Pitts v. Frito-Lay, Inc.

523 F. Supp. 7, 105 L.R.R.M. (BNA) 3223, 1980 U.S. Dist. LEXIS 14764
CourtDistrict Court, E.D. Michigan
DecidedNovember 14, 1980
DocketCiv. A. No. 77-72604
StatusPublished
Cited by1 cases

This text of 523 F. Supp. 7 (Pitts v. Frito-Lay, Inc.) 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
Pitts v. Frito-Lay, Inc., 523 F. Supp. 7, 105 L.R.R.M. (BNA) 3223, 1980 U.S. Dist. LEXIS 14764 (E.D. Mich. 1980).

Opinion

MEMORANDUM OPINION AND ORDER DENYING PLAINTIFF’S MOTION FOR INCLUSION OF FRINGE BENEFITS IN BACK PAY AWARD, GRANTING PLAINTIFF’S MOTION FOR INCLUSION OF STRIKE BENEFITS IN BACK PAY AWARD, AND ALLOCATING DAMAGES BETWEEN DEFENDANTS

PATRICIA J. BOYLE, District Judge.

Plaintiff in this matter prevailed on his breach of duty-of-fair-representation and [8]*8breach-of-contract claims against the respective Defendants when a jury found in his favor. By an order entered this day, Defendants’ motions for new trial have been denied. Accordingly, it is necessary to resolve matters which, at trial, it was agreed would await post-trial briefing by the parties and resolution by the Court. Specifically, Plaintiff claims that he is entitled, as part of his damages award, to the amounts he would have received from the Union in strike benefits and the amounts the employer would have paid in fringe benefits on his behalf. Plaintiff states, and the Union does not contest, that strike benefits amount to Forty-Five Dollars ($45) per week [Thirty Dollars ($30) provided by the International Union, Fifteen Dollars ($15) provided by the Local Union] and, had Plaintiff still been employed, would have accrued for thirteen weeks. It was further stipulated between the employer and the Plaintiff that the cost of fringe benefits for Plaintiff amounts to 15 percent of the wage paid to Plaintiff.

Addressing, first, the question of the fringe benefits, it is to be noted at the outset that both Plaintiff and Defendant employer speak in terms of a “make whole” remedy but disagree as to what, in fact, will make Plaintiff whole. While the elements of the fringe benefits are not fully explained by either party, it is clear that pension contributions and insurance plan payments would be among such fringe benefits. The essence of Plaintiff’s claim is that fringe benefits constitute an asset to Plaintiff and have been included in back pay awards by courts. Defendant employer, in its brief, stresses that Plaintiff has neither claimed nor demonstrated a tangible loss attributable to the cessation of his fringe benefits and, therefore, cannot claim that he has not been made whole by the back pay award alone.

The resolution of this issue certainly is not free from ambiguity. The treatment of back pay awards by the courts and by the National Labor Relations Board (NLRB) has varied from case to case and with the nature of the cause of action. The Court, in its research has not uncovered a breach of the duty-of-fair-representation case that addresses this issue, and the precedents supplied by the parties do not include a case directly on point. Plaintiff cites three cases for the proposition that the claimed fringe benefits should be included in the award. In White v. King, 319 F.Supp. 122, 127 (E.D.La.1970), the court acknowledged a demand for lost pension benefits but found the evidence insufficient to establish the value of the claim and, thus, rejected the claims. In White, then, no finding was made as to whether a person whose pension had not and would not have vested could recover pension contributions, that being a question of the value of the claim. Coates v. National Cash Register, 433 F.Supp. 655 (W.D.Va.1977), and Pettway v. American Cast Iron Pipe Co., 494 F.2d 211 (5th Cir. 1974), were age discrimination, see 29 U.S.C. § 621 et seq., and Title VII, 42 U.S.C. § 2000e et seq., cases respectively. The language from Pettway cited by Plaintiff does not fully support his contention that wholesale inclusion of fringe benefit expenditures in a back pay award is proper. In Pettway the court approved inclusion of what I would characterize as tangible economic fringe benefits, such as overtime pay, shift differentials, and vacation and sick pay. Retroactive pension contributions are mentioned, and the district court, on remand, was directed to consider pension adjustments “for members of the class who retired during this time.” Id. at 263. In other words, Pettway is properly read as an indication that back wage computations should include actual losses; a hypothetical loss, for example, to a plaintiff who did not suffer an actual loss of pension rights, is not considered in Pettway.

Defendant Frito-Lay’s position is carefully reasoned but is not supported by citations to precedent. The only citation in Defendant’s brief is to a National Labor Relations Board decision, Sioux Fall Stockyard Co., 236 NLRB 543, 99 LRRM 1316 (1978), which, upon review by the Court, is found not to support the argument of Defendant. It must be acknowledged that the Court reviewed only the LRRM version of [9]*9that decision and, therefore, conceivably was not afforded the benefit of the entire text. However, that portion which is reported and which is apparently relevant to the instant discussion states:

Back pay specification properly included amount of health and medical insurance premiums that employer would have paid on claimants’ behalf had it reinstated them following unfair labor practice strike; employer is obligated also to make retroactive life insurance payments to claimants for that part of back pay period during which they were financially liable to union for life insurance protection.

Id. at 1317. This passage can be read to support Plaintiff’s position insofar as the NLRB seems to have ordered inclusion of health and medical insurance premiums generally but to support Defendant’s position to the extent that it allows recovery only of life insurance premiums for which the dischargees assumed a liability to the union. Without further explication of the underlying facts, it is not possible to ascertain the rationale by which the Board reached its decision, and it is necessary to look elsewhere for meaningful guidance on these issues.

By way of further development of the issue, I note that so far Plaintiff’s position is supported by back pay awards formulated in Title VII and ADEA cases, and, to the extent that NLRB decisions, dealing with back pay, measure damages more conservatively, I am inclined to follow the NLRB decisions since the fair representation case is essentially a matter of traditional labor law governed by concerns for federal labor policy. See International Brotherhood of Electrical Workers v. Foust, 442 U.S. 42, 52, 99 S.Ct. 2121, 2128, 60 L.Ed.2d 698 (1979). In Sugarman Aggregates, Inc., 198 NLRB No. 78, 81 LRRM 1025, 1026-27 (1972), the Board approved liability of the employer for medical payments incurred and paid by the employees who were wrongfully without employment and its attendant insurance coverage. The Board rejected the employer’s contention that it could be held responsible only for the amount of the insurance premiums since the Board apparently disagreed with the premise that the employees should have obtained private insurance which would have mitigated the health care liability to the employer. Likewise, in Bowen Transports, Inc.,

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Related

In Re US Truck Co., Inc.
74 B.R. 515 (E.D. Michigan, 1987)

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Bluebook (online)
523 F. Supp. 7, 105 L.R.R.M. (BNA) 3223, 1980 U.S. Dist. LEXIS 14764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pitts-v-frito-lay-inc-mied-1980.