Metropolitan Detroit Bricklayers District Council v. J. E. Hoetger & Co.

480 F. Supp. 296, 103 L.R.R.M. (BNA) 2222, 1979 U.S. Dist. LEXIS 8168
CourtDistrict Court, E.D. Michigan
DecidedDecember 5, 1979
DocketNo. 79-72067
StatusPublished
Cited by2 cases

This text of 480 F. Supp. 296 (Metropolitan Detroit Bricklayers District Council v. J. E. Hoetger & 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
Metropolitan Detroit Bricklayers District Council v. J. E. Hoetger & Co., 480 F. Supp. 296, 103 L.R.R.M. (BNA) 2222, 1979 U.S. Dist. LEXIS 8168 (E.D. Mich. 1979).

Opinion

MEMORANDUM OPINION AND ORDER

JOINER, District Judge.

This case is before the court on cross motions for summary judgment made by plaintiffs Metropolitan Detroit Bricklayers District Council, International Union of Bricklayers and Allied Craftsmen, AFL-CIO, and the Bricklayers Fringe Benefit Fund, and by defendant J. E. Hoetger & Company. For the reasons given below, defendant’s motion is denied in part and granted in part, and plaintiffs’ motion is granted in part and denied in part.

The facts in this case are undisputed, and are recited at length in Bricklayers, Masons and Plasterers’ Union Local 29, et al., (J. E. Hoetger & Co.), 221 N.L.R.B. 1337 (1976). In 1974 Hoetger entered into a contract with the city of Pontiac to act as general contractor for the construction of a community center. Masonry work for the center was subcontracted to Hawkins Masonry, Inc. Under the contract between Hoetger and Hawkins, Hawkins agreed to employ [298]*298only workers affiliated with the Building Trades Unions under the jurisdiction of the American Federation of Labor. The contract further provided that Hawkins assumed exclusive liability for paying all union benefits, although Hoetger reserved “the right to escrow any funds available to insure that these payments are made and deduct same from this contract.”

Pursuant to the terms of this contract, Hawkins employed bricklayers belonging to plaintiff union. The employment relationship between Hawkins and the workers was governed by a collective bargaining agreement which provided, inter alia, for the payment of fringe benefits by Hawkins. Hoetger was not a party to this collective bargaining agreement.

■ In February of 1975, after Hawkins had completed approximately 80% of its work on the center, the union struck Hawkins for its failure to pay the fringe benefits required by the collective bargaining agreement. Shortly thereafter, Hoetger can-celled its contract with Hawkins, and Hawkins went out of business. At this point, Hawkins had been paid $64,800 of its $91,-000 contract, and Hoetger held $7200 retainage against Hawkins. Hoetger used this retainage money to complete the masonry work on the jobsite through subcontracts with other firms.

The union, in response to information that there were bricklayers on the jobsite although the fringe benefits still hadn’t been paid, informed Hoetger that it viewed Hoetger, as general contractor, responsible for those benefits. On May 1, 1975, four pickets appeared on the site carrying signs reading “Bricklayers on strike against Hawkins Masonry for nonpayment of fringes to bricklayers.” Other workers on the site honored the picket line, and no work was done for the three days the picketing continued.

In response to the picketing, Hoetger filed an unfair labor practice charge against the union under sections 8(b)(4)(i) and (ii)(B) of the National Labor Relations Act, •29 U.S.C. § 158(b)(4)(i) and (ii)(B). The NLRB adopted the recommended order of the Administrative Law Judge that the union had not violated the Act as alleged.

Judge Stevenson distinguished the picketing conducted by the union from the usual case in which picketing a secondary general contractor is prohibited. Although finding that Hawkins’ independent contractor status vis-a-vis Hoetger was not compromised by any kind of common ownership, management, or supervision, Judge Stevenson concluded that the independent contractor status was compromised by certain of the subcontract terms between Hoetger and Hawkins. Judge Stevenson emphasized that the contract required Hawkins to employ workers affiliated with certain unions, and that

the practical effect was that Hoetger inserted itself into the labor relations of Hawkins in a very basic area by determining that Hawkins’ employee complement must consist of members of certain unions only, and that members of other unions and nonunion employees must not be employed by Hawkins. 221 N.L.R.B. at 1339.

Judge Stevenson concluded that Hoetger and Hawkins were thus joint employers under the rule of Local 363, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (Roslyn Americana Corp.), 214 N.L.R.B. No. 129 (1974). Under Roslyn, a general contractor who exercises a sufficient degree of control over the assignment of work in issue cannot be considered a neutral in a dispute between the union and one of its subcontractors for purposes of § 8(b)(4)(B).

Judge Stevenson buttressed her conclusion that Hoetger and Hawkins were joint employers, noting:

Nor was Hoetger powerless to resolve the dispute in this case over Hawkins’ default on the payment of fringe benefits . Indeed, Hoetger had also contractually inserted itself into Hawkins’ labor relations in this very matter. Thus, in the subcontract Hoetger had reserved to itself the right to escrow any funds available to insure that fringe benefits were paid and to deduct such payments from the contract. Moreover, it seems possible [299]*299that Hoetger had in escrow and undispursed on its contract with Hawkins funds from which it could have paid fringes as it had reserved the right to do. If Hoetger had opted to exercise its prerogative in this matter, the dispute might have been resolved. 221 N.L.R.B. at 1339.

Thus, the union was held not to have engaged in secondary picketing and thus had not committed an unfair labor practice.

In June of 1979, plaintiffs commenced the instant suit against Hoetger and Hawkins, “an employer within the meaning of the National Labor Relations Act.” The suit was brought under § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, for the employer’s violation of the collective bargaining agreement which required payment of fringe benefits. Plaintiffs’ complaint alleges that Hoetger and Hawkins comprise a single employer which is bound to pay the fringe benefits required by the collective bargaining agreement entered into between the union and Hawkins.

As noted above, Hawkins went out of business in 1975, and has not answered or otherwise defended in this action. On October 24,1979, the clerk of the court made an entry of default against Hawkins. Hoetger and the plaintiffs filed cross motions for summary judgment and supporting briefs.

The issue presented by these motions is whether Hoetger can be held legally liable for the unpaid fringe benefits due to the relationship it had with Hawkins and despite the fact that it was not a signatory to the collective bargaining agreement which required payment of the fringe benefits. In support of the contention that Hoetger can be found liable for the fringes, plaintiffs maintain that the factual finding of the Administrative Law Judge and the National Labor Relations Board that Hoetger and Hawkins were joint employers should be given collateral estoppel effect in this suit. Plaintiffs assume that if this court considers the joint employer finding binding, that Hoetger will necessarily be legally obligated to pay the fringe benefits due. Defendant argues first that this case is not a proper one in which to give res judicata or collateral estoppel effect to the findings of fact made in the earlier case.

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480 F. Supp. 296, 103 L.R.R.M. (BNA) 2222, 1979 U.S. Dist. LEXIS 8168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-detroit-bricklayers-district-council-v-j-e-hoetger-co-mied-1979.