Greenhouse Holdings, LLC v. International Union of Painters and Allied Trades District Council 91

CourtDistrict Court, W.D. Kentucky
DecidedOctober 22, 2021
Docket4:21-cv-00029
StatusUnknown

This text of Greenhouse Holdings, LLC v. International Union of Painters and Allied Trades District Council 91 (Greenhouse Holdings, LLC v. International Union of Painters and Allied Trades District Council 91) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenhouse Holdings, LLC v. International Union of Painters and Allied Trades District Council 91, (W.D. Ky. 2021).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY OWENSBORO DIVISION CIVIL ACTION NO. 4:21-CV-00029-JHM GREENHOUSE HOLDINGS, LLC PLAINTIFF V. INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES DISTRICT COUNCIIL 91 DEFENDANT MEMORANDUM OPINION AND ORDER This matter is before the Court on International Union of Painters and Allied Trade District Council 91’s (the “Union”) Motion to Dismiss [DN 17] under Federal Rule of Civil Procedure 12(b)(1) and 12(b)(6). Fully briefed, this matter is ripe for decision. For the following reasons, the Motion to Dismiss is GRANTED. Also before the Court is Greenhouse Holdings, LLC’s Motion to Vacate Arbitrator’s Supplemental Award [DN 13] and the Union’s Motion to Confirm Arbitrator’s Opinion and Award and Supplemental Award [DN 19]. With respect to these motions, the Court requests supplemental briefing. I. BACKGROUND Greenhouse Holdings, LLC (“Greenhouse”) is a Missouri limited liability company with its principal place of business in Owensboro, Kentucky. It specializes in cutting and installing

glass doors and windows. [DN 1 at ¶¶ 1, 7]. In 2017, Greenhouse members Dan Kinney (“Mr. Kinney”) and Timothy Huff (“Mr. Huff”) formed a new corporation, Clearview Glass and Glazing Contractors of Tennessee, LLC (“Clearview TN”), specifically to acquire the assets of Glass Contractors of Tennessee, Inc. (“Glass Contractors”), another glass company. [Id. at ¶¶ 8–10]. Prior to its acquisition, Glass Contractors was a signatory to a collective bargaining agreement (“CBA”) with the International Union of Painters and Allied Trades District Council 91 (the “Union”). After Clearview TN acquired the assets of Glass Contractor’s, Mr. Kinney signed a CBA renewing the agreement that previously existed between the Union and Glass Contractors. [Id. at ¶¶ 9, 14]. Upon the expiration of the CBA, the Union notified Mr. Kinney,

of “Clearview Glass and Glazing Tennessee” that the CBA between the Union and his company was about to expire and the Union invited negotiations on a new Agreement between the Union and [DN 18, Ex. 16] The parties dispute the facts surrounding these negotiations. Mr. Kinney allegedly explained to the Union’s representatives how Clearview TN―and not Greenhouse— would sign an updated CBA with the Union. [Id. at ¶ 13]. Greenhouse says the Union’s representatives accepted this stipulation. [Id. at ¶ 13]. The Union disagrees. It maintains the parties never discussed keeping any of Clearview TN or Greenhouse’s shops as non-union and doing so would “defeat the purpose of organizing and violate the express terms of the CBA which Kinney signed.” [DN 18 at 5]. Still, the parties reached an agreement and signed a new

CBA—the cover page stating it is between the Union and the “Nashville TN Glazing Contractors ‘Area Q.’” [DN 18-4 at 2]. 1 Curiously, the name of the contractor, referred to in the CBA as the “Employer” was left blank in both the old and new agreement. [DN 18-3 at 2]; [DN 18-4 at 5]. But it was signed by the Union secretary-treasurer, Shawn Solner (“Mr. Solner”), and by Shane Reed (“Mr. Reed”), a manager of Clearview TN. [Id. at 35].

