Fay v. Teamsters Local Union No. 553

67 F. Supp. 2d 86, 1999 U.S. Dist. LEXIS 15938, 1999 WL 825577
CourtDistrict Court, E.D. New York
DecidedMarch 4, 1999
DocketCV 97-0692(DRH)
StatusPublished

This text of 67 F. Supp. 2d 86 (Fay v. Teamsters Local Union No. 553) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fay v. Teamsters Local Union No. 553, 67 F. Supp. 2d 86, 1999 U.S. Dist. LEXIS 15938, 1999 WL 825577 (E.D.N.Y. 1999).

Opinion

MEMORANDUM AND ORDER

HURLEY, District Judge.

Pending before the Court are the motions of (1) Defendants Teamsters Local Union No. 553, IBT, AFL—CIO (“Local 553”), William Ness, President of Local 553 and Bernard Pelligrino, Secretary-Treasurer of Local 553 (collectively the “Union Defendants”) and (2) Defendants Petro, Inc., (“Petro”) Reliance Utilities, Inc. (“Reliance”) and Reliance Associates Corp. (“RAC”) (collectively the “Employer Defendants”) for summary judgment on Plaintiffs’ claims, pursuant to Federal Rule of Civil Procedure (“Rule”) 56(b). For the reasons that follow, the motions are granted.

BACKGROUND

The following facts are undisputed. In 1996, Petro owned five separate retail fuel oil companies in Nassau and Suffolk Counties, including Reliánce and RAC. (Union Defs.’ Rule 56.1 Statement ¶¶ 4-5.) Petro purchased Reliance in 1981; Reliance was operated as a wholly-owned subsidiary until 1992, at which time it was consolidated with Rite Fuel, another Petro wholly-owned subsidiary. (Pis.’ Rule 56.1 Statement ¶ 4; Deposition of Justin McCarthy, dated July 8, 1997 (“McCarthy Dep.”), at 11 (annexed as Ex. D to Declaration of Bruce S. Levine, dated December 17, 1997 (“Levine Decl.”)).) After the consolidation of Reliance and Rite Fuel, the entity continued to be known as Reliance. (Pis.’ Rule 56.1 Statement ¶ 4.) Petro acquired RAC in 1992; RAC operated as a separate entity until in or about July 1996. (Pis.’ Rule 56.1 statement ¶¶ 8, 12; McCarthy Dep. at 12.) Until in or about July 1996, Reliance and RAC operated independently. (Pis.’ Rule 56.1 Statement ¶ 12.) RAC drivers on occasion would park their trucks at the Reliance facility for convenience purposes. 1 (Deposition of Demos *89 Demopoulos, dated July 14, 1997 (“Demopoulos Dep”), at 80-81 (annexed as Ex. E to Levine Deel.).); Deposition of John Falzarano, dated September 22, 1997 (“Falzarano Dep.”), at 36-37 (annexed as Ex. C to Affidavit of Nicholas Metakis, sworn to February 6, 1998 (“Metakis Aff.”).) However, RAC workers were always dispatched by the RAC facility, and there was no crossover of work or accounts between Reliance and RAC. (Falzarano Dep. at 38-39; McCarthy Dep. at 94; Pls.’ Rule 56.1 Statement ¶¶ 8, 11.) Moreover, Reliance and RAC at all times maintained separate seniority lists. (Pls.’ Rule 56.1 Statement ¶¶ 8, 11.)

Plaintiffs are oil drivers who at all relevant times were members of Local 553 and employees of Reliance. (Compl.¶¶ 17-18.) RAC’s drivers were also represented by Local 553. (Union Defs.’ Rule 56.1 Statement ¶ 4.) The drivers in Petro’s other three companies in Nassau and Suffolk Counties, as well as RAC’s servicemen, were represented by Amalgamated Local 355 (“Local 355”). (Id.; McCarthy Dep. at 14.)

