Nesse v. Green Nature-Cycle, LLC

District Court, D. Minnesota·Decided February 13, 2020·No. 0:18-cv-00636·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

John Nesse and Tim Mackey as Trustees of File No. 18-cv-636 (ECT/HB) the Minnesota Laborers Health and Welfare Fund, Tim Mackey and John Nesse as Trustees of the Minnesota Laborers Pension Fund, Tammy Braastad and Tim Mackey as Trustees of the Minnesota Laborers OPINION AND ORDER Vacation Fund, Tim Mackey and Fred Chase as Trustees of the Construction Laborers’ Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, Mark Ryan and Dave Borst as Trustees of the Minnesota Laborers Employers Cooperation and Education Trust, the Minnesota Laborers Health and Welfare Fund, the Minnesota Laborers Pension Fund, the Minnesota Laborers Vacation Fund, the Construction Laborers’ Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, and the Minnesota Laborers Employers Cooperation and Education Trust,

Plaintiffs,

v.

Green Nature-Cycle, LLC,

Defendant. ________________________________________________________________________ Christy E. Lawrie, Amy L. Court, and Carl S. Wosmek, McGrann Shea Carnival Straughn & Lamb, Chtd, Minneapolis, MN, for Plaintiffs.

Forrest K. Tahdooahnippah, Dorsey & Whitney LLP, Minneapolis, MN, for Defendant Green Nature-Cycle, LLC. Plaintiffs, trustees of employee benefit funds, brought this case under federal labor law and a collective bargaining agreement (or “CBA”) against Defendant Green Nature- Cycle, a landscaping business, to recover fund contributions, liquidated damages, interest,

and attorneys’ fees and costs. Plaintiffs allege that Green Nature failed to pay fund contributions on behalf of its employees for work Green Nature performed on landscaping projects for the Minnesota Department of Transportation in 2017. Plaintiffs allege that the amount of the fund contributions Green Nature owes is $23,489.21. The other amounts Plaintiffs seek await computation. Plaintiffs’ claims arise under the Employee Retirement

Income Security Act of 1974, 29 U.S.C. § 1001, et seq. (“ERISA”), and the Labor Management Relations Act of 1947, 29 U.S.C. § 141, et seq. (“LMRA”). For ease of reference, the CBA on which Plaintiffs base their claims will be called “the sued-on CBA.” The Parties have filed cross-motions for summary judgment, and judgment will be entered for Plaintiffs.1 The record evidence establishes as a matter of law that Green Nature

was bound to the sued-on CBA, that the sued-on CBA required Green Nature to remit the sued-for benefit contributions, and that Green Nature has no defenses to liability. Finally, the law requires that Plaintiffs be awarded liquidated damages and interest stemming from

1 The Parties’ motions are analyzed with the now-familiar summary-judgment standards front of mind. Summary judgment is warranted “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A fact is “material” only if its resolution might affect the outcome of the suit under the governing substantive law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A dispute over a fact is “genuine” only if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. “The evidence of the non-movant is to be believed, and all justifiable inferences are to be drawn in [their] favor.” Id. at 255. Green Nature’s failure to make the benefit contributions and attorneys’ fees and costs incurred in pursuing these claims, though these amounts will be determined in a later proceeding.

I The first issue to be addressed is whether Green Nature was bound to the sued-on CBA, as Plaintiffs allege. The sued-on CBA was negotiated between a multi-employer committee of landscape contractors and the Laborers’ District Council of Minnesota and North Dakota. Skoog Aff., Ex. A [ECF No. 51-1 at 1]. It contains a clause entitled “Term

of Agreement” commonly referred to as an “evergreen clause” that provides as follows: All provisions of this Agreement shall take effect as of May 1, 2014 through April 30, 2017, and from year to year thereafter; provided however, that this Agreement may be terminated in writing by registered or certified mail to any party at least 60 days before the expiration date.

Id. at 7 [ECF No. 51-1 at 8]. Green Nature says it was not bound to the sued-on CBA in a way that triggers its liability for the benefit-payments and other amounts Plaintiffs seek. For Plaintiffs to prevail on this issue, there must be no genuine dispute as to any material fact that Green Nature “manifest[ed] an intention to abide and be bound by the terms of [the sued-on] agreement.” Twin City Pipe Trades Serv. Ass’n, Inc. v. Frank O’Laughlin Plumbing & Heating Co., 759 F.3d 881, 885 (8th Cir. 2014) (quotation omitted). “This inquiry is a question of fact, and focuses on the objective intent of the parties—not their subjective beliefs.” Miner v. Local 373, 513 F.3d 854, 861 (8th Cir. 2008) (internal citation omitted). There is no genuine dispute that Green Nature was bound to the sued-on CBA. On March 7, 2017, Green Nature’s sole owner and president, Jeff Graham, signed a document entitled “Acceptance of Agreement.” Tahdooahnippah Decl., Ex. 3 [ECF No. 57-3 at 13];

Lawrie Aff., Ex. A at 18–19, 28 [ECF No. 48-1 at 9, 11]. The first paragraph of the document provides: The undersigned Employer hereby accepts and agrees to be bound to the standard printed Collective Bargaining Agreement (“CBA”), negotiated between a multi-employer bargaining committee of Landscape contractors and the Laborers’ District Council of Minnesota and North Dakota on behalf of its affiliated Local Unions (“Union”). The undersigned Employer delegates its bargaining authority to the multi-employer bargaining committee for the term of this Agreement. This Acceptance of Agreement along with the standard printed CBA; together constitute the Agreement (“Agreement”) between the Employer and the Union.

Id. (emphasis added). Plaintiffs have introduced evidence showing that the sued-on CBA is the “standard printed” CBA referred to in this paragraph. Skoog Aff. ¶ 2, Ex. A; Lawrie Aff., Ex. B at 23–24; Ex. C at 114–16. Plaintiffs also have submitted evidence showing that, on the day Graham signed the Acceptance of Agreement, the individual identified in the Acceptance of Agreement as the local union representative, Mike Bubalo, e-mailed a copy of the sued-on CBA to Graham. Tahdooahnippah Decl., Ex. 9 [ECF No. 57-9]. Green Nature seems to advance two arguments in support of its position that it was not bound to the sued-on CBA, but neither raises a genuine fact dispute.2 Green Nature

2 Green Nature does not seem to dispute that it was bound to a CBA with Plaintiffs at some point. It just disputes being bound to the sued-on CBA in a way that triggers liability for Plaintiffs’ claims in this case.

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Nesse v. Green Nature-Cycle, LLC, (mnd 2020).

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