Painters' District Council No. 30 v. Rock-It Interiors, Inc.

190 F. Supp. 3d 803, 2016 U.S. Dist. LEXIS 73612, 2016 WL 3165749
CourtDistrict Court, N.D. Illinois
DecidedJune 7, 2016
DocketNo. 14 C 01177
StatusPublished
Cited by6 cases

This text of 190 F. Supp. 3d 803 (Painters' District Council No. 30 v. Rock-It Interiors, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Painters' District Council No. 30 v. Rock-It Interiors, Inc., 190 F. Supp. 3d 803, 2016 U.S. Dist. LEXIS 73612, 2016 WL 3165749 (N.D. Ill. 2016).

Opinion

Memorandum Opinion and Order

Honorable Edmond E. Chang, United States District Judge :

The Painters’ District Council No. 30 (the Union) filed this action against Rock-It Interiors, Inc., a construction company, and Ezekiel Hernandez, the company’s president.1 (For convenience, the Court refers to the Defendants collectively as Rock-It.) The' Union seeks to enforce a decision by the Joint Trade Board' (the Board), which, under the parties’ collective bargaining agreements (CBAs), is the tribunal authorized to decide all disputes-and grievances. In May 2013, the Union filed a grievance against Rock-It for violating the CBAs by failing to report job sites, make pension contributions, and post wage bonds. The next month, in June, the Board found for the Union, assessing a $13,210,000 fine against Rock-It, who did not appear at the hearing. In February 2014, after Rock-It failed to make any payments, the Union filed this federal action to confirm the Board’s award. A few months into the litigation, the parties settled this case; Rock-It agreed to pay a reduced amount in exchange- for a release of all claims, signing a settlement agreement and promissory'note. But after Rock-It failed to make the settlement payments, the Union reinstated this suit and- now moves for summary judgment to' enforce the Board’s award and the promissory note.-’ Rock-It responds that there- is a factual dispute as to whether it received notice of the June 2013 hearing and of the hearing award. For the reasons explained below, the Union’s motion is granted.

I, Background

A. The Board Hearing

In deciding the Union’s motion for summary judgment, the Court views the evidence in the .light most favorable to Rock-It, the non-moving party. Matsushita Elec. Indus. Co. v. Zenith Radio Carp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Rock-It Interiors, Inc. is a • construction company and signatory to two collective bargaining agreements between the Painters’ District Council No. 30, International Union of Painters and. Allied Trades, AFL-CIO, and the Finishing Contractors Association of Illinois (of which Rock-It,is a member). PSOF ¶¶3-4, 9-10; R., 43-3, Anderson Decl. ¶ 5.2 The two CBAs have effective dates of August 20, 2011 to June 30, 2015 (the 2011 CBA), and July 1, 2014 to June 30, 2016 (the 2014 CBA). PSOF. ¶ 9; R. 43-7, 2011 CBA; R. [806]*80643-6, 2014 CBA. Under the CBAs, all disputes and grievances must be adjudicated by- an eight-member Joint Trade Board, where four members are chosen by the Union and four are chosen by the Finishing Contractors Association. PSOF ¶¶11-12; 2011 CBA art. 15, §§ 15.1-15.2; 2014 CBA art. 15, §§ 15.1-15.2. The Board has “exclusive and absolute authority to adjudicate and/or adjust any dispute or grievance under this Agreement .... ” Id. If the Board concludes that an employer has violated the CBA, it “is authorized to fashion, in [its] sole discretion, all appropriate remedies, including but not limited to, awarding actual damages ... plus fines ... and assessing liquidated damages, interest, costs, reasonable attorneys’ fees, administrative expenses, and auditing fees incurred by the Joint Trade Board.” PSOF ¶ 14; 2011 CBA art. 15, § 15.6(a); 2014 CBA art. 15, § 15.6(a). And “[a]ny decision or award of the Joint Trade Board shall be final and binding and shall be enforceable as an arbitration award.” PSOF ¶ 13; 2011 CBA art. 15, § 15.4; 2014 CBA art. 15, § 15.4.

