National Labor Relations Board v. Deena Artware, Incorporated

251 F.2d 183, 41 L.R.R.M. (BNA) 2380, 1958 U.S. App. LEXIS 4983
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 17, 1958
Docket11156_1
StatusPublished
Cited by13 cases

This text of 251 F.2d 183 (National Labor Relations Board v. Deena Artware, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Deena Artware, Incorporated, 251 F.2d 183, 41 L.R.R.M. (BNA) 2380, 1958 U.S. App. LEXIS 4983 (6th Cir. 1958).

Opinions

MILLER, Circuit Judge.

On July 30, 1952, this Court entered its decree enforcing an order of the National Labor Relations Board directing, inter alia, that 56 employees be made whole for losses sustained as a result of discrimination against them by the respondent arising out of a strike. N. L. R. B. v. Deena Artware, Inc., 6 Cir., 198 F.2d 645, certiorari denied 345 U.S. 906, 73 S.Ct. 644, 97 L.Ed. 1342.

On December 16, 1955, this Court entered a supplemental decree enforcing the Board’s back pay determination and directing the respondent to pay to named employees specific amounts of back pay, which totaled approximately $300,000.00. N.L.R.B. v. Deena Artware, Inc., 6 Cir., 228 F.2d 871.

The respondent has not made the payments so ordered. It contends that it was forced by economic conditions and this labor dispute, see United Brick & Clay Workers of America v. Deena Artware, Inc., 6 Cir., 198 F.2d 637, certiorari denied, 344 U.S. 897, 73 S.Ct. 277, 97 L.Ed. 694; Deena Products Co. v. United Brick & Clay Workers of America, 6 Cir., 195 F.2d 612, to discontinue the operation of its plant during the year 1953, that it is financially unable to make the payments, and that there are no assets available for that purpose. It contends that whatever assets were available for creditors have through bona fide business transactions been used in the payment of, or to secure the payment of, its legal obligations.

The Board contends that the respondent, Artware, and several affiliated corporations were and are integral parts of a single enterprise substantially owned and controlled by George H. Weiner, president and treasurer of Artware; that the operations of Artware were conducted in a manner which prevented it from having assets, and thereby prevented compliance with the back pay provisions of the decrees; that Art-ware’s assets were siphoned off or transferred to affiliated companies, in consequence of which it appeared that Art-ware was left with no assets with which to comply with the decree; that the affiliated corporations are alter egos and/or successors to Artware within the meaning of the decrees; and that the aforesaid George H. Weiner and the affiliated corporations referred to above are subject to the back pay provisions of the decrees and responsible for the failure to comply therewith, and liable for payment of said back pay.

The Board has filed a motion that the respondent and the several affiliated corporations be directed to produce and permit the Board to inspect, copy and photograph numerous books, records, bank statements and types of papers and documents which would show the financial condition of the respondent and the respective obligations and credits rendered between respondent and the affiliated corporations. It also asked that certain present or former officers of respondent and the affiliated corporations be directed to give depositions, taken upon oral examination by the petitioner with respect to the financial ability of the respondent to eomply with the provisions of the supplemental decree and the dealings and relationship of respondent with said affiliated corporations.

The respondent has filed a response-objecting to the motion, which reviews-the litigation arising out of the strike* its unsuccessful attempt to meet the problems caused by the strike resulting in discontinuance of operations at its. plant during the year 1953, the financial transactions entered into in connection therewith, and its resulting financial inability to make the payments to its employees as directed by the supplemental.’ decree.

The present motion is not in support of any contempt proceeding, aa was the case in N.L.R.B. v. Parsons Punch Corp., 6 Cir., 249 F.2d 956. Bethlehem Shipbuilding Corp. v. N.L. [185]*185R.B., 1 Cir., 120 F.2d 126, and N.L.R.B. v. Remington Rand, Inc., 2 Cir., 130 F.2d 919, which are relied upon by petitioner, also involved contempt proceedings. Nor were the issues in those cases an alleged financial inability to pay. No contempt of court has been charged in the present case. We recognize that in some instances certain proceedings by the Board, not recognized at common law, are approved by the Courts for the purpose of effectuating the public purposes of the Act. National Licorice Co. v. N.L.R.B., 309 U.S. 350, 362, 60 S.Ct. 569, 84 L.Ed. 799; Consumers Power Co. v. N.L.R.B., 6 Cir., 113 F.2d 38, 44. Contempt proceedings may come under that head, although we are not called upon to decide that question in the present proceeding. If this proceeding was to give effect to the declared public policy of the Act, we would Rave a different question to consider from what is now before us. But, in the absence of contempt proceedings, the present proceeding is purely a proceeding for the enforcement of private individual rights, namely, an attempt to collect from an insolvent corporation money judgments running in favor of private individuals. As the Supreme Court said in Nathanson v. N.L.R.B., 344 U.S. 25, 28, 73 S.Ct. 80, 83, 97 L.Ed. 23, “The policy of the National Labor Relations Act is fully served by recognizing the claim for back pay as one to be paid from the estate.”

As pointed out in the Nathanson case, 344 U.S. 25, 27-28, 73 S.Ct. 80, the beneficiaries of the back pay awards are private persons for whom the Board is acting as agent. The claims have no status or priority different from that enjoyed by other unpaid wage claims. As stated by the Supreme Court in National Licorice Co. v. N.L.R.B., supra, 309 U.S. 350, 362, 60 S.Ct. 569, 576, “The proceeding authorized to be taken by the Board under the National Labor Relations Act is not for the adjudication cf private rights.” In Amalgamated Utility Workers (C.I.O.) v. Consolidated Edison Co., 309 U.S. 261, 267, 60 S.Ct. 561, 564, 84 L.Ed. 738, the House Committee Report is quoted as saying, “No private right of action is contemplated.” In Agwilines, Inc. v. N.L.R.B., 5 Cir., 87 F.2d 146, 150, the Court said, “The proceeding is not, it cannot be made, a private one to enforce a private right. It is a public procedure, looking only to public ends.” This Court has recognized and referred to the fact that the Board does not exist for the adjudication of private rights. N.L.R.B. v. Hudson Motor Car Co., 6 Cir., 136 F.2d 385, 387; Consumers Power Co. v.

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251 F.2d 183, 41 L.R.R.M. (BNA) 2380, 1958 U.S. App. LEXIS 4983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-deena-artware-incorporated-ca6-1958.