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

832 N.E.2d 495, 358 Ill. App. 3d 1034, 295 Ill. Dec. 344, 2005 Ill. App. LEXIS 722
CourtAppellate Court of Illinois
DecidedJuly 8, 2005
Docket2-04-0145
StatusPublished
Cited by11 cases

This text of 832 N.E.2d 495 (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, 832 N.E.2d 495, 358 Ill. App. 3d 1034, 295 Ill. Dec. 344, 2005 Ill. App. LEXIS 722 (Ill. Ct. App. 2005).

Opinion

JUSTICE GILLERAN JOHNSON

delivered the opinion of the court:

The defendant, International Union of Operating Engineers Local No. 150 (the Union), appeals from the January 12, 2004, and April 16, 2004, orders of the circuit court of McHenry County awarding the plaintiff, Lowe Excavating Co., $525,000 in punitive damages. On appeal, the Union argues that punitive damages were inappropriate and, alternatively, that the amount awarded was excessive. Lowe Excavating cross-appeals from these same orders, arguing that the amount awarded was inadequate.

I. BACKGROUND

The facts of the present case are well known by the parties and this court. Therefore, we present a brief outline of the procedural history of this case and dispense with a lengthy recitation of the facts. Any additional necessary information will be included in the discussion portion of our disposition.

In February 1988, the defendant began picketing one of the plaintiffs jobsites with placards stating:

. “NOTICE TO THE PUBLIC
LOWE EXCAVATING DOES NOT PAY THE PREVAILING WAGES AND ECONOMIC BENEFITS FOR OPERATING ENGINEERS WHICH ARE STANDARD IN THE 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 Excavating initiated a cause of action. In its first complaint, Lowe Excavating alleged a cause of action for tortious interference with a prospective economic advantage. Lowe Excavating sought injunctive and monetary relief. Lowe Excavating later amended its complaint to allege causes of action for trade libel, tortious interference with a contractual relationship, tortious interference with a prospective economic advantage, and negligent interference with a contract. On October 11, 1988, the trial court denied Lowe Excavating’s request for an injunction as being preempted by federal law. On interlocutory appeal, this court reversed the trial court’s decision, determining that federal preemption did not apply. We remanded for a hearing. See Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150, 180 Ill. App. 3d 39 (1989) (hereinafter Lowe I).

On April 2, 2000, this matter proceeded to a bench trial. On October 19, 2000, the trial court found in favor of the Union on all counts. Lowe Excavating appealed. On appeal, this court reversed the ruling of the trial court, finding that Lowe Excavating had proved its cause of action for trade libel. This court found that the Union’s statements were false and were made with actual malice. We remanded the cause and instructed the trial court to determine whether punitive damages were appropriate. We also instructed the trial court to consider Lowe Excavating’s attorney fees in the event that it awarded punitive damages. See Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150, 327 Ill. App. 3d 711 (2002) (hereinafter Lowe II).

On August 15, 2003, upon remand and direction from this court, Lowe Excavating filed a motion seeking punitive damages. Lowe Excavating attached to its motion the affidavits of Marshall Lowe, the president of Lowe Excavating, and Gerard Smetana and Michael Avakian, attorneys for Lowe Excavating. Smetana’s affidavit provided that his firm had expended 1,288 billable hours totaling $304,101.62 on the case. Avakian’s affidavit provided that his firm had expended 843 billable hours totaling $194,350 on the case. Avakian’s firm had also expended $8,108.16 in various expenses. Lowe’s affidavit provided that his company had thus far paid $225,925.83 in fees and expenses on the case.

On January 12, 2004, the trial court entered an order awarding Lowe Excavating $325,000 in punitive damages. The trial court explained its rationale in fashioning the amount of the award:

“3. The imposition of punitive damages against the [djefendant is justified in this case because the appellate court found that the evidence in this case established that the [d]efendant’s actions constituted actual malice.***
:]< % % punitive damages should he awarded to deter defendant and others from similar conduct in the future. Specifically, the [c]ourt is referring to the conduct delineated by the Appellate Court on pages 722 and 723 of LOWE II.

6. Considering the evidence in this case, the Court believes that

7. The amount of actual damages in the case is small, $4,680, but there is evidence that the [pllaintiff has incurred substantial attorney’s fees and expenses in this protracted litigation. In an affidavit from Marshal Lowe dated August 13, 2003, Marshall Lowe stated that the Lowe Excavating Company had actually paid $225,925.83 in attorney’s fees and expenses [and] that further fees and expenses had heen incurred, but not yet paid. ***
8. Additionally, there has been an affidavit submitted by Attorney Gerard C. Smetana dated August 13, 2003 and Attorney Michael E. Avakian dated August 14, 2003 which reflect time records of billable hours and attorney fee hourly rate [sic] showing $301,104.62 and $194,350.00 respectively for these two attorneys. According to the affidavit of Attorney Avakian, the $194,350.00 in attorney fees plus expenses were not paid by the [p]laintiff, but were incurred by an entity identified as ‘the Center on National Labor Policy, Inc.’ which entity is not a party to this lawsuit. There is no indication that the [p]laintiff is responsible for payment of the $194,350.00 in attorney’s fees plus expenses.
9. While the [c]ourt is considering [p]laintiff s attorney’s fees as directed by the Appellate Court, this Court is not awarding attorney’s fees, but is considering [plaintiff’s attorney’s fees as a factor in the assessing of punitive damages.”

On January 20, 2004, Lowe Excavating filed a posttrial motion entitled “Plaintiffs Motion for Partial Reconsideration and Modification of Order on Punitive Damages.” On February 9, 2004, before the trial court ruled on Lowe Excavating’s motion for reconsideration, the Union filed a notice of appeal. On February 19, 2004, Lowe Excavating filed its notice of cross-appeal.

On February 24, 2004, the trial court conducted a hearing on Lowe Excavating’s posttrial motion. The trial court granted the motion and increased Lowe Excavating’s award of punitive damages by $200,000, from $325,000 to $525,000. The trial court explained that it was now taking into account the fees billed by Attorney Avakian, notwithstanding the fact that those fees were incurred by the Center on National Labor Policy. Thereafter, on March 5, 2004, the Union filed a posttrial motion entitled “Local 150’s Motion for Reconsideration of Punitive Damage Awards,” to which, on March 26, 2004, Lowe Excavating responded. On April 16, 2004, the trial court made its final ruling on the matter. It denied the Union’s motion to reconsider.

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Bluebook (online)
832 N.E.2d 495, 358 Ill. App. 3d 1034, 295 Ill. Dec. 344, 2005 Ill. App. LEXIS 722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowe-excavating-co-v-international-union-of-operating-engineers-local-no-illappct-2005.