Boards of Trustees of Ohio Laborers' Fringe Benefit Programs v. West End Land Development, Inc.

664 F. Supp. 2d 850, 2009 U.S. Dist. LEXIS 88022, 2009 WL 3126542
CourtDistrict Court, S.D. Ohio
DecidedSeptember 24, 2009
DocketCivil Action 2:08-CV-730
StatusPublished
Cited by1 cases

This text of 664 F. Supp. 2d 850 (Boards of Trustees of Ohio Laborers' Fringe Benefit Programs v. West End Land Development, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boards of Trustees of Ohio Laborers' Fringe Benefit Programs v. West End Land Development, Inc., 664 F. Supp. 2d 850, 2009 U.S. Dist. LEXIS 88022, 2009 WL 3126542 (S.D. Ohio 2009).

Opinion

OPINION AND ORDER

NORAH McCANN KING, United States Magistrate Judge.

This matter is before the Court on the motions of defendant West End Land Development, Inc. (“West End”) for leave to file a third-party complaint. West End Land Development, Inc.’s Motion for Leave to File Third-Party Complaint, Doc. No. 12 {‘West End’s Motion”), and West End Land Development, Inc.’s Amended Motion to File Third-Party Complaint Instanter, Doc. No. 16 {West End’s Amended Motion”). For the reasons set forth below, West End’s Motion and West End’s Amended Motion are DENIED.

I. BACKGROUND

On July 28, 2008, plaintiffs, fiduciaries of three employee benefit trusts, filed the instant action, asserting claims under 29 U.S.C. §§ 185, 1132 in connection with West End’s alleged failure to make contributions to certain employee benefits plans. Complaint, Doc. No. 1. On December 29, 2008, West End moved for leave to file a third-party complaint against Laborers’ District Council of Ohio, AFL-CIO and Local Union # 860 (“Local 860”) based on “fraudulent and negligent misrepresentation regarding the scope of the collective bargaining agreement.” West End’s Motion, pp. 1-2.

Before plaintiffs responded to West End’s Motion, West End filed another motion, seeking to add an additional party, Laborers’ District Council of Ohio, AFL-CIO, Local Union # 758 (“Local 758”), to the third-party complaint. West End’s Amended Motion, p. 1. West End argues that Local 860 and Local 758 are liable to West End in the event that the Court determines that West End was obligated to make fringe benefit contributions for all individuals who worked on West End’s projects. Id. at 1-3; West End Land Development, Inc.’s First Amended Third-Party Complaint for Declaratory Judgment and Monetary Relief, ¶¶ 14-15, attached to West End’s Amended Motion (“Proposed First Am. Third Party Comp. ”).

West End alleges that, in January or February 2007, West End entered into a collective bargaining agreement (“CBA”) with Local 860 and Local 758 (collectively, “the unions”), which required, among other things, that West End pay fringe benefits. West End’s Motion, pp. 1-2; West End’s Amended Motion, pp. 1-2; Proposed First Am. Third Party Comp., ¶¶ 6, 8.

West End also alleges that, before signing the agreement, agents of the unions represented to West End that the agreement would cover only union members working on public works projects and would not include non-union laborers, supervisors, or private work projects that *854 West End acquired. Proposed First Am. Third Party Comp., ¶ 7. West End further alleges that, after December 2007, it ceased making payments to plaintiffs for fringe benefits. Id. at ¶¶ 9-10. West End contends that permitting it “to file a third-party complaint with claims for liability dependent on the outcome of the [plaintiffs’] claim would conserve judicial resources by allowing a final determination of all of the parties’ rights and liabilities in a single suit.” West End’s Amended Motion, p. 3.

Plaintiffs oppose West End’s requests for leave to file a third-party complaint, arguing that the issues sought to be raised by West End in its third-party complaint involve interpretation of a CBA and are therefore preempted by § 8(d) of the National Labor Relations Act (“NLRA”), 29 U.S.C. § 158(d), and § 301(a) of the Labor-Management Relations Act (“LMRA”), 29 U.S.C. § 185(a). Plaintiffs’ Memorandum Contra Defendant’s Motion for Leave to File Thirdr-Party Complaint, Instanter, pp. 1-2, Doc. No. 19 (“Memo.Contra”). Plaintiffs also contend that, in any event, documentary evidence contradicts West End’s current position that it believed that all private residential agreements were excluded from covered under the CBA. Id. at 2-3.

West End filed its reply, denying that its claims are preempted and arguing that it should be permitted to file its third-party complaint because it has been afforded no opportunity to invoke the NLRB’s jurisdiction. West End Land Development, Inc. ’s Reply in Support of Its Amended Motion for Leave to File ThirdrParty Complaint Instanter, pp. 2-5, Doc. No. 20 (“Reply”); Exhibits A, B and C, attached to Reply. On April 24, 2009, this Court ordered plaintiffs to respond to the arguments raised for the first time in the Reply; West End was also provided the opportunity to file a supplemental reply. Order, Doc. No. 21. The parties filed their supplemental memoranda. Plaintiffs’ Supplemental Reply Memorandum, Doc. No. 24 (“Plaintiffs’ Supp. Memo.”); Defendant’s Response to Plaintiffs’ Supplemental Reply Memorandum, Doc. No. 27 (‘West End’s Supp. Memo. ”). This matter is now ripe for resolution.

II. STANDARD

Rule 14(a) of the Federal Rules of Civil Procedure provides that “[a] defending party may, as third-party plaintiff, serve a summons and complaint on a nonparty who is or may be liable to it for all or part of the claim against it.” Fed.R.Civ.P. 14(a)(1). The third-party plaintiff must obtain leave of Court if more than 10 days after service of the original answer has lapsed. Id.

Third-party practice under Rule 14(a) “is available only against persons who are or may be liable to defendant for part or all of plaintiffs claim; it cannot be used as a way of combining all controversies having a common relationship in one action.” Metropolitan Life Ins. Co. v. Cronenwett, 162 F.Supp.2d 889, 899 (S.D.Ohio 2001) (citing 6 Charles A. Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice & Procedure, Civil 2d § 1442 at 295 (1990)). A third-party defendant can be properly impleaded into an action only if that party is subject to derivative liability-

ill. DISCUSSION

As discussed supra, plaintiffs contend that West End’s claims are preempted by § 301(a) of the LMRA and § 8(d) of the NLRA. In considering the issue of preemption, the Court will first address the question of complete preemption under § 301. See, e.g., Alongi v. Ford Motor Co., 386 F.3d 716, 724 (6th Cir.2004). Cf. *855 Burklow v. Baskin-Robbins USA, Co., 274 F.Supp.2d 899, 905-08 (W.D.Ky.2003).

A. Section 301(a) of the LMRA 1.

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664 F. Supp. 2d 850, 2009 U.S. Dist. LEXIS 88022, 2009 WL 3126542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boards-of-trustees-of-ohio-laborers-fringe-benefit-programs-v-west-end-ohsd-2009.