MK Electric

National Labor Relations Board - Board Decisions

May 24, 2001

334 N.L.R.B. 26 (N.L.R.B. 2001)

334 NLRB No. 26
NOTICE: This opinion is subject to formal revision before publication in the
bound volumes of NLRB decisions. Readers are requested to notify the Ex-
ecutive Secretary, National Labor Relations Board, Washington, D.C.
20570, of any typographical or other formal errors so that corrections can
be included in the bound volumes.
MK Electric; Mitchell Kaady Individually; Mitchell
Kaady Individually d/b/a MK Electric; B.V.K.
Enterprises, Inc.; B.V.K. Enterprises, Inc., d/b/a
R.C.I. Electric and Design and International
Brotherhood of Electrical Workers, Local 413.
Case 31–CA–22956
May 24, 2001
SUPPLEMENTAL DECISION AND ORDER
BY CHAIRMAN HURTGEN AND MEMBERS TRUESDALE
AND WALSH
On April 29, 1998, the National Labor Relations Board
issued an unpublished Order, inter alia, directing MK
Electric to make whole the discriminatees, Manuel Bravo
and Daniel Prekker, with interest, for any loss of earnings
and other benefits resulting from the discrimination
against them, in violation of the National Labor Relations
Act. On September 8, 2000, the United States Court of
Appeals for the Ninth Circuit entered its judgment enforc-
ing in full the Board’s Order.1
A controversy having arisen over the amount of back-
pay due the discriminatees for the period from June 16,
1997, to March 30, 1998, the Regional Director for Region
31 on January 30, 2001, issued a compliance specification
and notice of hearing alleging the amounts due under the
Board’s Order, and notifying MK Electric; Mitchell Kaady
individually; Mitchell Kaady individually d/b/a MK Elec-
tric; B.V.K. Enterprises, Inc.; B.V.K. Enterprises, Inc.
d/b/a R.C.I. Electric and Design (collectively, the Respon-
dent) that it should file a timely answer complying with
the Board’s Rules and Regulations. Although properly
served with copies of the compliance specification, the
Respondent failed to file an answer.2
By letter dated March 16, 2001, the Acting General
Counsel advised the Respondent that no answer to the
compliance specification had been received and that unless

1 Case 00–70626. The compliance specification inadvertently states
that this case was enforced by the U.S. Court of Appeals for the District
of Columbia Circuit.
2 The Respondent’s representative of record at the time, David Cara-
vantes, was served with the compliance specification, and the Acting
General Counsel has attached to his motion a copy of the executed
return receipt as proof of that service. Copies of the compliance speci-
fication also were served by certified mail on the Respondent at nine of
its various addresses. All nine of the copies of the specification sent to
the Respondent at these addresses were subsequently returned marked
as “unclaimed.” The Respondent’s failure or refusal to accept certified
mail cannot serve to defeat the purposes of the Act. See, e.g., Michigan
Expediting Service, 282 NLRB 210 fn. 6 (1986).
an appropriate answer was filed by March 23, 2001, sum-
mary judgment would be sought. The Acting General
Counsel attached to this letter a complete copy of Section
102.56 of the Board’s Rules and Regulations, which deals
with answers to compliance specifications, and the letter
highlighted certain parts of that section of the Rules. The
Respondent filed no answer.3
On April 12, 2001, the Acting General Counsel filed
with the Board a Motion for Summary Judgment, with
exhibits attached. On April 18, 2001, the Board issued an
order transferring the proceeding to the Board and a No-
tice to Show Cause why the motion should not be granted.
On April 30, 2001, Respondent Mitchell Kaady filed a
response.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
Ruling on the Motion for Summary Judgment
Section 102.56(a) of the Board’s Rules and Regulations
provides that the Respondent shall file an answer within
21 days from service of a compliance specification. Sec-
tion 102.56 further states:

(b) Contents of answer to specification.—The an-
swer shall specifically admit, deny, or explain each
and every allegation of the specification, unless the
respondent is without knowledge, in which case the
respondent shall so state, such statement operating as
a denial. Denials shall fairly meet the substance of
the allegations of the specification at issue. When a
respondent intends to deny only a part of an allega-
tion, the respondent shall specify so much of it as is
true and shall deny only the remainder. As to all mat-
ters within the knowledge of the respondent, includ-
ing but not limited to the various factors entering into
the computation of gross backpay, a general denial
shall not suffice. As to such matters, if the respondent
disputes either the accuracy of the figures in the speci-

3 By letter dated March 22, 2001, the Respondent Mitchell Kaady’s
attorney informed the Region that Kaady had filed for Chapter 7 Bank-
ruptcy on March 7, 2001. The attorney stated that based on Kaady’s
bankruptcy filing, the Acting General Counsel should cease the compli-
ance proceedings in this matter pursuant to the automatic stay provision
contained in 11 U.S.C. § 362 of the Bankruptcy Code. By letter dated
March 26, 2001, the Region’s compliance officer advised Kaady’s
attorney that the compliance proceedings would continue because they
are expressly exempted from the automatic stay provisions under 11
U.S.C. § 362(b)(4) and (5) of the Bankruptcy Code. Thus, although
Respondent Kaady claims to be in bankruptcy, 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. See, e.g., Cardinal Services, 295 NLRB
933 fn. 2 (1989), and cases cited there. Board proceedings fall within
the exception to the automatic stay provisions for proceedings by a
governmental unit to enforce its police or regulatory powers. See id.,
and cases cited therein.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2
fication or the premises on which they are based, the
answer shall specifically state the basis for such dis-
agreement, setting forth in detail the respondent’s po-
sition as to the applicable premises and furnishing the
appropriate supporting figures.

