Greater Nanticoke Area Education Ass'n v. Greater Nanticoke Area School District

938 A.2d 1177, 2007 Pa. Commw. LEXIS 703
CourtCommonwealth Court of Pennsylvania
DecidedDecember 18, 2007
StatusPublished
Cited by13 cases

This text of 938 A.2d 1177 (Greater Nanticoke Area Education Ass'n v. Greater Nanticoke Area School District) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater Nanticoke Area Education Ass'n v. Greater Nanticoke Area School District, 938 A.2d 1177, 2007 Pa. Commw. LEXIS 703 (Pa. Ct. App. 2007).

Opinion

OPINION BY

Judge SIMPSON.

These consolidated appeals raise a single issue: whether the Luzerne County Court of Common Pleas (trial court) had reasonable grounds to issue preliminary injunctions in favor of the Greater Nanticoke Area Education Association and the Northwest Area Education Association (collectively, Associations). 1 By separate orders, the trial court enjoined the Greater Nanticoke Area School District and the Northwest Area School District (collectively, School Districts) from withdrawing from a 1999 Agreement and Declaration of Trust Establishing the Northeast Pennsylvania School Districts Health Trust (Trust). The primary purpose of the Trust is to obtain healthcare benefits for its beneficiaries. Enjoining School Districts’ from withdrawing from the Trust, the trial court found School Districts’ actions presented immediate and irreparable harm to Associations’ bargaining power.

Also at this time we consider Associations’ motion to quash School Districts’ appeals. Associations contend the preliminary injunctions are not final appealable orders pursuant to Pa. R.A.P. 341. 2

*1179 After careful review, we affirm the trial court’s orders issuing preliminary injunctions in favor of Associations and deny Associations’ motion to quash. We further remand this matter to the trial court for a permanent injunction hearing.

I.

By way of brief background, 14 school districts and their labor organizations entered into the Trust in 1999. Reproduced Record (R.R.) at 79a-114a. The Trust’s primary objective is to purchase healthcare benefits at reasonable costs for its beneficiaries. Id. at 80a. For our purposes, it is important to note each participating school district and labor organization is represented by a designated Trustee, and each Trustee has one vote. Id. at 90a-92a. A majority vote is required for most actions; however, certain actions require a supermajority, or two-thirds vote, for approval. Id. These actions include: a change in any provision of the Trust; a change or modification to any program or plan of benefits; and, a change in the identity of any insurance carrier. Id.

Particularly relevant here is Section 5.4 of the Trust. It provides, in pertinent part:

Section 5.4 WITHDRAWAL OF PUBLIC SCHOOL ENTITY OR LABOR ORGANIZATION FROM PARTICIPATION IN THE TRUST
(a)Any public school entity party to this [Trust] may withdraw from the Trust ... provided:
(1) on or before June 30, (the “Notice date”), it provides written notice to the Trustees of its intention to withdraw from the Trust ... which withdrawal shall become effective no earlier than twelve (12) months after the aforesaid June 30 “Notice date”;
(3) the withdrawing public school entity takes such actions as are necessary to prevent a termination or lapse of coverage for the Participants in the Trust ... who are employees of the withdrawing public school entity and their Beneficiaries and dependents whose coverage under the Plan will be terminated as a result of the public school entity’s withdrawal from the Trust ... including provisions for securing of a waiver or avoidance of any exclusions from post-withdrawal coverage based [on] a claim of pre-existing illness or injury; and
(b) nothing in this Section 5.4 is intended to waive or otherwise render inapplicable any duty to bargain imposed upon any public school entity which is party to this [Trust] with respect to the issue of withdrawal from the Trust ... or to impair any contract provision which requires that the public school entity remain a member of the [Trust].
(c) Nothing in this Trust ... shall be construed to authorize or permit any public school entity to violate its Collective Bargaining Agreement or to unilat *1180 erally modify any aspect of the health benefits provided for therein.

Id. at 104a-06a. Pursuant to this Section, School Districts timely notified the Trustees of their intention to withdraw from the Trust as of June 80, 2007. Id. at 119a-20a.

Two days before the effective withdrawal date, Associations and School Districts appeared before the trial court. Associations presented the trial court with two substantially similar equity complaints. The complaints include averments that Associations and School Districts are parties to expired collective bargaining agreements (CBA) and no successor agreements have been reached. Id. at 5a, 11a. Each CBA requires School Districts to provide their member employees with healthcare coverage. 3

According to further averments* School Districts and Associations are parties to the Trust; however, School Districts voted to withdraw from the Trust without bargaining with Associations prior to voting. In addition, School Districts failed to present Associations with an alternative to the Trust from which Associations may determine the equivalency of the healthcare benefits. Thus, School Districts violated their respective CBAs. Also of import, Associations averred they filed unfair labor practice charges with the Pennsylvania Labor Relations Board (PLRB).

Characterizing their applications as ex parte, or without notice to School Districts, Associations requested'preliminary injunctions enjoining School Districts from withdrawing from the Trust. To support their applications, Associations averred School Districts’ withdrawal from the Trust would cause immediate and irreparable harm by disrupting the labor peace and status quo, and would result in greater injury to Associations than that which would result to School Districts if enjoined from withdrawing. Finally, Associations averred they have a clear right to pursue their administrative remedies with the PLRB.

Relying heavily on our decision in Frackville Borough Police Department v. Pennsylvania Labor Relations Board, 701 A.2d 682 (Pa.Cmwlth.1997), School Districts opposed Associations’ applications. They argued withdrawal from the Trust was not subject to mandatory collective bargaining because School Districts propose only a change in brokers. Under Frackville, a change in brokers is a managerial function not subject to mandatory collective bargaining.

School Districts further asserted that the proposed brokerage change will not affect the current level of healthcare benefits. They identified Elite Brokerage Services as the designated broker. R.R. at 196a. To support their contention a change in brokers will not affect the current level of benefits, School Districts attached to their trial court brief an affidavit of Elite’s vice-president attesting that the Associations’ healthcare benefits will not be altered. R.R. at 210a-lla. As further support, School Districts attached several e-mails from Elite employees to unidentified individuals indicating the same. R.R. at 197a-200a.

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Bluebook (online)
938 A.2d 1177, 2007 Pa. Commw. LEXIS 703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-nanticoke-area-education-assn-v-greater-nanticoke-area-school-pacommwct-2007.