Carpenters Local 1471 v. Bar-Con, Inc.

668 F. Supp. 560, 126 L.R.R.M. (BNA) 3329, 1987 U.S. Dist. LEXIS 7700
CourtDistrict Court, S.D. Mississippi
DecidedMay 16, 1987
DocketCiv. A. J85-0924(L)
StatusPublished
Cited by5 cases

This text of 668 F. Supp. 560 (Carpenters Local 1471 v. Bar-Con, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carpenters Local 1471 v. Bar-Con, Inc., 668 F. Supp. 560, 126 L.R.R.M. (BNA) 3329, 1987 U.S. Dist. LEXIS 7700 (S.D. Miss. 1987).

Opinion

MEMORANDUM OPINION

TOM S. LEE, District Judge.

This cause is before the court for decision on joint stipulation of facts submitted by the plaintiffs, Carpenters Local 1471 and Mississippi Carpenters & Operating Engineers Benefit Plan (collectively the Union), and the defendant, Bar-Con, Inc. Plaintiffs brought this action against Bar-Con under section 301 of the Labor Management Relations Act of 1947 (LMRA), 29 U.S.C. § 158 (1973), and the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq. (1985). 1 The Union seeks an audit and accounting pursuant to section 10.66 of the parties’ collective bargaining agreement (CBA), an order enjoining future breach of the CBA, back pay and delinquent contributions, together with interest, liquidated damages, costs and attorney fees as provided for in the CBA and the trust agreement. 2 Bar-Con has filed a counterclaim for reimbursement from the Union for overpayments made by Bar-Con into individual retirement accounts of union members employed by Bar-Con. The relevant facts, as stipulated by the parties, will be briefly summarized.

Bar-Con is an employer in the construction business. Carpenters Local 1471 is a labor organization which represents employees in the construction industry within its craft jurisdiction, as set forth in its CBA; the Mississippi Carpenters and Operating Engineers Benefit Plan is a jointly trusteed benefit plan which administers, inter alia, the Health & Welfare Benefit Plan for carpenters working within the jurisdiction of Local 1471. Bar-Con’s collective bargaining relationship with the Union arose in September 1972 through Bar-Con’s participation in a multiemployer bargaining unit, Associated General Contractors of Mississippi, Inc. (AGC). At that time, Bar-Con executed a letter of assent with the Union, by which Bar-Con agreed to operate under the provisions of a master CBA then in existence between the Jackson Building & Construction Trades Council and the Associated Building Contractors of Mississippi, Inc. 3

Southwest Administrators, the benefit plan administrator, 4 was responsible for managing the reporting forms from various employers, including Bar-Con, for all fringe benefit funds provided for pursuant to the CBA and governed by the trust agreement. In July 1982, a new fringe benefit, a savings and retirement fund, was added to the CBA between Bar-Con and the Union. This benefit provision was negoti *563 ated as an amendment to the CBA which ran from July 1, 1982 through April 30, 1983. The retirement plan was to be funded by employee contributions; the employer’s sole responsibility was to deduct the appropriate amounts for the fund from employee paychecks and forward those monies to Southwest Administrators. However, Bar-Con, under the erroneous belief that the plan was employer funded, made full payments on behalf of its employees to the administrator of the fund until February of 1985. Upon discovering its error, Bar-Con stopped making fringe benefit contributions on behalf of its employees.

On April 15, 1985, Bar-Con ceased operating under the terms and conditions of the parties’ CBA, and has continued to do so. At that time, Bar-Con attempted to terminate its association with the Union by letter from its Chief Executive Officer, Connelly Plunkett, dated April 15,1985. The parties agree, though, that Bar-Con did not send the notice of termination to the correct party, the Union, at the correct address until April 10, 1986. That notice, however, was untimely under the termination provisions of both the letter of assent and the CBA. According to plaintiffs, to date, there has still been no proper or timely notice of termination.

The plaintiffs contend that, inasmuch as Bar-Con has failed to effectively terminate its obligations under the CBA, Bar-Con is liable for back pay from April 1985 and delinquent contributions from February 1985 to date. To determine the correct amount of back pay and delinquent contributions, plaintiffs seek an order allowing an audit and accounting pursuant to section 10.66 of the CBA. 5

Bar-Con first asserts that it is not liable to the Union for back pay and past due contributions since the Union failed to properly notify Bar-Con of the employee contributing aspect of the fund. That is, Bar-Con contends that the Union failed to furnish copies of the CBA and the amendment regarding funding of the plan or to otherwise inform Bar-Con that the plan was employee funded and that such failure was a material breach of the CBA and letter of assent which entitled Bar-Con to rescind the agreement. The court notes that there is nothing in the CBA which imposes upon the Union a duty to supply information to the members of the multiemployer bargaining unit with which it deals. 6 Nevertheless, Bar-Con was routinely provided with information by the Union, including at least some copies of the CBAs. Bar-Con had access to copies of all the CBAs from either the Union or AGC, and no request by Bar-Con for documents or other information was ever denied.

The parties agree that Bar-Con did not have a copy of the CBA and that the Union never provided Bar-Con with a copy of the CBA provisions regarding the funding of employee savings and retirement accounts, which clearly indicated they were employee funded rather than employer funded. 7 Bar-Con was advised by letter from Southwest Administrators dated July 28, 1982 that the fund had been established. However, no one at Bar-Con requested a copy of the contract from Southwest Administrators or the plaintiffs, or asked Jack Wynne, the Union’s business representative, about the funding for the employee retirement plan prior to the discovery by Bar-Con in February 1985 of its error in funding this benefit plan.

*564 This court cannot accept Bar-Con’s contention that it has a state common law right to repudiate its obligations under the letter of assent and the CBA. It is a fundamental rule of the law of labor relations that the substantive law for construing disputes under the federal labor statutes arises from federal common law. See Textile Workers Union v. Lincoln Mills, 353 U.S. 448, 457, 77 S.Ct. 912, 918, 1 L.Ed.2d 972 (1957). “Federal interpretation of the federal law will govern, not state law.” Id. State law may be resorted to only if there is no federal statute which expressly addresses the issue and the state rule employed would effectuate the federal policy underlying the statute in question. Id.; see also Nachwalter v. Christie, 805 F.2d 956-59 (11th Cir.1986). In the context of multiemployer bargaining units, the United States Supreme Court has recognized the federal statutory scheme as creating a system which

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668 F. Supp. 560, 126 L.R.R.M. (BNA) 3329, 1987 U.S. Dist. LEXIS 7700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carpenters-local-1471-v-bar-con-inc-mssd-1987.