Be&K Construction Company v. Will & Grundy Counties Building Trades Council

156 F.3d 756
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 23, 1998
Docket97-2720
StatusPublished
Cited by1 cases

This text of 156 F.3d 756 (Be&K Construction Company 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 Company v. Will & Grundy Counties Building Trades Council, 156 F.3d 756 (7th Cir. 1998).

Opinion

156 F.3d 756

159 L.R.R.M. (BNA) 2264, 136 Lab.Cas. P 10,244

BE&K CONSTRUCTION COMPANY, Plaintiff-Appellee,
v.
WILL & GRUNDY COUNTIES BUILDING TRADES COUNCIL, AFL-CIO, and
Local 150 International Union of Operating
Engineers, AFL-CIO, Defendants-Appellants.

Nos. 97-2720, 97-2732.

United States Court of Appeals,
Seventh Circuit.

Argued Feb. 19, 1998.
Decided Sept. 18, 1998.
As Amended on Denial of Rehearing and Suggestion for
Rehearing En Banc Nov. 23, 1998.

Arthur M. Scheller, III, Gardner, Carton & Douglas, Chicago, IL, E. Mabry Rogers (argued), Bradley, Arant, Rose & White, Birmingham, AL, for Plaintiff-Appellee.

Dale D. Pierson (argued), Baum, Sigman, Auerbach, Pierson & Neuman, Peter M. Katsaros, Gessler, Hughes & Socol, Chicago, IL, for Defendant-Appellant Local 150 International Union of Operating Engineers, AFL-CIO.

Roger N. Gold (argued), Gold & Polansky, Chicago, IL, for Defendant-Appellant Will & Grundy Counties Building Trades Council, AFL-CIO.

Before COFFEY, MANION, and DIANE P. WOOD, Circuit Judges.

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) evidentiary 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 Starcon, 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, Starcon hired BE&K to perform services on three jobs: at a UNO-VEN refinery in Lemont, 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 Starcon'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 Quigley 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 Uremovich also met with the UNO-VEN manager in charge of the turnaround, Richard Albaugh. Uremovich 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. Uremovich asked for time to work something out (short of removing BE&K) and Albaugh agreed. During a second meeting, Albaugh told Uremovich that UNO-VEN could not afford to have another Four Seasons incident and that it could not fight that fight. Uremovich again asked for time to talk to Quigley to determine the seriousness of the situation.

Following this second meeting with Albaugh, Uremovich 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, Uremovich secretly taped the meeting. Speaking of Starcon, Quigley told Uremovich that "it's no secret that we're coming after you ... and not just on one front." Regarding BE&K, Quigley told Uremovich:

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.

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