Earle Asphalt Co. v. COUNTY OF CAMDEN

CourtDistrict Court, D. New Jersey
DecidedJune 23, 2022
Docket1:21-cv-11162
StatusUnknown

This text of Earle Asphalt Co. v. COUNTY OF CAMDEN (Earle Asphalt Co. v. COUNTY OF CAMDEN) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earle Asphalt Co. v. COUNTY OF CAMDEN, (D.N.J. 2022).

Opinion

NOT FOR PUBLICATION

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY CAMDEN VICINAGE __________________________________ : Earle Asphalt Co., et al., : : Plaintiffs, : : Civil No. 21-11162 (RBK/AMD) v. : : OPINION County of Camden, et al., : : Defendants. : __________________________________ :

KUGLER, United States District Judge: This matter comes before the Court upon Defendants Camden County Improvement Authority and County of Camden’s Motion to Dismiss, (ECF No. 24), and Defendant United Building Trades Council of Southern New Jersey, AFL-CIO’s Motion to Dismiss, (ECF No. 25). For the reasons set forth below, Defendants’ Motions to Dismiss are GRANTED. I. BACKGROUND A. Factual Background Plaintiffs Earle Asphalt Co., Luis Silverio, and Associated Builders and Contractors New Jersey Chapter (collectively “Plaintiffs”) have filed suit against the County of Camden, Camden County Improvement Authority, and United Building Trades Council of Southern New Jersey, AFL-CIO (collectively “Defendants”)1, challenging the terms of a project labor agreement (“PLA”) negotiated and entered into by Defendants as part of a project to renovate Whitman

1 The Amended Complaint also names Atlantic County as a defendant. However, Plaintiffs have voluntarily dismissed their claims against Atlantic County, (ECF No. 35), and reinstated those claims in a related, but separate matter, see Earle Asphalt Co., et al v. County of Atlantic, et al, No. 1:21-cv-18355 (RBK/AMD) (D.N.J. May 13, 2021). Park in Camden. See (ECF No. 23, “Am. Compl.” ¶¶ 14, 15). Plaintiffs seek declaratory and injunctive relief, as well as damages. (Id. ¶¶ 49, 52, 65, 66). i. The Parties Plaintiff Earle Asphalt Co. (“Earle”) is a non-union contractor. (Am. Compl. ¶¶ 4, 34). Plaintiff Luis Silverio is a non-union tradesman and an employee of Earle. (Id. ¶ 5). Plaintiff

Associated Builders and Contractors New Jersey Chapter (“ABC NJ”) is the New Jersey chapter of a national association that represents 21,000 merit-shop construction and related firms. (Id. ¶¶ 6, 39). ABC NJ is asserting associational standing on behalf of its members. (Id. ¶ 40). Defendant Camden County (“County” or “Camden”) is a municipal corporation in New Jersey. (Am. Compl. ¶ 7). Defendant Camden County Improvement Authority (“CCIA”) is an independent public agency created by the Camden County Board of Commissioners. (Id. ¶ 8). Defendant United Building Trades Council of Southern New Jersey, AFL-CIO (“Trades Council”) is an organization of labor unions. (Id. ¶ 10). Defendants Camden County and CCIA entered into the PLAs at issue here with Defendant Trades Council as part of a municipal public-

works project. (Id. ¶¶ 14, 15). ii. The PLAs On April 23, 2021, Camden County issued an invitation to bid on a project to renovate Whitman Park in Camden, New Jersey (“the Project”). (Am. Compl. ¶ 14). A PLA (“original PLA”) was included in that initial bid package. (Id. ¶ 15). The original PLA required, inter alia, that local signatory unions be recognized as the “sole and exclusive bargaining representatives of all craft employees … working on the Project….” (Am. Compl., Ex. 1, Art. 4 § 1). The PLA also required contractors on the Project to hire through the job-referral systems, or hiring halls, of the signatory union(s), (Am. Compl., Ex. 1, Art. 5), and mandated that contracted employees join, and remain, members of a Council-affiliated, signatory union while working on the Project, (Am. Compl., Ex. 1, Art. 12 § 1). Additionally, the original PLA required that employees hired on the Project comply with the union security provision contained in the collective bargaining agreement of the referring union. (Am. Compl., Ex. 1, Art. 5 § 11). Only those contractors and subcontractors who agreed to these terms were eligible to work on projects subject to the PLA at