(c) Effect of failure to answer or to plead specifi-
cally and in detail to backpay allegations of specifica-
tion.—If the respondent fails to file any answer to the
specification within the time prescribed by this sec-
tion, the Board may, either with or without taking
evidence in support of the allegations of the specifica-
tion and without further notice to the respondent, find
the specification to be true and enter such order as
may be appropriate. If the respondent files an answer
to the specification but fails to deny any allegation of
the specification in the manner required by paragraph
(b) of this section, and the failure so to deny is not
adequately explained, such allegation shall be deemed
to be admitted to be true, and may be so found by the
Board without the taking of evidence supporting such
allegation, and the respondent shall be precluded from
introducing any evidence controverting the allegation.

According to the uncontroverted allegations of the Mo-
tion for Summary Judgment, the Respondent, despite hav-
ing been advised of the filing requirements, has failed to
file an answer to the compliance specification. As men-
tioned above, on April 30, 2001, Respondent Mitchell
Kaady filed a letter, with attachments, responding to the
Notice to Show Cause. In this response, Kaady does not
purport to answer the compliance specification with any
degree of specificity required by Section 102.56(b) of the
Board’s Rules. Rather, Kaady’s April 30 submission sets
forth arguments that appear to relate to the merits of the
allegations in the underlying unfair labor practice case, and
the findings made by the administrative law judge and the
Board on those allegations. In addition, Kaady’s April 30
letter suggests that certain of the Respondents named in
the compliance specification do not fall within the Board’s
statutory jurisdiction or satisfy the Board’s discretionary
jurisdictional standards. Further, Kaady’s letter apparently
alleges that the Respondent is financially unable to comply
with the Board’s order. In this regard, Kaady’s letter con-
cludes with the following statements: “The gross receipts
of MK Electric was less than allegations would accommo-
date. BVK Enterprises is longer [sic] in business. It was
closed down by the IRS. MK Electric, is no longer in
business. RCI Electric has no income. Mitchell Kaady is
Bankrupt.”
We find that the letter submitted by Respondent Kaady
on April 30, 2001, does not satisfy the requirements of
Section 102.56 of the Board’s Rules and Regulations, and
therefore does not constitute an adequate answer to the
compliance specification.4 The letter fails to specifically
admit, deny, or explain each and every allegation of the
specification, as required by Section 102.56(b).
Further, even assuming that we were to consider the
April 2001 letter to be an answer to the compliance speci-
fication, we would find that it was untimely filed, with no
explanation given by the Respondent for its untimeliness,
and that in any event it is not responsive to the allegations
of the specification in any way that raises an issue warrant-
ing a hearing.
In the absence of good cause for the Respondent’s fail-
ure to file a timely answer, we deem the allegations in the
compliance specification to be admitted as true, and grant
the Acting General Counsel’s Motion for Summary Judg-
ment. Accordingly, we conclude that the net backpay due
the discriminatees is as stated in the compliance specifica-
tion and we will order payment by the Respondent of the
amounts to the discriminatees, plus interest accrued on the
amounts to the date of payment.
ORDER
The National Labor Relations Board orders that the Re-
spondent, MK Electric; Mitchell Kaady Individually;
Mitchell Kaady Individually d/b/a MK Electric; B.V.K.
Enterprises, Inc.; B.V.K. Enterprises, Inc., d/b/a R.C.I.
Electric and Design, Toluca Lake, California, its officers,
agents, successors, and assigns, shall make whole the indi-
viduals named below, by paying them the amounts follow-
ing their names, plus interest on the backpay as prescribed
in New Horizons for the Retarded, 283 NLRB 1173
(1987), minus tax withholdings required by Federal and
State laws:

4 The undenied allegations of the compliance specification and the
Motion for Summary Judgment fully support a finding that it is appro-
priate in the circumstances here to hold MK Electric; Mitchell Kaady,
invidually; Mitchell Kaady individually d/b/a MK Electric; B.V.K.
Enterprises, Inc.; and B.V.K. Enterprises, Inc. d/b/a R.C.I. Electric and
Design, individually and collectively liable for complying with the
Board’s Order in this case, as enforced.
MK ELECTRIC 3
Manuel Bravo $ 1,980.00
Daniel Prekker $17,356.25
Total: $19,336.25

Dated, Washington, D.C. May 24, 2001

Peter J. Hurtgen, Chairman

John C. Truesdale, Member

Dennis P. Walsh, Member

(SEAL) NATIONAL LABOR RELATIONS BOARD