Corbin, Ltd.

National Labor Relations Board - Board DecisionsMar 22, 2005

344 N.L.R.B. 382 (N.L.R.B. 2005)

DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 344 NLRB No. 39 382 Corbin, Ltd. and Union of Needletrades, Industrial and Textile Employees, UNITE, AFL–CIO. Case 9–CA–40153 March 22, 2005 SUPPLEMENTAL DECISION AND ORDER BY CHAIRMAN BATTISTA AND MEMBERS LIEBMAN AND SCHAUMBER The General Counsel seeks a default judgment in this case on the ground that the Respondent has failed to file an answer to the compliance specification. On October 31, 2003, the National Labor Relations Board issued a Decision and Order,1 that found the Re- spondent, Corbin, Ltd., violated Section 8(a)(5) and (1) of the Act by failing and refusing to bargain with the Union about the effects of its decision to close its Hunt- ington, West Virginia and Cannonsburg, Kentucky facili- ties, and to lay off the employees in the bargaining units at those locations. The Board required the Respondent, among other things, to pay all bargaining unit employees no less than 2-weeks’ wages, less any interim earnings, for the period commencing 5 days after the date of the Board’s Order. A controversy having arisen over the amount of back- pay due the employees, the Regional Director issued a compliance specification and notice of hearing alleging the amounts due under the Board’s Order, and notifying the Respondent that it should file a timely answer com- plying with the Board’s Rules and Regulations. Al- though properly served with a copy of the compliance specification, the Respondent failed to file an answer.2 By letter dated November 22, 2004, counsel for the General Counsel advised the Respondent and the bank- ruptcy trustee’s counsel that no answer to the compliance specification had been received and that unless an answer was filed by November 29, 2004, a motion for default judgment would be filed. Thereafter, on January 4, 2005, counsel for the General Counsel sent a letter advising counsel for the bankruptcy trustee that no answer to the compliance specification had been received and stating that unless an answer was filed by January 11, 2005, a motion for default judgment would be filed. Neither the Respondent nor the bankruptcy trustee filed an answer. On January 19, 2005, the General Counsel filed with the Board a Motion for Default Judgment and memoran- 1 340 NLRB No. 118. 2 The Respondent is currently subject to Chapter 7 proceedings in bankruptcy. The compliance specification was served on both the Respondent and its trustee in bankruptcy. The compliance specification stated that the bankruptcy trustee could participate in the compliance proceeding and contest the specification on behalf of the bankruptcy estate. dum in support, with exhibits attached. On January 25, 2005, the Board issued an order transferring the proceed- ing to the Board and a Notice to Show Cause why the motion should not be granted. The Respondent’s bank- ruptcy trustee filed a response. Ruling on Motion for Default Judgment Section 102.56(a) of the Board’s Rules and Regula- tions provides that a respondent shall file an answer within 21 days from service of a compliance specifica- tion. Section 102.56(c) provides that if the respondent fails to file an answer to the specification within the time prescribed by this section, the Board may, either with or without taking evidence in support of the allegations of