Board of Trustees for the Laborers Health and Welfare Trust Fund for Northern California v. Turner Group Construction

CourtDistrict Court, N.D. California
DecidedFebruary 11, 2021
Docket4:20-cv-01244
StatusUnknown

This text of Board of Trustees for the Laborers Health and Welfare Trust Fund for Northern California v. Turner Group Construction (Board of Trustees for the Laborers Health and Welfare Trust Fund for Northern California v. Turner Group Construction) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees for the Laborers Health and Welfare Trust Fund for Northern California v. Turner Group Construction, (N.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 11 BOARD OF TRUSTEES FOR THE Case No. 20-cv-01244-DMR LABORERS HEALTH AND WELFARE 12 TRUST FUND FOR NORTHERN CALIFORNIA, et al., ORDER DENYING PLAINTIFFS’ 13 MOTION FOR SUMMARY Plaintiffs, JUDGMENT 14 v. Re: Dkt. No. 31 15 TURNER GROUP CONSTRUCTION, 16 Defendant. 17 18 Plaintiffs are the Boards of Trustees for the Laborers Health and Welfare Trust Fund for 19 Northern California, Laborers Pension Trust Fund for Northern California, Laborers Vacation- 20 Holiday Trust Fund for Northern California, and Laborers Training and Retraining Trust Fund for 21 Northern California (“Trust Funds”). [Docket No. 1 (“Compl.”) at 2.] Plaintiffs filed this case on 22 February 19, 2020, alleging that Defendant Turner Group Construction breached the terms of a 23 collective bargaining agreement in violation of the Employee Retirement Income Security Act 24 (“ERISA”), 29 U.S.C. § 1132, and the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 25 185. Plaintiffs now move for summary judgment. [Docket Nos. 31 (“Mot.”), 37 (“Reply”).] Turner 26 Group opposes. [Docket No. 35 (“Opp.”).] This matter is suitable for determination without oral 27 argument. Civ. L.R. 7-1(b). 1 I. BACKGROUND 2 A. Collective Bargaining Agreement 3 The Trust Funds are multiemployer employee benefit plans1 governed by sections 302(c)(5), 4 302(c)(6), and 302(c)(9) of the LMRA, 29 U.S.C. §§ 186(c)(5)-(6), (9), and ERISA, 29 U.S.C. § 5 1001 et seq. [Docket No. 31-2, Declaration of Michelle Lauziere (“Lauziere Decl.”) ¶¶ 2-3.] Each 6 is each subject to a written trust agreement. Id. ¶ 3; see id., Ex. A (“Trust Agreements”). Turner 7 Group is a small construction business formed in 2005. [Docket No. 35-1, Declaration of Len 8 Turner (“Turner Decl.”) ¶¶ 2-3.] In March 2007, Turner Group sought to work on a construction 9 project for the Fox Theater in Oakland. Id. ¶ 6. The project required Turner Group employees to 10 become members of the Northern California District Council of Laborers (“Union”). Id. In March 11 2007,2 Turner Group entered into a one-job agreement with the Union to cover work for the Fox 12 Theater project. Id.; Lauziere Decl. ¶ 6; Lauziere Decl., Ex. G. The one-job agreement bound 13 Turner Group to the terms of the Union’s collective bargaining agreement (“CBA”) for the work 14 performed at that job. Lauziere Decl. ¶ 6; id., Exs. D (CBA for 2012-2015), E (CBA for 2014- 15 2019). The CBA incorporates the various Trust Agreements. Lauziere Decl. ¶ 6. 16 Turner Group later agreed to continue contracting with the Union beyond the one-time Fox 17 Theater job. In May 2007, Turner Group authorized the Associated General Contractors of 18 California (“AGC”) to execute the CBA on behalf of Turner Group. Turner Decl. ¶ 8; Lauziere 19 Decl. ¶ 6; Lauziere Decl., F (power of attorney). Len Turner, CEO and sole shareholder of Turner 20 Group, avers that Turner Group provided the authorization only after the Union agreed that the jobs 21 Turner Group bid before entering into the agreement would be exempt from its terms. Turner Decl. 22 ¶¶ 7-8. Therefore, Turner Group was not obligated to make contributions to the Trust Funds for 23

24 1 “The term ‘multiemployer plan’ means a plan--(i) to which more than one employer is required to 25 contribute, (ii) which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and (iii) which satisfies 26 such other requirements as the Secretary may prescribe by regulation.” 29 U.S.C. § 1002(37)(A).

