Aug. 25, 1994), Excerpts R. at ("Reconsideration Tr.").
Mr. Limon and the AGO argued against reconsideration, both stating
that the trial court had been correct in its review of the matter.
Counsel for Mr. Limon moved for summary judgment on the total
amount due, based on the starting and ending dates of Mr. Limon's
employment as found in the record, stating that he had attempted
unsuccessfully to obtain a stipulation from counsel for Ms.
Camacho. Id. at 6. The AGO supported this motion in the following
terms:
I believe that in reading through all the material[...]
I think the court could find the time that he started
working and the time that he quit. [...]I don't intend to
take sides here, but I think that[...]this whole thing is
correct, the dates that [counsel for Mr. Limon] brings
before the court. And for that reason I would ask the
court to affirm its decision and to deny [the motion to
reconsider] and to grant [the motion for summary
judgment] and put an end to this matter.
Id. at 7. The court denied both motions and ordered Ms. Camacho to
submit her calculation as to the total wages due within seven days.
Order at 5 (Aug. 25, 1994), Excerpts R. at . Ms. Camacho
complied, submitting a calculation based on forty-four weeks of
work, or three weeks less than the number claimed by Mr. Limon.
Judgment at 2 (Sep. 23, 1994), Excerpts R. at . The court
resolved this discrepancy in favor of Mr. Limon and issued a
judgment ordering Ms. Camacho to pay him back wages, liquidated
damages and attorney's fees totaling $22,202.20. Id. at 7. Ms.
Camacho timely appealed.
8
ANALYSIS
I. Ms. Camacho's Appeal.
A. Computation of Hours and Overtime.
1. Standard for Judicial Review of Labor Findings under
the NWA. The Superior Court reviewed the findings of the Director
of Labor regarding Mr. Limon's work schedule using the "arbitrary
and capricious" standard of review set forth in § 9112(f)(2)(i) of
the Commonwealth Administrative Procedure Act ("APA").7 Limon
supra, slip op. at 6. Ms. Camacho argues that the more exacting
"substantial evidence" standard should apply. We agree.
The APA sets forth standards by which Commonwealth courts
review the actions of administrative agencies. See 1 CMC § 9112.
Among these standards, § 9112(f)(2)(i) requires a reviewing court
to reverse an agency action which is found to be arbitrary or
capricious. 1 CMC § 9112(f)(2)(i). However, § 9112(f)(2)(v)
further requires a reviewing court to set aside an agency action
found to be "[u]nsupported by substantial evidence in a case
subject to sections 9108 and 9109" of the APA. 1 CMC §
9112(f)(2)(v). APA sections 9108 and 9109, in turn, establish
requirements for notice and hearing prior to an agency action, and
set forth procedural requirements for the conduct of administrative
hearings. See 1 CMC §§ 9108-9109.
Here, as required by the NWA,8 the Division of Labor conducted
hearings on Mr. Limon's complaint pursuant to § 9109 of the APA.
Labor Order, supra, at 1. Transcripts of these hearings were part
of the record before the Superior Court when it reviewed the
matter, again pursuant to the judicial review provision of the NWA.
3 CMC § 4446. Because substantive law (the NWA) governing the
Division of Labor here requires administrative hearings to be
conducted pursuant to the procedures set forth in §§ 9108 and 9109
of the APA, we conclude that factual determinations by the Director
of Labor must be reviewed under the more searching, "substantial
evidence" standard
7
1 CMC § 9101 et seq.
8
The NWA requires the Division of Labor to conduct hearings pursuant to 1
CMC § 9109. See 3 CMC §§ 4444(a)(3)(initial hearing), 4445(b)(4) (hearing on
appeal).
9
of review called for in APA § 9112(f)(2)(v), not under the more
deferential "arbitrary and capricious" standard established by §
9112(f)(2)(i).
2. The Findings in this Case. Having identified the
proper standard of review, however, Ms. Camacho fails to argue
coherently for its correct application to the facts of this case.
She asserts that the trial court "erroneously ruled that the
Hearing Examiner's decision was arbitrary and capricious. It
should not rule that the Complainant worked at 4:30 a.m. to 6:00
p.m. since it is not supported by the record." Br. for Appellant
at 8. This claim has no merit.
The trial court held, and we agree, that there was no support
in the record for the finding in the Division of Labor's order on
appeal that Mr. Limon worked from 6:00 a.m. until 4:30 p.m. on
Saturdays. The court's memorandum decision states that it "scoured
the transcripts of both the July 1992 labor hearing and the January
1993 appeal [hearing] in order to glean some sense from the
[Division of Labor's] determination of Mr. Limon's Saturday work
schedule. . . ." Limon, supra, memorandum decision and order at 8.
