Document: 361 U.S. 398 80 S.Ct. 441 4 L.Ed.2d 400 NATIONAL LABOR RELATIONS BOARD, Petitioner,v.DEENA ARTWARE, INC., et al. No. 46. Argued Dec. 8, 1959. Decided Feb. 23, 1960. Mr. Ralph S. Spritzer, Washington, D.C., for petitioner. James G. Wheeler, Paducah, Ky., respondents. Justice DOUGLAS delivered the opinion of Court. 1 This litigation has been long and drawn out present case is merely a small segment it. In 1949 petitioner found that respondent Deena Artware, Inc. (Artware), had violated National Labor Relations Act, 61 Stat. 136, 29 U.S.C. § 158(a), U.S.C.A. by discharging refusing to reinstate 66 employees who engaged in strike (86 N.L.R.B. 732, 95 9); it ordered Artware 'and its officers, agents, successors, assigns' offer reinstatement those make them whole any loss pay suffered as result discriminating action. The Court Appeals 1952 affirmed Board's decision with respect 62 entered decree enforcing order, 6 Cir., 198 F.2d 645, remanding Board determine amounts due individual employees. 1953 offered all these but shortly closed plant (which was located Kentucky), never resumed operations, paid back question. 2 It appears Weiner, one respondents, created series corporations, at top which Products, Inc., (Products), an Illinois corporation. Beneath group subsidiaries—formed under Kentucky law—Artware, Arlington, Sippi Products Co., Industrial Realty Inc.—all whose shares, except qualifying were owned Products. Weiner shares shares; officers directors several subsidiaries his wife, son, secretary. president treasurer each subsidiaries, including Artware. 3 gave promissory note secured mortgage on Artware's property, allegedly advances made. made assignment partial satisfaction indebtedness. applied order restraining assignment. also asked discovery, alleging affairs being conducted such way dissipate assets avoid making wage payments. court denied motions, holding that, until amount liquidated payment fixed sum refused, there no warrant granting relief (6 207 798), adding if upon liquidation 'any financial inability' part awards shown be 'the improper actions meantime, appropriate contempt action can then taken.' Id., page 802. At time, not issued determining specific owed 1955—nearly two years later—it determination directing totaling about $300,000; 'its successors specified 228 871, 872. That December 16, 1955. 5 1957 moved inspection, depositions, naming other alleged caused siphoned off through corporations control purpose evading obligation. motion, 251 183, proceeding, rather than proper procedure. On August 20, 1958, petitioned hold civil failure order. October 11, renewed motion taking depositions from affiliated corporations. 7 petition charges dealings between occurring 1955 which, maintained, showed both (1) fraud wrongdoing frustrating (2) operation various 'as single enterprise,' performing 'a particular function, department or division enterprise manufacture, sale distribution common product.' allegations are summarized below, 261 503, 506—507) need repeated here, held although enforcement July 30, 1952, It, therefore, concluded prior latter date 'not sufficiently definite mandatory serve basis proceedings.' 510. dismissed adjudication contempt. depositions. here certiorari, 359 983, 79 942, 932, we granted consider validity dismissing insofar charged existence enterprise.' 8 without considering second Board, viz., fact And discovery even pertained alternative theory liability. may have done so because thought issues tendered related solely intercompany transactions conveyances creditors preferences favor some creditors. seemed preoccupation, evident references possible causes law set aside. 509. 