Opinion ID: 2308852
Heading Depth: 1
Heading Rank: 6

Heading: Green Checks

Text: Plaintiff alleged that the failure to pay tax on temporary employees also jeopardized her interest in the company. From 1983 to 1987, Arbee issued green checks ( i.e. checks from the general disbursement account) for temporary employees. Those checks totaled over $223,000. Berkowitz admitted that Arbee had failed to issue W-2 or 1099 forms to some employees who had earned more than $600 per year during that time period. Berkowitz testified that those employees had been independent contractors and thus that Arbee did not have to file W-2 or 1099 forms. Nonetheless, the practice of failing to withhold income taxes or to report those earnings ceased early in 1987, before Brenner filed suit. The Chancery Division held that the statute aims to rectify ongoing oppression, fraud or illegality. Because all employees had been placed on the payroll at the time of suit, Brenner's sole relief was an injunction against future misconduct.