Rieth-Riley Construction Co. v. Operating Engineers Local 324

CourtCourt of Appeals for the Sixth Circuit
DecidedApril 3, 2026
Docket25-1823
StatusPublished

This text of Rieth-Riley Construction Co. v. Operating Engineers Local 324 (Rieth-Riley Construction Co. v. Operating Engineers Local 324) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rieth-Riley Construction Co. v. Operating Engineers Local 324, (6th Cir. 2026).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 26a0107p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ RIETH-RILEY CONSTRUCTION CO., INC.; SCOTT D. │ MEADE; DANIEL RANGER; MICHAEL J. COURTNEY, No. 25-1823 │ Plaintiffs-Appellants, │ │ v. > │ │ TRUSTEES OF THE OPERATING ENGINEERS’ LOCAL 324 │ FRINGE BENEFIT FUNDS; OPERATING ENGINEERS │ LOCAL 324 HEALTH CARE PLAN; OPERATING │ ENGINEERS’ LOCAL 324 PENSION PLAN; OPERATING │ ENGINEERS’ LOCAL 324 DEFINED CONTRIBUTION │ PLAN; OPERATING ENGINEERS’ LOCAL 324 VACATION │ AND HOLIDAY FUND; OPERATING ENGINEERS LOCAL │ 324 JOURNEYMAN AND APPRENTICE TRAINING FUND; │ OPERATING ENGINEERS LOCAL 324 RETIREE BENEFIT │ FUND; ROBERT ADCOCK; KEVIN BESONEN; TODD │ DOENITZ; KENNETH DOMBROW; MATTHEW EVERLY; │ ERIC GARCIA; LEE GRAHAM; SCOTT HART; BRIAN │ HOFFMAN; ROB KRUEGER; LISA LAUZON; MIKE │ MALLOURE; JEFF MCCARTHY; BRANDIE MEISNER; KEN │ NOWICKI; RYAN O’DONNELL; JAMES OLEKSINSKI; │ BRANDON POPPS; DEVEN RAU; HEATH SALISBURY; │ DOUGLAS STOCKWELL; M.E. WOODBECK, JR.; BLAKE │ ZAPCZYNSKI; TONY BOLANOWSKI; JOSH GRAVES, │ Defendants-Appellees. │ ┘

Appeal from the United States District Court for the Eastern District of Michigan at Ann Arbor. Nos. 5:24-cv-13124; 5:25-cv-10749—Judith E. Levy, District Judge.

Argued: March 19, 2026

Decided and Filed: April 3, 2026

Before: CLAY, GIBBONS, and HERMANDORFER, Circuit Judges. No. 25-1823 Rieth-Riley Constr. Co., et al. v. Operating Eng’rs Local 324, et al. Page 2

_________________

COUNSEL

ARGUED: Philip Gutwein II, FAEGRE DRINKER BIDDLE & REATH, LLP, Indianapolis, Indiana, for Appellants. Daniel G. Levan, WEISMAN, YOUNG & RUEMENAPP, P.C., Bingham Farms, Michigan, for Appellees. ON BRIEF: Philip Gutwein II, Brian J. Paul, Emily A. Kile-Maxwell, FAEGRE DRINKER BIDDLE & REATH, LLP, Indianapolis, Indiana, Kristina F. Salamoun, FAEGRE DRINKER BIDDLE & REATH, LLP, Washington, D.C., for Appellants. Daniel G. Levan, Nancy H. Pearce, WEISMAN, YOUNG & RUEMENAPP, P.C., Bingham Farms, Michigan, for Appellees.

CLAY, J. delivered the opinion of the court in which GIBBONS and HERMANDORFER, JJ. joined. HERMANDORFER, J. (pp. 12–15), delivered a separate concurring opinion.

OPINION _________________

CLAY, Circuit Judge. Plaintiffs Rieth-Riley Construction Company, Inc., Scott D. Meade, Daniel Ranger, and Michael J. Courtney filed these suits under the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001 et seq., against Defendants Operating Engineers’ Local 324 Health Care Plan, Operating Engineers’ Local 324 Pension Plan, Operating Engineers’ Local 324 Defined Contribution Plan, Operating Engineers’ Local 324 Vacation and Holiday Fund, Operating Engineers’ Local 324 Journeyman & Apprentice Training Fund, Operating Engineers’ Local 324 Retiree Benefit Fund, and Fringe Funds’ Trustees. Plaintiffs allege that Defendant Fringe Funds Trustees violated their fiduciary duties under ERISA. The district court dismissed Plaintiffs’ complaints after finding that Plaintiffs’ ERISA claims were preempted by the Garmon doctrine, denied Plaintiff Rieth-Riley Construction Company, Inc.’s motion for leave to file an amended complaint, and denied Plaintiffs’ motions for preliminary injunction. Plaintiffs now appeal the district court’s dismissal of this case and denial of those motions. For the reasons set forth below, we AFFIRM the district court’s judgment. No. 25-1823 Rieth-Riley Constr. Co., et al. v. Operating Eng’rs Local 324, et al. Page 3

