Bellingham Frozen Foods, Inc. v. National Labor Relations Board

Bellingham Frozen Foods, Inc. (Belling-ham) petitions for review of a Decision of the National Labor Relations Board. The Board cross-appeals for enforcement of the Order. The Decision and Order, dated September 1, 1978, are reported at 237 N.L.R.B. No. 113.

We will enforce the order in part, and we set aside the order in part.

I. Facts.

Since 1965, Bellingham Cold Storage, a different corporation from Bellingham, has leased a vegetable processing and packing plant to a series of food processing firms. In 1974 San Juan Packers (San Juan) became the third lessee of the plant. San Juan encountered financial difficulties and filed a petition in bankruptcy in 1977. Bellingham purchased San Juan’s assets and leasehold at a bankruptcy sale. On April 4, 1977, Bellingham began operating the plant except for the “repack” business which San Juan was permitted to operate until it fulfilled certain outstanding obligations. In July 1977, Bellingham also took over operation of the repack business.

Each of the lessees, including Bellingham, has operated the plant in substantially the same fashion: Vegetables are obtained from farmers and the plant processes and packs the vegetables for sale…