Hauskins v. Stratton

566 F. Supp. 1028, 115 L.R.R.M. (BNA) 2500, 4 Employee Benefits Cas. (BNA) 2034, 1983 U.S. Dist. LEXIS 15377
CourtDistrict Court, W.D. Louisiana
DecidedJuly 18, 1983
DocketCiv. A. No. 83-1258
StatusPublished
Cited by1 cases

This text of 566 F. Supp. 1028 (Hauskins v. Stratton) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hauskins v. Stratton, 566 F. Supp. 1028, 115 L.R.R.M. (BNA) 2500, 4 Employee Benefits Cas. (BNA) 2034, 1983 U.S. Dist. LEXIS 15377 (W.D. La. 1983).

Opinion

VERON, District Judge.

RULING

This case involves the level of benefits to be paid to beneficiaries of the Plumbers and Steamfitters Local 106 Pension Trust Fund. (The “Fund”). The participants in the Fund are Local 106 of course, and numerous employers in the Lake Charles area who employ members of the local. Pursuant to the collective bargaining agreement reached between the participants, the employers pay into the Fund a certain sum of money for each manhour of work performed by members of Local 106. This money forms the corpus of the Fund, and is distributed to retirees of the local on the basis of the duration of their membership in the union.

The Fund is administered by a Board of eight Trustees. Four of the Trustees are appointed by the various employers, and the other four are appointed by the union. This even division between the number of Trustees appointed by the union and by management presumably serves to protect the interests of both parties to the collective bargaining agreement. Such a division however lends itself to split decisions by the Board regarding its management of the Fund.

Situations where tie votes, or “deadlocks” occur were foreseen by the Trust settlers. This is evidenced by the existing provisions in the Trust Instrument regarding the procedures to be followed in the event of deadlock. In the matter presently before the court, deadlock has occurred over a proposal submitted by the union-appointed Trustees to increase benefit payments to retirees. The union-appointed Trustees, plaintiffs herein, contend that the matter should be decided by arbitration, and therefore petition this court to compel the commencement of arbitration proceedings. The management-appointed Trustees, defendants herein, contend that under federal law, the matter is non-arbitrable, and therefore oppose the action. Accordingly, this court is now called upon to interpret the deadlock provisions of the Trust Instrument in light of the existing jurisprudence and applicable statutory provisions.

I. PROVISIONS FOR DEADLOCK

The Trust Instrument establishing the Fund provides in Art. V, section 2(a) that:

In the event the Trustees cannot decide any matter or resolve any dispute because of a tie vote ... a majority of the Trustees may submit the matter to an impartial arbitrator for hearing and determination of the matter, issue or dispute. ... (Emphasis added)

The court first notes that there was a unanimous vote to submit this matter to arbitration and that subsequently, the defendants adopted the position that the matter was not a proper subject for arbitration. Given the initial vote by all of the Trustees to arbitrate the matter, the requirement of Art. V, section 2(a), that a majority of the Trustees submit the matter, has been satisfied.

Despite the fact that section 2(a), by its terms, permits “any matter” on which the Trustees deadlock to be submitted to arbitration, defendants contend benefit determinations are excluded from the scope of that general rule. In support of their posi[1030]*1030tion, defendants rely heavily on Botto v. Friedberg, 568 F.Supp. 1253, 3 E.B.C. 2529 (EDNY 1982). In Botto, a deadlock was also reached over a proposed increase in benefit levels. The district court there held the matter to be non-arbitrable for two reasons.

First, the court found that under the terms of the Trust Instrument, the dispute was non-arbitrable. Two provisions of the Trust Instrument were scrutinized to reach that result. Under the section setting forth the duties and powers of the Trustees, the Instrument stated that they had authority to make “determinations of benefits and administration of the program.” (emphasis in original). Botto, supra, at 2532. In contrast, the deadlock provisions in Botto stated that an arbitrator would be appointed if the Trustees failed to agree only on “a matter relating to the administration of the Pension Trust Fund.” Id., at 2530.

The choice of words employed by the drafters of the Trust Instrument in Botto is unfortunate, for it distracted that court from the plain meaning of words in rendering its decision.1 The Botto court concluded, and reasonably so, that by using the phrase, “benefits and administration,” the drafters intended decisions concerning benefits to be distinct from so-called “day-today administrative decisions.” Bearing this distinction in mind, the Botto court also reasoned that administrative questions could be subject to arbitration, but benefits questions could not, because the deadlock provision referred only to “administration,” and not “benefits.” The court then however, read the statutory language, see n. 1 supra, with the same distinction in mind. That is, in reading § 302(c)(5)(B), the court inferred that the statutory use of the term “administration” also excluded benefits decisions. Having determined that Congress, as well as the parties to the collective bargaining agreement, intended “administration” to exclude benefits, the court then examined the Trust’s deadlock provisions and determined that under both the terms of the Trust, and the LMRA, that the question of increasing benefits was non-arbitrable.

Although the court is unaware of any legal theory by which one can infer legislative intent from the wording of a contractual instrument executed by private parties, it is not the function of this court to act in an appellate capacity.2 The purpose of the foregoing analysis is simply to justify a somewhat broader statutory interpretation of Section 302(c)(5)(B) than the Botto court allowed itself.

Not being hamstrung by a limited interpretation of “administration” the court can now impart efficacy to the plain meaning of this Trust Instrument. In comparison with the enabling section of Trustee authority in the Botto Trust Instrument, stating “bene[1031]*1031fits and administration,” the corresponding language in the Trust Instrument here at issue states that:

The Trustees shall promulgate a Plan of Benefits and such rules and regulations as are necessary for the sound and efficient administration of the Trust, (emphasis added). Art. Ill, § 4.

Furthermore, the Trust Instrument also states:

Said Trustees shall draft procedures, regulations and conditions for the operation of the Pension Plan, including by way of illustration and not limitation, conditions of eligibility for Participants and Beneficiaries, procedures for claiming benefits, schedules of type and amount of benefits to be paid, and procedures for the distribution of benefits, (emphasis added). Art. VI, § 1.

The above quoted excerpts make it clear that the Trustees have authority under this Trust Instrument to set benefit levels. In fact, the use of the word “shall,” as in “shall promulgate” indicates that it is not only permissive, but that it is mandatory under the terms of the Trust that the Trustees bear the burden of setting benefit levels. The subsequent language found in Article VI, that Trustees “draft ... schedules of type and amount of benefits to be paid” is also couched in the imperative.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

William S. Hauskins v. Robert W. Stratton
721 F.2d 535 (Fifth Circuit, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
566 F. Supp. 1028, 115 L.R.R.M. (BNA) 2500, 4 Employee Benefits Cas. (BNA) 2034, 1983 U.S. Dist. LEXIS 15377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hauskins-v-stratton-lawd-1983.