Michigan Region Council of Carpenters Employee Benefits Fund v. Holcroft, L.L.C.

171 F. Supp. 2d 693, 2001 U.S. Dist. LEXIS 11860, 2001 WL 914261
CourtDistrict Court, E.D. Michigan
DecidedJuly 31, 2001
Docket00-73803
StatusPublished

This text of 171 F. Supp. 2d 693 (Michigan Region Council of Carpenters Employee Benefits Fund v. Holcroft, L.L.C.) 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
Michigan Region Council of Carpenters Employee Benefits Fund v. Holcroft, L.L.C., 171 F. Supp. 2d 693, 2001 U.S. Dist. LEXIS 11860, 2001 WL 914261 (E.D. Mich. 2001).

Opinion

OPINION AND ORDER GRANTING SUMMARY JUDGMENT TO DEFENDANTS AND DENYING IT TO PLAINTIFFS

ROBERTS, District Judge.

I. INTRODUCTION

Before the Court are cross Motions for Summary Judgment. This dispute arises out of provisions set forth in the Worker Adjustment and Restraining Notification Act (WARN Act). Plaintiff, a union organization acting on behalf of its members, who were formerly employed by the Defendants, contends that the WARN Act was violated because of the sudden closure of a manufacturing plant, the mass layoff of employees, and the termination of employees. Each of these events allegedly occurred without any notice to the employees (i.e., 3-5 days notice), and Plaintiff maintains that these events have had a devastating effect upon the financial well being of the workers, their family and their communities.

Defendants assert that they are entitled to summary judgment because the above set forth series of events, which Defendants do not completely agree to be accurate, do not constitute WARN Act violations.

For the reasons stated below, Plaintiffs Motion for Summary Judgment is DENIED. Defendants’ Motion for Summary Judgment is GRANTED.

II. BACKGROUND

A. The Parties

Plaintiff, Michigan Regional Council of Carpenters (“Union”), is a labor union organization, acting on behalf of its members who were formerly employed by the De *696 fendants. Defendant, Madison Capital Partners (Madison Capital), a private equity firm that invests in middle market companies, purchased Defendant, Holcroft, L.L.C. (“Holcroft”) in 1997 in order to acquire from Thermo TerraTech Inc. the assets of its heat-treating furnace business, including the trade name, Holcroft, and to oversee various aspects of Hol-croft’s business of operations.

Holcroft designed, manufactured and serviced heat-treating furnaces for the automotive industry and other industrial uses. Holcroft operated a manufacturing plant in Livonia, Michigan, where it employed hourly production workers represented by Plaintiff. Holcroft also employed non-union salaried workers such as engineers, sales staff, and financial and administrative personnel.

It is undisputed that in January 2000, discussions were initiated with several companies in the heat-treating furnace industry regarding the possible sale of Hol-croft. By late January, it appeared that Atmosphere Furnace Company and its affiliate, Defendant, Atmosphere Group (collectively, Atmosphere), located in Wixom, Michigan, was the most serious of the potential buyers. Following the negotiation with Atmosphere in January and February, Atmosphere signed a Letter of Intent memorializing Atmosphere’s conditional intention to acquire the assets of Holcroft. On March 29, 2000, Atmosphere entered into a binding agreement whereby Hol-croft would sell substantially all of its assets to Defendant, AFC-Holcroft, L.L.C., a newly created subsidiary of Atmosphere.

B. Statement of Facts

Prior to the sale of assets, several hourly employees were laid off. On April 23, 1999, May 5, 1999, May 11, 1999, May 20, 1999 and on October 1, 1999, Holcroft solicited voluntary layoffs from its hourly employees. (See Exhibits 6-10 of Plaintiffs Motion for Summary Judgment— Interoffice Memoranda).

Based upon the Court’s review of the papers and supporting documents submitted by the parties, the chart below reflects the layoffs, recalls and resignations which have occurred.

#of #of
Effec. Vol. Invol. #of Dis.
Layoff Layoffs Layoffs Recalls Leave Resign
10/1/99 1 2
10/8/99 2 1 3 3
# of # of # of
Effec. Vol. Invol. Recalls Dis.
Layoff Layoffs Layoffs & Date Leave Resign
10/8/99 4 9
11/17/99 5 7
11/19/99 6 15
*697 11/22/99 7 1
1/3/00 8
1/4/00 9
2/28/00 10 10
2/25/00 11 2 12
# of # of
Effec. Vol. Invol. # of Dis.
Layoff Layoffs Layoffs Recalls Leave Resign
3/31/00 13 3 15
4/3/00 14 2
4/4/00 15 1 16
4/4/00 17 5 18
5/7/00 19 2
# of # of
Effec. Vol. Invol. # of Dis.
Layoff Layoffs Layoffs Recalls Leave Resign
4/12/00 20 1 21
6/7/00 22 2 23
6/7/00 24 1
6/15/00 25 1
*698 7/7/00 26 7
8/15/00 27 1

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171 F. Supp. 2d 693, 2001 U.S. Dist. LEXIS 11860, 2001 WL 914261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-region-council-of-carpenters-employee-benefits-fund-v-holcroft-mied-2001.