Sheet Metal Workers' International Ass'n v. West Coast Sheet Metal Co.

660 F. Supp. 1500, 8 Employee Benefits Cas. (BNA) 1871, 125 L.R.R.M. (BNA) 3201, 1987 U.S. Dist. LEXIS 6674
CourtDistrict Court, S.D. California
DecidedMay 26, 1987
DocketCiv. 86-1723-G(IEG)
StatusPublished
Cited by6 cases

This text of 660 F. Supp. 1500 (Sheet Metal Workers' International Ass'n v. West Coast Sheet Metal Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheet Metal Workers' International Ass'n v. West Coast Sheet Metal Co., 660 F. Supp. 1500, 8 Employee Benefits Cas. (BNA) 1871, 125 L.R.R.M. (BNA) 3201, 1987 U.S. Dist. LEXIS 6674 (S.D. Cal. 1987).

Opinion

ORDER DENYING COUNTERCLAIM-ANTS’ MOTION FOR PRELIMINARY INJUNCTION AND GRANTING COUNTERDEFENDANT’S MOTION FOR A STAY OF FURTHER PROCEEDINGS

GILLIAM, District Judge.

This matter came on regularly for hearing before the Honorable Earl B. Gilliam on February 23, 1987, on counterclaimants’ motion for a preliminary injunction and counterdefendant’s motion for a stay of further proceedings. After considering all of the pleadings, points and authorities and other documents on file herein, and after having heard and considered oral argument and being fully advised as to all relevant issues, the court denies the counterclaim-ants’ motion for a preliminary injunction. In addition, the court orders that all further proceedings in the counterclaim be stayed pending final resolution of the National Labor Relations Board (“NLRB”) unfair labor practices complaint filed against Sheet Metal Workers’ Local Union 206.

PARTIES

The petitioner is Sheet Metal Workers’ International Association, Local Union No. 206, of the Sheet Metal Workers’ International Association, AFL-CIO (“Local 206”). Local 206 is the bargaining representative for the employees of respondent West Coast Sheet Metal Company (“West Coast”). The counterclaimants are The Board of Trustees of the Sheet Metal Workers Pension Plan of Southern California, Arizona and Nevada; the Board of Trustees of the Sheet Metal Workers' Health Plan of Southern California, Arizona and Nevada; and The Board of Trustees of the Sheet Metal Workers’ National Pension Fund (collectively referred to as the “Trust Funds”). The Trust Funds administer contributions paid by West Coast pursuant to a collective bargaining agreement for the benefit of West Coast’s employees.

FACTS

In 1983, Local 206 and West Coast executed a collective bargaining agreement (the “Agreement”). The San Diego Chapter of a multiemployer bargaining unit known as the Sheet Metal and Air Conditioning Contractors National Association (“SD-SMACNA”), which is not a party to this lawsuit, represented West Coast in the negotiations. The Agreement contained three clauses that are now in dispute. First, the interest arbitration clause provided that any deadlock in contract renegotiations would be resolved through the National Joint Adjustment Board (“NJAB”). Second, the Agreement required West Coast to make monthly contributions to the Trust Funds according to a formula based on the number of hours worked by the employees of West Coast. Finally, the Agreement contained a “favored nation’s clause”, which allowed employers signatory to the Agreement to adopt “[a]ny Agreements entered into by Local 206 which are more favorable [to employers] than those included [in the Agreement].”

Before the Agreement was due to expire on June 30, 1986, SD-SMACNA invoked the favored nation’s clause. SD-SMACNA claimed that Local 206 entered into other collective bargaining agreements that did not contain the interest arbitration clause, and notified Local 206 that the interest arbitration clause in the Agreement was no longer binding. West Coast then withdrew from SD-SMACNA, and’ entered into nego *1503 tiations on its own behalf with Local 206 for a successor agreement.

During the negotiations between Local 206 and West Coast, Local 206 concluded that the negotiations were deadlocked. Pursuant to the interest arbitration clause in the Agreement, Local 206 broke off the negotiations and sought to have the NJAB impose a new collective bargaining agreement on Local 206 and West Coast. Despite West Coast’s challenge to the NJAB’s jurisdiction, the NJAB decided that jurisdiction was proper and imposed a three-year standard agreement (the “New Agreement”) on the parties. The New Agreement required, inter alia, continued contributions from West Coast to the Trust Funds and included a new interest arbitration clause. West Coast paid contributions to the Trust Funds through July 1, 1986, but refused to make contributions pursuant to the New Agreement.

Local 206 then filed a petition in this court to confirm the NJAB arbitration award. West Coast filed a crosspetition to vacate the NJAB award and a crosscomplaint against Local 206 and the, Trust Funds for a declaratory determination of its rights and obligations under the New Agreement. The Trust Funds filed a counterclaim against West Coast for breach of contract, breach of trust agreement, and violations of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1145 (1985), 1 and requested a permanent injunction to compel future trust fund contributions.

After Local 206 petitioned to confirm the arbitration award, the NLRB filed a complaint against Local 206 alleging two violations of the National Labor Relations Act (“NLRA”). 29 U.S.C. § 158(b)(1)(B), (b)(3) (1973). 2 First, the NLRB claimed that Local 206 committed an unfair labor practice by withdrawing from the bargaining table and turning to the processes of the NJAB to compel an agreement. Second, the NLRB alleged that Local 206 committed an unfair labor practice by bringing suit in this court to confirm the NJAB award.

On November 24, 1986, this court granted West Coast’s motion to stay the petition of Local 206 to confirm the arbitration award pending resolution of the NLRB complaint against Local 206.

On March 10, 1987, the Administrative Law Judge (“ALJ”) adjudicating the NLRB’s complaint determined that Local 206 committed an unfair labor practice by insisting to impasse on nonmandatory subjects of bargaining in violation of the NLRA. As a remedy, the ALJ recommended that the NLRB order Local 206 to cease and desist from its unfair practices, and to bargain in good faith. The ALJ further recommended that Local 206 be required to dismiss its petition for confirmation of the NJAB award.

The Trust Funds now request a preliminary injunction requiring West Coast to make contributions to the Trust Funds, to furnish payroll remittance reports, and to provide mechanic’s lien information. West Coast seeks a stay of the Trust Funds’ counterclaim pending the resolution of the NLRB’s complaint against Local 206.

1. THE TRUST FUNDS’ MOTION FOR A PRELIMINARY INJUNCTION

To determine whether a preliminary injunction should issue, this court must first decide whether to apply ERISA or the standards and procedures of the Norris-LaGuardia Act, 29 U.S.C. § 101-115 (1973). This court must then consider whether the *1504 Trust Funds have made an adequate showing of an entitlement to injunctive relief.

A. The Procedural Requirements of the Norris-LaGuardia Act Do Not Limit the Equitable Relief Available Under ERISA.

At the outset, this court must resolve a dispute as to the proper authority for issuance of a preliminary injunction. West Coast argues that the Trust Funds’ claim for injunctive relief must be evaluated under the Norris-LaGuardia Act.

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660 F. Supp. 1500, 8 Employee Benefits Cas. (BNA) 1871, 125 L.R.R.M. (BNA) 3201, 1987 U.S. Dist. LEXIS 6674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-workers-international-assn-v-west-coast-sheet-metal-co-casd-1987.