Opinion ID: 691309
Heading Depth: 2
Heading Rank: 1

Heading: Rodriguez As Agent of Horizons

Text: 32 Horizons presents two objections to the ALJ's determination, adopted by the Board, that Rodriguez, the trustee in bankruptcy, acted as agent for Horizons prior to June 1, 1986, the date on which possession of the Carib Inn was transferred to Horizons. First, Horizons argues that as a matter of law, as purchaser of a bankruptcy estate it cannot be held accountable for the conduct of the bankruptcy trustee, Rodriguez, which occurred prior to the transfer of the estate. Second, it argues that the finding that Rodriguez was acting as agent for Horizons is not supported by substantial evidence. 33 The Act guarantees employees the right to self-organize, to form, join, or assist labor organizations, to bargain collectively ... and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 29 U.S.C. Sec. 157. The Act precludes employers from conducting unfair labor practices, as that term is defined in Sec. 8 of the Act, 29 U.S.C. Sec. 158. Employers may be liable for the unfair labor practices of their agents. See International Ass'n of Machinists v. NLRB, 311 U.S. 72, 80, 61 S.Ct. 83, 88, 85 L.Ed. 50 (1940); 3-E Co., Inc., 26 F.3d at 3-4; NLRB v. Union Nacional de Trabajadores, 540 F.2d 1, 8-9 (1st Cir.1976), cert. denied, 429 U.S. 1039, 97 S.Ct. 736, 50 L.Ed.2d 750 (1977). Agents for whose unlawful conduct employers are responsible need not be employees. See Cagle's, Inc. v. NLRB, 588 F.2d 943, 947-49 (5th Cir.1979); Union Nacional, 540 F.2d at 8-9. 34 An employer need not have actually authorized or subsequently ratified the conduct of its agent for it to be liable. 29 U.S.C. Sec. 152(13). Rather, an employer is liable for the unlawful conduct of its agent when, under all the circumstances, employees could reasonably believe that the agent was acting for and on behalf of management. See American Press, Inc. v. NLRB, 833 F.2d 621, 625 (6th Cir.1987) (citation omitted); Union Nacional, 540 F.2d at 8-9. 35 Horizons contends that as a matter of law, a trustee in bankruptcy cannot be deemed an agent of the purchaser of the estate for whose unlawful conduct the purchaser is liable. Horizons argues that the trustee's duties to the bankruptcy estate, and the transfer of the property free and clear of encumbrances, preclude the possibility. Horizons points to no authority whatever to support its contention. We find its argument unpersuasive. That Rodriguez may have been duty bound to act for the benefit of the bankruptcy estate is irrelevant and has no bearing on whether he acted on behalf of Horizons. Cf. Cagle's, Inc., 588 F.2d at 947 (private employer liable for the conduct of city chamber of commerce director). The fact that Horizons purchased the hotel free and clear of liens and encumbrances and that it did not expressly assume liability for the conduct of any prior owner of the estate is also irrelevant. See In Re: Carib-Inn, 905 F.2d at 563-64. Horizons is not here being held responsible simply for the conduct or liability of a prior owner; it is being held responsible for its own unlawful acts, which were carried out through its agent, Rodriguez, who happened to control the property prior to the transfer of its possession to Horizons. 36 Horizons next argues that the finding that Rodriguez acted as its agent is not supported by substantial evidence. On the record before us, we are satisfied that the ALJ's determination, adopted by the Board, that Rodriguez acted as agent for Horizons is supported by substantial evidence. Rodriguez occupied an office in the hotel next to that of Fernandez, Horizons's president, and the two shared a secretary; Rodriguez solicited the services of PEC, an employment agency, to recruit employees for Horizons; the May 19 memorandum indicated that Rodriguez acted with the approval of Fernandez when he hired Gomez as resident manager; Rodriguez announced to union representatives that Horizons has nothing to do with the Union; he told an employee that he was responsible for determining whom Horizons would hire; and he provided to Gomez a list of applicants to interview for positions with Horizons. On the basis of these facts, it is clear that employees of the Carib Inn could reasonably have believed that Rodriguez was acting for and on behalf of Horizons. Furthermore, Horizons never disavowed Rodriguez' conduct; On the contrary, Horizons hired Rodriguez after possession of the hotel was transferred on June 1. 37 Substantial evidence on the record as a whole supports the ALJ's finding, adopted by the Board, that Rodriguez was acting as an agent of Horizons prior to the transfer of the Carib Inn on June 1. See 3-E Co., Inc., 26 F.3d at 3.