Local 67, Operative Plasterers & Cement Masons International Ass'n v. Gem Management Co.

502 F. Supp. 2d 638, 2007 U.S. Dist. LEXIS 43486, 2007 WL 1760902
CourtDistrict Court, E.D. Michigan
DecidedJune 15, 2007
Docket04-73022
StatusPublished

This text of 502 F. Supp. 2d 638 (Local 67, Operative Plasterers & Cement Masons International Ass'n v. Gem Management Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 67, Operative Plasterers & Cement Masons International Ass'n v. Gem Management Co., 502 F. Supp. 2d 638, 2007 U.S. Dist. LEXIS 43486, 2007 WL 1760902 (E.D. Mich. 2007).

Opinion

OPINION AND ORDER GRANTING PLAINTIFF LOCAL 67’S MOTION FOR SUMMARY JUDGMENT (DOCK. NO. 55)

BORMAN, District Judge.

Now before the Court is Plaintiff Local 67’s Motion for Summary Judgment (Dock. No. 55). The Court held a motion hearing on May 24, 2007. Having considered the entire record, and for the reasons that follow, the Court GRANTS Plaintiffs Motion for Summary Judgment.

I. FACTS

Defendant Gem Management Company, Inc. (“GEM” or “Defendant”) is a Michigan corporation engaged in the business of synthetic-plaster installation throughout Michigan. (Comply 4). Plaintiff Operative Plasterers and Cement Masons International Association, AEL-CIO (“Local 67” or “Plaintiff’) is a labor organization which represents employees in the construction industry. (Comply 3).

On February 9, 1999, GEM entered into a collective bargaining agreement with a different union, Bricklayers & Allied Craftworkers Local 9, AFL-CIO (“Bricklayers 9”). Local 67 v. Gem, No. 04-73022, 2006 WL 314343, *1 (E.D. Mich. Jan 9, 2006) (unpublished). The Bricklayers collective bargaining agreement “designates Bricklayers 9’s work jurisdiction as the entire State of Michigan, with the exception of Wayne, Oakland, Macomb, and Monroe counties.” Id.

On October 2, 1999, GEM entered into a multi-employer collective bargaining agreement (hereinafter “CBA”) with Plaintiff Local 67. (ComplV 5). As the Court stated in a prior opinion on the matter:

