Allen v. Grand Central Aircraft Co

In Allen v. Grand Central Aircraft Co., 347 U.S. 535, 74 S.Ct. 745, 98 L.Ed. 933 (1954) the Supreme Court reversed the decision of a three-judge court, D.C., 114 F.Supp. 389, 391, which granted an injunction to restrain the officer from holding hearings merely to recommend findings to a Regional Enforcement Commission subject to review by the National Enforcement Commission. Those findings might have shown no violation of wage ceilings. At most, they would be concerned with appellee's alleged payment of wages in excess of wage ceilings to an extent of about $750,000. The ground of the injunction was that by further administrative procedure the aircraft company would be irreparably damaged in performing its wartime contracts in repairing airplanes in which it employed several thousand persons. If the preliminary proceeding brought a consideration of the merits, it might be shown that the company would be liable to be deprived of from two to three million dollars deduction for tax purposes, for having paid wages in excess of the maximum. The three judge court found that "The evidence further showed that the continuance of the administrative proceedings with the overhanding threat of the disallowance penalties would cause the banks to withdraw the credit extended, resulting in a shutdown of plaintiff's business, cancellation of its government contracts, and consequent bankruptcy." Though the three judge court made this finding of "consequent bankruptcy" the Supreme Court reversed the judgment enjoining the Commission, stating, 347 U.S. on page 540, 74 S.Ct. on page 748: "However, it is clear that once the right of the Government to hold administrative hearings is established, a litigant cannot enjoin them merely because they might jeopardize his bank credit or otherwise be inconvenient or embarrassing. Aircraft & Diesel Corp. v. Hirsch, 331 U.S. 752, 777-779, 67 S.Ct. 1493, 91 L.Ed. 1796, `The expense and annoyance of litigation is "part of the social burden of living under government."' Petroleum Exploration, Inc., v. Public Service Commission 304 U.S. 209, 222, 58 S.Ct. 834, 841, 82 L.Ed. 1294. See also, Myers v. Bethlehem Corp., 303 U.S. 41, 47, 58 S.Ct. 459, 461, 82 L.Ed. 638; Chicago & Southern Air Lines v. Waterman S. S. Corp., 333 U.S. 103, 112-113, 68 S.Ct. 431, 436-437, 92 L.Ed. 568; Franklin v. Jonco Aircraft Corp., per curiam, 346 U.S. 868, 74 S.Ct. 126 98 L.Ed. 378."