1 The cover page of the original CBA indicated the agreement was between the Union and “The Clarksville Tennessee, Glaziers ‘Area G’ Clarksville, Tennessee and Vicinity Contractors.” [DN 1-1 at 2]. The Union alleges that “Area Q” in the new CBA is a typo and that it should read “Area G.” [DN 24 at 2 n.1]. Greenhouse correctly observes how “the CBA specifically does not identify an ‘Area Q.’” [DN 22 at 3]. However, referring to Area G, Greenhouse incorrectly states that “only Tennessee counties [are] members of that Area[.]” [DN 22 at 3]. Under the second CBA, Area G includes several Kentucky counties. [DN 1-2 at 14]. On November 20, 2019, Mr. Solner, on behalf of the Union, sent a letter to Mr. Kinney advising that it had learned that Mr. Kinney did not consider its “Owensboro, KY, shop to be a signatory” to the CBA. [18-7 at10]. The letter sought information from Mr. Kinney, which was not provided. [Id.]. In February 2020, the Union filed a grievance against “Clearview Glass” with the National Labor Relations Board (“NLRB”). [DN 1 at ¶ 22]. That dispute alleged

multiple CBA violations, including improper terminations, wage and benefit withholdings, and failure to provide bargaining information. [DN 18 at 6–7]. It was agreed to submit the grievance to arbitration. [DN 1 at ¶ 23]. The parties disagree which entities attended the arbitration. The arbitration award lists “Clearview Glass and Glazing”—the trade name for Greenhouse and Clearview TN—and the Union as the parties. [DN 18-2 at 2]. The Union states Greenhouse “cannot say that because its trade name was used for the grievance and arbitration that it was not a party to the arbitration.” [DN 18 at 11]. However, the Union also acknowledges that when the CBA refers to “Employer,” it refers to “Clearview Glass and Glazing Contracts of Tennessee, LLC.” [DN 24 at 2–3]. According to Greenhouse, it “has never signed a collective bargaining

agreement of any kind” and was not present in the arbitration. [DN 1 at ¶ 18]. Furthermore, according to Greenhouse, “Clearview TN . . . is and always has been a separate entity from Greenhouse.” [DN 1 at ¶ 17]. The arbitrator’s initial decision ordered Clearview Glass and Glazing to pay the Union’s “Tennessee-shop employees” and “non-Tennessee shop employees.” [DN 1 at ¶¶ 26–27]. A supplemental award further defined the exact amount the arbitrator awarded to the “non- Tennessee” employees. [Id. at ¶ 28]. Greenhouse seeks a declaratory judgment, asking this Court to find “Greenhouse is not a party to the [s]econd CBA and is not bound by its terms[.]” [Id. at ¶ 32]. It argues the supplemental award order concerning “non-Tennessee shop employees” binds Greenhouse despite the fact that it was not a signatory to the CBA. [Id. at ¶ 29]. Accordingly, Greenhouse requests this Court declare the arbitrator’s award “void and unenforceable” to the extent it applies to Greenhouse. [Id. at ¶ 33]. The Union seeks to dismiss this action through its Motion to Dismiss. [DN 17]. Additionally, Greenhouse moves to vacate the supplemental arbitration

award, [DN 13], and the Union moves to confirm it. [DN 19]. The Court will address these motions in turn. II. THE UNION’S MOTION TO DISMISS The Union’s Motion to Dismiss requests the Court dismiss Greenhouse’s Declaratory Judgment Complaint under Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction and 12(b)(6) for failure to state a clam on which relief can be granted. [DN 17 at 1]. The Union moves for dismissal of this case under both Rules 12(b)(1) and (6). [DN 17 at 1]. Rule 12(b)(1) provides a party may file a motion asserting “lack of subject-matter jurisdiction.” Because “[s]ubject matter jurisdiction is always a threshold determination,” Am.

Telecom Co., L.L.C. v. Republic of Lebanon, 501 F.3d 534, 537 (6th Cir. 2007), the Court must “consider the 12(b)(1) motion first, since the Rule 12(b)(6) motion becomes moot if this court lacks subject matter jurisdiction.” Moir v. Greater Cleveland Reg’l Transit Auth., 895 F.2d 266, 269 (6th Cir. 1990). “Where subject matter jurisdiction is challenged pursuant to Rule 12(b)(1), the plaintiff has the burden of proving jurisdiction in order to survive the motion.” Id. “If the court determines that at any time that it lacks subject-matter jurisdiction, the court must dismiss the action.” Fed. R. Civ. P.

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Greenhouse Holdings, LLC v. International Union of Painters and Allied Trades District Council 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenhouse-holdings-llc-v-international-union-of-painters-and-allied-kywd-2021.