9 We do stop what would formulation rule governing liability frustration decree. considered assignments they separate distinct If viewed light, cannot say colorable us reversing Appeals. But think entitled show appear be, truth divisions departments 'single did consider. hearing aid 10 question whether Weiner's ownership only different category arise either 13 Eliz. modern preferences. Whether corporation liable obligations affiliate turns considerations. insulation stockholder debts norm, exception. See Pullman's Palace Car Co. v. Missouri Pacific R. 115 587, 597, 194, 198, L.Ed. 499. Yet Cardozo said Berkey Third Avenue 244 N.Y. 84, 95, 155 N.E. 58, 61, 50 A.L.R. 599, 'Dominion complete, interference obtrusive, general rules agency parent will principal subsidiary agent. Where less this, remitted tests honesty justice.' complete catalogue. companies represented one.1 Apart economic one, corporate forms largely paper arrangements reflect business realities. One company operated another;2 shell, inadequately financed;3 intermingled lines maintained.4 These some, though means all,5 relevant considerations, authorities recognize. Lattin Corporations (1959) ch. 2, §§ 13, 14; Stevens (1949) 17; Berle, Theory Enterprise Entity, 47 Col.L.Rev. 343. 11 intimate merits this cited indicate range inquiry presented. Discovery useful facts are. is, indeed, necessary should run their stockholders. When resolved, time enough further decree, any, appropriate.6 12 reinstated opportunity prove allegations. Reversed. 14 STEWART took consideration case. 15 FRANKFURTER, whom HARLAN joins, concurring reversal grounds herein stated. 16 Due regard controlling lay bare legal significance. requires facts, procedural setting considered, stated particularity. 17 respondents respondent, sole stockholder, manufacture lamps. remaining wholly They now defunct formerly china urns use lamp bases; another corporation, production shades assembly lamps; Company (Sippi), engaged, formerly, (Industrial), organized title physical has, times, completely controlled turn similarly dominated subsidiaries. served President, Treasurer1 director corporations; son successive secretaries directors. 18 1946, thereafter acquired factory bases Kentucky. 1947 construction undertaken, adjacent Paducah. same labor dispute arose led orders underlying proceeding. 25, 1949, 8(a)(1), (3) (5) Act (as amended), 158(a)(1, 3, 5) ordered, inter alia, sixty-six named discharge during improper. 86 736. Sixth Circuit, petition, 645. sustained recovery against union money judgment injuries virtue secondary boycott dispute. United Brick & Clay Workers America 637. 19 injunction recovered union, undertaken render itself unable authorized fix court's 1952. refused primarily ground owing yet determined Board. noted if, after determination, appeared acted improperly, could deal matter proceedings. 798. 20 As proceedings pay, April 21, 1955, directed $300,000. 112 371. 871. showing entirely assets, ceased operations 24, 1953, had, November 1954, transferred purportedly mortgage, sought inquire into disposition assets. proceeded assumption reveal requiring back-pay debt (one judge dissenting). 183. denying was, surprisingly enough, first test sufficiency complaint charging thereupon filed discovery. 21 pursuant plan frustrate award conceived carried him exercise systematically rendering might enforced acts pursuance occurred after, therefore of, All before entry affirming amounts. prevented operating profits thereby accumulating ordinary course business, causing lower price sold losses while substantial profits; issue notes, mortgages received nothing return, were, adjudicated pay. following: 22 1. Early 1948, direction, committed unfair practices began treat new Paducah not, fact, itself. recorded resulting abandonment 1948. Nevertheless, when undertook Arlington purpose, used materials, engineering architectural plans services, services already paying crediting value. 23 2. purported shift About 31, few days directing, execute $75,459.65, payable within five years, real personal property return despite abandoned more year before, A note, secured, September 19, $5,797.74. Appeals' fixation transfer mortgages. assign proceeds additional security January $19,320.97 remainder having assigned counsel attorney's fees. 24 3. Beginning March prices inflation Products' profits, 25 4. cease operations. From premises, facilities properties obtained supplies then, accrued interest (at 6% semi-annually, theretofore paid), totaled $105,000, leaving, unsatisfied obligation, Thereafter continued facilities, May 4, newly subsidiary, Industrial. 17, lease formally Sippi; since 1, manner end formerly. 