Modern Transport Inc.

National Labor Relations Board - Board Decisions

Apr 6, 1984

269 N.L.R.B. 903 (N.L.R.B. 1984)

MODERN TRANSPORT INC.
Modern Transport of Warren, Inc. and Local 247,
International Brotherhood of Teamsters, Chauf-
feurs, Warehousemen and Helpers of America.
Cases 7-CA-19851, 7-CA-20191, and 7-CA-
20259
6 April 1984
DECISION AND ORDER
BY CHAIRMAN DOTSON AND MEMBERS
ZIMMERMAN AND DENNIS
On 1 February 1983 the National Labor Rela-
tions Board entered its Order in the above-entitled
proceeding directing Modern Transport of Warren,
Inc. and Modern Transport of Warren, Inc.
Debtor-in-Possession,' among other actions, to
make whole employees Henry Fountain and James
Williams for any loss of pay they may have suf-
fered by reason of its discrimination against them.
A controversy having arisen over the amount of
backpay due under the Board's Order, the Region-
al Director for Region 7 on 10 November 1983
issued a backpay specification and notice of hearing
alleging the amounts of backpay due and notifying
the Respondent that it should file a timely answer.
On 8 February 1984 the Regional Director
issued an amended backpay specification 2 and noti-
fied the Respondent that it should file a timely
answer. The Respondent failed to file an answer.
On 5 March 1984 counsel for the General Coun-
sel filed a Motion for Default Summary Judgment.
On 6 March 1984 the Board issued an order trans-
ferring the proceeding to the Board and a Notice
to Show Cause why the General Counsel's motion
should not be granted. The Respondent filed no re-
sponse. The allegations in the motion are therefore
undisputed.
The National Labor Relations Board has delegat-
ed its authority in this proceeding to a three-
member panel.
On the entire record, the Board makes the fol-
lowing
Ruling on the Motion for Default Summary
Judgment
Section 102.54 of the Board's Rules and Regula-
tions provides that if an answer is not filed within
i On 11 June 1982 the Respondent, Modern Transport of Warren, Inc.,
filed for bankruptcy under Chapter 11. On 28 September 1983 the United
States Bankruptcy Court issued an "Order Closing Estate" because-the
Respondent failed to file financial statements or make reasonable progress
toward the filing of a disclosure statement and plan of reorganization.
The order was never served on the Board.
' The Motion for Default Summary Judgment states that the specifica-
tion was amended "to reflect corrections of clerical errors and deletions
of the proceedings in United States Bankruptcy Court . .. that were dis-
missed September 28, 1983 ....
15 days from the service of the specification the
Board may find the specification to be true. The
amended backpay specification states that the Re-
spondent shall file an answer within 15 days from
the date of the amended specification, and that if
the answer fails to deny the amended specifica-
tion's allegations in the manner required under the
Board's Rules and Regulations, and the failure to
do so is not adequately explained, the allegations
shall be deemed to be true.
In the absence of any explanation for the Re-
spondent's failure to file a timely answer, we grant
the General Counsel's Motion for Default Summa-
ry Judgment. 4
Accordingly, the Board concludes that the net
backpay due the discriminatees, Henry Fountain
and James Williams, and the payments due to vari-
ous trust funds are as stated in the computations of
the amended backpay specification, and orders the
Respondent to pay those amounts to the discrimin-
atees, and the various trust funds.
ORDER
The National Labor Relations Board orders the
Respondent, Modern Transport of Warren, Inc.,
Warren, Michigan, its officers, agents, successors,
and assigns, shall
1. Make whole each of the employees named
below by paying them the amounts set forth adja-
cent to their names, plus interest computed in the
manner prescribed in Florida Steel Corp., 231
NLRB 651 (1977),6 and accrued to the date of pay-
ment, minus tax withholdings required by law:
Henry Fountain
James Williams
$32,752.20
21,385.05
2. Make its employees whole by paying to the
trust funds listed below the amounts set forth adja-
cent to their names:
International Brotherhood of Teamsters,
Chauffeurs, Warehousemen and Helpers of
America Pension Fund-$7701.80
International Brotherhood of Teamsters,
Chauffeurs, Warehousemen and Helpers of
America Health and Welfare Fund-$6370.50
' On 23 January 1984 the General Counsel mailed a letter that was ap-
parently not served advising the Respondent that the Region would file a
Motion for Default Judgment if the Respondent did not file an answer to
the original backpay specification. This letter also stated that on 23 Janu-
ary 1984 the Respondent's representative told counsel for the General
Counsel in a telephone conversation that the Respondent would not file
an answer to the backpay specification.
I In granting the General Counsel's Motion for Default Summary
Judgment, Chairman Dotson specifically relies on the total failure of the
Respondent to respond to the allegations of the General Counsel's
amended backpay specification. Because this proceeding is a default judg-
ment, the Chairman regards it as being without precedential value.
' See generally Isis Plumbing Ca, 138 NLRB 716 (1962).
269 NLRB No. 166
903