Payne v. Local Lodge 698

856 F. Supp. 2d 915, 2012 U.S. Dist. LEXIS 29296, 2012 WL 715889
CourtDistrict Court, E.D. Michigan
DecidedMarch 6, 2012
DocketCase No. 11-10769
StatusPublished

This text of 856 F. Supp. 2d 915 (Payne v. Local Lodge 698) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Payne v. Local Lodge 698, 856 F. Supp. 2d 915, 2012 U.S. Dist. LEXIS 29296, 2012 WL 715889 (E.D. Mich. 2012).

Opinion

OPINION AND ORDER

PATRICK J. DUGGAN, District Judge.

Marjorie Payne (“Plaintiff’) filed this action to recover compensation under an employment contract. The defendants are the International Association of Machinists and Aerospace Workers Local Lodge 698 (“Lodge 698”) and two officials of Lodge 698’s parent organization, Raymond Briggs and Mark Ward. Briggs has filed a counterclaim against Plaintiff and a third-party complaint against Jon Winterhalter, the former Directing Business Representative of the Local Lodge that employed Plaintiff. Before the Court are three motions for summary judgment: (1) Defendants’ motion for summary judgment as to Plaintiffs claims; (2) Briggs’ motion for summary judgment as to his counterclaim against Plaintiff and his third-party complaint against Winterhalter; and (3) Winterhalter’s motion for summary judgment as to Briggs’ third-party complaint. Briggs has also filed a motion to strike Winterhalter’s jury demand. On ■ January 30, 2012, the Court notified the parties that it was dispensing with oral argument concerning these motions pursuant to [919]*919Eastern District of Michigan Local Rule 7.1(f)(2). For the reasons stated below, the Court grants Defendants’ motion for summary judgment, grants in part Briggs’ motion for summary judgment, and denies Winterhalter’s motion for summary judgment. The Court denies as moot Briggs’ motion to strike Winterhalter’s jury demand.

I. Factual and Procedural Background

The International Association of Machinists and Aerospace Workers (“IAM”) is a union which charters lodges to represent various classes of employees. At the top level of the union’s hierarchy is a Grand Lodge, which in turn charters District Lodges and Local Lodges. Each District Lodge provides services to several Local Lodges, and each Local Lodge is comprised of multiple bargaining units. A bargaining unit typically represents employees of a specific trade. District and Local Lodges employ business representatives to administer the collective bargaining agreements of each bargaining unit.

Winterhalter was the directing business representative of IAM Local Lodge PM2848 (“Lodge 2848”), which was incorporated in Michigan. In February 2006, the secretary employed by Lodge 2848 left her job to take a position at a District Lodge. Winterhalter wished to obtain a replacement. Lodge 2848’s secretarial positions were represented by a union, the Office and Professional Employees International Union Local 42 (“OPEIU”). Winterhalter contacted Theresa Kandt, the OPEIU’s bargaining representative, to obtain a list of candidates. Before receiving a response, however, Winterhalter learned through a friend that Plaintiff had previously worked for another IAM lodge and was familiar with the software used to run the union’s monthly reports. Winterhalter met with Plaintiff on February 18, 2006. At this meeting, he informed Plaintiff that her employment would be covered by a collective bargaining agreement. Winter-halter Dep. 36:1-37:1, Aug. 31, 2011. Plaintiff was at first reluctant to accept the position, apparently because of her past experience working for the IAM. Winter-halter offered Plaintiff deferred compensation bonuses, a higher pay rate, and a severance package worth one year’s pay and benefits. Winterhalter Dep. 121:1— 122:15. He indicated that Plaintiff would only become entitled to severance if she worked for Lodge 2848 for six months and if she was terminated for a reason other than cause. Winterhalter Dep. 121:21-122:4.

Plaintiff accepted, and began working the following Monday, February 20, 2006. According to Winterhalter, Plaintiff became a member of the OPEIU bargaining unit on that date, Winterhalter Dep. 45:20-23, and Plaintiff was covered by the OPEIU collective bargaining agreement from that day forward. Winterhalter Dep. 29:11-23. The OPEIU became Plaintiffs exclusive bargaining representative, Winterhalter Dep. 29:11-16, and she began paying dues to the OPEIU. Payne Dep. 92:5-8, Sep. 1, 2011.

Sometime during March 2006, Winter-halter memorialized in writing the agreement he had made with Plaintiff. He backdated it to February 20, 2006 and Plaintiff signed it. A few days later, after deciding that the severance agreement “looked like a contract between me and [Plaintiff],” Winterhalter drafted a second version “between the local lodge and [Plaintiff].”1 Winterhalter Dep. 38:7-20. Winterhalter subsequently contacted Kandt to inform her of modifications to the pension and insurance terms of the eollec[920]*920tive bargaining agreement. Winterhalter Dep. 47:6-23. He did not mention the severance agreement. Winterhalter Dep. 47:12-23.

Winterhalter and Kandt allegedly met during March 2006 for Kandt to sign off on the pension and insurance modifications to the collective bargaining agreement.2 At that meeting, Winterhalter allegedly told Kandt that he had also promised Plaintiff “certain benefits,” although he did not refer to a “severance package” or go into detail concerning the nature of these benefits. Winterhalter Dep. 50:8-20. Kandt allegedly said that she did not care, “as long as it doesn’t change the contract.” Winterhalter Dep. 50:5-6. It is undisputed that the severance agreement was never presented to Kandt for her signature. Winterhalter soon notified the Lodge 2848 executive board of the pension and insurance modifications to the OPEIU collective bargaining agreement. He did not mention the severance agreement, however, because he believed it would “start a firestorm with our members that would result in what would probably be viewed as an attack on the Grand Lodge.”3 Winterhalter Dep. 97:10-15.

In 2006, 2007, and 2008, Winterhalter sought the Local Lodge executive board’s approval to pay Plaintiffs deferred compensation bonuses. These bonuses were paid, although one board member objected in 2008. At some point, a District Lodge official suggested that Winterhalter contact IAM General Vice President Lynn Tucker about these bonuses. Winterhalter contacted Tucker and stated that he had an enforceable contract with Plaintiff to pay these bonuses. Tucker responded that if he had a contract with Plaintiff, the expenditure was appropriate and did not require authorization from the Grand Lodge.

By late 2009, Lodge 2848’s membership had dwindled to approximately 300. The Grand Lodge assigned an auditor to review the Lodge’s finances, and Winterhalter believed that the Lodge was going to be placed under “supervision.”4 Lodge 2848 was at that time affiliated with District Lodge 60. In December 2009, Winterhalter told Mark Ward, the Directing Business Representative of District Lodge 60, about the severance agreement with Plaintiff. Ward notified Kandt, who confirmed that she had neither negotiated nor signed the severance agreement. Ward Aff. ¶ 5. Ward also notified the Grand Lodge, and Lynn Tucker responded in a letter to Winterhalter indicating that he believed the severance agreement violated the IAM constitution and Lodge 2848’s bylaws. Winterhalter Dep. 54:17-25.

Ward addressed Lodge 2848’s executive board at a meeting on March 2, 2010, and advised the board that the severance agreement with Plaintiff would not be honored, as it was null and void. Payne Dep. 27:5-10. Plaintiff was in attendance at this meeting, and she contacted Kandt about this matter. Kandt again denied having approved the severance agreement.

In June 2010, Briggs was appointed “supervisor” over Lodge 2848.

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Bluebook (online)
856 F. Supp. 2d 915, 2012 U.S. Dist. LEXIS 29296, 2012 WL 715889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/payne-v-local-lodge-698-mied-2012.