Employment Security Commission v. Doughty

STEVENS, Judge.

James T. Doughty, herein referred to as the claimant, and his son were engaged in a wholesale electrical supply business. The business was organized as a corporation with the claimant and his son each holding 50% of the stock. The claimant was the president and his son was the vice-president. In 1965 the corporation filed for reorganization of the business under Chapter XI of the Federal Bankruptcy Act. The Court-appointed receiver decided that the number of employees of the business had to be reduced to one. The claimant continued on the payroll until 2 December 1965. The…