April 2, 2003
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Application for Refund
Name of Petitioner: La-Z-Boy Incorporated
Dates of Filings: July 5, 1994
Case Numbers: RF272-98826
This Decision and Order concerns an Application for Refund filed by La-Z-Boy Incorporated (La-Z-Boy), in the Subpart V crude oil refund proceeding being conducted by the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) under 10 C.F.R. Part 205. Pursuant to the long-standing policy of the DOE, thousands of purchasers of petroleum products have applied for and received refunds from the crude oil overcharge funds under the jurisdiction of OHA. See Statement of Modified Restitutionary Policy to be Implemented in Crude oil Cases, 51 Fed. Ref. 27899 (August 4, 1986).
The La-Z-Boy refund Application is based upon purchases of petroleum products made by the Hammary Furniture Company (Hammary) during the period August 1973 through January 1981, a period during which La-Z-Boy and Hammary were not affiliated in any way. In October 1986, La-Z-Boy purchased the assets of Hammary Furniture and later filed the present Application based upon Hammarys operations prior to the asset purchase.
Resolution of this Application depends upon whether La-Z-Boy acquired the right to a crude oil refund when it acquired the Hammary assets. In cases where an entity is acquired through the unqualified purchase of a firms common equity, the purchaser stands in the shoes of the acquired entity and the entitlement to seek a refund is clearly passed to the purchaser. See Shell Oil Company/ Magnatex Corporation, 22 DOE ¶ 85,037 (1992); A.H. Smith Associates, 22 DOE ¶ 85,036 (1992) ARCO/Dick's ARCO, 20 DOE ¶ 85,389 (1990). Similarly, where an entitys assets were transferred under an agreement that included, for example, assets and liabilities known and unknown, the right to seek a refund transfers. Id.
In this case, La-Z-Boy did not purchase the common equity of Hammary. Nor is there any material in the record indicating that La-Z-Boy acquired anything other than the assets of Hammary when it purchased the assets of the firm. As a result, this Application for refund should be denied.
It Is Therefore Ordered That:
(1) The Application for Refund filed by La-Z-Boy Incorporated, Case No. RF272-98826, is hereby denied.
(2) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: April 2, 2003