Sharp v. Webco Industries, Inc.

265 F.3d 1085, 2001 Colo. J. C.A.R. 3744, 168 L.R.R.M. (BNA) 2385, 2001 U.S. App. LEXIS 16717, 2001 WL 811817
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 18, 2001
Docket00-5005
StatusPublished
Cited by3 cases

This text of 265 F.3d 1085 (Sharp v. Webco Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharp v. Webco Industries, Inc., 265 F.3d 1085, 2001 Colo. J. C.A.R. 3744, 168 L.R.R.M. (BNA) 2385, 2001 U.S. App. LEXIS 16717, 2001 WL 811817 (10th Cir. 2001).

Opinion

OPINION

McWILLIAMS, Senior Circuit Judge.

Webco Industries Inc. is a steel tubing manufacturer and distributor headquartered in Sand Springs, Oklahoma. On October 7, 1998, Webco laid off fifty three employees in an economically-motivated reduction in force. The following day the United Steelworkers of America (“Union”) filed an unfair labor practice charge with the National Labor Relations Board (“Board”) alleging that Webco discrimina-torily selected Union supporters for layoff in violation of Section 8(a)(3) of the National Labor Relations Act (“Act”). In the days immediately following the layoffs, some, but not all, of the laid off employees, signed severance agreements with Webco. Charles H. Casey and Eric R. Martin, who had been laid off signed a severance agreement. By those agreements the employees relinquished any claims against Webco, including “any rights or claims ... [they] may have ... under the National Labor Relations Act, which prohibits unfair labor practices which interfere with employees’ rights under said Act,” in exchange for severance benefits granted them by Web-co. (The severance agreements also provided that the employee would not seek reemployment with Webco). Those benefits included “chreer transition” assistance and severance pay calculated according to the employees’ length of service with the company. Casey’s severance pay was $4085.64 and Martin’s was $569.40.

On March 8, 1999, after investigating the Union’s Section 8(a)(3) charge, the Regional Director issued a complaint which, as eventually amended, alleged that Webco had discriminatorily selected seventeen employees for layoff. Casey and Martin, and several others who had signed severance agreements, were among the discri-minatees named in the complaint. In its answer to the complaint Webco alleged that the severance agreements barred the Section 8(a)(3) claims of all discriminatees who had signed the severance agreements.

*1087 Between May 4 and May 19 1999, Web-co filed petitions in the District Court of Creek County, Oklahoma against the employees named in the Section 8(a)(3) complaint who had signed severance agreements, including Casey and Martin. Webco’s petitions generally alleged that the employees had waived all claims against it by their signing of the severance agreements and that their participation as discriminatees in the Section 8(a)(3) unfair labor practice proceeding constituted a breach of contract. Shortly after Webco filed its breach of contract actions in state court, the Union filed a new unfair labor practice charge alleging that Webco, in filing its breach of contract actions, violated the Act because such were filed in retaliation for the employees’ participation in the layoff case.

While the Regional Director investigated this new charge, the Section 8(a)(3) case was proceeding. The Administrative hearing in that case commenced on May 11, 1999. In that hearing, Webco continued to defend on the basis that the severance agreements barred some of the discrimina-tees’ 8(a)(3) claims, including Casey’s and Martin’s claims. Eventually Webco reached settlements with many of the dis-criminatees who had signed severance agreements. By these settlements the employees withdrew from the Section 8(a)(3) proceeding and in return Webco dismissed its breach of contract action against them. Of the discriminatees who signed the severance agreements, only Casey and Martin declined to settle. In other words, they remained in the Section 8(a)(3) proceedings and Webco persisted in its breach of contract case against the two.

On August 25, 1999, with the Section 8(a)(3) case pending, the Regional Director completed his investigation of the charge based on Webco’s prosecution of breach of contract actions in state court and he issued another unfair labor practice complaint against Webco. That complaint alleged that Webco’s breach of contract actions against Casey and Martin violated Section 8(a)(1) and (4) of the Act because they challenged their participation in the Section 8(a)(3) proceeding and that such is preempted by the Board’s jurisdiction over the issues involving layoffs under consideration in the 8(a)(3) case. 1

About one month after the 8(a)(1) and (4) complaint issued, the Administrative Law Judge, on September 17, 1999, issued his decision in the 8(a)(3) case. The judge found that Webco had discriminatorily selected Union supporters for layoffs, including Casey and Martin. In so doing, the judge rejected Webco’s defense that the severance agreements barred Casey and Martin from participating in any manner in the 8(a)(3) proceeding and held that the severance agreements did not effectively waive Casey’s and Martin’s right to resort to the Board regarding the layoffs. Web-co filed exceptions to the judge’s decision and the matter is now pending before the Board.

In September, 1999, shortly after the Administrative Law Judge’s decision, which, as stated, was issued on September 17, 1999, Webco amended its breach of contract action in the state court and added two new causes of action, one for unjust enrichment and one for money had and received. By these new claims, Webco seeks return of the severance benefits giv *1088 en Casey and Martin. The newly added claims, based on unjust enrichment and on money had and received, incorporated therein by reference the breach of contract allegations contained in counts one and two of the amended petition.

On October 20, 1999, F. Rozier Sharp, Regional Director, filed, under Section 10(j) of the Act, a petition for an injunction against Webco in the United States District Court for the Northern District of Oklahoma alleging that Webco had engaged in unfair labor practices within the meaning of Section 8(a)(1) and (4) of the Act. Specifically, Sharp alleges that Web-co, in instituting lawsuits against Casey and Martin in the state court of Oklahoma on May 5, 1999 and May 19, 1999, engaged in unfair labor practice under Section 8(a)(1) and (4) of the Act because its lawsuits against Casey and Martin were “preempted under Loehman’s Plaza, 305 NLRB 663, 1991 WL 251696 (1991), because the Board has exclusive jurisdiction over the issues raised by the lawsuits.” In this connection, Sharp went on to allege that temporary injunctive relief was “ ‘just and proper’ to preserve the Board’s exclusive jurisdiction and to prevent the possibility of inconsistent judgments between the Board and the state forums” and that the Board has “exclusive jurisdiction to determine if Respondent’s [Webco’s] waiver defense is valid under federal labor law.”

The following day, on October 21, 1999, Webco filed an answer and counter-claim to Sharp’s petition. In its counterclaim, Webco alleged that both Casey and Martin had “committed substantial material breaches of the terms of their Agreements with Webco.”

On December 8,1999, the day before the district court held a hearing on Sharp’s petition for a temporary injunction, Webco moved in state court to dismiss its breach of contract claims against Casey and Martin, but continue its restitution claims against them. On December 14, 1999, the district court, after considering the parties’ briefs, the Board’s administrative record, various exhibits and testimony from several witnesses, granted the Regional Director’s request for a temporary injunction and denied Webco’s counterclaim. Webco appeals the district court’s order.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gold v. State Plaza, Inc.
435 F. Supp. 2d 110 (District of Columbia, 2006)
Ahearn v. Jackson Hospital Corp.
351 F.3d 226 (Sixth Circuit, 2003)
Ahearn v. Jackson Hospital Corporation
351 F.3d 226 (Sixth Circuit, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
265 F.3d 1085, 2001 Colo. J. C.A.R. 3744, 168 L.R.R.M. (BNA) 2385, 2001 U.S. App. LEXIS 16717, 2001 WL 811817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharp-v-webco-industries-inc-ca10-2001.