In Re S.R.R. Corp.

66 B.R. 49, 1986 Bankr. LEXIS 5177
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedOctober 8, 1986
Docket19-30528
StatusPublished
Cited by4 cases

This text of 66 B.R. 49 (In Re S.R.R. Corp.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re S.R.R. Corp., 66 B.R. 49, 1986 Bankr. LEXIS 5177 (Ohio 1986).

Opinion

MEMORANDUM OF OPINION AND ORDER

JOHN F. RAY, Jr., Chief Judge.

This matter is before the Court on the motion of debtor, S.T.R. Corporation (“S.T. R.”), asking this Court to stay all the proceedings before the National Labor Relations Board (“NLRB”), and briefs of counsel.

On or about February 14, 1986, the Retail Store Employees Union Local 880, Food Division Insurance Fund, Retail Store Employees Union Local 880 Retail Food Employers Joint Pension Fund, Meat Cutters Health & Welfare Fund and United Food & Commercial Workers International Union Industry Pension Plan, and their trustees (“Funds”), and United Food & Commercial Workers Union Local 880, affiliated with United Food and Commercial Workers International Union, AFL-CIO, CLC (“Local 880” or the “Union”), (all of the foregoing being hereinafter referred to as “Creditors”), moved against S.T.R., seeking payment of union dues to Local 880 and payment of delinquent contributions to the Funds, plus interest, attorney fees, liquidated damages and injunctive relief. On July 14, 1986, this Court granted Creditors’ motion in part, finding that the Court had jurisdiction over the claims, and ordered an evidentiary hearing to establish the precise amounts owed. Thereafter, United Food & Commercial Workers Local 880 filed a supplemental motion with respect to additional unilateral reductions implemented by S.T.R.

Evidentiary hearings were held on August 11 and 21, 1986 to establish the delinquent contributions and reductions owed, and to determine any other appropriate damages. S.T.R. and Creditors stipulated that S.T.R. owed the Funds certain sums for unpaid contributions, subject to an audit to be conducted by the Funds. The Court directed that the parties brief the question of other damages available to the Funds. In addition, S.T.R. stipulated on the record to having unilaterally implemented certain changes in the wages and other benefits of its employees represented by the Union.

On August 22, 1986, this Court issued an additional order requiring S.T.R., inter alia, to: (i) pay the delinquent contributions to the Funds, specifying the sums subject to an audit; (ii) reinstate wages, holiday and vacation pay; and (iii) provide an accounting to the Union.

Creditors also filed various unfair labor practice charges against S.T.R. with the NLRB. The initial charges were filed on April 30, 1986. Creditors thereafter filed amended charges. Those charges allege that S.T.R. (i) unlawfully and unilaterally altered various terms and conditions of employment, including the cessation of contributions to the Funds and the reduction of wages, vacation and holidays; (ii) unlawfully terminated the employment of an employee in violation of the provisions of 29 United States Code section 158(a)(3) and section 8(a)(3) of the National Labor Relations Act; (iii) required employees to attend a meeting without pay; (iv) failed to provide the Union with relevant financial information; (v) unlawfully withdrew recognition from the Union; and (vi) otherwise unlawfully failed to bargain with the Union and coerced employees in the exercise of their rights under the Act.

Furthermore, the charges allege that Steve Rogers, president of S.T.R., was personally liable for the unfair labor practices based upon his commingling of his personal and S.T.R. funds and the funds of other business interests, as well as other acts.

The NLRB has issued a complaint which includes as allegations all the claims detailed above. In particular, the Board’s complaint alleges that Steve Rogers is personally liable for the unfair labor practices. A hearing on those charges is to be held before an administrative law judge on October 22, 1986.

*51 S.T.R. argues that this Court should enjoin the NLRB, because the proceeding before the NLRB poses a threat to S.T.R.'s estate since the issues before this Court and the NLRB are the same, the potential conflict between this Court and the NLRB could subject S.T.R. to conflicting rulings, S.T.R. will be required to expend additional funds to re-litigate the same issue in the NLRB proceeding that it already litigated before this Court, and S.T.R.’s constitutional right to appeal will be infringed upon if the NLRB proceeding continues.

The automatic stay provision of section 362 of the Bankruptcy Code (11 U.S.C. § 362) provides for a stay of all actions, including judicial and administrative, against the estate of a debtor, but section 362(b)(4) excepts from the automatic stay provision the commencement or continuation of an action or proceeding by a governmental unit to enforce such governmental unit’s police or regulatory power. In the case of NLRB v. Evans Plumbing Co., 639 F.2d 291 (5th Cir.1981), the Fifth Circuit recognized that the NLRB is a governmental unit; that its action in seeking summary judgment against an employer in the court of appeals for violations of the Act “was undertaken to enforce the federal law regulating the relationship between employer and employee” and that the Board’s actions constitute “an exercise of police or regulatory powers which places [the Board] within the § 362(b)(4) exemption to the automatic stay.” 639 F.2d at 293. The view of the Fifth Circuit has been upheld consistently by the other courts considering the issue. See Ahrens Aircraft, Inc. v. NLRB, 703 F.2d 23, 24 (1st Cir.1983); In re Mansfield Tire and Rubber Co., 660 F.2d 1108, 1114 (6th Cir.1981); In the Matter of Nicholas, Inc., 55 B.R. 212, 214 (Bankr.N.J.1985); In re Rath Packing Co., 38 B.R. 552, 560-61 (Bankr.Iowa 1984).

The Court must now determine if it can issue a discretionary stay under 11 United States Code section 105. Section 105 of the Bankruptcy Code provides, in part, that the bankruptcy court “may issue any order, process or judgment that is necessary or appropriate to carry out the provisions of [Title 11].” Section 105 is not jurisdictional and does not grant the court jurisdiction which it does not already possess. In re Professional Sales Corp., 56 B.R. 753, 762 (N.D.Ill.1985); Hall v. Jet Television Rental, Inc., 30 B.R. 799, 801 n. 3 (M.D.Tenn.1983).

The wording of section 105 fails to grant the Court additional jurisdiction; it simply allows the Court to protect jurisdiction granted elsewhere in the Bankruptcy Code. This reading is supported by the fact that, as Congress explained, section 105 “is similar in effect to the All Writs Act, 28 U.S.C. 1651.” H.Rep. No. 95-595, at 316; S.Rep. No. 95-989, at 29, U.S.Code Cong. & Admin.News 1978, pp. 5787, 5815, 6273. The All Writs Act, of course, grants no independent jurisdiction. Commercial Security Bank v. Walker Bank & Trust, 456 F.2d 1352, 1355 (10th Cir.1972); EEOC v. Rath Packing Company, 787 F.2d 318, 325 (8th Cir.1986); Brittingham v. IRS, 451 F.2d 315

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Bluebook (online)
66 B.R. 49, 1986 Bankr. LEXIS 5177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-srr-corp-ohnb-1986.