the specification and without further notice to the re- spondent, find the specification to be true and enter such order as may be appropriate. According to the uncontroverted allegations of the mo- tion for default judgment, the Respondent, despite having been advised of the filing requirements, has failed to file an answer to the compliance specification. In his re- sponse to the Notice to Show Cause, the Respondent’s trustee in bankruptcy asserts that on March 21, 2003, about 2 weeks before filing its bankruptcy petition, the Respondent “surrendered virtually all of its assets” to its lending bank, and has not engaged in any business since that date. The trustee contends that he has never oper- ated the Respondent’s business and therefore he “did not perceive the appropriateness of any collective bargaining with the Union.” Based on these asserted facts, the trus- tee contends that “[t]o the extent, therefore, that the relief requested by the Union incorporates claims arising from conduct of Corbin on or after March 21, 2003, such claims should be disallowed in their entirety.” Further, the trustee argues that, in any event, he “fully reserves his rights with respect to the allowance and/or classification of any claims arising in this proceeding, as such claims may be treated in the Chapter 7 case pending before the United States Bankruptcy Court for the South- ern District of New York.” We find no merit in the bankruptcy trustee’s conten- tions. The Board found in the underlying unfair labor practice proceeding that the Respondent had unlawfully failed and refused since about April 23, 2003, to bargain with the Union about the effects of its decision to close its plants and lay off the employees. Thus, the trustee’s argument that no relief is appropriate for any of the Re- spondent’s conduct after March 21, 2003, involves issues that were or could have been litigated, and were already decided by the Board, in the underlying unfair labor practice proceeding. Further, the Respondent’s financial situation does not constitute a basis for denying the Gen- CORBIN, LTD. 383 eral Counsel’s motion for default judgment.3 The issue in a compliance proceeding is the amount due and not whether a respondent is able to pay.4 Moreover, it is well established that the institution of bankruptcy proceedings does not deprive the Board of jurisdiction or authority to entertain and process an unfair labor practice case to its final disposition.5 In the absence of good cause for the Respondent’s fail- ure to file an answer, we deem the allegations in the compliance specification to be admitted as true, and grant the General Counsel’s motion for default judgment. Ac- 3 See, e.g., Judd Contracting, Inc., 338 NLRB 676 fn. 3 (2002), enfd. 76 Fed. Appx. 651 (6th Cir. 2003). 4 Columbia Engineers, 268 NLRB 337 (1983); Star Grocery Co., 245 NLRB 196, 197 (1979). 5 See, e.g., Cardinal Services, 295 NLRB 933 fn. 2 (1989), and cases cited there. Board proceedings fall within the exception to the auto- matic stay provisions for proceedings by a governmental unit to enforce its police or regulatory powers. See id., and cases cited therein; NLRB v. 15th Avenue Iron Works, Inc., 964 F.2d 1336, 1337 (2d Cir. 1992). Accord: Aherns Aircraft, Inc. v. NLRB, 703 F.2d 23 (1st Cir. 1983). cordingly, we conclude that the net backpay due the dis- criminatees is as stated in the compliance specification and we