National Labor Relations Board v. Crossroads Electrical, Inc.

178 F. App'x 528
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 5, 2006
Docket05-1395
StatusUnpublished
Cited by3 cases

This text of 178 F. App'x 528 (National Labor Relations Board v. Crossroads Electrical, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Crossroads Electrical, Inc., 178 F. App'x 528 (6th Cir. 2006).

Opinion

JULIA SMITH GIBBONS, Circuit Judge.

The National Labor Relations Board (“Board” or “NLRB”) has applied to this court for enforcement of its order issued against Crossroads Electrical, Inc. (“Crossroads”) and Greer and Associates Electrical, Inc. (“Greer and Associates”). In its order, the Board found that Greer and Associates is the alter ego of Crossroads and that both entities unlawfully refused to give effect to the collective bargaining agreement that existed between Crossroads and the International Brotherhood of Electrical Workers, Local Union 429, AFL-CIO, CLC (the “Union”), in violation of Section 8(a)(5) and (1) of the National Labor Relations Act (“NLRA” or “Act”), 29 U.S.C. § 158(a)(1), (5). Greer and Associates argues that enforcement is unwarranted because either the Union failed to file its charge against Crossroads and Greer and Associates within the applicable statute of limitations or, assuming the charge was timely, substantial evidence did not support the Board’s determination that Greer and Associates is an alter ego of Crossroads. For the following reasons, we grant the application for enforcement of the Board’s order.

I.

Crossroads, which was formed in 1997, is an electrical contracting company. Crossroads works mainly in metropolitan Nashville, Tennessee, focusing primarily on small construction projects, such as restaurants and tenant build-outs, and service calls. Crossroads was initially owned and operated by three individuals: Micheál Thomas (“Thomas”), president; Billy Randolph, vice-president; and Thomas Greer (“Greer”), secretary-treasurer. 1 In March 2002, Billy Randolph gave his ownership interest in Crossroads to Thomas and Greer, making them each fifty-percent co-owners. At that time, Thomas continued as president, Greer became vice president, and Barbara Randolph became secretary-treasurer. Thomas and Billy Randolph performed the estimating and bidding work at Crossroads. Greer and Thomas hired and fired employees. Greer was responsible for the day-to-day supervision of employees and spent most of his time visiting job sites.

In its first year of operation, Crossroads signed a letter of assent, agreeing to be bound by the collective bargaining agreement between the Middle Tennessee Chapter of National Electrical Contractors Association (“NECA”) and the Union. A letter of assent generally allows a multi-employer bargaining group — here, the NECA — to negotiate with a union on behalf of the employer, and the employer is bound to any collective bargaining agreement that results. The agreement between the NECA and the Union at issue in this case was effective from September 1, 2001 through August 31, 2005. The collective bargaining agreement requires all bound employers to notify the Union of their need for electricians and to seek job referrals exclusively through the Union’s hiring hall.

*530 In the middle of 2003, faced with the realization that Crossroads was losing money as a result of high labor costs, Greer decided that some changes had to be made. Greer had served for several years as an NECA representative on the board of the Nashville Joint Apprentice Training Committee (“JATC”), which trains apprentice and journeymen electricians. The JATC board consists of four NECA representatives and four Union officials. At a weekly JATC board meeting in June, Greer stated his opinion that wages and insurance and retirement contributions were getting too high and that something was going to have to be done if the situation was not worked out. At least four Union officials were present at the meeting. Sometime after the June 2003 JATC board meeting, union members complained to the Union that they had heard that Greer was “going nonunion.” Based on these complaints, the Union filed internal charges against Greer in the “middle of 2003.”

On July 22, 2003, Greer incorporated Greer and Associates. At that time, he told his wife Stacy Greer that Greer and Associates was going to be a “nonunion electrical company.” Greer and Associates was issued a business tax license and filed for a federal tax number. Greer and Associates’s initial officers were Greer and Barbara Randolph. At the time of incorporation, Greer was also a fifty-percent owner and officer of Crossroads and Barbara Randolph was its secretary-treasurer. On August 1, 2003, Barbara Randolph resigned as secretary-treasurer of Crossroads. On August 6, 2003, following another weekly JATC board meeting, the director of the JATC asked Greer to resign from the JATC board. The JATC director had heard the rumors that Greer was “going nonunion” and told him that, if that was the case, he would need to resign because nonunion employers cannot sit on the JATC board. Greer did not resign at that time.

Barbara Randolph provided Greer a $10,000 interest-free loan with which to start Greer and Associates. With this money, Greer opened a bank account in the name of Greer and Associates. The check that Greer eventually provided as repayment on this loan was made out to Billy Randolph. Following this initial loan, Barbara Randolph gave Greer two additional interest-free loans of $4,000 and $9,000. These additional loans, which were repaid by Greer with checks made out to Billy Randolph, served, at least in part, to cover payroll expenses of respondent Greer and Associates during shortfalls.

Greer officially resigned from both Crossroads and the JATC board on August 18, 2003, and Greer and Associates began conducting business from Greer’s home. On that day, Greer prepared Greer and Associates’s first bid, which was for an office build-out project. Greer learned of this project while working at Crossroads. On August 19, 2003, Greer and Associates signed its first contract, which was for the construction of a Pizza Hut in Springhill, Tennessee. On August 20, 2003, Crossroads gave five of its trucks and some accompanying electrical equipment to Greer and Associates. Loan documents were prepared for the transaction, requiring Greer and Associates to make sixty monthly payments of $750 with interest; however, no money was ever paid by Greer and Associates to Crossroads. Greer and Associates received title to the trucks and the equipment from Crossroads without any money ever changing hands. In August of 2003, Greer and Associates used Crossroads’s mailing address to obtain liability insurance.

*531 On August 21, 2003, Greer and Associates placed an advertisement in the newspaper seeking electricians. The advertisement did not identify Greer and Associates as the employer, and Greer never advertised the new business in any way. Greer and Associates hired its first employee, without having first notified the Union of its need for electricians or going through the union hiring hall, on August 22, 2003.

Billy Randolph retired from Crossroads on August 31, 2003, leaving it solely operated by Thomas. Following Billy Randolph’s retirement, Thomas did not seek any further projects for Crossroads. On October 20, 2003, Crossroads issued Greer a $500 bonus; it also issued bonuses in October to Stacy Greer and Barbara Randolph. On October 31, 2003, Crossroads finished its last major project and laid off its remaining employees. At that time, Thomas was serving as Crossroads’s president and Stacey Greer, who was simultaneously working for Greer and Associates, was Crossroads’s secretary-treasurer.

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Bluebook (online)
178 F. App'x 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-crossroads-electrical-inc-ca6-2006.