Contempt Litigation 161ued." <strong>In</strong> one case, the court denied a third party's motion to institutecontempt proceedings over the <strong>Board</strong>'s objections." Fivemotions for protective restraining orders were ffied, 12 and fiveprotective restraining orders were entered."During the fiscal year, the Contempt Litigation Branch collected$187,996 in fmes and $397,759 in backpay, while recouping$102,289 in court costs and attorneys' fees incurred in contemptlitigation.A number of <strong>Board</strong> proceedings during the fiscal year werenoteworthy. The <strong>Board</strong> was again faced with some difficultbankruptcy issues requiring accommodation of the Act with the10 NLRB v. <strong>Labor</strong>ers Local 324, in No. 85-7485 (9th Cir.) (order granting <strong>Board</strong>'s motion to withdrawpetition without prejudice because of respondent's compliance; each party to bear its own costs);NLRB v. Alamo Cement Co., in No. 86-4056 (5th Cir.) (order of February 2, <strong>1988</strong>, granting <strong>Board</strong>'smotion to withdraw petition without prejudice because of respondent's compliance; each party to bearits own costs); NLRB v. Fancy Trims, <strong>In</strong>c., et al., in No. 85-4016 (2d Cir.) (order of February 3, <strong>1988</strong>,granting <strong>Board</strong>'s motion to withdraw motion for body attachment, without prejudice, because of respondents'compliance); NLRB v. Frankfathers & Son's Trucking, in No. 87-5528 (6th Cir.) (order ofFebruary 25, <strong>1988</strong>, granting <strong>Board</strong>'s motion to withdraw petition because of respondent's compliance);NLRB v. John Mahoney Construction Co., in No. 85-1607 (1st Cu.) (order of March 28, <strong>1988</strong>, granting<strong>Board</strong>'s motion to dismiss <strong>Board</strong>'s motion for writ of body attachment against company president JohnMahoney on compliance); NLRB v. Mall Security, in No. 87-5380 (6th dr.) (order of May 17, <strong>1988</strong>,granting <strong>Board</strong>'s motion to withdraw contempt petition because of mootness) . NLRB v. Fishing VesselComet, in No. 87-1755 (1st Cir.) (order of July 13, <strong>1988</strong>, granting <strong>Board</strong>'s motion to withdraw contemptpetition, without prejudice because of company's filing for relief under Bankruptcy Code);NLRB v. Iron Workers Local 15 Joint Apprenticeship Committee, in No. 86-4060 (2d Cir.) (order ofSeptember 15, <strong>1988</strong>, granting <strong>Board</strong>'s motion to dismiss its motion for assessment of fines and issuanceof writ of body attachment in light of compliance by respondent); NLRB v. Marriott <strong>In</strong>-F7ite Services,in No. 82-4165 (2d Cir.) (order of September 19, <strong>1988</strong>, discontinuing contempt proceedings in light ofstipulation for dismissal between <strong>Board</strong> and respondent).11 State Bank of <strong>In</strong>dia v. NLRB, et al., in Nos. 85-1028, 85-1029, 85-1585, and 85-1586 (7th Cir.)(order of November 5, 1987).12 NLRB v. Coal Systems et al., in No. 85-5298 (6th Cir.) (emergency motion for pendente lite reliefrestraining respondents and others from transferring equipment auction proceeds until respondents furnishsecurity for amounts of backpay alleged in <strong>Board</strong>'s backpay specification in pending backpay proceeding);NLRB v. Dahl Fish Co, et al., in No. 86-1369 (D.C. Cir.) (emergency motion for pendentelite protective order restraining respondents from transferring assets until they establish security of$2.4 million in escrow account to protect estimated backpay and fees liability under court's unliquidatedjudgment of March 31, 1987); NLRB v. B & W Machine & Welding Co., in No. 87-7058 (9th Cu.)(pendente lite motion for order restraining transfer of assets until security provided in amount of$58,000); NLRB v. Challenge Cook Bros., in No. 87-5153 (6th Cir.) (emergency motion for order restrainingtransfer of assets, pendente lite, until security furnished in amount of $465,030); NLRB v.Limestone Apparel Corp., et al., in No. 81-1693 (6th Cir.) (pendente lite motion for order restrainingrespondents and several alleged alter egos from transferring assets until security in amount of $125,000is provided)." NLRB v. Coal Systems et al., in No. 85-5298 (6th Cir.) (order of October 16, 1987, granting ontemporary basis <strong>Board</strong>'s emergency motion for pendente lite relief restraining respondents and othersfrom transferring equipment auction proceeds until respondents furnish security for amounts of backpayalleged in <strong>Board</strong>'s backpay specification in pending backpay proceeding); NLRB v. Amason, <strong>In</strong>c.,et al., in No. 84-1561 (4th Cir.) (consent order, in lieu of protective restraining order, directing respondentsto post bond in amount of $40,000 to cover any potential backpay judgment or contemptadjudication); NLRB v. Coal Systems, et cd, in No. 85-5298 (6th Cir.) (order of December 14, 1987,granting permanent injunction on <strong>Board</strong>'s emergency motion for pendente lite relief restraining respondentsand others from disbursing equipment auction proceeds or other assets to any respondent orofficer or shareholder thereof until respondents furnish security in form acceptable to <strong>Board</strong> foramounts of backpay ($73,000) alleged in <strong>Board</strong>'s backpay specification in pending backpay proceeding;restraining third parties from distributing funds to respondents; and other relief); NLRB v. Dahl FMCo., et al., in No. 86-1369 (D.C. Cir.) (order of February 24, <strong>1988</strong>, restraining respondents from sellingor transferring assets until they furnish security in the amount of $2,395,645 by depositing that amountin the registry of the district court until backpay is determined and paid, and other relief); NLRB v. B& W Machine & Welding Co., in No. 87-7058 (9th Or.) (order of April 20, <strong>1988</strong>).