In May 2013, the Union charged Rock-It with multiple violations of the 2011 CBA, including failing to file reports concerning job sites; failing to make and report pension contributions, and failing to provide a surety bond to guarantee contributions and wages. PSOF ¶ 15; Anderson Decl. ¶ 6. In a May 30, 2013 letter to Rock-It, the Union explained the charges and notified Rock-It of an upcoming Board hearing on June 20. PSOF ¶ 16; R. 43-10, 5/30/13 Notice of Hearing; R. 43-9, Ernest Deck ¶ 6. The Union mailed two copies of this letter: one via first-class mail, and one via certified mail. PSOF ¶ 16; Ernest Deck ¶¶ 6-15. Both letters were sent to Rock-It’s offices at 59 C Stonehill Road in Oswego, Illinois, which was the company’s address from January 2013 to February 2015. PSOF ¶ 8; R. 43-4, Hernandez Dep. 10:8-15. Rock-It does not deny that the Union mailed these two copies; instead, it avers that it never received either copy, even though the Stonehill Road address was correct and Rock-It did not have prior trouble receiving mail there. Defs.’ Resp. PSOF ¶¶27-29; Hernandez Dep. 11:1-12. The certified copy was in fact returned to the Union and marked “return to sender, unclaimed, unable to forward” with a date of June 25, 2013. PSOF ¶ 27; R. 43-11, 6/25/13 Returned Envelope. But the first-class copy was not returned to the post office or to the Union. PSOF ¶ 28; Ernest Deck ¶ 17. So thfe only factual dispute is whether Rock-It received the first-class mail copy of the May 30 notice.

On June 20, 2013, the Board held a hearing on the charges against Rock-It, who failed to appear. PSOF ¶ 30; R. 43-12, Dahl Deck ¶ 6. The Board found the company liable for $13,210,000 for violating various provisions of the 2011 CBA, and gave Rock-It fifteen days to comply with the decision. PSOF ¶ 33; R. 43-13, 6/20/13 Board Minutes at PDC30-000083. The Board decision was in the form of the June 20 meeting minutes; consistent with normal practice, the Board issued no separate written findings or award. Id.', Ernest Deck ¶20. The Union then prepared a letter dated June 25, 2013, informing Rock-It of the Board’s decision. PSOF ¶¶ 34-35; R. 43-14, 6/25/13 Notice of Decision; Ernest Deck ¶¶ 21-22. The Union mailed this letter to Rock-It’s Stonehill Road address using both certified and first-class mail. Id. And once again, the certified copy was returned and marked “return to sender, unable to forward,” with a date of July 22, 2013, PSOF ¶ 36; R. 43-15, 7/22/13 Returned Envelope; Ernest Deck ¶ 23, while the first class copy was not returned to the post office dr to the Union, PSOF ¶ 37; Ernest Deck ¶24. Rock-It again does not dispute that the [807]*807Union mailed two copies of the hearing decision to the correct address but rather contends that it did not receive either copy. Defs.’ Resp. PSOF ¶¶ 35-37; DSOF ¶ 19; Hernandez Dep. 17:5-18:2.

B. The Federal Action

After Rock-It failed to pay the fines, the Union filed this lawsuit on February 18, 2014 to confirm the Board’s award. R. 1, Compl. The Union sued under Section 301 of the Labor Management Relations Act, which allows district courts to hear “[s]uits for violation[s] of contracts between an employer and a labor organization ... or between any such labor organizations.” 29 U.S.C. § 185(a). On April 9, the Union moved for a default judgment, attaching a copy of the June 25, 2013 Board decision, R. 7; R. 7-3, but the Court denied the motion after Roek-It’s attorney filed an appearance the next day and later helped prepare a joint status report, R. 14. A few months later, on July 2, Rock-It filed an Answer, denying that it ever received notice of the charges and explaining that it “did not have sufficient information to admit or deny ... and, therefore, denies” receiving notice of the Board’s decision. R. 15, Answer ¶¶ 12, 17.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
190 F. Supp. 3d 803, 2016 U.S. Dist. LEXIS 73612, 2016 WL 3165749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/painters-district-council-no-30-v-rock-it-interiors-inc-ilnd-2016.