District 29, United Mine Workers of America v. Royal Coal Co.

768 F.2d 588, 120 L.R.R.M. (BNA) 2291, 6 Employee Benefits Cas. (BNA) 2113, 1985 U.S. App. LEXIS 20856
CourtCourt of Appeals for the Fourth Circuit
DecidedJuly 23, 1985
DocketNo. 85-1336
StatusPublished
Cited by36 cases

This text of 768 F.2d 588 (District 29, United Mine Workers of America v. Royal Coal Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
District 29, United Mine Workers of America v. Royal Coal Co., 768 F.2d 588, 120 L.R.R.M. (BNA) 2291, 6 Employee Benefits Cas. (BNA) 2113, 1985 U.S. App. LEXIS 20856 (4th Cir. 1985).

Opinion

CHAPMAN, Circuit Judge:

The issue in this expedited appeal is whether a coal company’s obligation to provide health benefits and life insurance coverage to its retired and disabled coal miners under the National Bituminous Coal Wage Agreements of 1978 and 1981 continues beyond the expiration of those Agreements. Defendant Royal Coal Company (Royal) appeals from a preliminary injunction issued by the district court requiring Royal to provide these benefits to its former employees (or their surviving spouses) who either retired or became disabled prior to the expiration of the 1978 and 1981 Wage Agreements. Royal ceased all active mining operations during the term of the 1981 Wage Agreement and has not become a signatory to the 1984 Wage Agreement. We hold that Royal’s obligation to provide health benefits and life insurance coverage to its retired and disabled coal miners under the 1978 and 1981 Wage Agreements ceased upon the expiration of those Agreements. Accordingly, we vacate the district court’s preliminary injunction and remand the case for further proceedings.

I

Plaintiffs represent a class of approximately seventy-eight retired and disabled coal miners, and widows of retired and disabled coal miners, whose last employment in the coal industry was with Royal.1 Plaintiffs brought this action against Royal and the United Mine Workers of America 1974 Benefit Plan and Trust (The 1974 Ben[590]*590efit Plan),'alleging that either Royal or the 1974 Benefit Plan was responsible for providing health benefits and life insurance coverage to the class members.

Prior to October 1, 1984, the class members were receiving pension benefits from the United Mine Workers of America 1974 Pension Plan and Trust and nonpension benefits, including health benefits and life insurance coverage, from their last employer, Royal. Most of the class members (or their husbands, in the ease of widows) retired from Royal prior to June 5, 1981, the effective date of the 1981 Wage Agreement, and all of them retired prior to the expiration of the 1981 Wage Agreement on October 1, 1984.

For many years Royal had been a signatory to national agreements negotiated between the United Mine Workers of America (UMWA) and the Bituminous Coal Operators Association (BCOA), including the 1978 and 1981 Wage Agreements. Royal ceased all active mining operations during the term of the 1981 Wage Agreement and has not become a signatory to the 1984 Wage Agreement. Without notice to plaintiffs Royal ceased providing health benefits and life insurance coverage to the class members on or about October 1, 1984. The 1974 Benefit Plan has declined to assume responsibility for providing these benefits on the ground that Royal has sufficient assets to pay the benefits and thus does not qualify as “no longer in business” within the meaning of the 1978 and 1981 Wage Agreements.

Plaintiffs filed this action on March 7, 1985. On March 12,1985, the district court issued a temporary restraining order requiring Royal to reinstate health benefits and life insurance coverage for a period of ten days. On March 18, the district court held a hearing on plaintiffs’ motion for a preliminary injunction, and on April 2, 1985, the district court granted a preliminary injunction against Royal. The district court made no ruling as to the 1974 Benefit Plan’s liability. Furthermore, the district court denied Royal’s motion to suspend the preliminary injunction pending appeal, but increased the injunction bond from $15,000 to $30,000. This court has jurisdiction over this appeal pursuant to 28 U.S.C. § 1292(a).

II

Whether an employer’s obligation to provide benefits to its retirees continues beyond the expiration of the underlying collective bargaining agreement depends upon the intent of the parties. International Union, United Automobile, Aerospace & Agricultural Implement Workers v. Yard-Man, Inc., 716 F.2d 1476, 1479 (6th Cir.1983), cert. denied, — U.S. -, 104 S.Ct. 1002, 79 L.Ed.2d 234 (1984). Accord, Upholsterers’ International Union v. American Pad & Textile Co., 372 F.2d 427 (6th Cir.1967); Bower v. Bunker Hill Co., 725 F.2d 1221 (9th Cir.1984). Moreover, whether the parties intended such an employer’s obligation to continue beyond the expiration of the collective bargaining agreement is primarily a question of contract interpretation. See John Wiley & Sons v. Livingston, 376 U.S. 543, 555, 84 S.Ct. 909, 917, 11 L.Ed.2d 898 (1964); Local 1251, International Union, UAW v. Robertshaw Controls Co., 405 F.2d 29, 33 (2d Cir.1968). Thus, we must first look to the language of the 1978 and 1981 Wage Agreements for any clear manifestations of the parties’ intent. See Yard-Man, 716 F.2d at 1479; Kellogg Co. v. NLRB, 457 F.2d 519, 524 (6th Cir.1972); cert. denied, 409 U.S. 850, 93 S.Ct. 58, 34 L.Ed.2d 92 (1972).

Article XX, Section (c)(3)(i) of the 1978 Wage Agreement provides, in pertinent part:

... [E]ach signatory Employer shall establish an Employee benefit plan to provide, implemented through an insurance carrier(s), health and other nonpension benefits for its Employees covered by this Agreement as well as pensioners, under the 1974 Pension Plan and Trust, whose last classified employment was with such Employer. The benefits provided pursuant to such plans shall be guaranteed during the term of this Agreement by each Employer at levels [591]*591set forth in such plans____ (Emphasis added).

The same provision in the 1981 Wage Agreement states, in pertinent part:

Each signatory Employer shall establish and maintain an Employee benefit plan to provide, implemented through an insurance carrier(s), health and other non-pension benefits for its Employees covered by this Agreement as well as pensioners, under the 1974 Pension Plan and Trust, whose last signatory classified employment was with such Employer. The benefits provided by the Employer to its eligible Participants pursuant to such plans shall be guaranteed during the term of this Agreement by that Employer at levels set forth in such plans. (Emphasis added).

This court recently considered a similar issue under Article XX, Section (c)(3)(i) of the 1978 Wage Agreement in District 17, United Mine Workers v. Allied Corp., 765 F.2d 412 (4th Cir.1985 (en banc)). In that case Allied Corporation sold its mining operations during the term of the 1978 Wage Agreement but failed to fulfill its duty under that Agreement’s successorship clause of requiring its purchasers to assume its labor contract duties, including its collective bargaining duties with respect to health and other nonpension benefits for its retirees.

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768 F.2d 588, 120 L.R.R.M. (BNA) 2291, 6 Employee Benefits Cas. (BNA) 2113, 1985 U.S. App. LEXIS 20856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-29-united-mine-workers-of-america-v-royal-coal-co-ca4-1985.