26 Appeals, respondents' state cause action, accompanying individualized, specify exact monetary employees, mandatory' sustain conclusion special terms own believed principle leaving later stage too indefinite 27 urge support below administrative conduct wrongful disentitled recover, ultimately obligated whatever. follows, argument runs, purport adjudicate free defenses payments, purposes final. Accordingly, embody final mandate concerning disobedience constitute contempt.2 28 concedes owing, direct made, urges impose immediate obligation design very disabling obeying definitely whatever dollar-and-cents established proof, doubt disregarded vital implications rendered practice proceeding dealt below. primary parties here. our decision. procedure cases committed, and, 'effectuate policies' discharged. 10(c), 160(c). does concern actually owing. excluded efficient administration Act. liabilities involve protracted contest. An employee wrongfully discharged may, example, he failed accept employment. Phelps Dodge Corp. 313 177, 197—200, 845, 853—855, 85 1271. Since subject review, extensive superfluous reversal. becomes final, expedient reach agreement litigation. propriety two-stage questioned. 30 duty payments judgments, enforced. suggest, statutory representative losses.3 Its function 10, connection makes prevent defined 8. Section 10(c) provides once determines occurred, remedial broad discretion over fashioning provision. supra, pages 195—199, 852—855. 31 plainly area employer discriminatory refrain designed defeat finally determined. equally place hazard subsequent contumacious. salient brings power play finding employer's constituted practice. separation eminently reasonable method administering irrelevant undetermined matters disentitle receive payment. Cf. McComb Jacksonville Paper 336 187, 69 497, 93 599. Enforcement interfere respondent's unreasonably form assurance reference motives, evade remedies enforce policies 32 urged, however, exists courts enter ascertained, contained direction. face equity act personam conduct. To fail accord least implied effect direction defeating it, brutum fulmen transmutes mockery. determinations analogues common-law be. uniformly contain take 'affirmative action.' Courts review judgment, taken remove exist. Every affirmative carries implicit command Such implication mere jurisdiction property. Merrimack River Savings Bank City Center, 219 527, 535—536, 295, 296—297, 55 320. Here, involved, jurisdiction. redress consequences discharge. Implicit adjudication, embodied, offing. case, wilful removal beyond subject-matter destruction pending appeal praying, among things, right shall determined, itself, appellate court.' 296. Our fortiori governed principle. Here backpay wages, individualization flowing awaited workers fanciful surely follow. By putting satisfying liability, certainly frustrated effectuate established. 33 active participants deliberate scheme 'relations behaviors' sufficient bring Rule 65(d) Federal Rules Civil Procedure, Regal Knitwear 324 9, 14—15, 65 478, 481—482, 89 661. 34 sustained, granted. course, unnecessary enterprise' decreed should, open Platt Bradner 131 Wash. 573, 230 P. 633. American Nat. Wall-Paper 77 F. 85, 91. Foard Baltimore State Maryland, 827, 829; Portsmouth Cotton Oil Refining Fourth Bank, 280 879; Dillard Coffin Richmond 140 Tenn. 290, 296, 204 S.W. 758; Costan Manila Electric 383, 384—385. States Delaware, L. W.R. 238 516, 529, 35 873, 878, 59 1438; Chicago, M. St. P.R. Minneapolis Commerce Civic Ass'n, 247 490, 500—502, 38 553, 556 557, 1229; Erickson Minnesota Ontario Power 134 Minn. 209, 213—215, 158 N.W. 979, 980—981. Luckenbach S.S. W. Grace 267 676, 681; Oriental Investment Barclay, Tex.Civ.App. 543, 554—557, 64 80, 86—87. For discussion situation where 'deliberately kept judgmentproof' see Weisser Mursam Shoe Corp., 127 344, 346, 145 467. Willem Van Driel, 252 35, 38; Wichita Falls N.W.R. Puckett, 53 Okl. 463, 502—505, 157 112, 124—125. Lehigh Valley 220 257, 272—274, 387, 391—392, 458. Union Sulphur Freeport Texas 634, 661—662; Harlan Public Service Eastern Const. 254 Ky. 135, 143, 71 S.W.2d 29. 482, answer denies Treasurer involved presented New York Merchandise 949. extent inconsistent principles announced, disapproved. Nathanson 344 73 97 contrary. simply establish priority 64, sub. a(5) Bankruptcy 104, a(5), a(5).

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