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Dixie Fuel Case Study

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On July 30, 1997, Dixie Fuel filed a Verified Claim in the district court for the Eastern District of Kentucky seeking declaratory and injunctive relief voiding these assignments1. Dixie Fuel filed a motion for a temporary restraining order to prohibit the SSA from assigning it any more beneficiaries, requiring the SSA to notify the Combined Fund that assignments to Dixie Fuel are void, and enjoining the SSA from withholding information requested by Dixie Fuel in its Freedom of Information Act (FOIA) requests1. The district court denied all injunctive relief to Dixie Fuel,1,3 ruling solely that the agency's interpretation of § 9706(a) as allowing the SSA to assign beneficiaries from the unassigned pool after October 1, 1993, is reasonable and …show more content…
As a part of argument, the SSA commissioner in its response (to the Plaintiff's Motion for a Temporary Restraining Order) informed that under the meaning of the “Coal Act”, the unassigned beneficiaries are counted as "assigned" to the unassigned pool. Thus, any assignments made to Dixie Fuel after the due date (October 1, 1993), are actually "reassignments" under the Act. Although SSA's own regulations don’t support this argument, the SSA commissioner eventually abandoned this argument admitting in its Supplemental Memorandum to the district court stating that "The 'unassigned pool,' (as the name stands) demonstrates that its members have not been assigned." Appellee's Br. at 15 n. 2. 1,3 3. In the second argument (as stated in the Supplemental Memorandum to the district court as well as in the SSA's brief to the Court), the commissioner argues that the deadline (October 1, 1993) date as stated in the statute was not a ‘jurisdictional mandate’, but was meant to "spur the SSA into prompt action" 1,3 The Dixie Fuel disagreed, asserting that the statute language, the legislative history, and congressional intent indicate that the deadline in

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