Plumbers & Gasfitters Union Local No 75 Health Fund v. Morris Plumbing LLC

CourtDistrict Court, E.D. Wisconsin
DecidedApril 18, 2024
Docket2:23-cv-00616
StatusUnknown

This text of Plumbers & Gasfitters Union Local No 75 Health Fund v. Morris Plumbing LLC (Plumbers & Gasfitters Union Local No 75 Health Fund v. Morris Plumbing LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plumbers & Gasfitters Union Local No 75 Health Fund v. Morris Plumbing LLC, (E.D. Wis. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

PLUMBERS & GASFITTERS UNION LOCAL NO. 75 HEALTH FUND, PLUMBERS LOCAL 75 EDUCATION FUND, STEVE BREITLOW, in his Case No. 23-CV-616-JPS-JPS capacity as Trustee, PLUMBERS LOCAL 75 INDUSTRY DEVELOPMENT FUND, BUILDING ORDER TRADES UNITED PENSION TRUST FUND, and DOUG EDWARDS, in his capacity as Trustee,

Plaintiffs, v.

MORRIS PLUMBING, LLC,

Defendant.

1. INTRODUCTION In May 2023, Plaintiffs Plumbers & Gasfitters Union Local No. 75 Health Fund, Plumbers Local 75 Education Fund, Steve Breitlow (in his capacity as Trustee), Plumbers Local 75 Industry Development Fund, Building Trades United Pension Trust Fund, and Doug Edwards (in his capacity as Trustee) (collectively, “Plaintiffs”) sued Defendant Morris Plumbing, LLC (“Defendant”) seeking “unpaid contributions, interest, and statutory penalties for the period of February 1, 2020 to December 31, 2022.” ECF No 28 at 1. Plaintiffs now move the Court to recognize and “enforce the settlement agreement that the parties reached on January 8, 2024 through an exchange of emails by their counsel.” ECF No. 27 at 1. For the reasons discussed herein, the Court will grant the motion. 2. BACKGROUND On November 28, 2023, Defendant’s counsel notified Plaintiffs’ counsel that Defendant would be “willing to settle if [the parties] can get the payments to 48 months.” ECF No. 29-1 at 1. Defendant’s counsel inquired as to whether that could be “a possibility.” Id. In response, Plaintiffs’ counsel offered the following:

I would be willing to recommend to the trustees the following terms: 1. Payment of all contributions for Degen and Wheeler’s work hours for 2/1/20 to 12/31/22, plus 6% interest so that payments total $165,615.12, to be repaid over 48 months.

2. [Defendant] acknowledges liability for liquidated damages equal to 20% of the unpaid contributions. If [Defendant] timely makes each of the payments, and remains current for the duration of the 48 months payment plan, it will be eligible to apply for a waiver of liquidated damages. Such a waiver is routinely granted as a matter of course, but is not guaranteed. If there are any audits for time periods after December 31, 2022, [Defendant] would need to take care of any delinquencies identified in order to receive the waiver of liquidated damages. 3. [Defendant] in return gets a release through December 31, 2022. It does not get a release of any claims for withdrawal liability.

Please confirm acceptance of these terms, so that I can postpone tomorrow’s deposition.

Yingtao Ho

Id. Defendant’s counsel replied: “[Defendant] is out this afternoon, so I won[’]t have an answer. Let’s push the depo out a week? Also, do you have language you can present so I can explain and understand the liquidated damages proposal? Ron.” ECF No. 29-2 at 3. Plaintiffs’ counsel agreed to send some sample language to Defendant’s counsel as requested. Id. On December 1, 2023, Plaintiffs’ counsel emailed the following:

Ron:

I have contacted the union as to whether it recognizes [Defendant] to have terminated the CBA on May 31, 2023. Because the Plumbers Local 75 Funds trustees meet on December 11, 2023, and it would be good to have a proposed settlement for them to approve, I am sending you two versions of the liquidated damages waiver language to be applied depending on whether the termination of the CBA is recognized, as well as proposed release language.