In 1996, Petro decided to realign its five companies in Nassau and Suffolk Counties. As explained by McCarthy, Petro’s Senior Vice-President of Operations, Petro’s marketing consultant

looked to ... Long Island and New York City, the entire company, all of those places including Long Island and said that from a marketing point of view we operated under Reliance Rite, we operated under Giffords, we operated under Reliance Associates and subsequently to the beginning of their study, under Seaman Fuel, these various company names were a hindrance to our overall marketing of the ... image that we had in the marketplace and they competed against each other and [the consultant] felt we would be better served in the marketplace by being put under one logo, one banner and realigning our organization in a more competitive mode so that we could compete within the marketplace.

(McCarthy Dep. at 54-55.) Petro’s plan called for eliminating two of its five Long Island companies, including RAC. (Pis.’ Rule 56.1 Statement ¶ 14.) In early April 1996, company officials met with Demopou-los, Bernard Pelligrino, Local 553’s Secretary-Treasurer, and Local 553’s counsel at Local 553’s offices in New York City to discuss the realignment. (McCarthy Dep. at 42.) Among the topics at the meeting were the potential conflicts between Local 553 and Local 355 posed by the realignment. (Id. at 44.) As regards the effect of the realignment on seniority, McCarthy opined that RAC’s workers would be “slotted” into the Rebanee drivers’ list in some fashion, as was done in the previous consolidation between Reliance and Rite Fuel in 1992. (Id. at 51.)

Subsequent to the meeting, Local 553 made a formal demand for more detailed information concerning the realignment, including, inter alia, how many Local 553 members would be terminated or displaced and which areas of work Local 553 members would continue to perform. (See Levine Decl.Ex. J.) Further negotiations between Local 553 and Petro centered upon Local 553’s efforts to retain as much work as possible for the former Reliance facility in light of Petro’s decision to divide the work among the three remaining companies based upon geography. (McCarthy Dep. at 72-73; Demopoulos Dep. at 61.) These efforts were complicated by Local 355’s claim that, as it represented a majority of Petro’s drivers on Long Island, it was entitled to all of the work at the former Reliance facility. (McCarthy Dep. at 75-78,101.) In McCarthy’s words, both Local 553 and Local 355 “were trying to end up with a reasonable settlement that allowed both unions to stay as reasonably whole as they possibly could with both contending for as much work as they could.” (Id. at 101-02.) In the end, Local 553 negotiated for an additional 3,400 accounts outside of the initial geographical *90 line of demarcation set by Petro. The total number of accounts handled by the former RAC and Reliance workers, however, fell from approximately 45,000 to 34,-000. (Deposition of Joseph J. Berti, dated July 8, 1997 (“Berti Dep.”), at 8 (annexed as Ex. F. to Levine Decl.).)

In the meantime, on April 16, 1996, McCarthy and other Petro officials met with the Reliance drivers and servicemen to discuss the realignment. (McCarthy Dep. at 61-62; Pls.’ Rule 56.1 Statement ¶ 17.) Although Demopoulos attended this meeting, no Local 553 union official spoke to the union membership or otherwise had any involvement with the meeting. (McCarthy Dep. at 63, 66.) McCarthy advised the Reliance employees that some sort of “slotting” 2 would be employed to determine the seniority of the newly-combined workforce at the Reliance facility. (McCarthy Dep. at 65; Deposition of Nun-zio Martino, dated July 7, 1997 (“Martino Dep.”), at 27 (annexed as Ex. K to Levine Decl.); Deposition of Richard DeChiaro, dated July 7, 1997 (“DeChiaro Dep.”), at 29 (annexed as Ex. L to Levine Decl.).) “Shooting from the hip,” McCarthy speculated that “it looked close to a three-to-two ratio between Reliance and RAC.” (McCarthy Dep. at 65.) At a second meeting held between company officials and Reliance employees on May 24, 1996, McCarthy again advised the employees that some sort of slotting would take place, but that “it hasn’t been arrived at with the union how that would be done.” (McCarthy Dep. at 69.)

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Bluebook (online)
67 F. Supp. 2d 86, 1999 U.S. Dist. LEXIS 15938, 1999 WL 825577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fay-v-teamsters-local-union-no-553-nyed-1999.