So have we. There is no testimony from any witness on either side
of the controversy that Mr. Limon worked from 6:00 a.m. to 4:30
p.m. on any day of the week. Rather, there is consistent testimony
at the two hearings from Mr. Limon and his three supporting
witnesses that he worked from 4:30 a.m. to 6:00 p.m., six days per
week.
If the hearing officer who issued the order on appeal had
disbelieved Mr. Limon's testimony, the reasonable alternative would
have been to make a finding based on the testimony of Ms. Camacho
and her supporting witnesses, that Mr. Limon worked from 6:00 a.m.
until 2:00 or 3:00 p.m., Monday through Friday, and that he did not
work at all on weekends. Instead, the order on appeal left
undisturbed the initial hearing officer's finding that Mr. Limon
worked from 6:00 a.m. to 3:00 p.m. Monday through Friday, but found
that Mr. Limon worked from 6:00 a.m. to 4:30 p.m. on Saturdays and
2:00 p.m. to 6:00 p.m. on Sundays.9
9
Ms. Camacho also argues that "the testimony of Respondent that the
bakery is closed on weekends is supported by substantial evidence." Br. for
Appellant at 8. Appellant's argument confuses the findings of the agency, which
must be "supported by substantial evidence" in order for a reviewing court to
uphold agency action, with the testimony of the witnesses, which is the
evidence itself. The order on appeal specifically stated that the bakery was
operational on weekends. Order on Appeal, supra, at 2.
10
Like the trial court, we conclude that the hearing officer who
presided at the January 1993 hearing believed Mr. Limon's testimony
as to his work schedule, but that she inadvertently transposed
"6:00" and "4:30" in drafting the order, and failed to apply that
credibility determination to the question of weekday work. Limon,
supra, memorandum decision at 8. The fact that the order on appeal
makes no mention of weekday hours bolsters the conclusion that the
second hearing officer simply forgot that weekday work was one of
the issues before her in the administrative appeal. But whatever
the explanation, the resulting conclusion is clear: having credited
Mr. Limon's testimony regarding Saturday and Sunday work, the
second hearing officer could not rationally have let stand the
first hearing officer's conclusion that Mr. Limon only worked from
6:00 a.m. to 3:00 p.m. on weekdays. Id. at 9-10. This is
especially true given the finding in the order on appeal that Mr.
Limon "helped in food preparation prior to the actual cooking which
begins at 6:00 a.m." Order on appeal, supra, at 2.
In sum, the two sides to this dispute presented sharply
differing versions of the facts to the Division of Labor. The
order on appeal, which constitutes the final agency action for the
purposes of judicial review under the NWA, cannot rationally be
reconciled with either of these versions. However, the order on
appeal clearly indicates that the second hearing officer believed
Mr. Limon's side of the story. The Superior Court, in reviewing
this matter, agreed10 and issued an order which squares the specific
findings of the agency with the underlying evidence in a consistent
manner. We see no error.
B. Liquidated Damages and Attorney's Fees.
Ms. Camacho claims that the Superior Court erred in awarding
liquidated damages and attorney's fees to Mr. Limon. The pertinent
section of the NWA provides:
In any action taken directly by or on behalf of a
nonresident worker, notwithstanding any other remedies
that may apply the worker that prevails in such action
shall recover unpaid wages and overtime compensation, an
additional equal
10
The record fully supports this credibility determination. In addition to
the factors noted above, the version of the facts given by Ms. Camacho and others
was inconsistent (Ms. Camacho appears to have told the labor investigator one
version, the initial hearing examiner another version, and the hearing examiner
on appeal yet a third) or was not based on personal knowledge (neither Joe
Camacho, David Camacho, nor Ronnie Cruz was personally involved in the bakery
operation).
11
amount as liquidated damages, and court costs. In all
cases the court shall, as part of the judgment, render a
finding as to the merits of the action. The filing of an
action which is determined by the court to be unfounded
or without merit shall be considered a material breach of
contract and shall prevent reentry into the Commonwealth
by the nonresident worker in the event the nonresident
worker attempts reentry into the Commonwealth within five
years from the date of the court's decision. Any
employer who violates the provisions of this chapter or
breaches an employment contract with a nonresident
worker, in addition to any other damages which may be
awarded the nonresident worker by the court, shall be
awarded reasonable attorney fees. However, attorney fees
shall not be recoverable against the Commonwealth.
3 CMC § 4447(d). This language requires only that the worker be
the prevailing party. It does not require a showing of
willfulness. Based on the clear mandate of this statute, the trial
court correctly held that Mr. Limon is entitled to liquidated
damages and attorney's fees.
Ms. Camacho repeats here an argument she made to the Superior
Court, that the Federal Fair Labor Standards Act and the
Commonwealth Wage and Hour Act, both of which mandate liquidated
damages for willful violations of employment contracts, should be
applied instead of the NWA. Br. of Appellant at 13-16. The trial
court rejected this contention. See Limon, supra, memorandum
decision and order at 15-16. We agree with the trial court.
