Laborers' International Union of North America, Local 894 v. Wright Traffic Control Inc.

CourtDistrict Court, S.D. Ohio
DecidedMay 11, 2020
Docket2:18-cv-00264
StatusUnknown

This text of Laborers' International Union of North America, Local 894 v. Wright Traffic Control Inc. (Laborers' International Union of North America, Local 894 v. Wright Traffic Control Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laborers' International Union of North America, Local 894 v. Wright Traffic Control Inc., (S.D. Ohio 2020).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

LABORERS’ INTERNATIONAL UNION OF NORTH AMERICA, LOCAL 894, et al.,

Plaintiffs, Case No. 2:18-cv-264 JUDGE SARAH D. MORRISON Magistrate Judge Chelsey M. Vascura v.

WRIGHT TRAFFIC CONTROL, INC., et al.,

Defendants.

OPINION AND ORDER There are currently two pending motions to dismiss the Amended Complaint. Defendant Wright Traffic Control, Inc. (“Wright Traffic” or “WTC”) filed its Motion to Dismiss on February 21, 2019. (ECF No. 32). Defendant W.D. Wright Contracting, Inc. (“W.D. Wright” or “WDWC”) similarly moved to dismiss the Amended Complaint on February 21, 2019. (ECF No. 33). Plaintiffs Laborers’ International Union of North America, Local 894 (“Local 894”), Laborers’ Internal Union of North America, Local 423 (“Local 423”), and Laborers’ Internal Union of North America, Local 265 (“Local 265”) (collectively, “Plaintiffs” or the “Unions”) jointly responded to both motions. (ECF No. 38). Both Defendants replied. (See ECF Nos. 43; 44). Accordingly, this matter is ripe for review. For the reasons stated herein, Defendants’ Motions are GRANTED. I. Plaintiffs initiated this action on March 27, 2018, with the filing of a two-count Complaint against Wright Traffic and W.D. Wright, seeking: 1) declaratory judgment; and 2) damages for breach of labor contracts. (Compl. [ECF No. 1]). Defendants Wright Traffic and W.D. Wright (collectively “Defendants”) moved to dismiss the Complaint. (ECF No. 14; ECF No. 15). Prior to a ruling on these motions, however, Plaintiffs filed an Amended Complaint. (See Am. Compl. [ECF No. 20]). In the two-count Amended Complaint against Wright Traffic and W.D. Wright,1 Plaintiffs seek: 1) declaratory judgment; and 2) specific performance to compel arbitration. (Am. Compl.

¶¶ 68–74). Defendants have moved to dismiss the Amended Complaint asserting the Court lacks subject matter jurisdiction over Plaintiffs’ claims and that Plaintiffs have failed to state a claim upon which relief can be granted. (WTC Mot. to Dismiss [ECF No. 32]; WDWC Mot. to Dismiss [ECF No. 33]). As this matter is before the Court on a Rule 12 Motion, the Court takes the factual allegations asserted in the Amended Complaint, and the exhibits attached to the Amended Complaint, as true. Those facts are as follows. Plaintiffs are labor organizations affiliated with the Laborers’ International Union of North America. (Id. at ¶¶ 7–9). Local 894 is based out of Akron, Ohio; Local 423 maintains its principal place of business in Columbus, Ohio; and Local 265 operates out of Cincinnati, Ohio. (Id.). Each

Plaintiff is a labor organization as defined under the National Labor Relations Act (“NLRA”), 29 U.S.C. § 152(5), and incorporated into the Labor Management Relations Act (“LMRA”) as 29 U.S.C. § 142(3). (Id. at ¶ 13). Defendants are both Pennsylvania corporations that “provide construction site traffic control services to customers including contracts and public and private utilities” and operate within the state of Ohio. (Am. Compl. ¶¶ 2, 3, 12). Plaintiffs allege that Defendants “hold themselves out to the public as one business through their marketing, trademarks, servicemarks,

1Plaintiffs also brought both claims in the Amended Complaint against Wright of Ohio, LLC (“Wright of Ohio” or “WOO”). (See Am. Compl. ¶ 4). All claims against Wright of Ohio, LLC, however, were dismissed on November 13, 2019. (See ECF No. 47; see also ECF No. 46). social media posts, and public relations.” (Id. at ¶ 13). Further, Plaintiffs assert that Defendants “essentially operate as one business” as Defendants use “the same personnel, policies, equipment, and vehicles, provides construction site traffic control services to the same or similar customers.” (Id. at ¶ 14). Wright Traffic began doing business in Ohio in or around 2016, but did not receive its

