Adcox v. Teledyne, Inc.

810 F. Supp. 909, 1992 U.S. Dist. LEXIS 20288, 1992 WL 395908
CourtDistrict Court, N.D. Ohio
DecidedDecember 23, 1992
Docket5:91CV2521
StatusPublished
Cited by4 cases

This text of 810 F. Supp. 909 (Adcox v. Teledyne, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adcox v. Teledyne, Inc., 810 F. Supp. 909, 1992 U.S. Dist. LEXIS 20288, 1992 WL 395908 (N.D. Ohio 1992).

Opinion

ORDER

SAM H. BELL, District Judge.

Currently pending before the court are three motions for summary judgment pursuant to Federal Rule of Civil Procedure 56. As the analysis relevant to the separate motions is the same, the court will discuss all of the motions herein. The first motion for summary judgment was filed by the United Rubber, Cork, Linoleum and Plastic Workers of America International Union (the “URW”) and URW Local 99 (collectively “Union defendants”) on June 17, 1992. (Docket #37.) Teledyne, Inc., and Teledyne Industries, Inc., Teledyne Monarch Rubber Division (collectively “Teledyne defendants”) followed suit on August 31, 1992. (Docket # 55). Finally, plaintiffs, former employees at Teledyne’s Hartville, Ohio plant and members of Local 99, filed a motion for summary judgment against both the Union and Teledyne defendants on October 14, 1992. (Docket # 66.) All of the parties hereto have engaged in filing responses and replies to these motions. The parties have also filed hundreds of pages of exhibits and depositions to be considered in conjunction with the motions.

The underlying complaint in this case was filed on December 13, 1991. The complaint sets forth four separate counts. In the first count, plaintiffs bring a hybrid Labor Management Relations Act § 301, 29 U.S.C. § 185, claim against the Union and Teledyne defendants. The remaining three counts allege violations of provisions of the Employee Retirement Income Security Act (ERISA) and are brought pursuant to ERISA section 502 which provides for civil actions to enforce the act. 29 U.S.C. § 1132.

BACKGROUND

Plaintiffs in this matter lost their jobs when Teledyne shut down its Hartville, Ohio plant on June 16, 1991. Prior to the *912 closing, plaintiffs worked under a collective bargaining agreement between Local 99 and Teledyne which took effect in 1988 and terminated June 16, 1991 — simultaneous with the official closing of the plant. The 1988 collective bargaining agreement contained a Pension, Insurance and Service Award Agreement. This agreement included provisions for employer contributions to retiree health insurance and for payment of a service award to certain employees who lost their job and were not yet eligible for a pension. The service award functioned in many respects like severance pay.

Beginning in January, 1991, Teledyne and the Union engaged in effects bargaining to resolve the impact of the proposed closing on the employees. During effects bargaining, the Union initially argued that all retirees were entitled to life-long health insurance. The Union also claimed that all employees who were otherwise eligible for the service award and were not eligible for immediate pension benefits were entitled to a service award. Teledyne disagreed. Teledyne countered that retiree health insurance was tied to the collective bargaining agreement and that when the agreement lapsed, so to did the obligation to fund retiree health care. Teledyne also claimed that employees with vested deferred pension benefits were nonetheless eligible for a pension and therefore not entitled to a service award.

The union faced the near certainty of lengthy litigation and the apparent possibility of losing not only the service award, but also retiree health insurance. Under the circumstances, the Union negotiated a compromise. The service award was dropped from the Plant Closing Agreement. Teledyne agreed therein to permit lump sum distributions of pension benefits as a way to give employees access to immediate cash. Teledyne also agreed to life-time retiree health insurance subject to a cap on the premium paid by Teledyne and to provide short-term health coverage to terminated employees with a cash buy-out option. The plant closing agreement also included a broad release provision terminating all Teledyne liability under prior agreements, including the Service Award agreement.

The Union membership rejected the plant closing agreement on June 14, 1991. On June 28, the membership voted not to re-vote on the proposed agreement. In July, the Union issued Honorary Withdrawal and Transfer Cards to the members, apparently terminating their rights and privileges as members. Even so, the Union continued to pursue ratification of the proposed agreement. After a post card poll to determine interest in a re-vote, the Union scheduled a vote on August 22. The plant closing agreement was ratified at that meeting.

Thereafter, certain plaintiffs protested this result to the Local and to the International but were not satisfied. Plaintiff Ad-cox filed a complaint with the National Labor Relations Board which was apparently withdrawn before the Board took formal action. This litigation followed.

STANDARD OF REVIEW

In reviewing a motion for summary judgment, a court must consider the pleadings, related documents, evidence, and all reasonable inferences in a manner most favorable to the non-moving party. Adickes v. S.H. Kress & Co., 398 U.S. 144, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970); Smith v. Hudson, 600 F.2d 60 (6th Cir.1979). Rule 56 provides, in relevant part, as follows:

(c) ...
The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.
(e) ...
When a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of the adverse party’s pleading, but the adverse party’s response, by affidavits or as otherwise provided in this rule, must set *913 forth specific facts showing that there is a genuine issue for trial.

Three Supreme Court cases have provided guidance as to the nature of the respective burdens allocated under Rule 56. See Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2502, 91 L.Ed.2d 202 (1986); Matsushita Electric Industrial Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The ultimate burden lies with the non-moving party to show the existence of a genuine issue of material fact.

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Related

Katz v. Wells (In Re Wallace's Bookstores, Inc.)
316 B.R. 254 (E.D. Kentucky, 2004)
Adcox v. Teledyne, Inc.
21 F.3d 1381 (Sixth Circuit, 1994)

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Bluebook (online)
810 F. Supp. 909, 1992 U.S. Dist. LEXIS 20288, 1992 WL 395908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adcox-v-teledyne-inc-ohnd-1992.