Schalk v. Teledyne, Inc.

751 F. Supp. 1261, 13 Employee Benefits Cas. (BNA) 1167, 1990 U.S. Dist. LEXIS 16271, 1990 WL 191917
CourtDistrict Court, W.D. Michigan
DecidedNovember 30, 1990
Docket1:90-cv-00460
StatusPublished
Cited by23 cases

This text of 751 F. Supp. 1261 (Schalk v. Teledyne, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schalk v. Teledyne, Inc., 751 F. Supp. 1261, 13 Employee Benefits Cas. (BNA) 1167, 1990 U.S. Dist. LEXIS 16271, 1990 WL 191917 (W.D. Mich. 1990).

Opinion

OPINION

ENSLEN, District Judge.

This matter is before the Court on plaintiffs’ motion for a preliminary injunction. Plaintiffs 1 bring their motion pursuant to Fed.R.Civ.P. 65(a). This is a proposed class action, 2 involving a dispute about retiree health and life insurance benefits. The principal issue is whether defendants have a contractual right to terminate or reduce collectively bargained health and life insurance agreements. Plaintiffs allege that defendants have reduced their insurance benefits in violation of § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185 and § 502 of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1132. The Court heard oral argument on plaintiffs’ motion on November 28, 1990.

FACTS

Defendant, Teledyne, Inc., is a large international conglomerate. Defendant, Tel-edyne Industries, Inc., is a wholly-owned subsidiary which operates a number of former Continental Motors plants under various d/b/a’s, including Teledyne Continental Motors, General Products in Muskegon, MI; Teledyne Continental Motors, Industrial Products in Muskegon, MI; Teledyne Continental Motors, Aircraft Products in Alabama; and Teledyne CAE in Toledo, OH; Teledyne NEOSHA in Missouri and Teledyne Wisconsin Motor. 3 Teledyne has been a party to successive multi-plant collective bargaining agreements with the United Automobile, Aerospace & Agricultural Implement Workers of America (“UAW”) and various UAW locals. Since 1968 (under Teledyne’s predecessor, Continental Motors), the collective bargaining agreement has included a master insurance agreement that has provided for health insurance for retirees and their surviving spouses and life and accidental death and *1263 dismemberment insurance for early, special early and disability retirees.

The most recent collective bargaining agreement between Teledyne and the UAW expired on its terms on June 24, 1989, and Teledyne and the UAW have, since June, been bargaining over the terms of a successor collective bargaining agreement. On February 5, 1990, Teledyne sent a letter to its Muskegon retirees which stated that effective March 1, 1990, their health insurance would be terminated and a new plan, the “Teledyne Plus Plan” would be substituted. Also, it stated that any increase in premiums in 1991 or thereafter would be paid half by Teledyne and half by the retiree. Complaint Exhibit (“Ex.”) B. On February 15, 1990, the UAW began a strike at Teledyne at all the locations described above. On the same day, Teledyne sent a letter to the UAW stating that health and life insurance programs would no longer be paid by Teledyne for striking employees, retirees or surviving spouses. On February 22, 1990, Teledyne sent a letter to retirees from its Muskegon plants stating that their health insurance benefits would cease as of March 31, 1990 and that they could continue coverage by electing to pay their own premiums on a monthly basis. Complaint Ex. C. Apparently, Teledyne never followed through on this threat, but informed retirees that it would continue “Teledyne Plus Plan” coverage for an indefinite period while retaining the right to terminate their coverage at any time.

On March 1, 1990, at its Muskegon plants only, Teledyne terminated the old health insurance program for retirees and surviving spouses and substituted the “Tel-edyne Plus Plan.” Under the Teledyne Plus Plan, retirees are, for the first time, required to pay deductibles and co-pays with a maximum annual out-of-pocket cost of $1,200 for an individual and $1,900 for a family. 4

Additionally, on March 1, 1990, Teledyne informed early, special early, and disability retirees that it was terminating their life and accidental death and dismemberment insurance unless the retirees elected to pay their own premiums. 5 Teledyne has carried through with this threat, although only at its Muskegon location.

STANDARD

Preliminary Injunction Standard

In deciding whether to grant or deny a preliminary injunction, the Court must balance four well-known factors. These factors are:

1. Whether the plaintiff has shown a strong or substantial likelihood of success on the merits;
2. Whether the plaintiff has shown irreparable injury;
3. Whether the issuance of a preliminary injunction would cause substantial harm to others; and
4. Whether the public interest would be served by issuing a preliminary injunction.

Forry, Inc. v. Neundorfer, Inc., 837 F.2d 259, 262 (6th Cir.1988); Mason County Medical Association v. Knebel, 563 F.2d 256, 261 (6th Cir.1977).

The purpose of the preliminary injunction is tu preserve the status quo pending final determination of the lawsuit. University of Texas v. Camenisch, 451 U.S. 390, 395, 101 S.Ct. 1830, 1834, 68 L.Ed.2d 175 (1981). Preliminary injunctions are addressed to the discretion of the district court. Synanon Foundation, Inc. v. California, 444 U.S. 1307, 100 S.Ct. 496, 62 L.Ed.2d 454 (1979). This type of relief is an extraordinary remedy best used sparingly. Roghan v. Block, 590 F.Supp. 150 (W.D.Mich.1984). The Sixth Circuit has held that an eviden-tiary hearing is not necessary on a preliminary injunction motion when, as here, no triable issues of fact are involved. United *1264 States v. McGee, 714 F.2d 607 (6th Cir.1983).

The Sixth Circuit has cautioned courts that they should not view the four factors as prerequisites to relief, but rather as factors to be balanced. In re DeLorean Motor Co., 755 F.2d 1223 (6th Cir.1985). Thus, a court can enter a preliminary injunction if it finds that the plaintiff “at least shows serious questions going to the merits and irreparable harm which decidedly outweighs any potential harm to the defendant if an injunction is issued.” Friendship Materials, Inc. v. Michigan Brick, Inc., 679 F.2d 100, 105 (6th Cir.1982).

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Bluebook (online)
751 F. Supp. 1261, 13 Employee Benefits Cas. (BNA) 1167, 1990 U.S. Dist. LEXIS 16271, 1990 WL 191917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schalk-v-teledyne-inc-miwd-1990.