Int'l Union of Painters & Allied Trades v. Warren Smith

CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 31, 2025
Docket24-3282
StatusPublished

This text of Int'l Union of Painters & Allied Trades v. Warren Smith (Int'l Union of Painters & Allied Trades v. Warren Smith) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Int'l Union of Painters & Allied Trades v. Warren Smith, (6th Cir. 2025).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 25a0200p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ INTERNATIONAL UNION OF PAINTERS AND ALLIED │ TRADES DISTRICT COUNCIL NO. 6; JIM SHERWOOD; LEE │ DENNEY; CHRIS NAEGELE; EVERETT CHILSON, │ Plaintiffs - Appellants, │ > No. 24-3282 │ BOARD OF TRUSTEES FOR THE SOUTHERN OHIO │ PAINTERS HEALTH AND WELFARE PLAN AND TRUST │ FUND, │ Plaintiff-Intervenor, │ v. │ │ │ WARREN T. SMITH; DANA CLARK; JEREMY TURI; JOE │ CONLEY; JAMES ECK; CHAD HUDEPOHL; KYLE YOUNG; │ JEFF QVICK, │ Defendants-Appellees. │ ┘

Appeal from the United States District Court for the Southern District of Ohio at Cincinnati. No. 1:23-cv-00502—Douglas Russell Cole, District Judge.

Argued: December 12, 2024

Decided and Filed: July 31, 2025

Before: COLE, WHITE, and DAVIS, Circuit Judges. _________________

COUNSEL

ARGUED: Diana Robinson, PAOFF, ROBINSON, & WIDMAN LLC, Toledo, Ohio, for Appellants. Allen S. Kinzer, VORYS, SATER, SEYMOUR & PEASE LLP, Columbus, Ohio, for Appellees Warren T. Smith and Dana Clark. Evan T. Priestle, TAFT STETTINIUS & HOLLISTER LLP, Cincinnati, Ohio, for Appellees Jeremy Turi, Joe Conley, James Eck, Chad Hudepohl, Kyle Young, and Jeff Qvick. ON BRIEF: Diana Robinson, PAOFF, ROBINSON, & WIDMAN LLC, Toledo, Ohio, for Appellants. Allen S. Kinzer, Brian W. Dressel, VORYS, SATER, SEYMOUR & PEASE LLP, Columbus, Ohio, for Appellees Warren T. Smith and Dana No. 24-3282 Int’l Union of Painters & Allied Trades et al. v. Smith et al. Page 2

Clark. Evan T. Priestle, TAFT STETTINIUS & HOLLISTER LLP, Cincinnati, Ohio, for Appellees Jeremy Turi, Joe Conley, James Eck, Chad Hudepohl, Kyle Young, and Jeff Qvick. _________________

OPINION _________________

DAVIS, Circuit Judge. This case involves an ERISA fund dispute that pits one side of the fund’s board of trustees against the other. The dividing line, however, is atypical. While board membership is evenly divided between union-appointed trustees and employer-appointed trustees, two union-appointed trustees have, among other things, voted with the employer- appointed trustees to make procedural changes that the union and its other appointed trustees contend have caused fiduciary-duty violations and portend more harm in the future. Chief among the alleged harms, according to the union and its trustees, is the entrenchment of two wayward union trustees that the union would like removed. The union and its fellow plaintiff- trustees were denied a preliminary injunction to head off the harm they fear is brewing and saw their claims against the employer-appointed trustees dismissed by the district court. They appeal each of these decisions. For the reasons that follow, we AFFIRM.

I.

A.

Factual background. Plaintiffs Jim Sherwood, Lee Denney, Chris Naegele, Everett Chilson, and the International Union of Painters and Allied Trades District Council No. 6 (the “Union”)1 sued Defendants Warren “Tom” Smith, Dana Clark, Jeremy Turi, Joe Conley, James Eck, Chad Hudepohl, Kyle Young, and Jeff Qvick in their capacities as trustees of the Southern Ohio Painters Health and Welfare Plan and Trust (the “Fund”). Plaintiffs Sherwood, Denney, and Naegele are union-appointed trustees, and Chilson is a Fund participant. Defendants Smith and Clark are union-appointed trustees whom Plaintiffs have sought to remove from the board of trustees. And the remaining defendants are employer-appointed trustees.

