Gelb v. Air Con Refrigeration & Heating, Inc.

826 N.E.2d 391, 356 Ill. App. 3d 686, 292 Ill. Dec. 250
CourtAppellate Court of Illinois
DecidedFebruary 24, 2005
Docket1-03-2275
StatusPublished
Cited by26 cases

This text of 826 N.E.2d 391 (Gelb v. Air Con Refrigeration & Heating, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gelb v. Air Con Refrigeration & Heating, Inc., 826 N.E.2d 391, 356 Ill. App. 3d 686, 292 Ill. Dec. 250 (Ill. Ct. App. 2005).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

This cause comes to us on an appeal subsequent to our remandment to the trial court in order to allow the plaintiffs to bring a motion for class certification. See Gelb v. Air Con Refrigeration & Heating, Inc., 326 Ill. App. 3d 809 (2001). On remand, the trial court dismissed plaintiffs’ complaint on defendants’ motion, and plaintiffs now appeal. For the reasons that follow, we affirm.

Plaintiff Dana Gelb (Gelb) initially filed suit in April 2000, alleging that several of the defendants conspired to violate and had been violating, since January 1997, the Illinois Minimum Wage Law (Wage Law) (820 ILCS 105/1 et seq. (West 1998)) by paying lower overtime wages than those mandated by the statute. Gelb sought an accounting of lost wages for himself and other similarly situated individuals, payment of those lost wages, a declaration that the defendants’ activities were unlawful, statutory penalties, interest, and attorney fees.

Soon after the complaint was filed, defendants Air Con Refrigeration & Heating, Inc. (Air Con), and Hill Mechanical Corp. (Hill Mechanical) offered Gelb a settlement, consisting of his back wages plus interest, statutory penalties, and attorney fees. Gelb rejected the offer and Air Con, Hill Mechanical, and defendant Chicagoland Sheet Metal Contractors Association (Association) thereafter filed a joint motion to dismiss pursuant to sections 2 — 615 and 2 — 619(a) of the Code of Civil Procedure (735 ILCS 5/2 — 615, 2 — 619(a) (West 2000)), arguing that the settlement offer to Gelb removed the case or controversy as to Gelb and rendered the case moot. The trial court granted the motion and Gelb appealed.

This court reversed the trial court’s dismissal order and remanded, finding that Gelb had not been allowed sufficient time to file a motion for class certification before defendants had tendered their settlement offer and, thus, that the settlement offer did not render the case moot. Gelb, 326 Ill. App. 3d at 821-22.

On remand, plaintiffs filed a second amended complaint, alleging that they had been employed by several of the defendants and that: (1) all named defendants violated section 4a of the Wage Law by failing to pay time-and-a-half for overtime hours worked by plaintiffs, specifically by making deductions from plaintiffs’ regular wages prior to multiplying overtime hours by the premium rate (count I); and (2) as members of the Association, which acted as its members’ bargaining agent for purposes of negotiating with the plaintiffs’ union, several of the defendants conspired to calculate and pay overtime wages below the rate required under the Wage Law (count II). Plaintiffs also proposed to join several nonemployer defendants and allege that each of them had been acting pursuant to a common scheme with regard to calculating and paying overtime wages, and to seek joint and several liability against each defendant for all unpaid wages, punitive damages, and prejudgment interest (count III). The trial court denied plaintiffs leave to add count III to the complaint.

Defendants Exelon and Hill Mechanical tendered settlement offers to plaintiffs Gelb and John Hill (Hill), consisting of the allegedly unpaid overtime wages due, prejudgment interest, statutory and punitive damages, and attorney fees. Gelb and Hill each rejected the defendants’ offers.

Several defendants filed motions to dismiss pursuant to section 2 — 619 of the Code of Civil Procedure. 735 ILCS 5/2 — 619 (West 2002). Air Con, Hill Mechanical, Exelon, and the Association argued that plaintiffs were preempted from seeking damages in state court because their claim was governed by the collective bargaining agreement (collective bargaining agreement) the plaintiffs’ union had entered into with the Association, pursuant to section 301 of the Labor Management Relations Act (29 U.S.C. § 185 (2000)) (LMRA) and section 8 of the National Labor Relations Act (29 U.S.C. § 158 (2000)) (NLRA). Air Con, Hill Mechanical, Exelon, and the Association also contended that plaintiffs lacked standing to seek the remedies of interest on unpaid wages and punitive damages and that plaintiffs Gelb’s and Hill’s individual claims against them should be dismissed because they had tendered settlement offers to each plaintiff, rendering their individual actions moot. In another motion, the same defendants argued that the complaint should be dismissed because plaintiffs failed to join their union as a necessary party, because count II failed to allege a conspiracy, and because the Wage Law’s statutory scheme did not encompass conspiracy claims. Defendant F.E. Moran, Inc., filed a similar motion.

Defendant Atomatic Mechanical Services, Inc. (Atomatic), filed its own motion to dismiss pursuant to section 2 — 615 of the Code of Civil Procedure (735 ILCS 5/2 — 615 (West 2002)), arguing that plaintiffs’ complaint failed to state a cause of action upon which relief could be granted, in that count II failed to allege acts sufficient to constitute a conspiracy. Attached to defendants’ motions to dismiss were copies of the collective bargaining agreement, which provided tables of scaled wage deductions for union members as well as a grievance clause requiring employees to submit complaints to arbitration. In all, 24 other defendants joined the motions to dismiss.

The trial judge granted the motions pursuant to sections 2 — 619(a)(1) and 2 — 619(a)(9), finding that: (1) Gelb’s and Hill’s individual claims were moot as the result of the settlement offers by Exelon and Hill Mechanical; (2) under the Wage Law, plaintiffs did not have standing to seek punitive damages and their conspiracy claim was precluded; (3) plaintiffs’ Wage Law claims were preempted by federal law because assigning Lability would require interpretation of the collective bargaining agreement; and (4) plaintiffs were barred from pursuing legal action because they failed to pursue the administrative remedies provided in the collective bargaining agreement. Plaintiffs’ motion for class certification was still pending at the time of dismissal.

On appeal, plaintiffs contend that: (1) their claims under the Wage Law are not preempted by federal labor laws; (2) they were not required to submit their grievances to arbitration under the collective bargaining agreement; (3) the parties that plaintiffs sought to join that did not directly employ the plaintiffs could be joined as coconspirators for purposes of a class action; (4) the trial court abused its discretion in denying plaintiffs leave to attach their proposed count III to the complaint; (5) they may seek punitive damages under the Wage Law; and (6) the trial court erred in dismissing the individual claims by Gelb and Hill as moot. For the reasons that follow, we affirm.

A defendant may move for dismissal on the grounds that the court in which a suit has been filed lacks jurisdiction to consider the matter (735 ILCS 5/2

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Bluebook (online)
826 N.E.2d 391, 356 Ill. App. 3d 686, 292 Ill. Dec. 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gelb-v-air-con-refrigeration-heating-inc-illappct-2005.