Sheet Metal & Air ConditionIng Contractors Ass'n of the Building Trades Employers Ass'n v. Sheet Metal Workers International Ass'n

619 F. Supp. 1073, 1985 U.S. Dist. LEXIS 14906
CourtDistrict Court, D. Massachusetts
DecidedOctober 15, 1985
DocketCiv. A. 85-2894-W
StatusPublished
Cited by3 cases

This text of 619 F. Supp. 1073 (Sheet Metal & Air ConditionIng Contractors Ass'n of the Building Trades Employers Ass'n v. Sheet Metal Workers International Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheet Metal & Air ConditionIng Contractors Ass'n of the Building Trades Employers Ass'n v. Sheet Metal Workers International Ass'n, 619 F. Supp. 1073, 1985 U.S. Dist. LEXIS 14906 (D. Mass. 1985).

Opinion

OPINION

WOLF, District Judge.

Plaintiffs, an employer and its trade association, request, in effect, that the court vacate an arbitration decision that a collective bargaining agreement between the employer and defendant union is invalid because of mutual misrepresentation and mutual mistake. Plaintiffs also seek injunc-tive relief and damages. Jurisdiction exists under § 301(a) of the Labor Management Relations Act of 1947 as amended (the “LMRA”), 29 U.S.C. § 185.

On July 19, 1985, the court entered a temporary restraining order to prevent a cessation of work, which was modified and continued on July 23, 1985. On July 25, 1985, a hearing on plaintiffs’ application for a preliminary injunction commenced. It was continued to permit discovery and briefing of issues relating to the merits of the case and to the propriety of preliminary injunctive relief. On August 14, 1985, the hearing on the application for a preliminary injunction was, with the consent of the parties, consolidated with the trial of the merits of this action. The trial was completed on August 15, 1985, when a preliminary injunction was issued.

As described below, the court has decided to (1) vacate the arbitrators’ decision that the collective bargaining agreement is invalid; (2) remand this matter to the arbitrators for clarification and completion of their decision with regard to a remedy for the violation of the collective bargaining agreement which they found; (3) terminate *1074 the preliminary injunction because it no longer appears necessary; and (4) retain jurisdiction pending completion of the reopened arbitration proceedings.

I. FINDINGS OF FACT

The court hereby finds the facts of this case as follows:

1. This action was initiated on July 19, 1985, by the Sheet Metal & Air Conditioning Contractors Association (“SMACCA”) of the Building Trades Employers Association (“BTEA”) and one of its members, the Limbach Company, Inc. (“Limbach”). The defendant is the Sheet Metal Workers International Association, Local Union 17 (“Local 17”). Limbach is a Pennsylvania corporation with branches throughout the country. Limbach’s operation in Woburn, Massachusetts is involved in this case. The Woburn branch does various types of construction work, including sheet metal fabrication and installation.

2. When this dispute arose in 1984, Lim-bach and Local 17 were parties to a mul-tiemployer collective bargaining agreement negotiated on their behalf by SMACCA and the Sheet Metal Workers International Association (“SMWIA”), an international union of which Local 17 is a member. The

contract, which was in effect from September 1, 1982, to August 31, 1984, covered several counties in Eastern Massachusetts (the “1982 Agreement”). When the 1982 Agreement expired, Local 17 went on strike for seven weeks. The strike was settled and a new agreement was reached in late October, 1984 (the “1984 Agreement”). The 1984 Agreement was effective as of September 1,1984, and to August 31, 1986.

3. Limbach is a wholly-owned subsidiary of Limbach Constructors, Inc., which is a wholly-owned subsidiary of the Limbach Corporation. In 1983, Jovis Constructors, Inc., another wholly-owned subsidiary of Limbach Constructors, Inc., purchased all of the capital stock of Harper Plumbing and Heating Company (“Harper”). Harper is a non-union company operating exclusively in the Orlando, Florida area.

4. On March 27, 1984, the business manager of Local 17 wrote Limbach that the acquisition of a non-union company was in violation of Article VIII, § 5 and other provisions of the 1982 Agreement. 1 The company denied it had violated the contract. Local 17 filed a grievance under the procedures provided by Article X of the 1982 Agreement. 2 The grievance charged *1075 that Limbach had structured its corporate organization for the purpose of becoming a “double-breasted company,” that is, a company with union and non-union operations. Local 17 also requested as a remedy that Limbach divest itself of Harper and pay liquidated damages in an amount equal to the difference between the wage and benefit package it was providing for Local 17 sheet metal workers and that which it had paid to Harper sheet metal employees since the acquisition of Harper. Local 17 did not contest the validity of the 1984 Agreement with Limbach.

When the parties failed to reach agreement on their own, Limbach appealed to the Local Joint Adjustment Board (the “LJAB”). A hearing was scheduled for November 20, 1984. On November 19, 1984, Local 17 amended its grievance to include a claim that the acquisition of Harper also violated Article II, § 3 of the 1984 Agreement. 3

5. At the LJAB hearing, Limbach was represented by Thomas Gunning, the Executive Director of the Boston Chapter of SMACCA. Gunning agreed that the submission of the grievance under the 1984 Agreement was timely, but argued that the entire matter was not properly before the LJAB. The next day Gunning sent a memorandum to the LJAB elaborating Lim-bach’s position. Limbach asserted that since Harper and Limbach were not a single employer, Harper’s operations were not covered under either the 1982 or 1984 Agreements and, therefore, Limbach had not violated either contract. Limbach also asserted that, in any event, this matter was a representation issue that had to be decided by the National Labor Relations Board (“NLRB”), rather than the UAB. Lim-bach also claimed that it had not violated the 1982 or 1984 Agreements because Harper was not within the geographical area covered by the Agreements.

The LJAB deadlocked. Local 17 appealed for a Panel Hearing. Ultimately, this *1076 step was waived by the SMWIA and SMACCA panelists, and the grievance was submitted directly to the National Joint Adjustment Board (the “NJAB”).

6. The NJAB met on February 6, 1985. The Limbach-Local 17 dispute was consolidated with two other cases involving Lim-bach Constructor’s subsidiaries and local chapters of the SMWIA in Pittsburgh and California. These cases shared the common issue of whether the Harper acquisition violated the 1982 Agreement between SMACCA and SMWIA. The issue of whether the 1984 Agreement was violated was unique to the Limbach-Local 17 dispute.

7. At the NJAB hearing, Limbach raised several procedural objections, including the claim that the issue of whether the Harper acquisition violated the 1984 Agreement was untimely when submitted to the UAB because (a) it was not raised within 30 days after Limbach purchased Harper, as required under Article X, § 1 and (b) because it was filed only a day before the UAB hearing, rather than presented at step one of the grievance process. Lim-bach also asserted that whether the Harper acquisition violated Article II, § 3 was a question for the NLRB, and not the NJAB. The NJAB disagreed and found that these matters were properly before it for decision.

8. On February 8, 1985, the NJAB issued a three-paragraph decision (the “NJAB decision”) in which it:

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619 F. Supp. 1073, 1985 U.S. Dist. LEXIS 14906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-air-conditioning-contractors-assn-of-the-building-trades-mad-1985.