Operative Plasterers & Cement Masons International Ass'n v. Benjamin

843 F. Supp. 1267, 144 L.R.R.M. (BNA) 2901, 1993 U.S. Dist. LEXIS 19312, 1993 WL 590741
CourtDistrict Court, N.D. Indiana
DecidedFebruary 3, 1993
DocketNo. S91-293M
StatusPublished
Cited by4 cases

This text of 843 F. Supp. 1267 (Operative Plasterers & Cement Masons International Ass'n v. Benjamin) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Operative Plasterers & Cement Masons International Ass'n v. Benjamin, 843 F. Supp. 1267, 144 L.R.R.M. (BNA) 2901, 1993 U.S. Dist. LEXIS 19312, 1993 WL 590741 (N.D. Ind. 1993).

Opinion

MEMORANDUM AND ORDER

MILLER, District Judge.

The plaintiffs, an international union and its affiliated local, seek summary judgment as to liability on three counts of their seven count complaint against the defendant, a former officer of the local. The defendant has moved the court to reconsider the October 15, 1992 order, 144 F.R.D. 87 granting the plaintiffs’ motion to compel production of documents and awarding expenses pursuant to Fed.R.Civ.P. 37(d). The plaintiffs have filed a motion for expenses incurred in obtaining the October 15, 1992 order. Finally, the plaintiffs have filed a motion for protective order pursuant to Fed.R.Civ.P. 26. For the following reasons, the court denies the plaintiffs’ partial summary judgment motion, denies the defendant’s motion for reconsideration, grants the plaintiffs’ motion for expenses, and grants the plaintiffs’ motion for protective order. The court will address each motion in turn.

I. Motion for Partial Summary Judgment

The plaintiffs, the Operative Plasterers’ and Cement Masons’ International Association (“OP & CMIA”) and its affiliated Local (“Local 101”), seek summary judgment as to liability on Counts II, III, and VII of their complaint. Count II alleges a claim for breach of the OP & CMIA Constitution and the Local 101 Constitution pursuant to § 301 of the Labor Management Relations Act (the “LMRA”), 29 U.S.C. § 185. Count III alleges a claim for breach of fiduciary duty pursuant to § 501 of the Labor-Management Reporting and Disclosure Act (“LMRDA”), 29 U.S.C. § 501, and Count VII alleges a breach of fiduciary duty claim under Indiana common law.

A. Background

Defendant James Benjamin held elected offices in Local 101 for twenty-six of the thirty years in which he was a member of the OP & CMIA. He was president of Local 101 from 1964 to 1972; from 1972 until his resignation in June 1991, he was business manager (the equivalent of chief executive officer) of Local 101.

The OP & CMIA contends Mr. Benjamin violated his contractual and fiduciary duties to the union from April to June 1991. By his own admission, Mr. Benjamin engaged in the following activities during that period.

[1270]*1270In April 1991, in Ms position as trustee of the health and welfare funds of Local 101, Mr. Benjamin proposed an amendment to the umon pension plan that would allow a umon member who left the OP & CMIA to continue to make contributions to the OP & CMIA fund, “so that the trust fund would never go belly up.” The Local 101 Executive Board adopted tMs proposal on June 5, 1991.

Also in April 1991, Mr. Benjamin learned of rumors of a possible merger between the OP & CMIA and the Bricklayers’ umon. In May, he participated in various meetings with representatives of a third labor orgamzation, the Laborers International Umon of North America (“Laborers”), and officers of other OP & CMIA locals. At those meetings, the parties discussed potential job opportumties with the Laborers for Mr. Benjamin and other Local 101 members, and discussed procedures for obtaining the resignations of Local 101 members from the OP & CMIA. None of the participants informed the OP & CMIA of these meetings.

At a June 5 executive board meeting of Local 101, Mr. Benjamin explained his efforts to amend the pension plan, explained the membership offer from the Laborers, presented resignation forms, and announced Ms expectation that Local 101 would be placed under trusteeship by the OP & CMIA the next day. At that evemng’s general membership meeting, Mr. Benjamin told the general membersMp that the Laborers offered opportumties that would provide more work, cheaper insurance, and a better pension. He made forms available to the Local 101 membersMp for the purpose of resigmng from Local 101. Mr. Benjamin indicated that he was going to seek employment with the Laborers, but recommended to the Local 101 membersMp not to resign from Local 101. Carl Wolfe, the Secretary of Local 101, recorded none of the June 5 events on the Local 101 minutes.

On June 9, while playing golf with Mr. Benjamin, Carl Wolfe tendered his resignation from Local 101 to Mr. Benjamin. After finishing eighteen holes, Mr. Benjamin returned to Local 101’s office and signed his own resignation. He left the resignation letter on the desk in what soon would be his former office, and did not inform anyone in the OP & CMIA of his resignation until several days later. Mr. Benjamin’s resignation became effective at 12:01 on June 10; he went to work for the Laborers on the morning of June 10.

On June 13, pursuant to the terms of the OP & CMIA Constitution, General President Vincent Panepinto placed Local 101 under trusteesMp and ordered Mr. Benjamin to turn over all of Local 101’s property to the lawfully appointed trustee.

On June 17, Mr. Benjamin attended a meeting between representatives of the Laborers and the OP & CMIA. At that meeting, the Laborers’ representatives indicated that Mr. Benjamin was not alone in Ms defection from the OP & CMIA. As of June 17, no Local 101 members other than James Benjamin and Carl Wolfe had defected to the Laborers. On June 18, Mr. Benjamin and other former business managers of OP & CMIA locals in Indiana met in Terre Haute, Indiana and drafted a letter addressed to all OP & CMIA members in Indiana explaining the busmess managers’ actions. The letter explained:

We have been inundated by letters from the International condemmng the action which we have taken.
The action which we have taken was precipitated by the changing of International Presidents and the lack of concern for the welfare of the Cement Masons by joining into an agreement with the Bricklayers International.
We sincerely believe that the benefits that are to be gained by all the members will be far superior to those we have experienced in the past.

On June 25, the OP & CMIA and Local 101, under the International’s trusteesMp, filed a seven-count complaint against Mr. Benjamin in this court. The court demed Mr. Benjamin’s motion to dismiss the complaint for lack of subject matter jurisdiction. See OP & CMIA v. Benjamin, 776 F.Supp. 1360 (N.D.Ind.1991). On August 7,1992, the plaintiffs moved for partial summary judgment as to Mr. Benjamin’s liability on Counts II, III, and VII of the complaint. The par[1271]*1271ties have requested oral argument on the motion, but the court finds that oral argument is not warranted; accordingly, the motion is now ripe for ruling.

B. Standard of Review

A party seeking summary judgment must demonstrate that no genuine issue of fact exists for trial and that the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Duane v. Lane,

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843 F. Supp. 1267, 144 L.R.R.M. (BNA) 2901, 1993 U.S. Dist. LEXIS 19312, 1993 WL 590741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/operative-plasterers-cement-masons-international-assn-v-benjamin-innd-1993.