Court Opinion

ID: 9810124
Source: CourtListenerOpinion
Date Created: 2023-08-31 21:40:28.290683+00
Date Added: 2024-06-11T13:39:24.036354
License: Public Domain

*337BabNhill, J.,
dissenting: Here we have a parent corporation conducting two separate and distinct businesses. Another corporation bas been formed and it has taken over the assets of the printing business. The Employment Security Commission reserve account has been and still is maintained as a joint account. The parent and subsidiary companies desire now to dissolve this account. The Employment Security Commission held that it was without statutory authority to permit the proposed dissolution of the joint account or the transfer of any part thereof to the subsidiary company. The court below reversed and directed the division or apportionment of the account. Authority for this action, in my opinion, is contained in the first sentence of G. S. 96-9 (E) * (4).'
The first sentence of that section makes provision for the dissolution of a joint account — the relief defendants seek. The second sentence pei'mits the transfer of a reserve account. These are two different propositions.’ It seems to me that the majority, in deciding the question presented, gave consideration only to the second sentence of the section and ignored the provisions of the first sentence thereof.
In short, as I view it, the case comes to this: A strict construction of G. S. 96-9 (F) (c) (4), apart from the first sentence thereof, brings the majority conclusion within the strict letter of the law. A liberal construction of the section as a whole, considering the several situations with which it deals, leads to the conclusion that the Commission had statutory authority to permit the dissolution of the joint reserve account —a lack of which authority is the basis of the Commission decision. This construction comes within the spiritj purpose, and intent of the Act.
As I adhere to the latter view, I am of the opinion the court below correctly applied the law to the facts of this ease. Hence, I vote to affirm.