the time that the Complaint was filed in this case. (Id. ¶ 17). Plaintiffs allege that Camden County had been imposing PLAs “similar” to the original PLA on other bid invitations “for many years” up until Plaintiffs filed the instant suit. (Id. ¶ 16). On May 13, 2021, Plaintiffs filed suit against Defendants to enjoin enforcement of the original PLA and for damages. (ECF No. 1, “Compl.”). On May 20, 2021, Camden County amended the PLA (“revised PLA”) and reissued the Project’s bid package. (Am. Compl. ¶ 23, Ex. 2). The revised PLA omits the requirements that contracting employees (1) become union members for the duration of their time working on the Project and (2) comply with union security provisions. (Am. Compl ¶ 24., Ex. 2, Art. 12 § 1). However, the revised PLA still

mandates that contracted employees recognize a Trades Council-affiliated union as their sole and exclusive bargaining representative, (Am. Compl. ¶ 25, Ex. 2, Art. 4 § 1), and compels contractors and subcontractors to utilize the unions’ job-referral systems, (Am. Compl. ¶ 26, Ex. 2, Art. 5). Plaintiffs filed an Amended Complaint challenging both the original and revised PLAs on August 16, 2021. (Am. Compl.). In their Amended Complaint, Plaintiffs allege that the original and revised PLAs violate their Constitutional rights and the Sherman Act. (Id. ¶¶ 45–67). They claim that the PLAs have deterred and prevented Earle and Mr. Silverio from obtaining work from Camden County in the past. (Id. ¶¶ 36, 37). Earle alleges that it continues to suffer injury due to the PLAs because it is ineligible to work “on any public-works project subject to the … PLAs unless it” accepts a Trades Council-affiliated union as the sole representative of its employees and hires from a union’s job-referral system, (id. ¶ 34), despite being “ready and able to apply” for such work, (id. ¶ 35). Mr. Silverio similarly claims that he is injured by the PLAs’ requirements that he obtain employment through a union job-referral system and accept union representation if he wants to

work on Camden County projects. (Id. ¶ 38). As for ABC NJ, Plaintiffs allege that members of ABC are prohibited from working on County projects unless they accept the terms of the revised PLA. (Am. Compl. ¶ 42). This, ABC claims, inflicts an injury on its members. (Id.) Defendants move to dismiss the Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(1), asserting that this Court lacks jurisdiction because Plaintiffs do not have standing and their claims are, at least in part, moot. (ECF No. 24-1, “County Mot.” at 14–19); (ECF No. 25-4, “Trades Council Mot.” at 19–23). Defendants also move to dismiss per Rule 12(b)(6), arguing that Plaintiffs have failed to state claims under the First and Fourteenth Amendments and the Sherman Act. (County Mot. at 8-14); (Trades Council Mot. at 23–27).

B. Procedural History On May 13, 2021, Plaintiffs Earle and Silverio filed suit against Camden County, CCIA, and the Trades Council, alleging that the original PLA violates the First and Fourteenth Amendments and federal antitrust laws. (Compl.). On August 16, 2021, Plaintiffs filed an Amended Complaint naming ABC NJ as a Plaintiff in this matter. (Am. Compl.). On September 7, 2021, Camden County and CCIA filed a motion to dismiss. (County Mot.). That same day, the Trades Council also filed a motion to dismiss. (Trades Council Mot.). Plaintiffs responded opposing both motions on October 4, 2021. (ECF No. 32, “Pl. Opp’n to Trades Council Mot.”); (ECF No. 33, “Pl. Opp’n to County Mot.”). The Trades Council filed a reply brief on October 6, 2021. (ECF No. 34, “Trades Council Reply”). Camden County and CCIA filed a reply brief on October 12, 2021. (ECF No. 36, “County Reply”). II. LEGAL STANDARD A. Federal Rule of Civil Procedure

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