Owens v. City of Malden

85 F.4th 625
Court of Appeals for the First Circuit·Decided October 30, 2023·No. 22-1674·Published

Opinion

United States Court of Appeals For the First Circuit

No. 22-1674

JACK OWENS, JEFFREY DREES, KATELYN MURPHY, PATRICK MONOLIAN, SCOTT MANN, SEAN HUSSEY, on behalf of themselves and all others similarly situated, JOHN AMIRAULT, PATRICIA BAILEY, RICHARD BARTHELMES, STEPHEN BELLAVIA, STEPHEN C. BELLAVIA, AYRTON BORGES, DANIEL BOURQUE, NOELLE BOWIE-PIERCE, TYLER CALHOUN, CAROLE CARLIN, SCOTT CARROLL, MICHAEL CASALETTO, JAMES CASELLA, DANNY CATANA, KATELYN F. MURPHY CENTORE, ALISON CHARPENTIER, ANDY CHEN, EDMUND CHOI, ROBERT CLEMENTE, CONOR CLOHERTY, KEVIN CO, DAVID CONNELLY, RICHARD CORREALE, NICHOLAS COX, JON CRANNELL, SANDROFF DADAILLE, JOHN DELANEY, CORY D'ENTREMONT, CAMERON DICARLO, SHAWN DILLON, ROBERT DISALVATORE, RICHARD DOHERTY, RUSSELL DONOVAN, KEVIN FERRICK, BLAKE FERRY, EDWARD FITZPATRICK, STEVEN FITZPATRICK, RYAN FORTIER, DAVID FRANZESE, JASON FROIO, MARC GATCOMB, SALVATORE GENNETTI, MICHAEL GIORDANO, EVER GOMEZ, AMANDA GRENIER, CHRIS GRIFFITHS, PHILIP HALLORAN, JUNE F. MCADAM HASSENFRATZ, TRENT HEADLEY, MAUREEN HOLLAND, PAUL HOPKINS, ERIK ISRAELSON, JOSEPH KEEFE, JOHN KELLEY, KEVIN KILLION, PATRICK KINNON, GUSTAVO KRUSCHEWSKY, JEAN LAMOUR, MICHAEL LANGSTON, JOHN LANNI, KEVIN LAW, GEORGE LOPEZ, STEVEN LUBINGER, MICHAEL LUONGO, MARGARET MACDONALD, GEORGE MACKAY, ADAM MAHER, JOSEPH MARTINEZ, RENEE KELLEY-NUSUM, LAWRENCE MCGAHEY, KEVIN MCKENNA, PAUL MCLEOD, ELIJAH MCNEAL, JOHN MEDEIROS, PETER MITCHELL, MICHELET MONTINA, JESUS MONTOYA, STEVEN MULCAHY, STEPHEN MUNYON, BRIAN NEWNAN, STEPHEN NOBLE, ROBERT O'BRIEN, SALVATORE PACI, MICHAEL POLSTON, MICHAEL POWELL, MATTHEW QUINN, JOSHUA REDMOND, JOHN REYNOLDS, WILLIAM ROWE, KEVIN RUSSELL, CAMERON SELFRIDGE, ROBERT SELFRIDGE, KYLE SHAW, KEVIN SHERIDAN, ADAM SIEGEL, DANIEL SYLVA, BRIAN TILLEY, EVAN TUXBURY, ROBERT WADLAND, JOSEPH WALKER, CHARLES WASHINGTON, KENNETH WATKINS, KEITH WILSON, AMANDA F. SELFRIDGE YANOVITCH, DAVID YUNG,

Plaintiffs, Appellees,

v.

CITY OF MALDEN,

Defendant, Appellant.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

[Hon. William G. Young, U.S. District Judge]

Before

Montecalvo, Selya, and Thompson, Circuit Judges.

Barry J. Miller, with whom Alison Silveira, Timothy Buckley, and Seyfarth Shaw LLP were on brief, for appellant.

Joseph A. Padolsky, with whom Louison, Costello, Condon & Pfaff, LLP was on brief, for appellees.

