United States v. Craddock-Terry Shoe Corp.

84 F. Supp. 842, 1949 U.S. Dist. LEXIS 2769
CourtDistrict Court, W.D. Virginia
DecidedMay 25, 1949
DocketCiv. A. No. 195
StatusPublished
Cited by8 cases

This text of 84 F. Supp. 842 (United States v. Craddock-Terry Shoe Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Craddock-Terry Shoe Corp., 84 F. Supp. 842, 1949 U.S. Dist. LEXIS 2769 (W.D. Va. 1949).

Opinion

PAUL, Chief Judge.

In this action the United States seeks to recover from the defendant the sum of $8,090.00 as liquidated damages for the alleged breach of certain conditions and stipulations in contracts entered into between the parties governed by the provisions of the Act of Congress of June 30, 1936, known as the Public Contracts Act and frequently referred to as the WalshHealey Act, 41 U.S.C.A. §§ 35-45.

The provisions of this statute, so far as pertinent here, are to- the effect that in any contract entered into by the United States for the manufacture or furnishing of supplies or materials in any amount ex[843]*843ceeding $10,000.00 there shall be included certain conditions and stipulations which the contractor shall bind himself to observe in performance of the contract. Among these are conditions relating to the minimum wages to be paid to and the hours of work required of employees. Among the further conditions is one providing that no male person under sixteen years of age will be employed by the contractor in the manufacture or production of any of the materials, supplies, articles or equipment contracted for. It is this last named provision which is involved in this action.

The statute further provides, WalshHealey Act, § 2, 41 U.S.C.A. § 36, that for any breach of the stipulation relating to the employment of males under sixteen years of age the persons responsible therefor shall be liable to the United States for liquidated damages in the sum of $10 per day for each such person knowingly employed in performance of the contract.

The Act, § 4, 41 U.S.C.A. § 38, further authorizes the Secretary of Labor to administer the foregoing provisions and to prescribe rules and regulations therefor. And it is further provided, § 5, 41 U.S.C.A. § 39, that upon any complaint of a violation of the Act, the Secretary, or an impartial representative designated by him, shall have power to hold hearings with respect to the alleged violations, and to make findings of fact thereon, which findings, if supported by the preponderance of the evidence, shall be conclusive in any court of the United States. The Secretary, or his representative, is also authorized to make such decisions, based on his findings, as are necessary to enforce the provisions of the Act.

The defendant, Craddock-Terry Shoe Corporation, is engaged in the manufacture of shoes and during the years 1942, 1943 and 1944 entered into fifteen contracts with the United States to supply the latter with shoes. There appears no dispute of the fact that all of these contracts were subject to the provisions of the WalshHealey Act. It is stated by defendant that all of the contracts were completed prior to September 26, 1944, with the exception of two; and that of these two, one was entered into on July 31, 1944, and completed about March 28, 1945, while the other was entered into August 31, 1944, and completed on or before January 2, 1945.

On September 24, 1946, the Secretary of Labor issued a complaint that in the performance of the contracts referred to the defendant had knowingly employed 25 minors under the age of sixteen years for a total of 2305 days, and that by reason thereof the defendant was liable to the United States in an amount of $10.00 for each of such days. This complaint was directed at the defendant corporation and at its Director of Personnel, Tucker Thurmond. Pursuant to the Act and with the prescribed procedure a trial examiner was appointed to hold hearings on this complaint and to report findings and recommendations thereon.

After notice to parties in interest a hearing was held, at which evidence as to the alleged violations was taken, and on February 17, 1947, the examiner reported his findings and recommendations. In this report he found that the evidence was insufficient to sustain the charges of violation of the Act as to 20 of the alleged minors; but found that the charges were sustained as to 5 of them, for a total of 811 days; the names of these employees and the days worked by each being as follows:

Laymond E. McFaden 38 days
Preston C. Lloyd 44 “
David E. Hurt 16 “
Aurbon H. Wilson 331 “
James C. Rice 382 “
Total 811

The examiner recommended that the Government collect from the CraddockTerry Company the sum of $8,110.00 ($10 for each day of the aggregate employment of the named employees) and that'the complaint be dismissed as to Thurmond, the Personnel Director. Exceptions to the report were taken by the defendant corporation and upon consideration of these the Administrator of the Wage and Hour and Public Contracts Divisions of the Department of Labor sustained the examiner's report, with the exception that he found an error of 1 day each in the computation of the number of days charged to two of the employees, resulting in a [844]*844reduction to 809 of the total days for which liability is asserted. The Craddock-Terry Company petitioned for review of the Administrator’s decision by the Secretary of Labor ánd upon this review the Secretary; in a decision dated April 7, 1948, affirmed the Administrator’s 'order holding the defendant liable in the amount of $8,090.00. The defendant refused to pay the sum adjudged and this action has been brought to enforce the liability.

The defendant does not deny that the employees as to whom this liability is asserted were under the age of 16 when ■employed, but denies that it had knowledge of this fact at the time of or during the period of their employment. Its exceptions to the examiner’s report and its appeal..to the Secretary of Labor were based on this question of knowledge.

In its answer in this' action-the defendant asserts in its defense (1) That the finding that-it knowingly employed, persons under 16 years of age is not supported by a preponderance of the- evidence .but, on the contrary, it is without any substantial support in the evidence. It also (2) pleads the statute of limitations.;'and (3) asserts that the liability asserted against it is in reality a-penalty which-.should not be enforced. The answer demands a jury trial of all issues involved in the case, “triable of right by a jury”.

The plaintiff has moyed; for summary judgment on the pleadings, supported by the record of the administrative proceedings in the Department of Labor. The defendant has not suggested that there are any further issues of fact to be tried by a jury or otherwise and, so I understand, raises no question of the propriety of determining the case on the motion for summary judgment. Undoubtedly this is the -appropriate procedure since the questions involved are solely for determination by ’the court. In ■its briefs and-oral argument defendant has not pressed any contention that the recovery sought is for a-penalty but has submitted its case on the two propositions: ■(1) That the action-is barred by the limitations contained in the act of May 14, 1947, known as the Portal-to-Portal Act, 29 U.S.C.A. §§ 251-262; (2) That-the'finding that the defendant knowingly employed persons under 16 years of age is not supported by the evidence or.by the preponderance of it.

The Statute of Limitations

The Portal-to-Portal Act, approved May 14, 1947, 29 U.S.C.A. §§ 251-262, provides, § 6:

“Sec. 6. Statute of limitations.

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Cite This Page — Counsel Stack

Bluebook (online)
84 F. Supp. 842, 1949 U.S. Dist. LEXIS 2769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-craddock-terry-shoe-corp-vawd-1949.