Legal Document

370 U.S. 1 82 Supreme Court Reporter 1125 8 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 292 Judge L. ENOCHS, District Director of Internal Revenue, Petitioner,v.WILLIAMS PACKING & NAVIGATION CO., Incorporated Number 493. Argued April 18, 1962. Decided May 28, Rehearing Denied June 25, See 965, 1579. Louis Federal KF105 F3 Oberdorfer, Washington, D.C., for petitioner. George E. Morse, Gulfport, Miss., respondent. Mr. Chief Justice WARREN delivered the opinion Court. Fearing that Revenue Mississippi would attempt to collect allegedly past due social security and unemployment taxes years 1953, 1954 1955, respondent, in late 1957, brought suit Court, maintaining it was not liable exactions seeking an injunction prohibiting their collection. The Director, petitioner herein, made no objection issuance a preliminary restraining order but resisted permanent injunction, asserting provisions § 7421(a) Code 1954, 26 Annotated KF65 U5 barred any such injunctive proceeding. That section provides: 2 'Except as provided sections 6212(a) (c), 6213(a), purpose assessment or collection tax shall be maintained court.' 3 exception Tax proceedings created by §§ (c) 6212(a, c), 6213(a) applicable because body is without jurisdiction over sort here issue. Nevertheless, on July 14, 1959, court, relying upon Miller versus Standard Nut Margarine Co., 284 498, 52 260, 76 L.Ed. 422, permanently enjoined ground they were not, fact, payable destroy respondent's business. 176 F.Supp. 168. On 1961, Appeals Fifth Circuit affirmed, one judge dissenting. 291 Reporter, 2nd 402. We granted certiorari determine whether case came within scope this Court's holding which indicated 'special extraordinary facts circumstances' case,1 intended apply.2 368 937. 4 Respondent corporation (hereinafter referred Williams) engaged business providing trawlers fishermen who take shrimp, oysters fish off Louisiana coasts. It Government's position these are corporation's employees meaning 1426(d)(2) 1607(i) 1939, KF62 (1952 ed.), 1607(i), 3121(d)(2) 3306(i) 3121(d)(2), 3306(i). These specifically adopt common-law test ascertaining existence employer-employee relationship. As stated Silk, 331 704, 716, 67 1463, 1469, 91 1757, 'degrees control, opportunities profit loss, investment facilities, permanency relation skill required * important decision (under statutes).' If, under involved circumstances case, employees, respondent Williams admittedly question.3 5 following facts, material question employment relationship, established. its boats captains selected; employed own crews could fire them at will, relationship between ordinarily short duration. catch generally sold turn resold DeJean Packing partnership closely allied both reason integrated operation substantially identical ownership. proceeds, after deduction expenses, divided among captain, crew boat. received additional share if supplied nets rigging. extended credit possible obtain elsewhere, trip unsuccessful captain members longer continued operate boat, absorbed loss. 6 With respect recognized right control employer, might expected, testimony conflict. Petitioner introduced evidence show effectively refuse ice thus go out, boats' times return sometimes directed corporation, dictate nature catch, permission needed sell someone other than And pointed out had purposes represented existed.4 hand, found, now asserts, wholly control. 7 Attempting establish basis equitable jurisdiction, maintains will thrown into bankruptcy pay entire $41,568.57. undisputed itself available funds amount, Government suggests has denuded assets anticipation liability, DeJean's should considered belonging that, event, may single quarter then sue refund. object withdraw from state federal courts entertain suits injunctions taxes. In supra, confronted with manufacturer 'Southern Product' enjoin oleomargarine goods. Prior issue three lower court cases held similar products nontaxable and, letter, collector informed subject tax. This found '(a) valid legal possibility have been assessed against (the manufacturer), therefore reasons underlying (§ 7421(a)) apply, all, little force.'5 Noting 'would business, ruin financially inflict loss remedy law,' properly Id., 510—511, 264. below seem decides does bar inadequate. cannot agree. 9 enactment comparable Injunction Act 1937, 50 Statutes-at-Large 738, now, amended, 28 1341, forbidding 'where plain, speedy, efficient law equity State,' throws light proper construction given 7421(a). indicates Congress desired make availability lawfully depend adequacy remedy, said so explicitly. Its failure do shows entertained merely cause irreparable injury, ruination taxpayer's enterprise. say, course, inadequacy need established inapplicable; indeed, contrary rule well See, e.g., Matthews Rodgers, 521, 217, 447; supra; Dows Chicago, 11 Wall. 108, 20 65. However, since we conclude bars taxpayer suffer injury effected. 10 manifest permit assess alleged judicial intervention, require disputed sums determined manner assurred prompt lawful revenue.6 clear ultimately prevail, central inapplicable attempted otherwise exists. situation exaction 'the guise tax.' 509, 263. believe chance prevailing information time suit. Only apparent most liberal view claim, maintained. Otherwise, complaint must dismissed. To more good faith part unduly interfere collateral objective Act—protection litigation pending even maintenance only nonliability conclusively 'in every practical sense suspend until ended.' Great Lakes Dredge Dock company Huffman, 319 293, 299, 63 1070, 1073, 87 1407. Thus, general, prohibits barring when collecting officers claim valid. Snyder Marks, 109 189, 194, 157, 160, 27 901. 12 record before us clearly reveals liability foundation. Therefore, reverse judgment remand directions dismiss complaint. 13 Reversed. 14 FRANKFURTER took consideration case. U.S., 511, also Hill Wallace, 259 44, 62, 42 453, 455, 66 822; Allen Regents, 304 439, 449, 58 980, 1448. 1410, 1939 Code, 3111, 3111 (social taxes); 1600, 3301, 3301 (unemployment taxes). Presumably exceptions fishing operations 1426(b)(15) 1607(c)(17) 3306(c)(17) apply vessels net tons. For instance, during World War II, securing occupational deferments them. course prior antitrust litigation, instituted union belonged, defended charge price fixing employees. Government, curiously, successfully did exist. Gulf Coast Shrimpers Oystermans Assn. States, 236 658 (C.A.5th Cir. 1956). 510, product vegetable oils. pertinent taxing statute defined 'oleomargarine' '(a)ll substances heretofore known oleomargarine, oleo, oleomargarine-oil, butterine, lardine, suine, neutral; all mixtures compounds lard extracts tallow extracts; tallow, beef-fat, suet, lard, lard-oil, vegetable-oil annotto (a coloring material), matter, intestinal fat, offal fat imitation semblance butter, made, calculated butter butter.' 24 209. based argument statutory reference 'vegetable-oil annotto' meant bring oil definition. obviously designed include used conjunction animal-fat products; year involved, amended 46 1022. Compare S.Rep. 1035, 75th Cong., 1st Sess. 2, concerning 1341: 'The existing practice entertaining tax-injunction State makes foreign corporations doing withold governmental subdivisions, vast amounts long periods seriously disrupt county finances. pressing needs money great many instances compelled compromise suits, result substantial portions lost examination real merits controversy.'

Classification Label: 11