The Wage and Hour Act, enacted in 1978, applies to all persons
employed in the Commonwealth. See 4 CMC § 9212(e)(defining
"employee"). The NWA, enacted in 1983 and amended in 1987, applies
specifically to nonresident workers. See 3 CMC § 4412(i)(defining
nonresident worker"). The liquidated damages provision of the NWA
is therefore more recently enacted and more specifically applicable
to the dispute at bar, which is a complaint by a nonresident worker
under the NWA. See 2B Norman J. Singer, Statutes and Statutory
Construction, §51.02 at 121 (5th ed. 1992)(later expression of the
legislature controls over earlier law); id. §51.05 at 174 (more
specific statute controls over more general one). Thus the NWA,
not the Wage and Hour Act, governs the award of liquidated damages
in cases involving nonresident worker complainants.
C. Equal Protection Claim. Lastly, Ms. Camacho advances the
argument that the liquidated damages provision of the NWA violates
the Equal Protection Clause of the Fourteenth Amendment to the U.S.
Constitution and Art. I, § 6 of the Commonwealth Constitution.
This constitutional challenge is premised on the theory that the
Wage and Hour Act's requirement of a
12
showing of willfulness before resident workers may receive
liquidated damages, and the NWA's omission of such a requirement
for nonresident workers, "creates a varying application of laws to
residents and nonresidents within the jurisdiction of the
Commonwealth." Br. for Appellant at 21. This contention is
frivolous.
First, Ms. Camacho is neither a resident nor a nonresident
worker. Therefore, she lacks standing to complain of any disparate
treatment of resident versus nonresident workers. See Commonwealth
v. Oden, 3 N.M.I. 186, 201-02 (1992).
Second, to the extent that Ms. Camacho is challenging the
disparate treatment of employers of resident workers versus
employers of nonresident workers, she fails to state a claim under
established equal protection doctrine. The equal protection
provisions of the U.S. and Commonwealth Constitutions require
courts to scrutinize laws which establish a "suspect
classification," such as one based on race, gender or national
origin, or which burden the exercise of a "fundamental right." In
re Blankenship, 3 N.M.I. 209, 219 (1992). Laws which do not fall
into either of these categories are constitutional so long as they
are rationally related to a legitimate state objective. Id.
The liquidated damages provision of the NWA easily passes
these tests. Employers of nonresident workers do not, by any
stretch of the imagination, constitute a "suspect class" of
persons. See id. Indeed, Mr. Limon correctly observes that such
employers do not constitute a separate class at all, since the NWA
requires all employers of nonresident workers also to employ a
minimum percentage of resident workers. Br. of Appellee at 21
(citing 3 CMC § 4436(a)). Furthermore, employment of nonresident
workers is not a fundamental right. Cf Blankenship, supra, 2
N.M.I. at 219. The NWA gives preference to the employment of
resident workers over nonresident workers. See 3 CMC § 4411(a).
Moreover, the liquidated damages provision of § 4447(d)
clearly bears a rational relationship to a legitimate public
purpose. According to the policy declaration of the NWA, the law
was enacted "to provide stricter enforcement, control and
regulation of nonresident workers." 3 CMC § 4411(b). As the
Superior Court pointed out, § 4447(d) carries penalties against an
employer who fails to pay
13
a nonresident worker, and it also penalizes a worker who brings a
meritless labor claim by rendering him or her excludable from the
Commonwealth for five years. It is clear that these countervailing
penalties are rationally related to the legitimate objective of
penalizing meritless prosecution or defense of labor cases. Since
there is no basis for applying a more stringent standard of
judicial scrutiny, Ms. Camacho's constitutional challenge fails.
II. The AGO's Arguments.
A. Fact-Finding by the Superior Court. The AGO asserted at
oral argument, for the first time, that the Superior Court should
have remanded this matter to the Division of Labor for further
findings of fact.11 Castro v. Hotel Nikko, supra, slip op. at 19,
sets forth three sets of circumstances which, if present, allow us
to consider an issue for the first time on appeal. None of these
circumstances exist here. First, the issue raised is not purely a
matter of law independent of any factual record. Whether the
Superior Court improperly made findings of fact here requires
examination of the record below. Second, no new legal theory has
emerged nor any law changed during the pendency of the appeal.
Third, no plain error is apparent from the record. The
provision of the NWA dealing with judicial review of Labor
determinations specifies that "[j]udicial review shall be confined
to the record." 3 CMC § 4446(b). Here, there is no indication in
the Superior Court's memorandum decision of July 1, 1994, its order
of August 25, 1994, or its judgment of September 23, 1994, that the
trial court went outside of the record to determine any facts.
