H.B. Deal Co., Inc. v. Leonard

196 S.W.2d 991, 210 Ark. 512, 1946 Ark. LEXIS 386
CourtSupreme Court of Arkansas
DecidedOctober 21, 1946
Docket4-7963
StatusPublished
Cited by4 cases

This text of 196 S.W.2d 991 (H.B. Deal Co., Inc. v. Leonard) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H.B. Deal Co., Inc. v. Leonard, 196 S.W.2d 991, 210 Ark. 512, 1946 Ark. LEXIS 386 (Ark. 1946).

Opinions

MoHaNey, Justice.

Appellant is a foreign corporation, authorized to do business in this state. Appellees, other than Leonard, are Charles E. May, Albert C. Merritt, Slim Upton, Aubrey 0. Fielder and Clarence T. Key. They brought this action against appellant, under the provisions of the “Fair Labor Standards Act of 1938,” U.S.C.A. Title 29, § 201 et seq., as amended, to recover at the rate of time and one-half pay for all time worked by each of them in excess of 40 hours per week. They alleged in the complaint their employment by appellant in the construction of the Ozark Ordnance Works near El Dorado, Arkansas, which plant was designed and constructed by the U. S. Government for the manufacture of anhydrous ammonia and ammonium nitrate to be used in the manufacture of munitions of war, and which product was to be shipped by the Government outside the state of Arkansas; that they were employed by appellant to check and make records of incoming building material, supplies and equipment as they were unloaded from railroad cars or trucks moving in interstate commerce; that they were engaged in commerce or in the production of goods for commerce, within the meaning of said act as amended; that they were not paid for overtime for the hours worked in excess of 40 per week; and that appellant was indebted to them for such overtime pay. Appellant’s answer admitted its corporate capacity, but denied all other allegatons of the complant. In addition it alleged that it entered into a contract with the U. S. A. to perform certain services in connection with the construction of the Ozark Ordnance Works, hereinafter referred to as the Plant, and attached a copy of said contract as an exhibit to its answer; that under said contract appellees were employees of the U. S. A., and, as such, were exempt from the provisions of said Act; that neither of the appel-lees was engaged in commerce or in the production of goods for commerce, as alleged by them, but were engaged in a local matter; that the work of appellees as set out in the complaint was not in interstate commerce, as the materials and shipments had reached their point of destination in Arkansas, and had come to rest at and befbre the- times appellees made the records mentioned in the complaint, and that said records were never the subject of interstate commerce; and that the material and equipment referred to in the complaint was the property of the U. S. A., and as such did not constitute interstate commerce, but that said shipments were administrative acts of the U. S. A. in the prosecution of a war.

By stipulation a jury was waived and the case was submitted to the court sitting as a jury. Trial resulted' in findings and judgments in. favor of appellees for overtime pay found to be due each of them, plus the same amount as liquidated damages, plus an'attorney’s fee in each case of $250. The total judgment in favor of each is as follows: For Leonard, $1,057.60; for Merritt, $672.22; for Fielder, $509.68; for Key, $728.62; for May, , $563.10; and for ITpton, $778.82. This appeal followed in due course.

The applicable provisions of the Fair Labor Standards Act, upon which the action is based, are: “Section 207 (a). No employer shall, except as otherwise provided in this section, employ any of his employees who is engaged in commerce or in the production of goods for commerce . . . ”

“(3) For a work week longer than 40 hours . . . unless such employee received compensation for his employment in excess of the hours above specified at a rate not less than one ancl one-half times the regular rate at which he is employed.

“Sec. 21G (b). Any employer who violates the provisions of . . . section 7 of this Act shall be liable to the employee or employees affected in the amount of . . . their unpaid overtime compensation and in an additional equal amount as liquidated damages. ’ ’ The Act defines the words ‘ ‘ commerce, ’ ’ ‘ ‘ goods ’ ’ and “produced” as follows:

“Sec. 203 (b). ‘Commerce’ means trade, commerce, transportation, transmission, or communication among the several states or from any state to any place outside thereof.

“(i). ‘Goods’ means goods (including ships and marine equipment), wares, products, commodities, merchandise or articles or subjects of commerce of any character, or any part or ingredient thereof, but does not include goods after their delivery into the actual physical possession of the ultimate consumer thereof other than a producer, manufacturer, or processor thereof.

“(j). ‘Produced’ means produced, manufactured, mined, handled, or in any other manner worked on in any state; and for the purposes, of this Act an employee shall be deemed to have been engaged in the production of goods if such employee was employed in producing, manufacturing, mining, handling, transporting, or in any other manner working on such goods, or in any process or occupation necessary to the production thereof, in any state.

“Sec. 202. Congressional finding and declaration of policy, (a) The Congress hereby finds that the existence, in industries engaged in commerce or in the production of goods for commerce, or labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficency, and general well-being of workers (1) causes commerce and the channels and instrumentalities of commerce to be used to spread and perpetuate such labor conditions among the workers of tlie several states; (2) burdens commerce and the free How of goods in commerce; (3) constitutes an unfair method of competition in commerce; (4) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce; and (5) interferes with the orderly and fair marketing of goods in commerce.

“(b). It is hereby declared to be the policy of sections 201-219 of this title, through the exercise by Congress of its power to regulate commerce among the several states, to correct and as rapidly as practicable to eliminate the conditions above referred to in such industries without substantially curtailing employment or earning power. June 25, 1938.”

Appellees state that they are covered by said Act “because (1) they were engaged in commerce, or (2) because they were engaged in an occupation necessary to the production of goods for commerce,” and in'addition they quote and rely upon the provisions of § 203 (j) which defines the terms “produced” and the phrase “production of goods” which has already been quoted.

The questions.presented for decision, as we see it, are: (1.) Were the appellees or any of them “engaged in commerce or in the production of goods for commerce?’ (2) Was the material and equipment referred to in the complaint the property of the U. S. A. and, therefore, was never in commerce within the meaning of said Act?

A congressional finding and declaration of policy of the Act are set out in § 202, and the U. S. Supreme Court, in U. S. v. Darby, 312 U. S. 100, 61 S. Ct. 451, 85 L. Ed. 609, 132 A. L. R. 1430, in stating the “evils, aimed at by the Act,” said:.

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Bluebook (online)
196 S.W.2d 991, 210 Ark. 512, 1946 Ark. LEXIS 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hb-deal-co-inc-v-leonard-ark-1946.