As a device for recovering excessive profits, federal legislation authorized the Secretary of War to order concerns holding contracts with the government to withhold and pay over to the government amounts due from them to parties against which the excessive profits had been determined. Acting under this authority, the Secretary ordered twelve government contractors to withhold sums due or to become due to plaintiff, of which they were customers, after a determination against the plaintiff of $7,000,000 in excessive profits. Plaintiff sought to enjoin defendant from using this means of collection, contending that because the order was not limited to amounts already due on subcontracts for government work, it was in excess of his statutory authority. Defendant moved to dismiss, on the ground that plaintiff stated no basis for equitable jurisdiction. Held, motion denied. Plaintiff has a right to test the validity of the withholding order. Its remedy at law is inadequate, because a multiplicity of actions against its customers would be required, impairing its business relationships. Lord Mfg. Co. v. Stimson, (D.C. D.C. 1947) 73 F. Supp. 984.
William J. Schrenk,
EQUITY-JURISDICTION TO ENJOIN ACTS OF A FEDERAL OFFICER IN EXCESS OF STATUTORY AUTHORITY,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol46/iss6/16