will order payment by the Respondent of those amounts to the employees, minus tax withholdings re- quired by Federal and State laws.6 ORDER The National Labor Relations Board orders that the Respondent, Corbin, Ltd., Huntington, West Virginia and Cannonsburg, Kentucky, its officers, agents, successors, and assigns, shall make whole the individuals named in the attached Appendix A, by paying them the amounts opposite their names, minus tax withholdings required by Federal and State laws. Summarizing these amounts, the Respondent is obligated to pay the employees backpay totaling $91,466.09. 6 The General Counsel is not seeking interest on the backpay amounts, as any interest would have accrued after the Respondent filed its petition in bankruptcy. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD384 APPENDIX A Last Name First Name Hourly Rate 2 weeks pay (80 hours) Interim Earnings Net Backpay Adams Gary F. $ 6.28 $ 502.63 $ - $ 502.63 Adkins Margaret 9.00 720.00 560.00 160.00 Adkins Andrea 10.50 840.00 490.00 350.00 Adkins Anita 6.87 549.91 - 549.91 Adkins Mae 8.68 694.51 - 694.51 Adkins Patti S. 13.00 1,040.00 384.00 656.00 Adkins Sharon 7.50 600.00 544.00 56.00 Allen Lois J. 12.43 994.72 700.00 294.72 Allen Linda F. 9.95 796.00 - 796.00 Anderson Linda 10.40 832.00 - 832.00 Bailey Cathy L. 13.17 1,053.52 - 1,053.52 Barber Cynthia J. 9.50 760.00 473.40 286.60 Barrett Young Sook 5.40 432.00 - 432.00 Bauers Teresa A. 10.12 809.20 391.10 418.10 Bishop Arlene 8.88 710.40 412.00 298.40 Blake Dorothy C. 13.50 1,080.00 - 1,080.00 Booth Gladys K. 10.80 863.99 - 863.99 Booth Leslie 7.53 602.33 334.00 268.33 Brewer Mary 9.95 796.19 600.00 196.19 Bridges Gary 11.43 914.35 - 914.35 Brown Vassie 9.16 732.80 - 732.80 Cade Susan D. 6.17 493.97 - 493.97 Call Anna M. 10.72 857.60 - 857.60 Callicoat Wanda K. 8.48 678.60 - 678.60 Carter Brenda 11.30 904.00 - 904.00 Carter Sheila 10.70 856.33 480.00 376.33 Clay Audrey 10.57 845.60 - 845.60 Coeyman Helen S. 9.95 796.10 640.00 156.10 Collier Helen M. 10.00 800.00 - 800.00 Collins Dyanna F. 12.00 960.00 480.00 480.00 Collins Linda F. 9.45 756.00 - 756.00 Cooper Brenda 10.85 868.00 - 868.00 Cooper David L. 11.64 931.07 700.00 231.07 Cooper Sharon K. 8.41 672.96 230.00 442.96 Copley Izetta J. 6.71 536.80 - 536.80 Cornell Pauline 9.71 776.55 480.00 296.55 Crawford Marsha 11.44 915.38 - 915.38 Criswell Janice F. 16.30 1,303.80 - 1,303.80 Crowder William J. 13.64 1,091.22 480.00 611.22 Curnutte Velda J. 10.50 840.00 - 840.00 Davis Brenda Gay 9.63 770.40 - 770.40 Davis Debbie 10.66 852.90 680.80 172.10 Dean Dencil 9.79 783.20 - 783.20 Eastham Pong Y 7.23 578.62 - 578.62 Eldridge Carolyn S. 13.45 1,075.80 - 1,075.80 CORBIN, LTD. 385 Eplin Lynnette 11.16 893.16 - 893.16 Eplin Laura L. 9.56 764.79 - 764.79 Evans Johnda 9.74 779.40 - 779.40 Farley Tempa E. 7.30 584.24 - 584.24 Ferguson James 11.08 886.40 - 886.40 Ferguson Samantha A. 10.00 800.00 560.00 240.00 Ferrell Janet G. 6.99 559.40 112.50 446.90 Fitzpatrick Brenda L. 7.75 620.00 - 620.00 Fraley Brenda L. 6.50 520.00 340.00 180.00 Fulford Jennifer 9.54 763.00 - 763.00 Ghazel Rachida El 8.82 705.60 - 705.60 Gilkerson Connie 11.52 921.60 - 921.60 Hammond Brenda D. 10.00 800.00 - 800.00 Hart Robert G. 13.83 1,106.40 690.00 416.40 Harvey Joan 9.68 774.46 - 774.46 Havens, Jr. Edison E. 14.78 1,182.04 - 1,182.04 Hewlett Phyllis L. 10.81 864.77 - 864.77 Holbrook Sabrina R. 10.45 836.00 - 836.00 