1 - National Labor Relations Board

Special and Miscellaneous Litigation 177
against State court proceedings 20 is not applicable when suit is
brought by the United States. However, the court concluded that,
since no formal complaint had been issued, the jurisdiction of
the Board had not been invoked, and no injunction was necessary
to protect the Board's jurisdiction. Accordingly, the Board's
suit was dismissed.21
D. Status of Collective-Bargaining Agreement in
Bankruptcy
In one case, 22 the trustee in bankruptcy of a bankrupt company
sought to enjoin the Board from proceeding further with a complaint
alleging that he had engaged in unfair labor practices
by unilaterally reducing wages and the work force and recalling
employees without regard to seniority. The Board, on the other
hand, sought to compel the trustee to impound enough funds to
satisfy any backpay awards which the Board might make in
the unfair labor practice proceeding. The district court denied
relief to both sides. The trustee's contentions in his suit were
that the administration of the backrupt company was within
the exclusive jurisdiction of the bankruptcy court, and that the
Board was attempting to relitigate an issue which the court
had already decided when it held, in a suit by the union for
breach of contract," that the trustee was entitled to treat the
employer's collective-bargaining agreement with the union as
an executory contract which could be rejected as provided by
section 70b of the Bankruptcy Act. The court, however, held
that it had no jurisdiction to enjoin the Board from proceeding,
even where the Board was alleged to be acting in excess of its
jurisdiction. It recognized that the Board has exclusive jurisdiction
over unfair labor practices, and that trustees in bankruptcy
and receivers are expressly included in the definition of
"person" in section 2(1) of the Act, and hence are subject to
the Board's jurisdiction, notwithstanding the fact that they are
officers of the bankruptcy court. A finding by the Board that
the trustee's actions constituted unfair labor practices would
not necessarily conflict with the court's prior decision ; the court
had held only that the trustee's rejection of the contract was
not a breach thereof. The union's complaint had not alleged
20 28 U S.C. §2283 provides : "A court of the United States may not grant an injunction to
stay proceedings in a state court except as expressly authorized by Act of Congress, or where
necessary in aid of its jurisdiction or to protect or effectuate its judgments"
21 The Board has appealed this decision to the Fifth Circuit.
22 Durand (Turney Wood Products) v. N.L.R.B., 70 LRRM 2651 (D.C.Ark.).
"Carpenters Local 2746 v. Turney Wood Products, 280 F.Supp. 143 (D.C.Ark.).