Brennan v. Greenbaum

377 F. Supp. 459, 21 Wage & Hour Cas. (BNA) 803, 1974 U.S. Dist. LEXIS 8298
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 30, 1974
DocketCiv. A. No. 73-2260
StatusPublished
Cited by1 cases

This text of 377 F. Supp. 459 (Brennan v. Greenbaum) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. Greenbaum, 377 F. Supp. 459, 21 Wage & Hour Cas. (BNA) 803, 1974 U.S. Dist. LEXIS 8298 (E.D. Pa. 1974).

Opinion

MEMORANDUM AND ORDER

CLIFFORD SCOTT GREEN, District Judge.

This is an action brought by the Secretary of Labor under section 17 of the Fair Labor Standards Act, 29 U.S.C.A. § 217. The complaint alleges that the defendant has not and is not paying employees at a rate not less than one and one-half times the regular wage rate at which employed for hours worked in excess of forty (40) hours a workweek and has not and is not maintaining adequate and accurate employment records. These allegations, if proven, would constitute violations of sections 7, 11(c), 15(a)(2), and 15(a)(5) of the Act, 29 U.S.C.A. §§ 207, 211(c), 215(a)(2), and 215 (a) (5). The Secretary has requested an injunction enjoining defendant from these alleged violations and from withholding any overtime compensation found by the Court to be due to defendant’s employees under the Act. The defendant has answered the complaint and filed a counterclaim. In his counterclaim, defendant asserts the unconstitutionality of a certain section of the Act and requests an injunction against the secretary’s prosecution of this action against him. Subsequently, defendant requested this court to convene a three-judge district court for a hearing on his prayer for injunctive relief in his counterclaim.1 The Secretary has filed a motion to dismiss the counterclaim and a memorandum in support thereof and in opposition to defendant’s request for a three-judge court. These motions, on which oral argument has been heard on request, are presently before the Court.

The provision of the Act in controversy here is section 13(b) (10), 29 U.S.C. [461]*461A. § 213(b)(10) which is one of the sections providing that certain employees need not be paid time and a half for overtime as required by section 7, 29 U. S.C.A. § 207. It provides as follows:

“(b) The provisions of section 207 of this title shall not apply with respect to

(10) any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trailers, trucks, farm implements, or aircraft if employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles to ultimate purchasers.”

The defendant operates a business of automobile body repair and is, to a very limited extent, engaged in general mechanical maintenance and repair of automobiles. The defendant denies liability under section 7 on the ground that he is exempted from its requirements by section 13(b) (10). In his counterclaim, he notes that the Secretary does not acknowledge section 13(b) (10) as an exemption applicable to him on the ground that defendant is not an “establishment primarily engaged in the business of selling such vehicles to ultimate purchasers.” In his memorandum, defendant argues that the classification created by the conditioning phrase is not made pursuant to a valid legislative purpose but is the result of a concession to an industrial pressure group, the automobile lobby, which provides a competitive advantage to automobile dealers against competitors in the business of servicing and selling parts for automobiles. On the above basis, he argues further that conditioning the exemption under discussion on the phrase quoted above is an arbitrary and unreasonable standard of applicability and so violative of defendant’s rights to due process and equal protection of the laws.

In his counterclaim and affidavit, he alleges that the continued prosecution of this suit by the Secretary will likely cause the collapse of his business. He avers that his is a small and marginal business with only fifteen (15) employees who are paid a very high hourly rate because of the skilled nature of the work; that if he has to pay an overtime rate for what amounts to the one-half hour in excess of eight hours worked each day, he would operate at a loss and necessarily would have to liquidate his business; and finally that the legal expenses he is incurring plus the shaken confidence of creditors and suppliers, to the extent they are aware of this lawsuit, threatens to collapse his business. Consequently, he has requested an injunction preliminarily and permanently enjoining the Secretary from prosecuting him for violations of the Act.

The issues involved in both motions may be determined by reference to the three-judge court request. In Idewild Bon Voyage Liquor Corp. v. Epstein, 370 U.S. 713, 715, 82 S.Ct. 1294, 1296, 8 L.Ed.2d 794 (1962), the Supreme Court stated an oft-quoted standard for assessing three-judge court requests, as follows:

“When an application for a statutory three-judge court is addressed to a district court, the court’s inquiry is appropriately limited to determining whether the constitutional question raised is substantial, whether the complaint at least formally alleges a basis for equitable relief, and whether the case presented otherwise comes within the requirements of the three-judge court statute.”

The Secretary argues that the constitutional issue presented by the counterclaim is so frivolous that he is not stripped of his sovereign immunity and that the counterclaim should be dismissed. We cannot so conclude. The defendant’s claim, read most favorably to him, is that the classification created by section 13(b) (10) is invidiously underinclusive. Of course, in the case of social welfare legislation, such as the Act involved herein, in order to demonstrate a violation of equal protection, as [462]*462applicable in the due process clause of the Fifth Amendment, defendant will have to prove that there is no rational basis for the classification pursuant to any legitimate congressional purpose. Realistically, of course, such a burden will be difficult to bear as demonstrated by the rather infrequent success over the years. Nevertheless, defendant has a right to the opportunity to attempt to prove the section constitutionally infirm. The use of the rational basis test in judicial review of legislation does not suspend the constitutional guarantees of due process or equal protection nor make constitutional challenges' to such legislation non-justiciable. Hagans v. Lavine, 415 U.S. 528, 94 S.Ct. 1372, 1378-1380, 39 L.Ed.2d 577 (1974). Moreover, defendant's contention is not foreclosed by prior case law for we have found none which involved the challenge presented here to this section. Finally, we cannot say that the classification created by the section is so patently rational as to render defendant’s contention frivolous.

However, we deny the defendant’s requests for injunctive relief and for a three-judge court on the ground that he has not alleged a sufficient basis for equitable relief. It is unclear whether such allegations as are presented here, by defendant, for equitable relief against a pending suit, in which suit the same claim of unconstitutionality can be raised as a defense, can ever state a claim for equitable relief and so require a three-judge court. Cf. Majuri v. United States, 431 F.2d 469, 473 (3rd Cir. 1970), cert. den. 400 U.S. 943, 91 S.Ct. 245, 27 L.Ed.2d 248 (1970). However, it is clear that the requirement of Idewild that the complaint, here a counterclaim, at least formally allege a basis for equitable relief requires more than a mere allegation of irreparable harm.

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Cite This Page — Counsel Stack

Bluebook (online)
377 F. Supp. 459, 21 Wage & Hour Cas. (BNA) 803, 1974 U.S. Dist. LEXIS 8298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-v-greenbaum-paed-1974.