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Regal Knitwear Co. v. N.L.R.B., 324 U.S. 9, 65 S.Ct. 478, 89 L.Ed. 661, 15 L.R.R.M. (BNA) 882, 9 Lab.Cas. P 51,193

Facts

The NLRB issued a cease and desist order against Regal Knitwear Company after appropriate proceedings, which was subsequently enforced by the Circuit Court of Appeals for the Second Circuit. The order included a provision that required not only Regal Knitwear but also its officers, agents, successors, and assigns to comply. The case arose from a conflict in how different circuit courts interpreted the authority of the NLRB to include successors and assigns in such orders.

The formula that includes successors and assigns, among others, is one probably borrowed from the jargon of conveyancing.

Issue

Whether the NLRB's cease and desist order can be enforced against Regal Knitwear Company's successors and assigns without deleting those terms from the order.

The question is whether enforcement will be granted without deleting ‘successors and assigns' from those enjoined.

Rule

The authority of the NLRB to include provisions for successors and assigns in its cease and desist orders has been upheld by several circuit courts, while others have consistently removed such provisions, leading to a conflict in interpretation.

The Circuit Court of Appeal for the First, Second, Third, Fourth, and Eighth Circuits, and the Court of Appeals for the District of Columbia have upheld the authority of the Board to include such a provision.

Analysis

The Supreme Court analyzed the conflicting practices among circuit courts regarding the inclusion of successors and assigns in NLRB orders. The Court noted that while some circuits upheld the inclusion, others removed it, suggesting that the conflict might be more about semantics than substantive legal differences. The Court emphasized that the presence of the terms 'successors and assigns' does not necessarily impose additional liability beyond what is already established by law.

When one court of appeals strikes out the provision but says its absence may in some circumstances have the same effect as if it were there, and another court of appeals approves the provision but says its presence may have no more effect than if it were out, there is more than a faint suggestion that the conflict is over semantics rather than over practical realities.

Conclusion

The Supreme Court affirmed the enforcement of the NLRB's order, concluding that the inclusion of 'successors and assigns' does not expand the scope of the order beyond what is legally permissible.

Affirmed.

Who won?

The National Labor Relations Board prevailed in the case, as the Supreme Court upheld its authority to include successors and assigns in the cease and desist order, affirming the enforcement of the order.

The National Labor Relations Board has employed this formula consistently since 1937, and some state labor boards have followed the example.

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