Appeal from the Adjudication of the Bureau of Employment Security in case of Application for redetermination of employer contribution rate of Perfection Plastics, Inc., Acct. No. 71-71807.
Charles L. Katz, with him Gerald J. St. John and Schnader, Harrison, Segal & Lewis, for appellant.
Michael H. Chwastiak, Assistant Attorney General, for appellee.
President Judge Bowman and Judges Crumlish, Jr., Kramer, Wilkinson, Jr., Mencer, Rogers and Blatt. Opinion by Judge Kramer.
[ 13 Pa. Commw. Page 201]
This is an appeal filed by Perfection Plastics, Inc. (Perfection) from an adjudication of the Bureau of Employment Security (Bureau) of the Department of Labor and Industry of the Commonwealth of Pennsylvania dated July 25, 1973 denying Perfection's application for a redetermination of its contribution rates for the years 1971 and 1972.
Because the complicated facts of this case are pertinent to our holding, it is necessary to review them in some detail. The plastics business in question was initially purchased on April 1, 1947 from Advertising
[ 13 Pa. Commw. Page 202]
Novelty Manufacturing Company, Inc., a Pennsylvania corporation, by Perfection Plastics Engineering Corporation (Perfection Engineering), also a Pennsylvania corporation. Upon notice of the transfer of business, Perfection Engineering was given a new employer account number. Perfection Engineering continued the business until it sold same on September 30, 1969 to Clo-tron Industries, Inc. (Clo-tron). Clo-tron did not make an application for a transfer of the experience record and reserve account balance of Perfection Engineering. Therefore, on September 30, 1969, Perfection Engineering's employer account number was deleted and a new account number was given to Clo-tron for the fourth calendar quarter of 1969. The rate assigned to Clo-tron was .027, which was the rate applied to all new employers for that quarter.
Clo-tron continued in business for nearly four months until January 20, 1970, at which time its employer account number was deleted because the Bureau was notified that Clo-tron had ceased to give employment in Pennsylvania. Clo-tron was adjudged a bankrupt on February 6, 1970 and its business was sold by the bankrupt's estate to Industrial Plastics Company, Inc. (Industrial Plastics), a Massachusetts corporation, on February 14, 1970.
Perfection, in its Employer's Initial Statement dated October 13, 1970, notified the Bureau that it was incorporated in Pennsylvania on February 12, 1970 with its common stock wholly owned by Industrial Plastics, that it was a new owner of the business from February 14, 1970, and that there was no predecessor employer account. As a result of this filing, the Bureau gave Perfection a new employer account number, effective February 14, 1970. Perfection was assigned a tax rate of .027, which was the rate applied to new employers for wages paid in the calendar year 1970.
[ 13 Pa. Commw. Page 203]
Later, Perfection requested the Bureau to permit it to amend its Employer's Initial Statement (dated October 13, 1970) by applying for the transfer of the experience record of both Clo-tron and Perfection Engineering. The reason for the request was to reduce Perfection's contribution rate to .008, which was the rate paid by Perfection Engineering when it sold its business to Clo-tron. The Bureau denied Perfection's request for transfer of experience records but despite the denial, ...