Holley Linda S. 11.55 923.90 - 923.90 Hughes Carol 10.14 811.20 250.00 561.20 Hunt Deborah 10.30 823.84 - 823.84 Hutchinson David L. 12.07 965.60 600.00 365.60 Ingram Blanche Elaine 5.45 436.00 - 436.00 Ison Edna M. 13.88 1,110.26 - 1,110.26 Johnson Linda L. 13.33 1,066.61 636.00 430.61 Johnson Juanita J. 7.78 622.40 - 622.40 Kearns Tywanna L. 13.03 1,042.07 - 1,042.07 Kelley Patty A. 9.95 796.00 - 796.00 Kelley Marsha A. 11.22 897.60 - 897.60 Kennedy Emma L. 10.27 821.20 791.20 30.00 Kirk Judith 7.02 561.60 - 561.60 Kiser Charlotte 7.72 617.60 - 617.60 Lester Jacqueline R. 10.85 868.35 500.00 368.35 Lester Catherine S. 7.72 617.28 434.40 182.88 Love Juanita 8.00 640.00 - 640.00 Lovejoy Nancy K. 9.00 720.00 - 720.00 Martin Claude E. 12.00 960.00 - 960.00 Maynor Wynona A. 10.48 838.16 - 838.16 McComas Diana L. 12.53 1,002.74 - 1,002.74 McHenry Janice M. 10.35 828.00 630.00 198.00 McHenry Betty 9.44 755.10 630.00 125.10 McKee Teresa S. 7.16 572.64 - 572.64 McKinney Lewis 9.79 783.20 - 783.20 Miller Dewey 9.90 792.00 - 792.00 Moore Deborah 12.54 1,003.20 - 1,003.20 Morrison Rebecca L. 12.37 989.80 756.00 233.80 Muncey Dorothy M. 7.40 592.27 500.00 92.27 Nance Phyllis A. 9.25 740.00 - 740.00 Newton Judith 6.43 514.37 - 514.37 Nibert Sharon R. 9.95 796.00 - 796.00 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD386 Nottingham Rebecca V. 7.50 600.00 - 600.00 Pauley Donna J. 9.00 720.00 600.00 120.00 Pemberton Bonnie K. 6.68 534.40 500.00 34.40 Penberton Nyle 11.81 944.80 - 944.80 Perkins Dorothy 15.55 1,243.64 - 1,243.64 Perrine Melissa 11.71 936.80 460.00 476.80 Plybon Jacqueline 12.66 1,012.82 - 1,012.82 Plymale Judy M. 8.02 641.60 294.00 347.60 Poston Margaret A. 8.82 705.84 - 705.84 Powers JoAnn 9.22 737.76 300.00 437.76 Queen Dorisa L. 7.25 580.00 - 580.00 Rakes Sherry L. 13.06 1,044.77 483.20 561.57 Ramey Treva C. 13.42 1,073.70 - 1,073.70 Ray Paulette L. 12.74 1,018.91 718.40 300.51 Rigsby Delores A. 10.84 867.29 570.00 297.29 Riley Christa M. 9.10 728.00 450.00 278.00 Robinson Candace 12.41 992.80 - 992.80 Rogers Deborah L. 9.93 794.30 689.80 104.50 Rouse Edna L. 9.45 756.00 - 756.00 Runyon Gladys 11.17 893.60 - 893.60 Russell Sheila 7.25 580.00 - 580.00 Saddler Myrna 14.70 1,175.68 - 1,175.68 Saddler Douglas 10.50 840.00 - 840.00 Salyers Joyce A. 11.62 929.20 - 929.20 Scarberry Patricia L. 10.14 810.90 360.00 450.90 Sergent Helen 9.29 743.12 - 743.12 Shaffer Georgia 7.00 560.00 - 560.00 Shockley Susie F. 13.46 1,076.96 - 1,076.96 Shull Brenda 15.79 1,263.51 896.00 367.51 Smith Deborah 9.73 778.45 540.00 238.45 Smith Shirley L. 13.97 1,117.36 788.20 329.16 Stephens Tung C. 9.00 720.00 - 720.00 Stephens Teresa G. 8.95 715.92 - 715.92 Stewart Betty 11.04 883.20 350.00 533.20 Stewart Lori 9.77 781.50 - 781.50 Suiter Christle 10.50 840.00 - 840.00 Suttles Julie 12.21 977.12 560.00 417.12 Tackett Nan S. 6.00 480.32 - 480.32 Taylor Vickie L. 13.00 1,040.00 500.00 540.00 Thacker Marcella 9.85 788.25 - 788.25 Walker Patricia 13.69 1,094.96 - 1,094.96 Wallace Phyllis A. 14.46 1,156.80 700.00 456.80 Warf Tellia L. 7.48 598.19 - 598.19 Watson Myrtle 8.75 700.00 - 700.00 Waugh Melloydee 10.10 808.00 - 808.00 Welch Nora 11.95 956.16 - 956.16 Wiley Anita 10.61 849.04 588.80 260.24 Winters Odeline 8.00 640.00 - 640.00 CORBIN, LTD. 387 Wiseman Carolyn A. 11.39 911.42 - 911.42 Wolfe Debbie 6.29 503.56 - 503.56 Worthington Garnet Ann 6.47 517.50 500.00 17.50 TOTAL $ 91,466.09