Iron Workers Tri-State Welfare Plan v. Carter Construction, Inc.

530 F. Supp. 2d 1021, 43 Employee Benefits Cas. (BNA) 1631, 183 L.R.R.M. (BNA) 2901, 2008 U.S. Dist. LEXIS 3995, 2008 WL 158757
CourtDistrict Court, N.D. Illinois
DecidedJanuary 18, 2008
Docket06 C 0580
StatusPublished
Cited by3 cases

This text of 530 F. Supp. 2d 1021 (Iron Workers Tri-State Welfare Plan v. Carter Construction, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iron Workers Tri-State Welfare Plan v. Carter Construction, Inc., 530 F. Supp. 2d 1021, 43 Employee Benefits Cas. (BNA) 1631, 183 L.R.R.M. (BNA) 2901, 2008 U.S. Dist. LEXIS 3995, 2008 WL 158757 (N.D. Ill. 2008).

Opinion

MEMORANDUM OPINION AND ORDER RE: CARTER CONSTRUCTION, INC.’S MOTION FOR SUMMARY JUDGMENT

JEFFREY COLE, United States Magistrate Judge.

INTRODUCTION

The plaintiff has sued Carter Construction under Section 301 of the Taft-Hartley Act (also known as the Labor Management Relations Act (“LMRA”)) and Section 502 of the Employee Retirement Income Security Act (“ERISA”). See generally Sullivan v. William A. Randolph, Inc., 504 F.3d 665 (7th Cir.2007)(Posner, J.). The complaint charged that Carter Construction breached a collective bargaining agreement (“CBA”) that required it, among many things, to allow the plaintiff to audit its books and records and make contributions to the union. Taking the “tidbits” theory of pleading, Kolupa v. Roselle Park Dist., 438 F.3d 713, 714 (7th Cir.2006), to its outermost limits, the complaint did not attach the CBA as an exhibit and did not even identify the date of the agreement on which the suit was based. 1

As a consequence, a core dispute has arisen as to which CBA is involved — the May 1, 1998 CBA or separate CBAs executed in 2001 and 2004. For the plaintiff, the operative CBA is the May 1, 1998 agreement between Central Illinois Builders Association (“CIBA”) — which was a multiemployer bargaining unit — and Local Union No. 360, International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, AFL-CIO. Under the plaintiffs theory, that agreement has yet to lapse, and it is that Agreement which is the wellspring of the obligations that Carter Construction Company has allegedly breached. For Carter Construction, the operative CBA is the three-year agreement CIBA negotiated and executed on its behalf with the Union in 2001 and which terminated in 2004.

I.

FACTUAL BACKGROUND

A.

The May 1, 1998 Individually Negotiated Collective Bargaining Agreement

On May 1, 1998, CIBA and Local Union 380 executed a CBA on behalf of those members that had delegated their authority to CIBA to collectively bargain with the Union on their behalf. (Affidavit of Brian Diskin, Local 380 Business Manager, 117; Plaintiffs’ Memorandum of Law in Opposition, Ex. A, at 29 (“Ex. A” or “the 1998 Agreement”)). On October 9,1998, Carter Construction Company entered into a “PARTICIPATING AGREEMENT,” that provided that Carter Construction agreed to adopt, abide by, and be bound by all of the provisions of the CBA “heretofore [on May 1, 1998] entered into between Local Union No. 380...and [CIBA],” including any modification, extensions, or renewals of the Agreement. (Ex. A at 30-32)(Capi-talization and bold face in original). The May 1 Agreement provided that it was effective as of May 1, 1998 and that it would continue in force through April 30, 2001 and would renew thereafter from year to year, except upon written notice by *1024 either party at least 60 but no more than 90 days prior to May 1, 2001 of an intent to modify or terminate the Agreement. (Affidavit of CIBA’s Director of Labor Relations, Scott Larkin IT 8; Ex. A, ¶42). 2

In the instant case, the distinction between an independently negotiated agreement — like the 1998 Agreement between the Union and Carter Construction and a multiemployer bargaining unit-negotiated agreement is significant. (Plaintiffs’ Memorandum of Law in Opposition, at 2-3, 5; Plaintiffs Response to Defendant’s Statement of Facts, ¶ 7). While the Union now insists that it is the 1998 Agreement that requires the payments that Carter Construction resists, the complaint is not consistent with that theory: Paragraph 3 of the complaint alleged:

The Defendant assigned its bargaining rights to the Central Illinois Builders Association and is an employer engaged in an industry affecting commerce which entered into an Agreement whereby it agreed to be bound by the provisions of a Collective Bargaining Agreement with Iron Workers Local Union No. 380, and to any subsequent Collective Bargaining Agreements.

(Complaint, ¶ 3)(Emphasis supplied).

The allegation of assignment has no meaning if the complaint was based upon the May 1, 1998 Agreement since Carter Construction made no such assignment in 1998 but rather contracted directly with the Union. And why refer to Carter Construction’s agreement to be bound by subsequent agreements if the 1998 Agreement had never lapsed, as the Union argues in its opposition to the summary judgment motion? Little wonder that Carter Construction’s motion for summary judgment did not even mention the 1998 Agreement and focused exclusively on the 2001 and 2004 Agreements. If the plaintiff wanted to sue on the 1998 Agreement that Carter Construction entered into on its own, its complaint would have been drafted differently.

When the Union filed its complaint, the standard for pleadings was quite liberal, see Swierkiewicz v. Sorema N.A., 534 U.S. 506, 122 S.Ct. 992, 152 L.Ed.2d 1 (2002), and Bell Atlantic Corp. v. Twombly, 550 U.S.-, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) was a year away. Indeed, the Seventh Circuit had warned: “Any district judge (for that matter, any defendant) tempted to write ‘this complaint is deficient because it does not contain ... ’ should stop and think: What rule of law requires a complaint to contain that allegation?” Doe v. Smith, 429 F.3d 706, 708 *1025 (7th Cir.2005) (Emphasis and parenthesis in original). All that a complaint had to do was “name the plaintiff and the defendant, state the nature of the grievance, and give a few tidbits (such as the date) that will let the defendant investigate.... ” Kolupa, 438 F.3d at 714 (Emphasis supplied) (parenthesis in original).

Even though the plaintiff was not obligated to set forth specific facts and legal theories of its case in its complaint, Carter Construction was entitled to notice of which agreement underlay the complaint. Notice of the grounds upon which a claim rests is the raison d’etre of a complaint. See Conner v. Illinois Dept. of Natural Resources, 413 F.3d 675, 679 (7th Cir.2005). Here, the complaint not only did not notify Carter Construction that it was suing under the 1998 Agreement, but its reference to the assignment of rights to CIBA conveyed a very different message.

This is not an instance where only one particular CBA could possibly be at issue. See e.g., Minch v. City of Chicago, 486 F.3d 294, 300 (7th Cir.2007); C.H. Robinson Worldwide, Inc. v. Command Transp., LLC, 2005 WL 3077998, *5 (N.D.Ill. Nov. 16, 2005)(fair notice of claim where plaintiff identified contracts at issue); Dennes v. ABN Amro Services Co., Inc., 2001 WL 563813, *2 (N.D.Ill. May 23, 2001)(con-tracts were attached as exhibits). Here,, there are three contracts involved; one was individually negotiated, the others collectively negotiated.

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530 F. Supp. 2d 1021, 43 Employee Benefits Cas. (BNA) 1631, 183 L.R.R.M. (BNA) 2901, 2008 U.S. Dist. LEXIS 3995, 2008 WL 158757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iron-workers-tri-state-welfare-plan-v-carter-construction-inc-ilnd-2008.