Trustees of the Colorado Statewide Iron Workers (Erector) Joint Apprenticeship & Training Trust Fund v. A & P Steel, Inc.

812 F.2d 1518, 124 L.R.R.M. (BNA) 2878
Court of Appeals for the Tenth Circuit·Decided March 2, 1987·No. No. 84-1489·Published·Cited by 12 cases

Opinion

STEPHEN H. ANDERSON, Circuit Judge.

A & P Steel, Inc. (“A & P”) appeals from a judgment entered against it by the district court with respect to unpaid contributions to three Union trust funds under two successive collective bargaining agreements. The agreements in question are between (1) Locals 24 and 750 of the International Association of Bridge, Structural, and Ornamental Ironworkers, AFL-CIO (“Union”), and (2) employers who are members of or who have assigned their bargaining rights to the Associated General Contractors of Colorado (“AGC”). The agreements cover two successive three-year periods, from May 1975 through April 1978 and from May 1978 through April 1981. A & P conceded that it became a party to these agreements by virtue of its assignment of its bargaining rights to the AGC in January of 1975 and January of 1978.

The agreements required A & P to make specified contributions, based on the number of hours of “covered work” performed by its employees, to three Union Trust funds: the Colorado Ironworkers Pension Funds, the Ironworkers Welfare Plan of Colorado, and the Colorado Statewide Iron-workers (Erector) Joint Apprenticeship and Training Trust Fund (collectively “Trusts” and “Trustees”). A & P was also required to file monthly reports with the Trustees, which were to include, among other things, an accounting of the hours of covered work performed by employees of A & P. The agreements with the Union expansively defined covered work as “[a]ll work in connection with field fabrication and/or erection of structural, ornamental and reinforcing steel ... on or in all private and public building construction, whether or not classified as utility, heavy engineering, highway, industrial, institutional, commercial or other construction performed in the State of Colorado and portions of the States of Kansas and Nebraska____” Plaintiff’s Ex. 2 at 2, 8; Plaintiff’s Ex. 4 at 3, 9.

A & P filed the required monthly reports with the Trustees through January 1980, reporting in each instance that no covered work was performed by its employees, although such work was in fact performed. On November 4, 1980, the Trustees filed suit against A & P to collect the unpaid contributions relating to work covered under the agreements but not reported by A & P. On November 14, 1980, ten days after the suit was filed, the President of A & P, Mr. T.G. Pearce, sent letters to the Union informing them that:

A & P Steel, Inc. deems contract void and no effect because the Ironworker Union does not have a majority status with A & P Steel, Inc. who disavows and disaffirms any contract with Ironworkers at the below jobsite: [seven sites specified, one in each of seven letters].

Defendant’s Exs. C, D, E, F, G.

These letters point to a central legal consideration in this case, i.e., whether the agreements were prehire agreements with respect to A & P under section 8(f) of the National Labor Relations Act (“NLRA”), 29 U.S.C. § 158(f) (1982). As the letters reflect, either all or a substantial majority of A & P’s employees were not members of the Ironworkers’ Union. Section 8(f) of the NLRA “allows construction industry employers and unions to enter into agreements setting the terms and conditions of employment for the workers hired by the signatory employer without the union’s majority status first having been established in the manner provided for under § 9 of the Act.” Jim McNeff, Inc. v. Todd, 461 U.S. 260, 266, 103 S.Ct. 1753, 1756, 75 L.Ed.2d 830 (1983). As McNeff noted, (1) “[a] § 8(f) prehire agreement is subject to repudiation until the union establishes majority status,” (2) “when such an agreement is voluntarily executed, both parties must abide by its terms until it is repudiated,” and (3) “monetary obligations assumed by an employer under a prehire contract may be recovered in a § 301 [of the National Labor Management Act] action brought by a union prior to the repudiation of the [1521] contract.” Id. at 271-72, 103 S.Ct. at 1759. When monetary recovery was sought by the Union, A & P contended, among other things, that it had repudiated what it considered to be prehire agreements. The Union, in turn, maintained that A & P’s assignment of its bargaining rights to the AGO shifted the determination of majority status under the agreements to a determination of majority union representation with respect to all employees in the AGO, a multi-employer bargaining unit (“MEBU”), and not just with reference to an individual employer, i.e., A & P.

The district court referred the case to a special master for determination of the hours of “covered” work plus computation of contributions and damages. The special master found that during the period from May 1975 through December 1980 employees of A & P performed 27,929.5 hours of covered work. The district court subsequently adopted the report of the special master and entered judgment against A & P as follows: $62,580.07 in delinquent contributions; $52,513.02 in interest on the delinquent contributions to the day of trial; $52,513.02 in liquidated damages; $68,-462.70 in attorneys’ fees; and $5,144.12 in costs. The court also ordered A & P to pay interest on the $62,580.07 at 18% per annum from the day of trial to the date of payment, and interest on the remainder of the judgment at the statutory rate of 9.93% from the date of judgment.1 R.Vol. I at 118-19.

On appeal A & P makes four arguments: (1) that under the doctrine of frustration of purpose it was not obligated under the agreements because the Union delivered no benefits to A & P, (2) that in any event these collective bargaining agreements were only prehire agreements with respect to A & P, which A & P legally repudiated under the authority of McNeff, (3) that the defense of laches applied, and (4) that there were errors in the special master’s determination of the scope of work covered by the agreements and therefore in the size of the award to the Trustees.

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Trustees of the Colorado Statewide Iron Workers (Erector) Joint Apprenticeship & Training Trust Fund v. A & P Steel, Inc., 812 F.2d 1518, 124 L.R.R.M. (BNA) 2878 (10th Cir. 1987).

812 F.2d 1518 (Trustees of the Colorado Statewide Iron Workers (Erector) Joint Apprenticeship & Training Trust Fund v. A & P Steel, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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