Regal Knitwear Co. v. National Labor Relations Board

324 U.S. 9, 65 S. Ct. 478, 89 L. Ed. 661, 1945 U.S. LEXIS 2711, 15 L.R.R.M. (BNA) 882
CourtSupreme Court of the United States
DecidedJanuary 29, 1945
Docket86
StatusPublished
Cited by441 cases

This text of 324 U.S. 9 (Regal Knitwear Co. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regal Knitwear Co. v. National Labor Relations Board, 324 U.S. 9, 65 S. Ct. 478, 89 L. Ed. 661, 1945 U.S. LEXIS 2711, 15 L.R.R.M. (BNA) 882 (1945).

Opinions

Mr. Justice Jackson

delivered the opinion of the Court.

The National Labor Relations Board, after appropriate proceedings, issued a cease and desist order against the petitioner, 49 N. L. R. B. 560, and thereafter obtained from the Circuit Court of Appeals for the Second Circuit an order for its enforcement. 140 F. 2d 746. We granted certiorari, limited to a single question on which there was a conflict in practice between different circuits. 323 TJ. S. 692. The Board has followed the formula which orders not only a particular respondent, but also “its officers, agents, successors and assigns” to cease and desist. The question is whether enforcement will be granted without deleting “successors and assigns” from those enjoined. The Circuit Courts of Appeals for the First, Second, Third, Fourth, and Eighth Circuits, and the Court of Appeals for the District of Columbia have upheld the authority of the Board to include such a provision.1 In some of these cases [11]*11change of ownership was shown to be probable and in other cases there was no such proof. The Second Circuit, in refusing to delete the provision, said: “In allowing these words to stand we wish to make it clear, however, that we do not hold that a ‘successor’ or an ‘assign’ will be in contempt of our order if it should (even after notice of the order, but without participating with the respondent in any disobedience by it) do exactly those things which the order forbids. In other words, we do not hold that those words impose any liability which would not exist without them.” Labor Board v. Blackstone Mfg. Co., 123 F. 2d 633, 635; see also Bethlehem Steel Co. v. Labor Board, 120 F. 2d 641, 650-51 (App. D. C.). The Circuit Court of Appeals for the Seventh Circuit, on the other hand, consistently eliminates the provision as to successors and assigns from the order,2 but recognizes that successors or assigns under some circumstances are bound by the Board’s order, even without the words.3

When one court of appeals strikes out the provision but says its absence may in some circumstances have the same effect as if it were there, and another court of appeals approves the provision but says its presence may have no more effect than if it were out, there is more than a faint suggestion that the conflict is over semantics rather than over practical realities.

[12]*12The formula that includes successors and assigns, among others, is one probably borrowed from the jargon of conveyancing. Doubtless these words often are used, not out of consideration of their appropriateness, but because of their familiarity. Courts of equity sometimes have used this formula in their decrees.4 Before the enactment of the Labor Relations Act the Federal Trade Commission issued orders containing these familiar provisions.5 The Securities and Exchange Commission has done the same.6 The Bituminous Coal Division of the Department of the Interior does likewise.7 The National Labor Relations Board has employed this formula consistently since 1937,8 and some state labor boards have followed the example.9 Not only have circuit courts of appeals, except of the Seventh Circuit, generally enforced orders containing this provision, but this Court has several times done so. Southport Petroleum Co. v. Labor Board, 315 U. S. 100, 106, note 6.10

[13]*13The dearth of cases in which actual controversies have been precipitated by this more general than discriminating use of this ritual indicates that its significance both for good and ill is greater in anticipation than in retrospect.

Administrative agencies have considerable latitude to shape their remedies within the scope of their statutory authority and, where the infirmity is inadequacy of findings to show appropriateness of the choice made in the particular case, are ordinarily entitled to have the case remanded for further consideration. Phelps Dodge Corp. v. Labor Board, 313 U. S. 177, 194; Addison v. Holly Hill Fruit Products, 322 U. S. 607, 616. The courts, nevertheless, may not grant an enforcement order or injunction so broad as to make punishable the conduct of persons who act independently and whose rights have not been adjudged according to law. Chase National Bank v. Norwalk, 291 U. S. 431, 436-37; Hitchman Coal & Coke Co. v. Mitchell, 245 U. S. 229, 234; Scott v. Donald, 165 U. S. 107,117; Alemite Mfg. Corp. v. Staff, 42 F. 2d 832.

The Federal Rules of Civil Procedure provide that: “Every order granting an injunction and every restraining order ... is binding only upon the parties to the action, [14]*14their officers, agents, servants, employees, and attorneys, and upon those persons in active concert or participation with them who receive actual notice of the order by personal service or otherwise.”11 This is derived from the common-law doctrine that a decree of injunction not only binds the parties defendant but also those identified with them in interest, in “privity” with them, represented by them or subject to their control. In essence it is that defendants may not nullify a decree by carrying out prohibited acts through aiders and abettors, although they were not parties to the original proceeding.

The term “successors and assigns” in an enforcement order of course may not enlarge its scope beyond that defined by the Federal Rules of Civil Procedure. Successors and assigns may, however, be instrumentalities through which defendant seeks to evade an order or may come within the description of persons in active concert or participation with them in the violation of an injunction. If they are, by that fact they are brought within scope of contempt proceedings by the rules of civil procedure. We have indicated that Labor Board orders are binding upon successors and assigns who operate as “merely a disguised continuance of the old employer.” Southport Petroleum Co. v. Labor Board, 315 U. S. at 106. We have also said of an injunction to restrain violation of the Fair Labor Standards Act, which is somewhat analogous to Labor Board orders, that “Not only is such an injunction enforcible by contempt proceedings against the corporation, its agents and officers and those individuals associated with it in the conduct of its business, but it may also, in appropriate circumstances, be enforced against those to whom the business may have been transferred, whether as a means of evading the judgment or for other reasons.” [15]*15

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Bluebook (online)
324 U.S. 9, 65 S. Ct. 478, 89 L. Ed. 661, 1945 U.S. LEXIS 2711, 15 L.R.R.M. (BNA) 882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regal-knitwear-co-v-national-labor-relations-board-scotus-1945.