Ehredt Underground, Inc. v. Commonwealth Edison Co.

848 F. Supp. 797, 147 L.R.R.M. (BNA) 2223, 1994 U.S. Dist. LEXIS 4658, 1994 WL 127188
CourtDistrict Court, N.D. Illinois
DecidedApril 12, 1994
Docket91 C 2361
StatusPublished

This text of 848 F. Supp. 797 (Ehredt Underground, Inc. v. Commonwealth Edison Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ehredt Underground, Inc. v. Commonwealth Edison Co., 848 F. Supp. 797, 147 L.R.R.M. (BNA) 2223, 1994 U.S. Dist. LEXIS 4658, 1994 WL 127188 (N.D. Ill. 1994).

Opinion

MEMORANDUM OPINION AND ORDER

ALESIA, District Judge.

This matter is before the court on the parties’ objections to Magistrate Judge W. Thomas Rosemond’s Report and Recommendation (“Report”) on the motion by defendant Commonwealth Edison Company (“Edison”) for summary judgment on Counts I, II, and IV of Plaintiffs First Amended Verified Complaint (the “Complaint”). 1 Magistrate Judge Rosemond recommended granting defendant’s motion for summary judgment on Count I, denying defendant’s motion as to Count II, and granting summary judgment in part and denying it in part as to Count IV. For the reasons discussed below, the Court accepts the conclusions of the Report with respect to Count I and Count II. The Court sustains plaintiffs objection regarding its first claim under Count IV, and overrules plaintiffs objections to the Report as to the second claim under Count IV.

I. FACTS

A. Edison and URD Work

Plaintiff Ehredt Underground, Inc. (“Eh-redt”) is an Illinois corporation engaged in the business of underground excavation. Kenneth Ehredt is the corporation’s president, manager and sole shareholder.

Edison is a public utility which provides electricity to approximately the northern one-third of Illinois. Under a contract entitled the General Joint Agreement (“GJA”), Edison and Illinois Bell Co. (“Illinois Bell”), a public utility responsible for providing local telephone service within Illinois, divide responsibility for installation of electrical and telephone cable. Geographic areas are divided up under the GJA, with either Edison or Illinois Bell accepting sole responsibility for installing both companies’ equipment in the assigned area. The GJA provides that contractors laying cable for Edison also act as agents for Illinois Bell and lay telephone cable at the same time.

As part of the GJA, Edison is responsible for completing underground residential distribution work (“URD”), which includes digging, trenching for ground cable, installing various equipment, and connecting cable. Although Edison’s own employees traditionally had performed URD work, in 1988 Edison management decided to hire outside contractors to perform some URD construction work in several of Edison’s northern Illinois districts. In response to a request by officers from unions representing Edison employees, Edison agreed that it would contract out URD work only to companies whose employees were represented by unions.

*801 In late 1988, an Edison construction foreman invited Ehredt and several other contractors, including Trench-It, Inc. (“Trench-It”) to perform URD work on a purchase-order basis. Ehredt and the other contractors began performing work for Edison in the North Shore and Crystal Lake Districts of Edison’s northern division. At this time, Ehredt did not employ union labor. At some point in late 1988, however, Ken Ehredt was informed that its employees should be represented by a union in order to work for Edison.

Starting in November 1988, Ehredt asserts that certain Edison representatives informed Ehredt that it should provide kickbacks for the award of URD work. Ehredt refused these requests, although an Edison representative had related to Ehredt that Trench-It provided kickbacks to Edison supervisors.

In early 1989, Edison invited Ehredt, Trench-It, and several other contractors to submit bids for a contract to perform URD work. After the lowest bidder declined the contract, Edison awarded both Ehredt and Trench-It contracts to perform URD work. Both Ehredt and Trench-It performed contractor URD work in the Crystal Lake District during 1989 and 1990. Ehredt’s 1989 Crystal Lake URD contract originally was set to expire October 31, 1989, but the contract was extended twice by the consent of all parties.

B. The Union Requirement

Although Ehredt’s employees were not represented by a union at the time Edison originally solicited Ehredt for a bid, Edison’s bid proposal form requires bidding parties to identify the union with which the bidding party has a labor contract. Shortly after Ehredt submitted his bid, therefore, he began discussions with several unions. Ehredt eventually negotiated a two-year collective bargaining agreement with International Brotherhood of Electrical Workers, (“IBEW”), AFL-CIO, Local 336 (“Local 336”). The International approved the agreement on March 14, 1989.

Soon after the agreement was executed, certain parties began questioning Local 336’s jurisdiction over Ehredt’s employees. First, Daniel Rosenmayer, president of Trench-It, complained to Harold Eastwood, business manager of Local 196, that Local 336 was representing employees in Local 196’s jurisdiction. On May 9,1989, James Conway, the International Vice President of the IBEW for the Sixth District, notified Thomas Beag-ley of Local 336 that Local 336 was not chartered for the type of work being performed by Ehredt employees. Conway stated that Local 196 was an IBEW-authorized union chartered for the work performed by Ehredt employees and, accordingly, Local 336 must terminate its collective bargaining agreement with Ehredt.

In response, Local 336 appealed Conway’s decision to the International President of the IBEW, who has the sole authority to determine all jurisdictional disputes. The International President reversed Conway’s decision, stating that the agreement between Local 336 and Ehredt Underground was valid. In November 1989, Conway again disputed the jurisdiction of Local 336 over Ehredt’s employees, and in late November, the International President again stated that the agreement was valid.

Far from accepting the International President’s decision, the opposition to Ehredt’s Local 336 affiliation subsequently intensified its pressure on the International President to force Ehredt to switch unions. In January 1990 Harold Eastwood of Local 196 joined the battle and complained to the International President that Local 196 had jurisdiction over Ehredt employees. In January and March 1990, Conway sent two more letters to the International President. Finally, on March 13, 1990, the International President reversed his prior position and informed Local 336 that Local 196 had jurisdiction over Ehredt employees and Local 336 should not enter into further collective bargaining agreements with Ehredt. On July 17, 1990, the president of Local 336 notified Ehredt that the setting of pad transformers, pedestals, and switching gear for Edison was beyond the scope of the collective bargaining agreement between Ehredt and Local 336, because the existing agreement covered only trenching and cable laying. As such, Local 336 stated to Ehredt that it would not renew *802 its collective bargaining agreement with Eh-redt following its expiration on October 31, 1990.

C. The Rest of the Story

Although the above facts relate a fairly orderly though vigorous campaign to force Ehredt employees to affiliate with Local 196, Ehredt asserts a more sinister side to the crusade. Ehredt maintains that in late 1988, his workers noticed that they were being followed from job site to job site.

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848 F. Supp. 797, 147 L.R.R.M. (BNA) 2223, 1994 U.S. Dist. LEXIS 4658, 1994 WL 127188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ehredt-underground-inc-v-commonwealth-edison-co-ilnd-1994.