Rather, in each instance the trial court based its determinations
on the record before it.
In sum, the AGO's argument is not properly raised for the
first time on appeal. Therefore, we will not address the issue.
11
Not only was this issue not raised below, but the AGO's position before
us here is directly at odds with the comments the AGO made to the Superior Court
at the hearing on the motion to reconsider the trial court's decision.
Reconsideration Tr. at 7, Excepts R. at _ (quoted ante at 8). The AGO's failure
to file any briefs in this case also gives cause for concern. As a party in
interest, the AGO has a responsibility to follow the Commonwealth Rules of
Appellate Procedure, like any other party to an appeal. The Court, in the
interests of justice, allowed the AGO to participate in the oral arguments here
despite its failure to file the required brief. We are not likely to be so
indulgent on future occasions.
14
B. Division of Labor's Authority to Award Liquidated Damages
and Attorney's Fees.
The AGO also argued at the hearing, without having briefed the
issue or raised it below, that 3 CMC § 4447(d) grants authority
only to the courts to award liquidated damages and attorney's fees,
and not to the Division of Labor. Because this issue is purely a
matter of law not dependent upon any factual record, it presents
one of the sets of circumstances which permit us to hear an issue
for the first time on appeal. Castro v. Hotel Nikko, supra, slip
op. at 19. Moreover, the issue is of considerable public
importance, in view of the need to provide authoritative guidance
to the Division of Labor in its handling of labor complaints. We
will therefore consider the merits of the AGO's position.
1. Plain Language. We begin with the plain language of
the statute. If it is clear, we will not interpret it in a
contrary fashion. Office of Att'y. Gen. v. Deala, supra, 3 N.M.I.
at 117. Examining § 4447(d), we observe that it encompasses three
distinct remedies. The first sentence of the subsection provides
that "[i]n any action taken directly by or on behalf of a
nonresident worker, notwithstanding any other remedies that may
apply, the worker that prevails in such action shall recover unpaid
wages and overtime compensation, an additional equal amount as
liquidated damages, and court costs." 3 CMC § 4447(d). The second
part of the subsection relates to barring reentry for workers found
to have filed frivolous complaints:
In all cases the court shall, as part of the judgment,
render a finding as to the merits of the action. The
filing of an action which is determined by the court to
be unfounded or without merit shall be considered a
material breach of the contract and shall prevent reentry
into the Commonwealth by the nonresident worker in the
event the nonresident worker attempts reentry into the
Commonwealth within five years from the date of the
court's decision.
Id. The last portion of § 4447(d) relates to attorney's fees:
Any employer who violates the provisions of this chapter
or breaches an employment contract with a nonresident
worker, in addition to any other damages which may be
awarded the nonresident worker by the court, shall be
awarded reasonable attorney fees. However, attorney fees
shall not be recoverable against the Commonwealth.
Id. The AGO contends that, by the plain meaning of the word
"court," these three remedies are reserved for the courts of the
Commonwealth, and the Division of labor may not employ them.
15
We agree that the usual meaning of the word "court" does not
encompass administrative agencies. However, the word "court" does
not appear until the end of the first sentence, which discusses
liquidated damages. This sentence uses very broad, compulsory
language, mandating an award of liquidated damages to a prevailing
worker "[i]n any action taken directly by or on behalf of a
nonresident worker, notwithstanding any other remedies that may
apply . . . ." 3 CMC § 4447(d). The AGO argues that this sentence
should be read in the context of the later provisions regarding
reentry in the Commonwealth and attorney's fees. These provisions
appear on their face to reserve to "the court" the authority to
"render a finding as to the merits of the action" and to award
attorney's fees. The AGO also points to the term "action" in the
liquidated damages provision and claims that, in the context of the
NWA as a whole, "action" means a civil action in a court, as
opposed to a "grievance" or a "complaint," meaning an
administrative proceeding before the Division of Labor.
The AGO's proffered reading is certainly plausible on the face
of § 4447(d) alone. However, it is not clear from this subsection
that the term "action" must be construed in the limited sense that
the AGO suggests. In order to arrive at a conclusive
interpretation of this statute, we must widen the scope of our
inquiry beyond the plain language itself.
2. Statutory Construction. When dealing with statutes
which grant to administrative agencies remedial powers deemed
important to public welfare, courts should avoid overly restrictive
statutory interpretations which prevent the realization of the
goals the legislature had in view. See 3 Singer, Statutes and
Statutory Construction, supra, §65.03 at 329-30; NLRB v. John S.
Barnes Corp., 178 F.2d 156, 159(7th Cir. 1949)(looking beyond
particular subsection of a federal statute to consider statute as
a whole, its provisions, purpose and legislative history to
determine NLRB regional directors' subpoena powers). We likewise
cannot construe § 44