Nathanson, Trustee in Bankruptcy, v. National Labor Relations Board (344 U.S. 25)

U.S. Supreme Court · decided November 10, 1952 · Supreme Court Database (Spaeth)

Citation
344 U.S. 25 · 73 S. Ct. 80
Docket
No. 33
Argued
October 23, 1952
Decided
November 10, 1952
Term
October Term 1952
Vote
7–2
Majority author
Justice Douglas
Issue area
Federal Taxation
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Conservative

How the Justices voted

Majority
Chief Justice Vinson, Justice Minton, Justice Clark, Justice Burton, Justice Douglas (wrote), Justice Frankfurter, Justice Reed
Dissenting
Justice R. H. Jackson (wrote), Justice Black

Opinion on Justia

Opinion excerpt

Mr. Justice Douglas delivered the opinion of the Court. Respondent, the National Labor Relations Board, issued a complaint against the present bankrupt company alleging unfair labor practices, and, after appropriate proceedings, ordered the bankrupt to pay certain employees back pay which they had lost on account of an unfair labor practice of the bankrupt. Before the order was enforced by the Court of Appeals an involuntary petition had been filed against the company. Thereafter the Court of Appeals entered its decree, enforcing the Board’s order. In due course the Board filed a proof of claim for the back pay which was disallowed by the referee. The District Court set aside the disallowance. 100 F. Supp. 489. The Court of Appeals affirmed (194 F. 2d 248) holding that the Board’s order is a provable claim in bankruptcy, that the Board can liquidate the claim, and that it is entitled to priority as a debt owing to the United States under § 64 (a) (5) of the Act. The petition for certiorari was granted because of a conflict on the question of priority between that decision and Labor Board v. Killoren, 122 F. 2d 609, decided by the Court of Appeals for the Eighth Circuit. We think the Board is a creditor as respects the back pay awards, within the meaning of the Bankruptcy Act. The Board is the public agent chosen by Congress to enforce the National Labor Relations Act.…

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