Board of Trustees of the Painters and Floorcoverers Joint Committee v. Olympus and Associates, Inc

CourtDistrict Court, D. Nevada
DecidedFebruary 10, 2021
Docket2:19-cv-00252
StatusUnknown

This text of Board of Trustees of the Painters and Floorcoverers Joint Committee v. Olympus and Associates, Inc (Board of Trustees of the Painters and Floorcoverers Joint Committee v. Olympus and Associates, Inc) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees of the Painters and Floorcoverers Joint Committee v. Olympus and Associates, Inc, (D. Nev. 2021).

Opinion

1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA 3 Board of Trustees of the Painters and Case No.: 2:19-cv-00252-JAD-VCF Floorcoverers Joint Committee, et al., 4 Plaintiffs Order Granting in Part Plaintiffs’ Motion 5 for Summary Judgment and Denying v. Defendant’s Cross-Motion and Motion for 6 Summary Judgment Olympus and Associates, Inc., et al., 7 [ECF Nos. 30, 31, 39] Defendants 8 9 A group of employee-benefit plans sued Olympus and Associates, Inc. and its executive 10 officers, George and Lazarus Tsiopos, for breach of contract and violating the Employee 11 Retirement Income Security Act (ERISA) when they failed to make trust-fund contributions 12 under the terms of a collective-labor agreement formed with a union. Both parties move for 13 summary judgment,1 focusing on whether Olympus was bound by the agreement, Olympus 14 properly terminated the agreement, and George and Lazarus can be held personally liable under 15 the agreement, and whether the plaintiff trusts have properly demonstrated their alleged 16 damages. 17 Based on undisputed facts, I find that Olympus was bound by the parties’ initial labor 18 agreement and failed to properly terminate it, and that the plaintiff trusts are owed monetary 19 damages. But questions of fact preclude me from resolving (1) whether the plaintiff trusts are 20 equitably estopped from enforcing the agreement, given certain alleged promises made to 21 Olympus by a union representative; and (2) the amount of delinquent contributions that the 22

23 1 ECF Nos. 30 (plaintiffs’ motion for summary judgment); 31 (defendants’ motion for summary judgment); 39 (defendants’ cross-motion for summary judgment). 1 plaintiff trusts are owed. So I grant the plaintiffs’ motion for summary judgment in part and 2 deny Olympus’s motion and cross-motion for summary judgment. 3 Background 4 I. Olympus’s relationship with the International Union of Painters and Allied Trades 5 Olympus is a Nevada-based contracting company—owned by father-and-son team

6 George and Lazarus Tsiopos, alongside Lazarus’s wife, office manager Lyndsey Tsiopos2—that 7 operates throughout Nevada and California.3 Beginning in May 2010, Lazarus and Lyndsey, on 8 behalf of the company, signed separate labor agreements with District Council No. 16 and Local 9 Union No. 159 of District Council No. 15, each of which is a local chapter of the International 10 Union of Painters and Allied Trades, so that Olympus could hire union employees.4 The 11 agreement with District 16, colloquially known as the Northern Nevada Labor Agreement, 12 authorized union painting and decorating work in northern Nevada and parts of California.5 The 13 agreement with Local Union 159 of District 15, known as the Southern Nevada Labor 14 Agreement, permitted union employees to work throughout Nevada’s southern counties.6 These

15 agreements were revised over time, sometimes requiring involved parties to sign addenda, 16 memoranda of understanding, and successor agreements, which variously renewed the parties’ 17 18

19 2 Unlike George and Lazarus, Lyndsey does not have a stake in the company. See ECF No. 30-4 at 5. 20 3 ECF Nos. 3-1; 30-4 at 5. 21 4 ECF Nos. 30-2; 30-4 at 18; 30-8 at 33 (Painters Master Agreement with District Council No. 16 (“Northern Nevada Master Agreement”)); ECF No. 30-14 at 47 (Painters & Decorators Master 22 Agreement with Local Union No. 159, District Council No. 15 (“Southern Nevada Painters Master Agreement”)); 37-1 at ¶ 38. 23 5 ECF No. 30-8 at 2. 6 ECF No. 30-14 at 8. 1 obligations and adjusted the agreements’ terms.7 Throughout each agreement’s tenure, Olympus 2 was required to report its employees’ hours of covered labor and contribute funds to third-party 3 beneficiary trusts, called Taft-Harley employee-benefit plans, which in turn dispersed those 4 funds to union affiliates as health, pension, and fringe benefits.8 5 II. Southern Nevada Master Agreement

