Sheet Metal Employers Industry Promotion Fund v. Absolut Balancing Co.

884 F. Supp. 2d 617, 2012 WL 3134242, 194 L.R.R.M. (BNA) 2427, 2012 U.S. Dist. LEXIS 107846
CourtDistrict Court, E.D. Michigan
DecidedAugust 1, 2012
DocketNo. 12-10752
StatusPublished

This text of 884 F. Supp. 2d 617 (Sheet Metal Employers Industry Promotion Fund v. Absolut Balancing Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheet Metal Employers Industry Promotion Fund v. Absolut Balancing Co., 884 F. Supp. 2d 617, 2012 WL 3134242, 194 L.R.R.M. (BNA) 2427, 2012 U.S. Dist. LEXIS 107846 (E.D. Mich. 2012).

Opinion

OPINION AND ORDER

LAWRENCE P. ZATKOFF, District Judge.

I. INTRODUCTION

This matter is before the Court on Plaintiffs’ Motion for Summary Judgment to Confirm an Arbitration Award [dkt. 13]. The motion has been fully briefed by the parties. The Court finds that the facts and legal arguments are adequately presented in the parties’ papers such that the decision process would not be significantly aided by oral argument. Therefore, pursuant to E.D. Mich. L.R. 7.1(f)(2), it is hereby ORDERED that the motion be resolved on the briefs submitted. For the reasons set forth below, Plaintiffs’ Motion for Summary Judgment to Confirm an Arbitration Award is DENIED.

II. BACKGROUND

Plaintiffs are trust funds that bring this action under § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185(c), to confirm arbitration awards against Defendants for purported breaches of a collective bargaining agreement (“CBA”). The CBA provided to the Court is effective from June 1, 2009, through May 31, 2013, and was entered into between the Sheet Metal and Air Conditioning Contractor National Association-Metropolitan Detroit Chapter (“SMACNA”) and Sheet Metal Worker’s International Association (“SMWIA”) Local Union No. 80 (“Local 80”). SMACNA is the bargaining unit for sheet metal contractors that specialize in heating, ventilating and air conditioning; speciality stainless steel work; and testing and balancing.

Defendants include Absolut Balancing Co. Inc. (“Absolut”), Enviro-Aire/Total Balance Company, Inc. (“Enviro-Aire”), Aerodynamics Inspecting Co. (“Aerodynamics”), Airflow Testing, Inc. (“Airflow”), and Barmatic Inspecting Co. (“Barmatic”). They are testing and air balancing control (“TAB”) contractors. Defendants are allegedly not members of Local 80 and are represented by the Associated Air Balance Council (“AABC”). According to Defendants, their only affiliation with SMWIA and Local 80 is based on an agreement between AABC and SMWIA.

Plaintiffs claim that Defendants were bound by the CBA, which required the payment of fringe benefits to Plaintiffs under Sections 15 and 16 of Addendum 1 of the CBA. Section 15 creates the Industry Promotion Fund (“Promotion Fund”) and requires the employer of members of the union to contribute to the Promotion Fund for each hour worked by each of the employers’ employees.1 Similar to Section 15, Section 16 creates the Industry Apprenticeship Reimbursement Fund (“Reimbursement Fund”). Contributions to [620]*620the fund are based on the hours worked by each of the employers’ employees.

Plaintiffs filed grievances against Defendants for failing to make contributions to the two funds since 2006. Pursuant to Article X, Section 2, of the CBA, the grievances were heard by the Local Joint Adjustment Board (“LJAB”) for final and binding arbitration on February 15, 2011. While Defendants received notice of the grievance hearings by letters from the LJAB, Defendants opted to not be present at the hearings. The LJAB issued the following decisions on February 25, 2011, and March 9, 2011, finding that Defendants violated the CBA by failing to contribute to the Promotion Fund and Reimbursement Fund:

a decision issued against Defendant Absolut in the amount of $39,447.20 — comprising $21,121.48 to the Promotion Fund and $18,355.73 to the Reimbursement Fund;
a decision issued against Defendant Aerodynamics in the amount of $92,-564.52 — comprising $49,636.32 to the Promotion Fund and $42,928.20 to the Reimbursement Fund; a decision issued against Defendant Barmatic in the amount of $35,241.56 — comprising $18,967.53 to the Promotion Fund and $16,274.03 to the Reimbursement Fund;
a decision issued against Defendant Airflow in the amount of $74,130.94 — comprising $39,698.97 to the Promotion Fund and $34,431.98 to the Reimbursement Fund; and
a decision issued against Defendant Enviro-Aire in the amount of $189,823.54— .comprising $102,278.85 to the Promotion Fund and $87,544.69 to the Reimbursement Fund.2

Defendants have neither complied with the decisions nor moved to vacate the decisions. After Plaintiff filed separate cases against each Defendant in this Court, the cases were consolidated based on similarity of the parties, facts and controlling law. On May 25, 2012, Plaintiffs filed the instant motion for summary judgment. Plaintiffs argue that the Court should summarily enter judgment in their favor because Defendants are precluded from asserting any defenses based on the three-month limitations period for challenging arbitration awards under § 301 of the LMRA. Defendants claim they are not foreclosed from defending against this action because the CBA is not applicable to them. According to Defendants, the CBA is between SMACNA and Local 80, not Defendants.

III. STANDARD OF REVIEW

“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A party must support its assertions by:

(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials; or;
(B) showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an [621]*621adverse party cannot produce admissible evidence to support the fact.

Fed.R.Civ.P. 56(c)(1).

The moving party bears the initial burden of demonstrating the absence of any genuine dispute as to a material fact, and all inferences should be made in favor of the nonmoving party. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party discharges its burden by “ ‘showing’ — that is, pointing out to the district court — that there is an absence of evidence to support the nonmoving party’s case.” Horton v. Potter, 369 F.3d 906, 909 (6th Cir.2004) (citing Celotex, 477 U.S. at 325, 106 S.Ct. 2548).

Once the moving party has met its initial burden, the burden then shifts to the non-moving party, who “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

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884 F. Supp. 2d 617, 2012 WL 3134242, 194 L.R.R.M. (BNA) 2427, 2012 U.S. Dist. LEXIS 107846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-employers-industry-promotion-fund-v-absolut-balancing-co-mied-2012.