International Union v. Consol Energy, Inc.

243 F. Supp. 3d 755, 2017 U.S. Dist. LEXIS 38698, 2017 WL 1044696
CourtDistrict Court, S.D. West Virginia
DecidedMarch 17, 2017
DocketCIVIL ACTION NO. 1:16-12506
StatusPublished
Cited by8 cases

This text of 243 F. Supp. 3d 755 (International Union v. Consol Energy, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Union v. Consol Energy, Inc., 243 F. Supp. 3d 755, 2017 U.S. Dist. LEXIS 38698, 2017 WL 1044696 (S.D.W. Va. 2017).

Opinion

David A. Faber, Senior United States District Judge

I.INTRODUCTION

This is a civil action for an order enjoining Defendant CONSOL Energy, Inc. (“CONSOL Energy”) and its wholly owned subsidiaries Defendants Helvetia Coal Company (“Helvetia”), Island Creek Coal Company (“Island Creek”), Laurel Run Mining Company (“Laurel Run”), and CONSOL Amónate Facility, LLC (“CON-SOL Amónate”), from unilaterally terminating a group health insurance plan. This plan, named National Bituminous Coal Wage Agreements (“NBCWA”) Plan, is maintained in order to benefit l-etired coal miners. The NBCWA contains a resolution of disputes (“ROD”) mechanism, and it is connected to the parties’ collective bargaining agreement.

Presently pending before the court is Plaintiffs’ Petition for Preliminary Injunction. See Doc. No. 8. The court makes its Findings of Fact and Conclusions of Law as set forth in this opinion.

II. FINDINGS OF FACT
1. Defendant CONSOL Energy is a publicly owned energy company engaged in the operation of mines and facilities related to the production of coal, which it sells worldwide to electricity generators and steelmakers. Defendant CONSOL Energy does business in the Southern District of West Virginia and has done so for many years. Defendant CONSOL Energy maintains its corporate headquarters near Pittsburgh, Pennsylvania, and has an office in the Southern District of West Virginia at 2481 John Nash Boulevard, Blue-field, West Virginia 24701.
2. Plaintiff International Union, United Mine Workers of America (“UMWA”) is a labor organization that represents coal miners. The UMWA maintains its principal place of business in Triangle, Virginia, and has offices within the Southern District of West Virginia at Beckley, Charleston, and Chapmanville.
3. The various individual Plaintiffs are residents of the Southern District of West Virginia; they are retired coal miners and participants in, and beneficiaries of, the group health insurance plan at issue in this case.
4. Since shortly after World War II, health and retirement benefits in the coal industry have been provided to employees through a multiemployer arrangement. This arrangement has been carried forward for over 60 years through collective bargaining or through legislation enacted by Congress. Beginning in 1950, pension and health benefits for retired miners were provided through a single plan, known as the UMWA Welfare and Retirement Fund of 1950. The guarantee of lifetime retiree health care benefits was contained in numerous subsequent agreements negotiated between the UMWA and the Bituminous Coal Operators Association (“BCOA”), known as the National Bituminous Coal Wage Agreements (“NBCWAs”), maintained this structure. The UMWA and the BCOA have negotiated a number of NBCWAs over the years. The most recent is the 2011 NBCWA (the “2011 Agreement”), which is now in effect. Each of the NBCWAs, including the 2011 Agreement, has continued the obligation of the coal operators to provide health care to eligible beneficiaries on a permanent lifetime basis in accordance with a standard Employer Plan incorporated into the collective bargaining agreement.
[759]*7595. In order to' ensure uniformity among the Employer Plans established pursuant to the 1978 NBCWA, the UMWA and BCOA established the ROD procedure. Under the ROD procedure established under that contract, disputes arising under the separate benefit plans maintained by each individual employer were subject to resolution by the Trustees of the UMWA 1950 Benefit Plan. In the 1981 NBCWA, the parties added language stating that the “[d]eci-sions of the Trustees shall be final and binding on the parties.” That language has been included in every NBCWA since 1981, including the 2011 NBCWA. The authority to resolve disputes under the contractually required Employer Plan was conferred on the four Trustees of the UMWA 1993 Benefit Plan (the “Trustees”), two of whom are appointed by the UMWA and two by the BCOA.
6. A number of CONSOL Energy subsidiaries-including but not limited to the subsidiaries that formerly employed the individual Plaintiffs— were members of the BCOA and signatory to the 1974, 1978, 1981, 1984, 1988, 1993, 1998, 2002, 2006, 2007, and the 2011 NBCWAs.
7. During negotiations between the BCOA and the UMWA that culminated in the 2011 NBCWA, CONSOL. Chief Executive Officer Nicholas J. Deluliis led the BCOA Negotiating Committee. He personally signed for the BCOA in portions of the 2011 NBCWA.
8. On or about March 15, 2016, CON-SOL transmitted to the retired miner participants in its Employer Plan a letter stating that “[o]n February 11, 2016 we initiated discussions with the UMWA regarding new options for providing healthcare benefits” and promised that “[i]n all events, we will continue to communicate with you in the coming months about this very important matter before any changes are implemented.” A similar, letter was sent to participants on May 6, 2016. Both letters encouraged participants to contact the ÜMWA and UMWA staff subsequently fielded a great number of telephone calls from anxious retirees concerned about their health benefits.
9. Defendant CONSOL Energy indicated in correspondence to the UMWA that it intended to terminate and replace its Employer Plan. Subsequent negotiations between Defendant CONSOL Energy and Plaintiff UMWA failed to resolve disagreements over which changes, if any, would be acceptable to the union and its retirees.
10. On or about October 31, 2016, CONSOL transmitted to the UMWA an official notice pursuant .to Section 8(d) of the NLRA that all of its subsidiaries signatory to the NBCWA “have permanently terminated their mining operations” and that the subsidiaries would terminate the 2011 NBCWA effective as of its expiration date, December 31, 2016.
11. On November 1, 2016, the UMWA filed a ROD with the Trustees noting the parties’ dispute as to whether CONSOL may “implement any unilateral changes or modifications of the benefits provided by its plan, either during the term of the 2011 NBCWA or following its termination” and asking for an order that CONSOL “notify its retirees that it cannot make any changes in [760]*760their "benefits without the agreement of the UMWA.”

III. CONCLUSIONS OF LAW, MEMORANDUM OPINION AND ORDER

(1) PERSONAL JURISDICTION AND VENUE

A. CONSOL Energy has Waived its Personal Jurisdiction and Venue Defenses

The court commences with the affirmative defenses of personal jurisdiction and improper venue, defenses that Defendant CONSOL Energy first raised in its'Motion to Dismiss for Lack of Jurisdiction. See Doc. No. 14. Plaintiffs contend that Defendants waived these affirmative defenses by failing to raise them in their first pre-answer motion. See Doc. No. 39. This court agrees in part: Defendant CONSOL Energy has waived its ■ personal jurisdiction and venue defenses, but the other defendants have not.

Rule 12(b)(2) defenses such as the lack of personal jurisdiction and improper venue are deemed to be waived when they are not raised in the first pre-answer motion. See Elderberry of Weber City, LLC v. Living Centers-S.E., Inc., 2013 WL 1164835, at *2-3 (W.D. Va.

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243 F. Supp. 3d 755, 2017 U.S. Dist. LEXIS 38698, 2017 WL 1044696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-v-consol-energy-inc-wvsd-2017.