Empire Case Goods Workers Union v. Empire Case Goods Co.
Empire Case Goods Workers Union, on behalf of its members, brought an action against Empire Case Goods Company and Sidney G. Bose to recover vacation pay stipulated in a contract. Empire sold its business to Bose, leading both defendants to deny liability for the vacation pay. The Special Term initially dismissed the complaint against both defendants, reasoning that Empire's employees became Bose's and Bose was not party to the contract. On appeal, the court affirmed the dismissal against Bose, finding no implied assumption of Empire's wage structure. However, it reversed the dismissal against Empire, holding Empire liable for the vacation pay as employees were not notified of the change in employer and continued to work under Empire's apparent authority, making Empire responsible under master and servant law.