Id. at 2. The document that Plaintiffs’ counsel attached to his December 1, 2023 email included the following release language, in addition to two paragraphs concerning waiver of liquidated damages:

Plaintiffs’ Release of Claims. For valuable consideration from Defendants as stated above, Plaintiffs hereby releases [sic] all claims of whatever nature that each may have against Defendants [sic] through December 31, 2022, including all claims for unpaid contributions, interest, and/or liquidated damages arising under ERISA §§ 502 and 515 (29 U.S.C. §§ 1131, 1145), LMRA § 301 (2 U.S.C. § 185), Wis. Stats. §§ 895.446 and 943.20, or any other legal theory as well as any and all claims for attorneys’ fees and costs. Notwithstanding the foregoing, this Agreement does not (a) affect those rights or claims that arise after the execution of this Agreement; (b) waive any rights by the Plaintiffs to assess withdrawal liability based on contributions that [Defendant] either did, or that Plaintiffs contend it should have[,] remitted on or before December 31, 2022; or (c) affect those rights or claims that cannot be waived by law. ECF No. 29-3 at 1. On December 5, 2023, Defendant’s counsel responded:

Yingtao, I have attached the withdrawal letter. I will need better language on the liquidated damages. The trustees should be able to commit to waiver as long as all payments are made. I don’t think my guy will agree to wait and see if it is waived. Can we work through that?

Ron

ECF No. 29-2 at 1. Plaintiffs’ counsel responded by email as follows:

I can propose to the trustees that upon [Defendant] making all settlement payments, and provided [Defendant] pays the close-out audit and/or remains current for the duration of the payment plan or the duration it is obligated to remit contributions, whichever is shorter; it may apply for a waiver of liquidated damages, which the Trustees shall grant. (I am still waiting to hear back from the union on whether it accepts that [Defendant] has properly terminated the CBA).

If this language is acceptable, I can again postpone tomorrow’s deposition; and I will notify you on December 13th or 14th the extent that the Trustees adopted by recommendations on a settlement with [Defendant].

Id. That same day, Defendant’s counsel responded, “I can recommend that language, so please see if the trustees can agree to it. Ron.” Id. On December 13, 2023, Plaintiffs’ counsel circled back:

Attorney Stadler:

The Trustees reject [Defendant’s] settlement proposal, and counter-offers [sic] the same proposal, except that the full amount of contributions and 6% interest must be paid over a period of 36 months rather than 48 months. The Trustees agreed that if [Defendant] pays the full amount of contributions and 6% interest over a period of 36 months, and remains current for 36 months, the liquidated damages waiver will be automatic. If [Defendant] wants 48 months to repay the contributions and interest, the interest rate would snap back to 18%, and no liquidated damages waiver would be available. The Trustees also rejected the possibility of a 48 months payment plan with 6% interest and a LD waiver, but [Defendant] must pay some additional interest during the 48 months payment plan.

You can have until January 3rd to accept this proposal, which is the best one that [Defendant] will receive from the Trustees. . . . Yingtao Ho

ECF No. 29-4. On January 8, 2024, Defendant’s counsel responded: “Yingtao, sorry for the delays but it has been hard to get all these pieces in place. [Defendant] will agree to pay $165,615.12 paid over a period of 36 months with the terms you offered. Can you please forward a written settlement agreement. Ron.” ECF No. 29-5. The following day, Plaintiffs’ counsel sent the draft settlement agreement by email. ECF No. 29-6 at 1. Ten days later, Defendant’s counsel emailed Plaintiffs’ counsel the following: Yingtao, I have gone through the agreement and paragraph 5 causes concerns. Are you taking the position that more money is owed for 2023? If so we need to discuss that and agree to it. We do not want to settle a case just to be back into another one.

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Bluebook (online)
Plumbers & Gasfitters Union Local No 75 Health Fund v. Morris Plumbing LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plumbers-gasfitters-union-local-no-75-health-fund-v-morris-plumbing-llc-wied-2024.