Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150

765 N.E.2d 21, 327 Ill. App. 3d 711, 262 Ill. Dec. 195
CourtAppellate Court of Illinois
DecidedFebruary 22, 2002
Docket2-00-1363
StatusPublished
Cited by15 cases

This text of 765 N.E.2d 21 (Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150, 765 N.E.2d 21, 327 Ill. App. 3d 711, 262 Ill. Dec. 195 (Ill. Ct. App. 2002).

Opinion

JUSTICE McLAREN

delivered the opinion of the court:

The following facts are taken from the record. Plaintiff, Lowe Excavating Company, is an Illinois corporation engaged in excavating and site preparation services since 1969. Marshall Lowe was the president of Lowe at the time of the incidents at issue. Defendant International Union of Operating Engineers Local No. 150 (the Union) is a labor organization doing business in McHenry County. Defendant Colin “Robert” Darling was a business agent employed by the Union at the time of the incidents at issue.

On February 15, 1988, the Union began picketing at a Lowe project site, known as Ballashire Hall, with signs stating:

“NOTICE TO THE PUBLIC LOWE EXCAVATING DOES NOT PAY THE PREVAILING WAGES AND ECONOMIC BENEFITS FOR OPERATING ENGINEERS WHICH ARE STANDARD IN THIS AREA OUR DISPUTE CONCERNS ONLY SUBSTANDARD WAGES AND BENEFITS PAID BY THIS COMPANY LOCAL 150 International Union of Operating Engineers, AFL-CIO”

On February 17, 1988, Lowe filed a complaint seeking a temporary restraining order (TRO), preliminary and permanent injunctions, and damages. The following day, the Union filed a petition for removal to the United States District Court, arguing that Lowe’s claim seeking an injunctive relief was preempted by federal law. On June 10, 1988, the United States District Court for the Northern District of Illinois denied the Union’s petition and remanded the case to the state trial court, stating that “Lowe’s complaint does not on its face contain a federal claim.”

On June 30, 1988, the trial court enjoined the Union from picketing Lowe in McHenry County until the court ruled on Lowe’s request for a preliminary injunction. On August 11, 1988, the trial court dismissed Lowe’s second amended complaint based on the Union’s claim that the court lacked subject matter jurisdiction due to federal preemption. The court granted Lowe leave to file a third amended complaint.

On September 28, 1988, the Union resumed picketing. The following day, Lowe filed a third amended complaint seeking a temporary restraining order, preliminary and permanent injunctions, and damages. Lowe also filed a motion for a temporary restraining order, preliminary injunctions, and the reconsideration of the dismissal of the second amended complaint based on the lack of subject matter jurisdiction. The court again enjoined the Union from picketing Lowe until the court’s ruling on Lowe’s request for a preliminary injunction. On October 6, 1988, the Union filed a motion to dismiss this third amended complaint, again asserting that, based on federal preemption, the trial court lacked subject matter jurisdiction.

On October 11, 1988, the court partially granted Lowe’s motion for a temporary restraining order enjoining the Union from “picketing or otherwise disseminating the fact that Lowe is nonunion.” The court also denied the Union’s motion to dismiss Lowe’s third amended complaint and denied Lowe’s “request for preliminary injunctive relief relating to area standards, in reckless disregard for the truth,” based on federal preemption grounds. Lowe filed an interlocutory appeal of this decision.

On March 3, 1989, this court reversed the trial court’s decision and remanded the case for a hearing. Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150, 180 Ill. App. 3d 39 (1989).

The trial on Lowe’s third amended complaint began in April 2000. The four claims proceeding to trial against the Union and Colin Darling, as an individual, were count II, alleging tortious interference with contractual relationship; count TV alleging tortious interference with prospective economic advantage; count V, alleging trade libel; and count VI, alleging negligent interference with contract.

At the trial, Darling testified that late in the summer or early in the fall of 1987 he spoke with two Lowe employees, Hartzell Zimmerman and Pasqual Gebbia. Zimmerman and Gebbia told Darling what they were making at the time and what benefits they received. Darling stated that the men showed him their pay stubs and that these were the only pay stubs Darling saw. However, during a deposition in 1994, Darling stated that he had not seen pay stubs. Darling explained at trial that his memory was better at trial in April 2000 than it was when he gave his deposition.

Darling also testified that in February 1988 the class one wage (top wage) under the Union’s master collective bargaining agreement was $19.40 an hour to be increased to $20.10 an hour on June 1, 1988, and the class two wage was $18.85 an hour. These were the wages that were appropriate for the Ballashire Hall project. The contribution to various fringe benefit funds was $2.20 an hour. Also, the master agreement provided that no more than 1 apprentice was permitted on a job with less than 7 journeymen, 2 apprentices for between 7 and 13 journeymen, and 3 apprentices for between 13 and 22 journeymen.

In October 1987 the Union initiated efforts to unionize Lowe’s employees. Marshall Lowe arranged for representatives of the Union to meet with Lowe employees. At the meetings, the Union and Lowe presented the employees with comparisons of their respective wages and benefits.

Darling testified that, during a meeting with Marshall Lowe in December 1987 or January 1988, Marshall provided several documents, including Lowe’s 401(k) pension plan, profit-sharing plan, and payroll information. Darling gave these documents to the Union’s fund administrator, Larry Bushmaker. Darling talked to Union president Bill Dugan about Zimmerman’s and Gebbia’s claims that they were not getting area standard wages. Darling never asked anyone to investigate Lowe’s wages and benefits paid after the summer of 1987. Early in 1988 Dugan and his assistant, Bill Anderson, and Darling decided that the Union should picket Lowe. Darling stated that, after the initial pickets began, Marshall told Darling that Lowe had a federally funded project but would not tell Darling where the project was.

Marshall Lowe testified that on February 12, 1988, he sent the Union’s fund administrator, Bushmaker, a letter notifying Bushmaker that another employee meeting was scheduled for March 12, 1988, so that Bushmaker could explain the Union’s fringe benefits to Lowe’s employees. However, Bushmaker never responded to this letter, and the meeting did not take place.

On February 12, 1988, Lowe was read a mailgram from the Union over the phone, which stated in part:

“Local 150, International Union of Operating Engineers is informed that your company is currently performing construction work at Canterbury Place Retirement Community. Local 150 has attempted to make careful investigation of your company’s policies regarding the payment of area standards to individuals performing construction work at this project. We have determined that the area standards for the operating engineers are not being met at this project. If our information regarding this fact is incorrect, please advise us immediately.”

Darling testified that after the Union sends notice that it intends to picket it waits 48 hours so that the contractor can prove that it pays prevailing wages.

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765 N.E.2d 21, 327 Ill. App. 3d 711, 262 Ill. Dec. 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowe-excavating-co-v-international-union-of-operating-engineers-local-no-illappct-2002.