The CBA identified Local 67’s work jurisdiction as Wayne, Macomb, Oakland, and Monroe counties south of 13 Mile Road in Michigan. This CBA was a “me too” agreement binding GEM to a 1997-2000 CBA between Local 67 and the Detroit Association of Wall and Ceiling Contractors later known as the Architectural Contractors Trade Association (ACT) (the “1997 ACT agreement”). Local 67 claims that GEM thereafter became bound by a 2000-2003 successor agreement to Local 67’s 1997 ACT agreement (the “2000 ACT agreement”). This 2000 ACT agreement expanded] Local 67’s work jurisdiction to include all of Wayne, Oakland, Macomb, Lapeer, and St. Clair Counties in Michigan. Thus, the work jurisdictions for doing GEM’s synthetic plaster installation work in Bricklayers 9’s and Local 67’s CBAs overlapped as to Lapeer and St. Clair counties in Michigan.... Both Bricklayers 9’s and Local 67’s CBAs required GEM to pay wage and fringe- *640 benefit contributions to each union’s fringe benefit funds based upon employee work hours and to provide fringe benefits to employees. Thus, depending upon the jurisdiction in which it worked, GEM was to make the requisite fringe-benefit contributions to Bricklayers 9 or to Local 67, and in Lapeer and St. Clair Counties both unions claim fringe-benefit contributions. Over the years in dispute, GEM paid contributions for work done in these two counties to Bricklayers 9’s fringe-benefit funds....
On October 21, 2001, Local 67 filed an action against GEM before the National Labor Relations Board (“NLRB”), alleging that GEM committed an unfair labor practice in violation of the National Labor Relations Act (“the NLRA”), 29 U.S.C. § 151, et seq., when it failed to pay wages and fringe-benefit contributions under Local 67’s CBA. After conducting a hearing on this claim, the NLRB’s Administrative Law Judge Eric M. Fine (“ALJ”) found that GEM was bound to Local 67’s 1997 ACT agreement and its successor 2000 ACT agreement,] and had failed to pay wages and fringe benefits in compliance with that CBA as to work performed within La-peer County. This decision was upheld by the NLRB, GEM Management Co. and Local 67, 339 N.L.R.B. 489, 339 N.L.R.B. No. 71 (2003), and the Sixth Circuit Court of Appeals. N.L.R.B. v. Gem Management Co., 107 Fed.Appx. 576 (6th Cir.2004) [ (unpublished) ]. [The Sixth Circuit,] in its August 19, 2004 order[,] enjoined GEM from “[withdrawing recognition from Local 67, Operative Plasterers’ and Cement Masons’ International Association, AFL-CIO (Local 67) during the term of the collective-bargaining agreement between Local 67 and Architectural Contractors Association (ACT), with effective dates of June 1, 2000, through May 31, 2003, and ordered payment of fringe-benefits and union dues to Plasterer 67 and its fringe-benefit funds for employees doing work in the jurisdiction.” Id. at 579.
Under Article V of Local 67’s CBA, grievances between the employees and GEM are to be submitted to “final and binding” arbitration before the Joint Grievance Board (“JGB”). On May 4, 2004, Local 67 filed a grievance before the JGB against GEM, alleging that GEM violated Local 67’s CBA, [essentially a breach of contract claim,] by failing to pay certain back wages and fringe benefits and damages under that CBA. After holding a hearing on the grievance [], in which GEM did not participate, the JGB determined, [on May 27, 2004], that GEM had violated Local 67’s CBA, and ordered GEM to remit to Local 67 $342,324.98 for $208,973.19 in unpaid back wages, $117,071.55 in unpaid fringe benefits, and $5,853.38 in liquidated damages and $10,448.66 in interest.
GEM [claimed] that it declined to participate because (1) Local 67 had already pursued an almost identical claim before the NLRB and (2) Local 67 no longer had any work jurisdiction at the GEM work sites because the Local 67’s CBA ended on March 7, 2003. Thus no wages and fringe-benefit contributions could be due after this date. GEM did not, however, assert these jurisdictional defenses before the JGB nor seek to have Bricklayers 9 joined as a party to those proceedings. Nor [ ] did it attempt to join Bricklayers 9 in the NLRB proceeding under 10(k). On June 2, 2004, the JGB sent a letter to GEM’s owner and president, George Moore, demanding payment in compliance with its order no later than July 2, 2004. GEM did not comply with the JGB’s June 2, 2004, *641 request, and has yet to pay the ordered award.

Local 67, 2006 WL 314343 at *1-2.

On August 6, 2004, Plaintiff Local 67 filed a one-count Complaint in this Court against GEM seeking to enforce the JGB decision. GEM immediately filed a Motion to Dismiss for Failure to Join a Necessary Party (the necessary party being Bricklayers 9). This Court denied GEM’s motion on April 12, 2005, finding that GEM’s CBA with Local 67 was separate and distinct from Defendant GEM’s CBA with Bricklayers 9. Thus, this Court concluded that Bricklayers 9 was not an indispensable party. (Dock. No. 11).

On May 13, 2005, GEM filed a Third-Party complaint against Bricklayers 9. (Dock. No. 13). GEM alleged that (1) both labor organizations’ CBAs assert jurisdiction over the synthetic plaster installation work performed in Lapeer and St. Clair counties, where GEM is located; and (2) that if GEM is required to pay the contested pension contributions to Local 67, then Bricklayers 9 should refund the money GEM paid Bricklayers 9 toward its pension fund, because only one labor organization can be entitled to collect pension contributions for the work that was done. On June 22, 2005, Bricklayers 9 filed a Motion to Dismiss. (Dock. No. 16).

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502 F. Supp. 2d 638, 2007 U.S. Dist. LEXIS 43486, 2007 WL 1760902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-67-operative-plasterers-cement-masons-international-assn-v-gem-mied-2007.