I. BACKGROUND A. Factual Background

Plaintiff Rieth-Riley Construction Co., Inc. (“Rieth-Riley”) employs members of the Operating Engineers’ Local 324 (“Local 324”) for road construction work in Michigan. Some of those members include Plaintiffs Scott D. Meade, Daniel Ranger, and Michael J. Courtney (“Plaintiff Employees”). Between March 19, 2013 and May 2, 2018, Plaintiff Rieth-Riley’s trade group, the Michigan Infrastructure and Transportation Association (“MITA”), and Local 324 operated under a collective bargaining agreement (“CBA” or the “Road Agreement”). The Road Agreement required Plaintiff Rieth-Riley to contribute to several of Local 324’s plans or funds (“Fringe Funds”) for every hour paid to each employee for work done pursuant to the agreement. Throughout this time period, Defendant Fringe Funds accepted Plaintiff’s contributions. The Road Agreement was set to expire on June 1, 2018. To avoid triggering the agreement’s “evergreen clause,” under which the agreement would “continue in force from year to year” following its expiration on June 1, 2018, MITA and Local 324 mutually terminated the agreement on May 2, 2018. Road Agreement, R. 1-3, PageID #66.

Following the Road Agreement’s termination, Local 324 refused to negotiate a new CBA with MITA or Plaintiff Rieth-Riley. All the while, Plaintiff Rieth-Riley attempted to maintain its contributions to Defendant Fringe Funds. But Defendant Fringe Funds initially refused to accept Plaintiff Rieth-Riley’s contributions on the belief that the relationship between Plaintiff Rieth- Riley and Local 324 was governed by Section 8(f) of the National Labor Relations Act (“NLRA”). Plaintiff Rieth-Riley disagreed, contending that its relationship with Local 324 was governed instead by Section 9(a) of the NLRA, which required the maintenance of “the status quo of the terms and conditions of the Road Agreement while [the parties] bargained for a new CBA.” Complaint, R. 1, PageID #9. Defendant Fringe Funds then acquiesced and accepted Plaintiff’s contributions.

On September 9, 2024, Defendant Fringe Funds changed course. Its trustees threatened to cease accepting Plaintiff Rieth-Riley’s contributions unless Plaintiff provide “‘written confirmation’ of its “agreement to comply with and be bound by the [Fringe] Funds’ trust agreements, plan documents, policies and procedures enforceable under CBA and federal law.” No. 25-1823 Rieth-Riley Constr. Co., et al. v. Operating Eng’rs Local 324, et al. Page 4

Id. at PageID #12. Plaintiff Rieth-Riley declined to sign that agreement, contending that Defendant Fringe Funds had “statutory status quo obligations under the NLRA to accept Rieth- Riley’s contributions to the Fringe Funds on behalf of work performed by its employees that is covered under the status quo of the Road Agreement.” Id. at PageID #13. Defendant Fringe Funds did not agree with Plaintiff Rieth-Riley’s contention, so it stopped accepting Plaintiff’s contributions from October 1, 2024 onwards. Plaintiff Rieth-Riley has since placed its rejected contributions into escrow.

B. Procedural History

Plaintiff Rieth-Riley filed its complaint under ERISA, 29 U.S.C. § 1001 et seq. It alleged that Defendant Fringe Funds Trustees violated their fiduciary duties of loyalty and prudence by refusing to accept Plaintiff’s contributions to Defendant Fringe Funds. It also effectively claimed that Sections 8(a)(5) and (8)(d) NLRA required Defendant Fringe Funds to continue accepting the contributions.

Plaintiff Rieth-Riley sought declaratory relief that these duties required Defendant Fringe Funds Trustees to accept Rieth-Riley’s contributions. Plaintiff Employees also filed their operative complaint under ERISA, likewise alleging that Defendant Fringe Funds Trustees were required by the NLRA to accept the contributions. Plaintiffs each filed motions for preliminary injunctive relief to order Defendant Fringe Funds to accept those contributions and provide benefits to the employees who are the beneficiaries of the funds.

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Rieth-Riley Construction Co. v. Operating Engineers Local 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rieth-riley-construction-co-v-operating-engineers-local-324-ca6-2026.