Foreign For-Profit Corporation License from the Ohio Secretary of State until March 2018. (Id. at ¶ 16). A substantial amount of Wright Traffic’s work in Ohio was performed pursuant to pre- hire collective bargaining agreements (“CBAs”) with the Laborers’ International Union of North America, Laborers’ District Council of Ohio, and affiliated local unions Local 894, Local 423, and Local 265. (Id. at ¶ 17). Wright Traffic and the Unions’ CBAs “cover, among other things, construction site traffic control work performed for various types of customers and were entered into under Section 8(f) of the National Labor Relations Act (“NLRA”)[.]” (Id. at ¶ 18). On or about February 10, 2016, Wright Traffic signed a letter of assent to the CBA entitled “the Ohio Highway-Heavy-Municipal-Utility State Construction Agreement” (the “Heavy

Highway Agreement”). (Id. at ¶ 19). The Heavy Highway Agreement identified the Unions as intended third party beneficiaries. (Id.). No party to this agreement has terminated the Heavy Highway Agreement as it relates to Wright Traffic. (Id. at ¶¶ 22–23). Wright Traffic has also signed letters of assent to other CBAs in which the Unions were identified as third-party beneficiaries, including: “the National Pipe Line Agreement” and “the National Distribution Agreement.” (Id. at ¶ 24). No authorized party to these agreements has terminated either agreement as they relate to Wright Traffic. (Id. at ¶¶ 27–28, 31–32). And Plaintiffs acknowledge Wright Traffic “is the only one of Defendants’ operations that has actually signed the CBAs.” (Id. at ¶ 33) (emphasis in original). Since 2016, W.D. Wright has “performed construction site traffic control work in or around Ohio,” but W.D. Wright’s laborers, despite performing “the same traffic control work as [Wright Traffic’s] laborers, are not hired, employed, and paid under the pre-hire CBAs.” (Id. at ¶ 34). Plaintiffs submit that this matter “is about determining whether these . . . nominally separate companies—one signed to the pre-hire CBAs and the other[] not—can be considered a ‘single

employer’ bound through conduct to the pre-hire CBAs.” (Id. at ¶ 36). Thus, Plaintiff asks the Court to determine whether, although W.D. Wright did not sign the CBAs, it is nonetheless “bound to the terms of the Heavy Highway Agreement . . ., National Pipe Line Agreement . . ., and National Distribution Agreement” (collectively the “CBAs”) by virtue of its “conduct as a ‘single employer’ with” Wright Traffic. (Id. at ¶ 39) (emphasis in original). Plaintiffs allege that both Defendants “are (and have been) commonly controlled and owned by the Wright family” since 2016, when Wright Traffic entered into the CBAs. (Id. at ¶ 41). Further, Brian D. Wright is the President and co-owner of both Wright Traffic and W.D. Wright. (Id. at ¶ 44). And Luke Wright is the Vice President and co-owner of both Defendants.

(Id. at ¶ 46). Plaintiff also submits that W.D. Wright’s LinkedIn profile discusses the operations of Wright Traffic. (Id. at ¶ 47). Furthermore, W.D. Wright and Wright Traffic have had common management personal, Field Supervisors, and Traffic Control Supervisors. (Id. at ¶¶ 49, 51, 52). Thus, Plaintiffs submit that “[a]ll Defendants’ operations are, and have been functionally interrelated starting in 2016—when the pre-hire CBAs were signed[.]” (Id.at ¶ 53). Additionally, the Defendants operate out of the same places of business in Beaver, Pennsylvania and the greater Akron, Columbus and Cincinnati areas in Ohio. (Id. at ¶ 54). And both W.D. Wright and Wright Traffic use “a common employee list such that Defendant WTC’s employees performing construction site traffic control services could (and would) be requested to work on” W.D. Wright’s jobs. (Id. at ¶ 55). If a Wright Traffic employee rejected a W.D.

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Laborers' International Union of North America, Local 894 v. Wright Traffic Control Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/laborers-international-union-of-north-america-local-894-v-wright-traffic-ohsd-2020.