6 Lyndsey, on behalf of Olympus, signed the Southern Nevada Labor Agreement with 7 Local Union 159 of District 15 on January 31, 2011.9 Under the plain terms of the agreement, 8 the signatory parties include Local Union 159, “which is affiliated” with District 15; “signatory 9 contractors associations,” including the Southern Nevada Chapter of the PDCA, the WWCCA, 10 and any of those associations’ “present and future signatory members;” “firms who have 11 executed written authorization for the Chapter to represent them;” and “any independent 12 employers who may affix their signature[s] to this agreement.”10 The Southern Nevada Labor 13 Agreement contained the following relevant clauses: 14 Commencing with [7/1/2007] and for the duration of this Agreement and any renewals or extensions thereof, the 15 16 7 Addenda to the Northern Nevada Labor Agreement with District 16 were signed in May 2010 17 by Lazarus, ECF Nos. 30-9 at 3; 30-4 at 17–18, and in February 2011, August 2012, and December 2012 by Lyndsey, ECF Nos. 30-10 at 3, 30-11 at 3, 30-12 at 2. In 2016, George 18 signed a superseding agreement with District 16. ECF No. 30-13 at 33. For the Southern Nevada Labor Agreement, the plaintiffs provide memoranda of understanding, revising terms in 19 the Southern Nevada Labor Agreement and memorializing changes in wage rates, signed by District 15 and various union representatives. See, e.g., ECF Nos. 30-18–30-20. Plaintiffs also 20 provide a successor agreement to the Southern Nevada Labor Agreement devoid of Olympus’s signature. See ECF No. 30-21. 21 8 ECF No. 30-7 at 13. 22 9 ECF No. 30-14 at 47; ECF No. 37-3 at ¶¶ 6–8. When shown this agreement at her deposition, Lyndsey testified that she understood it to be an agreement between “Olympus and District 23 Council 15” and admitted that it contained her signature. See ECF No. 30-4 at 17–18. 10 ECF No. 30-14 at 4. 1 Employer11 . . . agrees to make payment to the IUPAT Union and Industry Pension Fund for each employee covered by this 2 Agreement [and] to the Painters Joint Apprenticeship and Training Committee for each employee covered by this Agreement . . . . 3 This Agreement shall be in full force and effect from 7/1/2007 to 4 and including 6/30/2011 and shall continue from year to year thereafter unless written notice of desire to cancel or terminate the 5 Agreement is served by either party upon the other not less than sixty (60) and not more than ninety (90) days prior to 6/30/2007 or 6 June 30 of any subsequent contract year . . . . 7 The Employer hereby agrees to be bound by and to [the pension fund agreements], as amended from time to time, as though he 8 actually signed the same.12 9 The plaintiffs claim that the parties amended this agreement in two ways. First, by 10 signing recurring memoranda of understanding13 that, by their explicit terms, “modif[ied] the 11 terms and conditions”14 of the Southern Nevada Labor Agreement by adjusting rate and wage 12 schedules. Each of these memoranda provided for a “one [] year extension to the existing 13 [Southern Nevada Labor Agreement],” the last of which set the agreement’s expiration for June 14 30, 2015.15 Second, the parties modified the agreement by signing a successor Southern Nevada 15 Labor Agreement.16 Unlike the memoranda, the successor agreement, which took effect on July 16 1, 2015, did not merely adjust rate schedules; it presented an entirely new agreement similar in 17 length and terms to the initial one.17 Containing no language incorporating or referencing the 18

19 11 As best I can tell, and despite being capitalized, the term “Employer” is left undefined. 12 ECF No. 30-14 at 14–16, 46. 20 13 The initial agreement that Lyndsey signed contained one of these memoranda of 21 understanding. See ECF No. 30-14. 14 See, e.g., ECF No. 30-20 at 2. 22 15 ECF Nos. 30-17 at 2; 30-18 at 3; 30-19 at 2; 30-20 at 2. 23 16 ECF No. 30-21. 17 Id.

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Bluebook (online)
Board of Trustees of the Painters and Floorcoverers Joint Committee v. Olympus and Associates, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-of-the-painters-and-floorcoverers-joint-committee-v-nvd-2021.