Kyhl v. A-One Plumbing, Inc.

679 F. Supp. 911, 1988 U.S. Dist. LEXIS 1686, 1988 WL 14303
CourtDistrict Court, E.D. Missouri
DecidedFebruary 24, 1988
DocketNo. 87-1308 C (6)
StatusPublished

This text of 679 F. Supp. 911 (Kyhl v. A-One Plumbing, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kyhl v. A-One Plumbing, Inc., 679 F. Supp. 911, 1988 U.S. Dist. LEXIS 1686, 1988 WL 14303 (E.D. Mo. 1988).

Opinion

ORDER AND MEMORANDUM

GUNN, District Judge.

This matter is before the Court on plaintiffs’ motion for partial summary judgment, motion to strike insufficient defense and motion to dismiss counterclaims.

Plaintiffs, trustees of various plumbing industry employee benefit funds, bring the [912]*912present suit under Section 301 of the Labor Management Relations Act of 1947 (“LMRA”), 29 U.S.C. § 185, and Section 502 of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1132, to recover allegedly delinquent fringe benefit contributions from defendants A-One Plumbing, Incorporated and Central Missouri Plumbing Company. Plaintiffs represent the Plumbers’ Pension Trust for Members and Apprentices of St. Louis Journeymen Plumbers Local No. 35, A.F. of L., the Plumbers’ Health and Welfare Trust Fund for Members and Apprentices of St. Louis Journeymen Plumbers Local No. 35, AFL-CIO, and the Plumbers’ Vacation and Holiday Trust Funds for Members and Apprentices of St. Louis Journeymen Plumbers Local No. 35, AFL-CIO (collectively “Trust Funds”) as well as the Plumbers’ Educational Fund (“Educational Fund”). In addition, plaintiff Plumbing Industry Council, a not-for-profit corporation incorporated under the laws of the state of Missouri, seeks to collect payments allegedly due it from defendants for an industry promotion fund.

In response to plaintiffs’ complaint, defendants have asserted various defenses and counterclaims. First, defendants allege, both by way of defense and by way of counterclaims, that the Trust Funds and Educational Fund are “union dominated” and as such that plaintiffs are violating Section 302 of the LMRA, 29 U.S.C. § 186, in attempting to collect these funds. Second, defendants allege, by way of counterclaims, that plaintiffs are engaged in a conspiracy and combination in restraint of trade in violation of the Sherman Antitrust Act, 15 U.S.C. § 1, et seq. Plaintiffs have now moved (1) to strike defendants’ defense as insufficient; (2) for partial summary judgment as to so much of defendants’ counterclaims as allege that plaintiffs violated Section 302 of the LMRA in attempting to collect the Trust Funds and Educational Fund; and (3) to dismiss so much of defendants’ counterclaims as allege that plaintiffs engaged in a conspiracy in violation of the Sherman Antitrust Act. For the following reasons, the Court grants all of plaintiff’s motions.

A. Motion to Strike and Motion for Summary Judgment

Section 302 of the LMRA, 29 U.S.C. § 186, generally prohibits payments by representatives of employers and the acceptance of such payments by the representatives of employees. However, exceptions to this broad prohibition are contained in Section 302(c). Specifically, and insofar as it is pertinent here, Section 302(c)(5)(B) authorizes representatives of an employer to make payments to an employee benefit fund where, among other things, “employees and employers are equally represented in the administration of such fund.” In their defense and counterclaims, defendants allege that plaintiffs are attempting to compel payments in violation of Section 302(c)(5)(B) as the Trust Funds and Educational Fund are “union dominated” and thus without effective management representation.

In support of their motion to strike insufficient defense, plaintiffs contend that such an allegation, even if true, cannot constitute an adequate defense to a collection suit for delinquent fringe benefit contributions. The Court agrees. Simply stated, “unequal representation” cannot excuse an employer’s failure to make required contributions to an employee benefit fund. In National Stabilization Agreement of Sheet Metal Industry Fund v. Commercial Roofing & Sheet Metal, 655 F.2d 1218 (D.C.Cir.1981), cert. denied, 455 U.S. 909, 102 S.Ct. 1256, 71 L.Ed.2d 447 (1982), for example, a group of employers attempted to defend against a suit for the collection of delinquent fringe benefit contributions by arguing that their contractual obligation was unenforceable inasmuch as the trust fund at issue violated the “equal representation” requirement. In rejecting such a defense, the court observed that “the primacy of protection for trust beneficiaries in the congressional scheme compels the conclusion that [the employers] may not assert an equal representation defect as a defense to [the trustees’] collection action.” National Stabilization, 655 F.2d at 1227. If the trust fund did indeed violate the stric[913]*913tures of Section 302(c)(5)(B), the court further observed, the employers could, and should, file suit for injunctive relief under Section 302(e). Id. See also: Quad City Builders Association v. Tri City Bricklayers Union No. 7, 431 F.2d 999 (8th Cir.1970) (although the trust fund violated the equal representation requirement the trustees could continue to receive contributions to the fund); Thomas v. Reading Anthracite Company, 264 F.Supp. 339 (M.D.Pa.1966) (an employer could not refuse to make payments to a health and welfare fund on the basis of an allegation that the employers and employees administering the fund were not equally represented). Accordingly, the Court grants plaintiffs’ motion to strike insufficient defense.

In support of their motion for partial summary judgment, plaintiffs contend that they are entitled to judgment on defendants’ counterclaims insofar as they allege the Trust Funds and Educational Fund are “union dominated” in violation of Section 302 as the allegation of union denomination is clearly refuted by plaintiffs’ affidavits and accompanying documentation and that there is thus no genuine issue as to any material fact. Specifically, and by way of the affidavits of John W. Siscel, Charles W. Kyhl, Jr. and Charles R. Finch attached to plaintiffs’ motion, plaintiffs demonstrate that the Trust Funds and Educational Fund are each administered by a board consisting of three union trustees and three management trustees and that these management trustees and union trustees are completely independent of each other. Thus, they contend, there is undisputed equality of voting power on the boards as is required by Section 302(c)(5)(B).

Rather than set forth specific facts refuting plaintiffs’ position, defendants rely on conclusional allegations to the effect that the voting procedures delineated in plaintiffs’ affidavits and accompanying documentation are but a poor reflection of reality. The Court declines to consider such allegations in reaching its decision. See Matsushita Electric Industrial Co., Ltd. v. Zenith Radio Corporation, 475 U.S. 574, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986) (a party opposing a motion for summary judgment “must do more than show that there is some metaphysical doubt as to the material facts”);

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679 F. Supp. 911, 1988 U.S. Dist. LEXIS 1686, 1988 WL 14303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kyhl-v-a-one-plumbing-inc-moed-1988.