1The Board of Trustees for the Southern Ohio Painters Health and Welfare Plan and Trust Fund successfully moved to intervene on November 10, 2023. However, the Board of Trustees is not a party to this appeal. No. 24-3282 Int’l Union of Painters & Allied Trades et al. v. Smith et al. Page 3

The Fund is a multi-employer welfare benefit plan governed by the Taft-Hartley Act (the “Act”). The Union and contributing employers created and maintained the Fund to provide health and welfare benefits to employees represented by the Union. Sixteen trustees manage the Fund, half affiliated with the Union and half with the contributing employers, along with “neutral persons.” 29 U.S.C. § 186(c)(5)(B). The Fund’s controlling document, the Trust Agreement, governs its operations. As relevant here, the Trust Agreement includes procedures specifying how trustees must be appointed and how they may be removed. The trustees may also amend the Trust Agreement by a two-thirds vote of those trustees present.

Plaintiffs’ claims arise from their discontent over certain Fund amendments proposed by Smith and Clark and approved by the employer-trustee defendants. Tensions began to rise in January 2021, when Sherwood, the Union’s business manager/secretary-treasurer, sought to appoint a new union trustee for the Local Union # 249 (“Local # 249”) because the former Local # 249 representative, Smith, had taken a leave of absence from his trusteeship to serve as the Fund’s assistant administrative manager. Smith objected, explaining that he and co- defendant Dana Clark were the union-appointed trustees from Local # 249. Smith thereafter re- assumed his trustee status but continued to serve as a Fund employee. Sherwood responded by requesting a legal opinion from the Fund’s then-counsel, Ledbetter Parisi LLC (“Ledbetter”), about the legality under ERISA of Smith serving as both Fund employee and trustee. Ledbetter did not provide a clear response. And soon after, Sherwood learned that Smith had unilaterally fired Ledbetter as Fund counsel and retained new counsel; Potts-Dupre, Hawkins & Kramer (“Potts-Dupre”) was introduced as the Fund’s legal counsel at the May 11, 2021, board meeting.

Over the course of the next several board meetings, Smith and Clark proposed several amendments to the Trust Agreement with which Plaintiffs did not agree. Some of these amendments directly benefited Smith and Clark, like one that would provide continued health- insurance coverage to retired union trustees—but not all union retirees—at no cost. Smith also proposed an amendment that would suspend dental coverage under the health care plan, which passed over Plaintiff trustees’ objections. And Smith proposed an amendment to the Trust Agreement’s removal language. Prior to the amendment, union trustees could be removed for just cause by a three-fourths vote of the union trustees, and employer trustees could be removed No. 24-3282 Int’l Union of Painters & Allied Trades et al. v. Smith et al. Page 4

for just cause by the same vote of the employer trustees. Smith’s proposed amendment would change the removal procedure such that any trustee could be removed for just cause by a three- fourths vote of all trustees, regardless of their appointing authorities. It passed, notwithstanding objections from Plaintiff trustees.

Frustrated by Smith and Clark’s actions and claiming to exercise his authority under the International Union of Painters and Allied Trades (“IUPAT”) constitution, Sherwood sent them both letters requesting that they resign from their positions as union trustees.2 Neither resigned. Sherwood then filed internal union charges against Smith and Clark. The Union convened a trial board, which held a trial pursuant to the IUPAT constitution. Smith and Clark obtained legal advice from Potts-Dupre to defend against the charges. The trial board sustained the charges against both Smith and Clark and directed that they each immediately be removed from the Fund and barred from serving as Fund trustees. Smith and Clark again refused to resign, so Sherwood filed a second set of internal charges based on Smith and Clark’s noncompliance with the trial board’s decision. The second trial board again sustained the charges.

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Int'l Union of Painters & Allied Trades v. Warren Smith, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intl-union-of-painters-allied-trades-v-warren-smith-ca6-2025.