27 2 Lauziere’s declaration states that the one-job agreement was signed in May 2007, which appears to contradict the exhibit attached to that declaration as well as Turner’s declaration. See Lauziere 1 work performed on those jobs. Id. ¶ 8. 2 The CBA requires Turner Group to promptly pay all employer contributions for covered 3 work to the Trust Funds, except for the exempted jobs described above. See Lauziere Decl. ¶ 7. It 4 also provides that Turner Group must submit to audits of its records so that the Trust Funds can 5 confirm whether the company has timely paid all required contributions: 6 Each Individual Employer, upon request of any Trust Fund specified in this Agreement, shall permit a Trust Fund Auditor to review any and all records 7 relevant to the enforcement of the provisions of this Agreement pertaining 8 to the Trust Funds. Such review shall be permitted not less than ten (10) working days after demand. 9 Id., Ex. D, Section 7(B); id., Ex. E, Section 7(B). The individual Trust Agreements, which are 10 incorporated into the CBA, also require employers to submit to audits: 11 Upon request in writing from the Board of Trustees, an Individual Employer 12 will permit a Trust Fund Auditor to enter upon the premises of such Individual Employer during business hours, at a reasonable time or times, 13 not less than two (2) working days after such request, and to examine and 14 copy such books, records, papers, or reports of such Individual Employer as may be necessary to determine whether the Individual Employer is making 15 full and prompt payment of all sums required to be paid by him to the Fund. 16 Lauziere Decl. ¶ 10; id., Ex. A at pp. 15, 45, 76, 106. 17 Plaintiffs represent that they repeatedly demanded that Turner Group submit to an audit 18 covering the time period from January 1, 2012 to the present. Lauziere Decl. ¶ 11. It is undisputed 19 that Turner Group has not allowed Plaintiffs to proceed with the audit. 20 B. First Audit 21 To explain its refusal, Turner Group represents that Plaintiffs performed a previous audit in 22 2010 spanning the period of June 2007 through December 2009, and that audit was riddled with 23 errors. See Turner Decl. ¶¶ 11-59. Specifically, Plaintiffs initially told Turner Group that it owed 24 $343,428.75 in past contributions and liquidated damages. Id. ¶ 13; see id. Ex. 1 (letters from 25 Plaintiffs to Turner Group dated November 5, 2010 and November 29, 2010). After Turner Group 26 pointed out several errors in Plaintiffs’ calculations, Plaintiffs reduced the amount they claimed was 27 owed to $106,828.97. Id. ¶ 15; see id., Ex. 1 (summary of amount due, dated February 17, 2011). 1 supporting its position. Id. ¶ 16. Turner Group avers that Plaintiffs asked for additional explanation 2 and documentation, which Turner Group provided, but then dropped the issue for five years. Id. ¶¶ 3 17-18. In February 2016, Plaintiffs again contacted Turner Group, representing that the amount 4 now owed was $68,203.05. Id. ¶ 18; see id. Ex. 3 (letter from Plaintiffs to Turner Group, dated 5 February 16, 2016). Turner Group states that the claimed amount included unpaid contributions for 6 jobs it had bid before Turner Group entered into the CBA, which the Union and the company agreed 7 would be exempt from the CBA. Id. ¶ 19. Turner Group pointed out the error to Plaintiffs, who— 8 a year later, in February 2017—revised the amount claimed owed to $42,047.54. Id. ¶¶ 20-21; see 9 id., Ex. 4 (letter from Plaintiffs to Turner Group dated February 3, 2017). The new demand again 10 contained errors, including contributions allegedly owed based on jobs Turner Group bid before 11 entering the CBA. Id. ¶¶ 22-23. Over the next several months.

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Board of Trustees for the Laborers Health and Welfare Trust Fund for Northern California v. Turner Group Construction, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-for-the-laborers-health-and-welfare-trust-fund-for-cand-2021.