Pridy v. Duke Energy Corporation

CourtDistrict Court, M.D. Tennessee
DecidedNovember 26, 2019
Docket3:19-cv-00468
StatusUnknown

This text of Pridy v. Duke Energy Corporation (Pridy v. Duke Energy Corporation) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pridy v. Duke Energy Corporation, (M.D. Tenn. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

DARRELL PRIDY et al., ) ) Plaintiffs, ) ) v. ) ) Case No. 3:19-cv-00468 DUKE ENERGY CORPORATION, ) Judge Aleta A. Trauger ) Defendant. )

MEMORANDUM

Plaintiffs Local Union 702 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industries (the “Union”) and Union members Darrell Pridy, Gregory Nabors, Michael Sanders, and Randall Abston (the “individual plaintiffs”), on behalf of themselves and other similarly situated, bring suit against Duke Energy Corporation for alleged violations of Section 502 of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1132(a), the Tennessee Human Rights Act (“THRA”), Tenn. Code Ann. § 4-12-401, and Section 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185. Now before the court is Duke Energy’s Motion to Dismiss the plaintiffs’ First Amended Complaint. (Doc. No. 10.) For the reasons set forth herein, the motion will be granted, but without prejudice to the plaintiffs’ ability to seek leave to amend. I. FACTUAL ALLEGATIONS AND PROCEDURAL BACKGROUND The plaintiffs filed suit on May 31, 2019 and filed their First Amended Complaint (Doc. No. 7) (hereafter, “Complaint”) on June 20, 2019, within twenty-one days of service. The plaintiffs allege that the individual plaintiffs are all over the age of forty; have been “employed by Duke Energy and/or its predecessors” for decades; and have “participated in various employee benefit plans, including a welfare benefit plan for Duke Energy employees providing sick leave and short-term disability benefits.” (Doc. No. 7 ¶¶ 1–4.)

They allege that the individual plaintiffs began their employment with “the Company”1 when it was Nashville Gas Company, which was later acquired by and became a division of Piedmont Natural Gas Company (“Piedmont Gas”). (Id. ¶ 10.) The plaintiffs allege that, in October 2016, “Duke Energy acquired and became successor to Piedmont Gas, which is now a subsidiary of Duke Energy.” (Id.; see also id. ¶ 6 (“Duke Energy . . . operates a subsidiary Company called Piedmont Natural Gas, which is registered to do business in the state of Tennessee.”).) Although they allege that Piedmont Gas is registered to do business in the state of Tennessee, they do not allege that Duke Energy is. Despite acknowledging Piedmont’s continued corporate existence and status as a subsidiary, the plaintiffs assert that Duke Energy “became successor to Piedmont Gas” and that, as successor, “it is obligated and bound by the applicable

collective bargaining agreements” discussed in the Complaint. (Id. ¶ 10.) During their employment, the individual plaintiffs have continuously been members of the Union and represented by it in collective bargaining. (Id. ¶ 15.) The plaintiffs claim that, “[a]t all times during [the individual plaintiffs’] employment, [the Company] was and continues to be a party to the collective bargaining agreement with [the Union].” (Id. ¶ 16.) The plaintiffs allege that the collective bargaining agreement in effect from 1989 to 1992 (“1989 CBA”) between the Company and the Union “established a sick leave and short-term

1 The plaintiffs use the terms Duke Energy, “the Company,” and “Defendant” interchangeably throughout the Complaint, when it is apparent from context they really mean Duke Energy or its predecessor. To be consistent with the plaintiffs’ usage and to attempt to minimize confusion, the court will use the term “the Company.” disability benefit plan (‘Plan’)”governed by Section X of that document. The plaintiffs assert that Section X of the 1989 CBA “and successive collective bargaining agreements are the governing Plan documents.” (Id. ¶ 18.) The 1989 CBA’s Plan allowed participants to accrue sick leave days as they worked for

“the Company” and to “bank” the accumulated days. The 1989 CBA refers to the accrued sick leave account as a “sickness allowance.” (Id. ¶ 19.) The benefit Plans described in subsequent collective bargaining agreements in effect over the ensuing decade continued to adopt a similar sickness allowance policy, permitting the accrual of hours of unused sick leave and the banking of such time. The collective bargaining agreement adopted in 1999 and in effect until 2004 (the “1999 CBA”) was the last collective bargaining agreement to allow the unlimited accrual of sick leave hours. (Id. ¶¶ 18–20.) The sickness allowance effectively rewarded individuals who did not take frequent sick leave by allowing them to continue to accrue an unused allotment by carrying over those hours from year to year. (Id. ¶ 24.) The collective bargaining agreement that went into effect on December 31, 2004 (“2004

CBA”), eliminated the accumulation of hours in “Leave Banks” going forward, but it allowed participants with hours already accrued in their Leave Banks to carry over and use that time as described in the 2004 CBA. (Id. ¶ 25.) The relevant provision in the 2004 CBA provided, in relevant part: Employees are credited with 12 days of sick leave each January 1 to be taken as needed for any period of illness during the calendar year. They may also use any accrued sick days in their Leave Bank (sick leave earned before January 1, 2005) when all of their annual sick days have been used or for a certified FMLA Leave to care for an immediate family member. Banked days may also be used to cover the waiting period before short-term disability benefits begin.

(Id. ¶ 26.) According to the plaintiffs, the collective bargaining agreements in effect from August 2008 through August 2012 (“2008 CBA”) and from August 2012 through August 2018 (“2012 CBA”) similarly recognized employees’ ability to use Leave Bank time accrued prior to January 2005. (Id. ¶ 27.) The current collective bargaining agreement (“2018 CBA”) went into effect on April 14, 2018. (Doc. No. 11-4.) The 2018 CBA is silent regarding Leave Banks and leave hours

accrued prior to 2015. (See generally id.) However, in April 2018, the Company eliminated employees’ access to an online portal for accessing their Leave Banks and began refusing to honor the accrued time in employees’ Leave Banks. The Company allegedly provided no prior notice of this action. All of the individual plaintiffs and putative class members had accrued sick leave hours in their Leave Banks. At least one of the individual plaintiffs requested to use accrued leave time in late April 2018 but was informed by his supervisor that “the Company no longer allowed employees to use those benefits.” (Id. ¶ 30.) The plaintiffs allege that, during negotiations leading up to execution of the 2018 CBA, the Company and the Union did not bargain over sick leave and short-term disability benefits that were owed under prior collective bargaining agreements. (Id. ¶ 32.) “[I]nstead, the Company

unilaterally informed [the Union] that it would no longer honor accrued Leave Bank benefits in the new collective bargaining agreement, and unilaterally chose to deny accrued Leave Bank benefits” to the individual plaintiffs and the other 60 class members. (Id.; see also ¶ 34.) Based on these allegations, the plaintiffs allege that Duke Energy violated ERISA by wrongfully denying accrued and nonforfeitable rights to banked sick and disability leave benefits; discriminated against them on the basis of age, in violation of the THRA; and violated the LMRA by breaching binding collective bargaining agreements.

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Pridy v. Duke Energy Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pridy-v-duke-energy-corporation-tnmd-2019.