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In Kaynard v. Palby Lingerie, Inc., the Second Circuit Court of Appeals held that an interim bargaining order could be granted in the district court's discretion when there is a showing of a "substantial basis" to make a unit determination even though the unit of workers that desire union representation has not been finally determined. Palby is the first case in which a circuit court has ever granted an interim bargaining order under section 10(j) of the Labor Management Relations (Taft-Hartley) Act in the absence of a final unit determination.

Palby Lingerie is the sales end of a four company operation engaged in the manufacture, sale and distribution of women's lingerie. Local 57, Nassau-Suffolk District Council, International Ladies Garment Workers Union, AFL-CIO, obtained twenty-seven signed authorization cards from employees of the four companies and demanded recognition as the bargaining representative of all fifty production, maintenance, shipping and receiving employees. These cards were signed by nineteen of thirty employees employed by one company, but only seven of fourteen employed by the second and one of six employed by the third. No cards were obtained from Palby personnel, all of whom are supervisors.