Newberry v. O'Connell

507 F. Supp. 800, 1981 U.S. Dist. LEXIS 9416
CourtDistrict Court, W.D. Virginia
DecidedFebruary 10, 1981
DocketCiv. A. No. 79-0258-A
StatusPublished
Cited by2 cases

This text of 507 F. Supp. 800 (Newberry v. O'Connell) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newberry v. O'Connell, 507 F. Supp. 800, 1981 U.S. Dist. LEXIS 9416 (W.D. Va. 1981).

Opinion

MEMORANDUM OPINION

GLEN M. WILLIAMS, District Judge.

The plaintiff, Margie Newberry, instituted this suit against the defendants, Trustees of the United Mine Workers of America (UMWA) Health and Retirement Funds (Funds), alleging the defendants wrongfully denied her deceased husband a pension. Jurisdiction attaches to this court under 29 U.S.C. § 185(a).1 The case is presently before this court on the parties’ cross motions for summary judgment.

I.

The plaintiff is the widow of Sherman Newberry, a former coal miner employed in the bituminous coal industry. During his employment in the industry, Newberry was a dues paying member of the UMWA and, at least part of the time he was employed, held a UMWA hospital card.

On April 30, 1973, Newberry applied to the defendants for a retirement pension.2 The defendants considered the application under Resolutions 90 and 91 of the Board of Trustees of the UMWA Welfare and Retirement Funds, which state that if an applicant has retired prior to December 31,1976, he shall be eligible for a pension if he has completed twenty years of classified service, including five years of signatory service after May 28, 1946. Signatory service is defined in Resolution 90 as “a year of service ... during which an applicant worked ... as an employee in a classified job for an employer signatory to the bituminous coal wage agreement then in effect.” It was determined that Newberry had only two years of the required signatory service [802]*802and his application was denied.3 Newberry took exception to this denial and filed a request for a hearing. Prior to the hearing, Newberry died; his widow became appellant in the proceedings.

On February 22,1977, a hearing was convened on the signatory service issue. The hearing officer determined that Newberry performed classified work for varying periods from 1946 to 1953 with the James B. Keen Company (Keen).4 This company leased coal rights from Raven Red Ash Coal Company and sold all coal mined to that company. While Keen had not actually signed a collective bargaining agreement with the UMWA, Red Ash, who had signed the agreement, paid royalties into the pension fund on the coal mined by Keen, deducting those amounts from the purchase price of the coal.5 Based upon these findings of fact, the hearing officer held that pension credit may be given in the Red Ash-Keen-Newberry relationship and, accordingly, credited Newberry with four additional years of signatory service. Pursuant to this decision, Newberry had twenty-seven years of classified service of which six years were signatory. However, on June 14, 1977, the Funds’ Fiscal Audit Department reversed the hearing officer’s decision on the ground that Keen had not signed the collective bargaining agreement between 1946 and 1953. This ruling was sustained at a subsequent hearing.

II.

A statutory framework for union pension trusts is set forth in Title 29 U.S.C. § 186. Under that section payments made by an employer to a union pension trust fund are illegal unless “the detailed basis on which such payments are to be made is specified in a written agreement with the employer.” Title 29 U.S.C. § 186(c)(5)(B). Only employees of employers “who are lawfully contributing [pursuant to a written agreement] to a union pension trust fund may qualify as beneficiaries of a [Title 29 U.S.C. § 186] trust.” Moglia v. Goeghegan, 403 F.2d 110, 116 (2d Cir. 1968). Consequently, the first question for the court’s consideration is whether the royalties paid into the union’s pension trust fund for the years that plaintiff’s decedent was employed by Keen, 1946-1953, were lawful contributions under Title 29 U.S.C. § 186. The court finds that they were.

The statutory requirement that there be a written agreement before contributions can be made to a union pension trust fund does not refer exclusively to a collective bargaining agreement, nor does it require the contributing employer to actually sign the agreement. Rather, it is only necessary that a written agreement between the employer and union or trust fund establish a mechanism for employers to contribute. For example, “if the union and collective bargaining employers had so agreed .. ., non-union employers could have participated in the pension trust fund without ever signing a collective bargaining agreement.” Doyle v. Shortman, 311 F.Supp. 187, 195 (S.D.N.Y.1970). The Bituminous Coal Wage Agreement of 1947, as well as the 1950 Agreement, required signatory operators, which included Red Ash, to pay royalties “on each ton of coal produced for use or for sale,” and each agreement detailed the basis on which those payments were to be made. Both agreements provided that it was “deemed a violation” to sell, lease, sub-lease, assign, or otherwise dispose of a mine “for the purpose of avoiding the obligation” to pay royalties. National Bituminous Coal Wage Agreement of 1947, p. 4; National Bituminous Coal Wage Agreement [803]*803of 1950, p. 5. It follows, therefore, that the payments made into the pension trust fund were not only proper under the 1947 and 1950 coal wage agreements, respectively, but also were lawful under § 186.

III.

The next question for the court’s consideration is whether the Trustees’ decision is correct. In that regard, the court may not substitute its judgment for that of the Trustees, and may reverse only if it is found that the decision was arbitrary, capricious or made in bad faith, not supported by substantial evidence, or erroneous on a question of law. Danti v. Lewis, 114 U.S. App.D.C. 105, 312 F.2d 345, 348 (1962); Rehmar v. Smith, 555 F.2d 1362 (9th Cir. 1976). See generally, Aitken v. IP & GCU—Employer Retirement Fund, 604 F.2d 1261 (9th Cir. 1979); Gordon v. ILWU-PMA Benefits Funds, 616 F.2d 433 (9th Cir. 1980). Finding that the Trustees erroneously applied the law, the court will recommit plaintiff’s claim for further consideration.

As previously stated, plaintiff’s claim was denied because Keen was not signatory to the coal wage agreement between 1946 and 1953. The court finds, however, that Keen’s non-signatory status during those years does not necessarily preclude crediting Newberry with signatory service.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
507 F. Supp. 800, 1981 U.S. Dist. LEXIS 9416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newberry-v-oconnell-vawd-1981.