October 30, 2023

MONTECALVO, Circuit Judge. This appeal follows a bench trial involving police officers in the City of Malden (collectively, "Officers") and the City of Malden (the "City"). The Officers brought suit against the City for allegedly deducting a ten percent administrative fee from wages they received for police detail work. At the heart of the lawsuit was a term in the Collective Bargaining Agreement ("CBA") that set the hourly rate for police detail work -- a term that the parties interpreted differently. The Officers presented their interpretation of the term, which aligned with how the Officers were historically paid. The contract term was crucial to the case because the Officers claimed that a ten percent deduction for an administrative fee resulted in a reduction in their wages -- as set forth in the CBA -- thereby violating the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, § 148 (the "Wage Act"). The City, however, argued that the CBA set a lower rate than the Officers were paid, so any reduction in the calculated rate still resulted in a higher payout than contemplated in the CBA.

At trial, the district court concluded that the contract term was ambiguous and extrinsic evidence was required to clarify the CBA. Then, after considering witness testimony, the court held that the Officers' interpretation was correct and the City had violated the Wage Act. Further, the court ruled that, even if the City had overpaid the Officers, the City had violated

Massachusetts General Laws chapter 44, § 53C (the "Municipal Finance Law") by deducting an administrative fee from the Officers' wages, thus still violating the Wage Act.

After review, we conclude that the contract term was unambiguous in favor of the City and that there was no violation of the Wage Act or Municipal Finance Law. Accordingly, we reverse.

I. Background

The City is a municipality located in Middlesex County, Massachusetts that employs the Officers through the City of Malden Police Department. During their off-duty hours, Officers may volunteer to provide additional public service or public safety services ("Detail") in return for additional compensation. These Detail services may be requested by a City department ("Public Detail") or by a private third party through an agreement between the City and the third party ("Private Detail"). For Private Detail, the Municipal Finance Law permits the City to charge an additional ten percent administrative fee to the private third parties. At issue here is the parties' calculation of the Officers' compensation for Private Detail, pursuant to the CBA's Detail compensation term.

The organization of the Detail process is "under the exclusive direction and control of the [D]etail [B]oard." Owens v. City of Malden, 568 F. Supp. 3d 77, 86-87 (D. Mass. 2021). This Detail Board is made up entirely of "representatives and members

of the [Officers'] Unions." Id. This "[D]etail [B]oard . . . ha[s] control over all matters having to do with [D]etails." As part of this exclusive direction and control, the Detail Board calculates the Detail compensation rate without input from the City. The CBA, negotiated between the City and the Officers' unions, dictates that compensation for these Details shall be "one and one half times the maximum patrolman's rate of pay including night differential." For context, in Article 30, the CBA describes all the factors that contribute to an officer's maximum compensation. Within that Article, the CBA explains that an officer shall receive a base salary but may also be entitled to various wage augments. The relevant augments for this appeal are: (1) a six percent night shift differential; (2) hazardous duty pay, which is a set annual sum that is paid out weekly; (3) longevity pay, which is a benefit earned based on years worked; and (4) educational incentives (also called "Quinn Bill Benefits"), which provide additional pay for an officer's earned educational degrees.

Based on its interpretation of the CBA, the Detail Board calculated "the maximum patrolman's rate of pay including night differential" to include a patrolman's maximum base salary plus the night differential as well as hazardous duty pay, longevity pay, and educational incentives (the "Officers' Rate"). To account for the administrative fee associated with Private Details, the

Detail Board would then reduce its calculation by ten percent and set that number as the Detail rate of compensation. Then, when the City would invoice third parties, ten percent would be added on top of that rate to collect the administrative fee for the City.

A few days before filing this lawsuit, the Officers'

unions began investigating whether the application of the administrative fee for Private Details reduced the Officers' wages. After the investigation, without first filing a complaint with the Massachusetts Attorney General, the Officers filed suit alleging that a ten percent reduction of the Private Detail rate violated the Wage Act.1 In response, the City argued that the CBA's Detail term only entitled the Officers to the maximum base pay plus a night shift differential (the "City's Rate"). As such, the City maintained that the Officers were overpaid, and that an administrative fee deduction -- to the extent there was one -- did not reduce the Officers' contractually defined wages. A bench trial followed.

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Owens v. City of Malden, 85 F.4th 625 (1st Cir. 2023).

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