Laborers' Pension Fund v. Res Environmental Services, Inc.

377 F.3d 735, 2004 WL 1687898
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 13, 2004
Docket03-3360
StatusPublished
Cited by31 cases

This text of 377 F.3d 735 (Laborers' Pension Fund v. Res Environmental Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laborers' Pension Fund v. Res Environmental Services, Inc., 377 F.3d 735, 2004 WL 1687898 (7th Cir. 2004).

Opinion

FLAUM, Chief Judge.

This appeal calls upon us to apply the familiar principle that conclusory and immaterial statements contained in an affidavit are insufficient to bar summary judgment. Defendant RES Environmental Services, Inc. (“RES”), relying exclusively on an affidavit submitted by its company owner, seeks reversal of the district court’s decision granting summary judgment to Plaintiffs, Laborers’ Pension Fund and Laborers’ Welfare Fund of the Health and Welfare Department of the Construction and General Laborers’ District Council of Chicago and Vicinity (the “Funds”). The *737 Funds brought this action against RES pursuant to the Employment Retirement Income Security Act of 1974, 29 U.S.C. §§ 1132 et seq. (“ERISA”) and Labor Management Relations Act of 1947, 29 U.S.C. §§ 185 et seq. (“LMRA”) seeking to collect delinquent employee benefit contributions required under a collective bargaining agreement negotiated between RES and its employees’ union. For the reasons stated in this opinion, we affirm the judgment of the district court.

I. Background

The Funds are multi-employer trust funds that provide fringe benefits to RES’s employees. RES has been operating since 1992 and is primarily in the business of performing asbestos abatement work. RES is party to a collective bargaining agreement (the “CBA”) that was negotiated between RES and its employees’ union. The CBA requires RES to make regular contributions to the Funds on behalf of its employees covered therein for pension, health, and welfare benefits and to submit monthly remittance reports identifying each covered'employee and its corresponding contribution. Additionally, the CBA incorporates the Funds’ respective Trust Agreements, which require RES to pay liquidated damages and interest if RES’s contributions become delinquent.

In order to determine if RES was satisfying its contribution requirements under the CBA, the Funds designated two firms to audit RES’s books and records. The first audit, referred to as the Wolf Report, focused on the period of July 1, 1994 to December 31, 1997 and found that RES owed $74,452.66 in delinquent contributions, accrued interest, liquidated damages, and audit costs. The second audit, referred to as the Graff Report, covered the period of January 1* 1998 to July 31, 2001 and found that RES owed $222,441.68 in delinquent contributions, accrued interest, liquidated damages, and audit costs. Negotiations between the Funds and RES took place once the audits were completed. The parties reached an agreement regarding the Wolf Report, with RES agreeing to pay $4,011.69. However, the Funds were not willing to reduce the second audit’s total.

This lawsuit presents RES’s challenges to the Graff Report and its findings. RES claims that the Graff Report improperly includes employees who are not covered by the CBA. RES also contends that the Graff Report includes hours relating to work not within the scope of the CBA. To support these claims, RES offers the affidavit of its owner, Wiley Stewart. The district court rejected RES’s arguments, finding that RES failed to present a genuine issue of material fact as to all issues in dispute.

II. Discussion

We review the district court’s grant of summary judgment de novo to determine whether there is a genuine issue of material fact and the law was applied correctly. See Fed.R.Civ.P. 56(c); Lett v. Magnant, 965 F.2d 251, 255 (7th Cir.1992). Summary judgment is appropriate where, reviewing the evidence in the light most favorable to the nonmoving party, there is no genuine issue of material fact that must be decided by a jury. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252-55, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Bell v. Duperrault, 367 F.3d 703, 707 (7th Cir. 2004); Brademas v. Ind. Hous. Fin. Auth., 354 F.3d 681, 687 (7th Cir.2004).

On appeal, RES challenges both the type of employees and'the type of work included in the Graff Report. RES contends that the improper inclusion in the Graff Report of -hours worked by certain managerial employees and the hours spent *738 by RES employees performing work outside the scope of the CBA led to a significant overstatement of RES’s liability.

A. Supervisory Employees

RES asserts that the Funds improperly included supervisory employees in the Graff Report. The Funds respond that the CBA unambiguously requires that contributions be made for supervisory employees who also have held nonsupervisory positions during the relevant time period. Indeed, the CBA provides that the bargaining unit includes:

[PJersons in the employ of an Employer who are supervisors as defined by the Labor Management Relations Act as amended; and who at one time were Employee members of the bargaining unit herein on whose behalf contributions were required to be made to the trust fund described [in other sections of the CBA].

RES does not dispute this provision of the CBA. To rebut this requirement, RES offers only Wiley Stewart’s affidavit. Specifically, Stewart’s testimony that:

[T]wo of these RES employees who were included in the Second Audit, Donald Stewart and Adam Sulik, worked in supervisory positions for RES. Contrary to [Plaintiffs’ Statement of Facts] plaintiffs are now seeking payment from RES for hours worked by those employees. [The Funds’ Field Representative] had previously advised me that plaintiffs would remove those hours from the Second Audit but plaintiffs have not done so.

Issues of parol evidence aside, this testimony is not relevant to the appropriateness of including the hours worked by the former-employee supervisors in the auditor’s calculations of unpaid contributions. The plain language of the CBA provides that former-employee supervisors are to be included in the bargaining unit. Stewart’s testimony does not dispute that these two employees fall into that category nor does it provide any other legally cognizable reason why including them would be inappropriate under the CBA. Thus, RES’s reliance on III. Conference of Teamsters v. Steve Gilbert Trucking, 71 F.3d 1361 (7th Cir.1995) (finding that facts contained in affidavit submitted by company’s owner directly undermined the accuracy of auditor’s calculations) was misplaced. Summary judgment was appropriately granted on this issue.

B. Non-Covered Work

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377 F.3d 735, 2004 WL 1687898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laborers-pension-fund-v-res-environmental-services-inc-ca7-2004.