Walling v. Reuter Co.,
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321 U.S. 671 (1944)
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U.S. Supreme Court
Walling v. Reuter Co., 321 U.S. 671 (1944)
Walling v. Reuter Co.
Argued March 10, 1944
Decided April 10, 1944
321 U.S. 671
In a proceeding against a Louisiana corporation by the Administrator pursuant to § 17 of the Fair Labor Standards Act, the District Court permanently enjoined the corporation, "its agents, servants, employees and attorneys, and all persons acting or claiming to act in its behalf or interest," from further violations of the Act. On appeal by the corporation, the Circuit Court of Appeals reversed. Shortly after this Court had granted certiorari, the corporation was dissolved and its business was transferred to stockholders. Upon a motion to recall the writ of certiorari, held:
1. The motion papers fail to establish that the case is moot or has abated merely because of the dissolution of the corporation, since an injunction against the corporation may, in appropriate circumstances, be enforced against those to whom the business may have been transferred. The extent to which the successor to the corporation here is bound is not decided. P. 321 U. S. 673.
2. By reason of its dissolution, the corporation, the sole respondent here, no longer has capacity to be sued, thus abating the present appellate proceeding. P. 321 U. S. 675.
3. Although this Court may not properly proceed with the appeal, it may nevertheless, in the exercise of its supervisory appellate power, make such disposition of the case as justice requires. P. 321 U. S. 676.
4. The judgment of the District Court determined, subject only to resort to the prescribed appellate review, the right of the Administrator to an injunction. That review contemplates more than a consideration of the case by the Circuit Court of Appeals alone, but also appropriate proceedings in this Court. The full review contemplated by the statute having been frustrated by respondent's dissolution, the judgment of the Circuit Court of Appeals cannot rightly be made the implement for depriving the Administrator of the benefit of a judgment in the District Court. The judgment of the Circuit Court of Appeals is therefore vacated, and the cause remanded to the District Court, where the Administrator
may take such proceedings for the enforcement of its judgment as he may deem advisable and as may be proper in the circumstances. P. 321 U. S. 677.
137 F.2d 315, vacated.
Certiorari, 320 U.S. 731, to review the reversal of a judgment, 49 F.Supp. 485, enjoining the defendant corporation from violations of the Fair Labor Standards Act.