162 Fifty-Third Annual Report of the <strong>National</strong> <strong>Labor</strong> <strong>Relations</strong> <strong>Board</strong>Bankruptcy Code. <strong>In</strong> Shearer, et al.," the respondent had foryears resisted the <strong>Board</strong>'s efforts to remedy its violations throughthe creation of successive corporate alter egos. During 1982 and1983, while compliance proceedings were pending against one ofthese alter egos, respondents' principals secretly and gratuitouslytransferred assets to a new corporate alter ego, thereby renderingthe predecessor insolvent and frustrating the <strong>Board</strong>'s efforts tocollect backpay. By the time these facts came to light, however,even this entity was insolvent, and a voluntary Chapter 11 petitionhad been filed. The <strong>Board</strong> then filed a contempt petitionnaming all parties, including the Chapter 11 debtor, and obtainedan order freezing their assets pendente lite. The <strong>Board</strong> successfullyargued in the contempt proceeding that both its contempt petitionand its motion for pendente lite relief were exempted fromthe "automatic" stay provisions of Section 362(a) of the BankruptcyCode. Thereafter, the <strong>Board</strong> filed a proof of claim in theChapter 11 proceeding for the full amount of backpay and interest,which then stood at $104,000, while continuing to prosecutethe contempt case.The <strong>Board</strong> subsequently negotiated a contempt settlementunder which respondents' principals were required to pay thefull amount of backpay, interest, and the <strong>Board</strong>'s litigation costs,totaling some $113,000 over a period of 7 years. Pursuant to thesettlement the <strong>Board</strong> agreed to pursue recovery of a portion ofthe backpay in the pending bankruptcy proceeding, by filing anamended proof of claim for $40,000 that the debtor entity agreednot to contest. Because respondents' principals no longer had acontrolling financial interest in the Chapter 11 debtor, any recoveryby the <strong>Board</strong> in the bankruptcy proceeding would have reducedtheir overall liability. This aspect of the contempt settlement,however, affected other creditors' rights in the Chapter 11proceeding, and approval of the settlement by the bankruptcycourt under Rule 9019 of the Bankruptcy Rules was thereforenecessary. Because the <strong>Board</strong> lacked standing to request approvalof the settlement, the debtor agreed to seek such approval.When this approval was obtained, the parties returned to thecontempt forum and jointly moved the court of appeals for entryof a contempt adjudication incorporating the settlement.<strong>In</strong> another development in the line of cases involving the useof contempt procedures against successors, the Sixth Circuit returnedto the case of Great Lakes Chemical Corp. v. NLRB. <strong>In</strong> itsearlier decision, reported at 746 F.2d 334 (1984), the court remandedthe case to the <strong>Board</strong> for its determination, in the firstinstance, of the successorship issue." On June 30, 1986, the<strong>Board</strong> issued its decision (280 NLRB 1131), finding Great Lakesto be a successor to the original respondent, Bromine Division,14 see fn. 6 supra.15 See also NLRB is Garnco <strong>In</strong>dustries, 820 F.2d 289 (9th Cir. 1987); Computer Sciences Corp. v.NLRB, 677 F.2d 804 (11th dr. 1982).
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Unfair Labor Practices 71cifically,
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Unfair Labor Practices 73In Delta-M
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Unfair 'Labor Practices 75future co
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Unfair Labor Practices 79E. Employe
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Unfair Labor Practices 81was irrele
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Unfair Labor Practices 83reasonably
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Unfair Labor Practices 85the future
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Unfair Labor Practices 87certificat
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Unfair Labor Practices 89al manager
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Unfair Labor Practices • 91the Bo
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Unfair Labor Practices 93approach h
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Unfair Labor Practices 99fiscal yea
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Unfair Labor Practices 101ation" in
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Unfair Labor Practices 103when he s
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Unfair Labor Pracdces 1054. Couplin
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Unfair Labor Practices 107Chairman
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Unfair Labor Practices 109Member Jo
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Appendix 227II1011.8§ 0>v>31 8819.
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Appendix 247Table 22.—Advisory Op