BE&K Construction Co. v. Will & Grundy Counties Building Trades Council

156 F.3d 756
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 18, 1998
DocketNos. 97-2720, 97-2732
StatusPublished
Cited by6 cases

This text of 156 F.3d 756 (BE&K Construction Co. v. Will & Grundy Counties Building Trades Council) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BE&K Construction Co. v. Will & Grundy Counties Building Trades Council, 156 F.3d 756 (7th Cir. 1998).

Opinion

MANION, Circuit Judge.

BE&K Construction Company sued Will & Grundy Counties Building Trades Council (“Trades Council”) AFL-CIO, and International Union of Operating Engineers Local 150 (“Local 150”) under Section 303 of the Labor Management Relations Act, 29 U.S.C. § 187 (“LMRA”), alleging that the defendants illegally threatened a secondary picket and that these threats caused BE&K to lose construction jobs. A jury returned a verdict in favor of BE&K, awarding it $544,000. The defendants appeal arguing that (1) evi-dentiary and instruction errors resulted in an unfair trial; (2) the evidence is insufficient to support the jury’s verdict and damage award; and (3) BE&K’s claim against Local 150 is barred by the statute of limitations. We affirm.

I. Factual Background1

BE&K, a Birmingham, Alabama, non-unionized company, provides various construction-related services throughout the United States. On June 11, 1994, BE&K entered into a “Master Contract” with Star-eon, Inc., a mechanical contractor based in Manhattan, Illinois. Starcon provides maintenance and repair services to the oil and petrochemical industry. In the Master Contract, BE&K agreed to provide boiler repair and retrofit services to Starcon on an as-needed basis; the Master Contract also set forth the terms under which BE&K would provide these services, including the hourly rates and the types of reimbursable costs.

Between June 11, 1994 (the date of the Master Contract) and September 1995, Star-con hired BE&K to perform services on three jobs: at a UNO-VEN refinery in Lem-ont, Illinois; at Mobil Oil in Joliet, Illinois; and at Marathon Oil in Robinson, Illinois. Then on September 12, 1995, Starcon hired BE&K for a fourth time: Under this contract BE&K agreed to provide services for Star con’s turnaround project at UNO-VEN in Lemont, Illinois. This turnaround project (valued at between $5,000,000 and $7,000,000) involved the temporary shutdown of a portion of UNO-VEN’s refinery so that Starcon could perform preventative maintenance and repair work. It was scheduled to take three weeks.

On September 18, 1995, approximately thirty BE&K employees reported to work at UNO-VEN. Around the same time, Michael Quigley, a Local 150 member and president of the Trades Council since 1990, and Gary Benefield, a Local 150 member and delegate to the Trades Council, learned that Starcon had hired BE&K (which they knew was a non-unionized company) to perform work during the UNO-VEN turnaround. After learning of BE&K’s involvement, Quigley and Benefield contacted UNO-VEN and met with UNO-VEN managers Stan Taylor and Art Klien in UNO-VEN’s cafeteria. During this meeting, Quigley told UNOVEN manager Taylor that BE&K had “to be gone ... that threat cannot be there” and that UNO-VEN could “expect a lot more serious problems than they’ve had in the past” if they did not remove BE&K, and that UNO-VEN could take these statements “any way they want.” Taylor asked Benefield several times if he was going to picket if BE&K stayed, to which Benefield repeatedly responded, “it’s always a possibility.” In fact, in an earlier telephone conversation, Quigley had told Taylor that the pickets would be “at UNO-VEN.”

At trial, BE&K offered evidence explaining the “serious problems they’ve had in the past”: Just four months earlier, UNO-VEN and various Trades Council members, including Local 150, were involved in a dispute over UNO-VEN’s use of Four Seasons Environmental, a non-union contractor, and both [760]*760Quigley and Benefield participated in the Four Seasons picketing. During that dispute, Local 150 set up pickets which shut down a substantial portion of the refinery for several days. Even though UNO-VEN had established a separate gate for Four Seasons, the picketing was not restricted to that area. As a result of the picketing and the three days of down-time, UNO-VEN removed Four Seasons and the work went to Local 150 workers.

Following the meeting at UNO-VEN’s cafeteria, several members of UNO-VEN’s management held internal meetings to discuss the unions’ threats. Starcon’s founder and president Michael Uremovieh also met with the UNO-VEN manager in charge of the turnaround, Richard Albaugh. Uremo-vich suggested that UNO-VEN establish a separate gate for Starcon’s use, but Albaugh rejected that proposal because it had not worked during the Four Seasons incident and he was concerned that it also would not work with Starcon. Uremovieh asked for time to work something out (short of removing BE&K) and Albaugh agreed. During a second meeting, Albaugh told Uremovieh that UNO-VEN could not afford to have another Four Seasons incident and that it could not fight that fight. Uremovieh again asked for time to talk to Quigley to determine the seriousness of the situation.

Following this second meeting with Al-baugh, Uremovieh contacted Quigley and asked to meet to discuss the problem at UNO-VEN. Quigley agreed. The two later met at a local Bob Evans Restaurant. Concerned that Quigley would make unlawful threats and that he would later be unable to prove that the threats were made, Uremo-vieh secretly taped the meeting. Speaking of Starcon, Quigley told Uremovieh that “it’s no secret that we’re coming after you ... and not just on one front.” Regarding BE&K, Quigley told Uremovieh:

The position is that we’re going to treat them as our worst enemy and we, we’ll take any and all, all remedies including picketing. Mike, I don’t have a choice in this. This is, this is, this is, this is something that we cannot deal with, and we don’t intend to deal with. If this is, this now sends off international signals all over the place that they’re coming into a market that, that, that never had before, and if, their intention is to secure a place in that market, that’s a threat on every single trade that we’ve got, and we’re not going to tolerate it.

Quigley also told Uremovieh that Starcon’s relationship with BE&K “really turns the heat up on you too.” Uremovieh asked Quig-ley if there would be pickets if BE&K were taken off the job and Quigley responded, “not at you.” Quigley also stated that if BE&K were not removed “there would be picket lines and there would be trouble like we’ve never seen before.”

Following the lunch meeting, Uremovieh' informed UNO-VEN that Quigley was serious about his threats to UNO-VEN and that he had also threatened Starcon. Based on these facts, Albaugh determined that the turnaround project “could be put in jeopardy if BE&K was to continue to do the work that they were working on.” According to Al-baugh, the Four Seasons incident “was fresh in our mind and we were concerned that something like that could happen again ... we were at a very vulnerable time with our units being out of production.” UNO-VEN instructed Starcon to remove BE&K from the job site, which it did.

After being removed from the UNO-VEN job, BE&K sued the Trades Council. BE&K later filed an amended complaint naming additional defendants, including Local 150.2 BE&K alleged claims under section 303 of the LMRA, as well as state common law claims, although the district court granted the defendants summary judgment on all of the claims except the section 303 claim, which was tried to a jury.

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Cite This Page — Counsel Stack

Bluebook (online)
156 F.3d 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bek-construction-co-v-will-grundy-counties-building-trades-council-ca7-1998.