In Re: JEROME POLLOCK, JR. STONE ARTIST, INC., Debtor., 402 B.R. 534

Summary

The debtor listed the DOL as a general unsecured creditor. The DOL claimed that the debtor had violated the labor laws of the State of New York by failing to pay its workers overtime wages. The DOL sought to fix damages for violation of the State's minimum wage order. The DOL asserted that its postpetition issuance of a notice to comply against the debtor, and its enforcement thereof, up to and including entry of a money judgment, but not including unilateral enforcement of such a judgment, was authorized under the regulatory powers exception. The debtor argued that because the order to comply lacked a demand for injunctive relief, it fell outside the § 362(b)(4) exception. The court found the order to be proper. Entry of a judgment would not give the government any priority over other creditors, and the regulatory purpose was clearly within the intent of the statute's framers. The court found, based on several prior cases, that an explicit request for injunctive relief was not ...