Thomas v. Honeybrook Mines, Inc.

362 F. Supp. 747, 87 L.R.R.M. (BNA) 2531, 1973 U.S. Dist. LEXIS 14056
CourtDistrict Court, M.D. Pennsylvania
DecidedApril 13, 1973
DocketCiv. Nos. 8499, 8757, 9053, 9054, 9055, 9100, 9267, 9431, 9543 and 9702
StatusPublished

This text of 362 F. Supp. 747 (Thomas v. Honeybrook Mines, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Honeybrook Mines, Inc., 362 F. Supp. 747, 87 L.R.R.M. (BNA) 2531, 1973 U.S. Dist. LEXIS 14056 (M.D. Pa. 1973).

Opinion

MEMORANDUM

NEALON, District Judge.

Presently before the Court is a request for counsel fees by Intervenors, members of the Pensioned Anthracite Coal Miners Protest Executive Committee (hereinafter the Committee), from a fund produced as a result of lawsuits filed by the trustees of the Anthracite Health and Welfare Fund of the United Mine Workers of America against numerous coal companies. A previous application, supported solely by affidavits, was denied by this Court but this decision was reversed by the Court of Appeals, 428 F.2d 981 (3d Cir. 1970), and the case remanded for a hearing on the fee application “in the light of the legal principles announced in the opinion of the court.” Hearings were scheduled on January 11,' 12, and 13, 1972, and evidence received. Following the filing of the transcript, oral argument was held on September 28, 1972. Supplemental briefs were later submitted and the matter is now before the Court for disposition.

The following narration of events shall constitute findings of fact.

[748]*748FACTS

The Anthracite Health and Welfare Fund was created by the Anthracite Wage Agreement (hereinafter the Agreement) of June 7, 1946, and provided for the payment of a royalty on each ton of anthracite coal produced, from which pensions were to be paid to retired miners and death benefits to their families. The initial Agreement of June 7, 1946, called for the sum of 5$ per ton on each ton of anthracite produced for sale or for use to be paid into the Fund; this was increased to 10$ on July 10, 1947; 30$ on March 16, 1950; 50$ on October 1, 1952; and 70^ on February 1, 1959. The Fund was to be managed by three trustees, two appointed by the United Mine Workers (hereinafter the Union) and one by the Anthracite Operators (hereinafter the Operators). With the passage of Section 302 of the Labor-Management Relations Act of 1947, 29 U.S.C. § 186, which provided that the employees and employers be equally represented in the administration of such Fund, together with such neutral persons as may be agreed upon, one of the Union’s appointees was designated as the “neutral” trustee. The amount initially paid by the Fund was $100 per month to each pensioner and death benefits of $1,000 to widows and dependents, but in 1954 the pension was reduced to $50 per month and the death benefit to $500.1 During 1954, there were 90 producing coal operators subject to the Anthracite Wage Agreement and 65 were delinquent in their royalty payments. The record contains no information concerning the amounts delinquent prior to 1954, but on November 22, 1954, eleven lawsuits were commenced in State Courts seeking the payment of delinquencies amounting to $3,275,685.90. Most of these actions were never pursued beyond the complaint stage and only a small fractional amount was ever recovered. Additional lawsuits were commenced from 1955 through 1958, viz., one in 1955, four in 1956, seven in 1957, and six in 1958, with similar results. By the end of 1958, the number of delinquent operators had risen to one hundred and one (101), out of one hundred twenty-three (123) listed on the Fund’s records, and the outstanding delinquencies to $8,225,711.23. While each operator was required under the original Agreement to submit a statement to the Fund reporting its monthly coal production, the Agreement was amended on May 20, 1959, by a supplement which required that the monthly reports be submitted under oath, and granted the trustees the right to station checkers on the operators’ premises and to audit the operators’ books to verify tonnage figures. In 1959 the Fund employed two men as checkers, expended $19,865.98 for audits and $3,250 for legal services. No legal actions were commenced in 1959. In 1960 the employment of the two checkers continued and $11,963.28 was spent for audits and $3,000 for legal services. No legal actions were commenced in 1960 although the number of delinquent operators increased to one hundred and eleven (111) out of one hundred and nineteen (119) and the outstanding delinquencies to $9,672,967.65. The receipts for 1960 amounted to $9,635,361.64, from which pensions of $10,008,716.13 were paid, and the Fund balance had shrunk to a low of $369,413.42. In June, 1961, the pension was further reduced to $30 per month and on June 17, 1961, there was a meeting of pensioned miners held at Coal-dale, Schuylkill County, and at this meeting the Panther Valley Protest Committee was formed and one of the intervenors, Charles Nedd, was selected as Chairman. The Fund trustees at that time were Thomas Kennedy, President of the United Mine Workers of America; Harry J. Connolly, Chairman [749]*749of the Board, Pennsylvania Coal Company; and Mart F. Brennan, President, District 7, United Mine Workers of America.2 Commencing on June 26, 1961, Mr. Nedd and his Committee met with Mr. Brennan concerning the status of the Fund and the collection of delinquencies and were told by Brennan that he couldn’t “close collieries down” because he didn’t want to put working miners out of work. On December 14, 1961, Nedd and his Committee met with President Thomas Kennedy in Washington, D. C., and he stated similarly that the Union Executive Committee did not want to close down the operators and put men out of work. President Kennedy also refused to disclose the names of delinquent operators and the amounts of their delinquencies. In 1961, the employment of the two checkers continued and $916.95 was paid for audits and $2,500 for legal services. No legal actions were commenced in 1961, although the number of delinquent operators increased to one hundred and eighteen (118) out of one hundred and twenty-seven (127) and the outstanding delinquencies to $11,425,912.36. In January, 1962, Charles A. Shea, Esquire, a member of the Luzerne County Bar, was retained as Special Counsel to the Fund and, after reviewing the Fund files, became concerned (a) that the Welfare provisions of the Agreement did not comply with Section 302(c)(5) of the Labor Management Relations Act (noting that illegality of the Fund had been asserted as a defense in prior litigation brought by the Fund against the Operators),3 and (b) that the trustees might not have the right to institute suit to collect delinquencies inasmuch as the agreement vested title in the trustees of monies actually paid into the Fund but did not vest in them title to claims for monies owing to the Fund. Mr. Shea, consequently, recommended to the trustees that, prior to the institution of legal actions against delinquent operators, an effort be made to secure amendment of the agreement so that the language therein would conform to the Act and the possible disability of the trustees to sue removed. In the meantime, numerous mass meetings of pensioners, widows and their supporters were called by applicants throughout the anthracite region. Early in 1962, after United States Senator Joseph Clark recommended that the pensioners retain legal counsel, the Pensioners’ Committee met with counsel and, on August 15, 1962, retained James S. Palermo, Esq., of Hazelton and William Bruno, Esq., of Philadelphia, as counsel for the Committee.

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Related

Powell v. Pennsylvania Railroad Company
267 F.2d 241 (Third Circuit, 1959)
Thomas v. Honeybrook Mines
428 F.2d 981 (Third Circuit, 1970)

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Bluebook (online)
362 F. Supp. 747, 87 L.R.R.M. (BNA) 2531, 1973 U.S. Dist. LEXIS 14056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-honeybrook-mines-inc-pamd-1973.