Trustees of the Kansas Building Trades Open End Health & Welfare Trust Fund v. Lillich

889 F. Supp. 441, 1995 U.S. Dist. LEXIS 9625, 1995 WL 400080
CourtDistrict Court, D. Kansas
DecidedJune 7, 1995
DocketCiv. A. No. 93-4252-DES
StatusPublished

This text of 889 F. Supp. 441 (Trustees of the Kansas Building Trades Open End Health & Welfare Trust Fund v. Lillich) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of the Kansas Building Trades Open End Health & Welfare Trust Fund v. Lillich, 889 F. Supp. 441, 1995 U.S. Dist. LEXIS 9625, 1995 WL 400080 (D. Kan. 1995).

Opinion

MEMORANDUM AND ORDER

SAFFELS, District Judge.

I. INTRODUCTION

This matter is before the court on plaintiffs’ Motion for Summary Judgment (Doc. 9). Defendants have filed a response to plaintiffs’ motion and also filed a Motion for Summary Judgment (Doc. 12).

This case arises out of a dispute between plaintiffs, the trustees of benefit plans on behalf of the trustees, participants and beneficiaries, and defendants, the employers of members of Bricklayers and Allied Craftsman International Union of America Local Union No. 3, Topeka, Kansas, and Local Union No. 11, Emporia, Kansas (“Union”). The dispute concerns the defendants’ failure to make timely payments into the fund pursuant to an agreement between the parties.

Plaintiffs bring this action under the Labor Management Relations Act of 1947, 29 U.S.C. § 185(a); the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1132(f); and the Multiemployer Pension Plan Amendments Act of 1980 (“MPPA”), 29 U.S.C. § 1060.

II. FACTUAL AND PROCEDURAL BACKGROUND

The defendants and the Union signed a collective bargaining agreement, the last of which covered the period of time from April 1, 1991, through March 31, 1992. In addition, a Health and Welfare Trust Non-Bar[443]*443gaining Agreement was signed. In conjunction with the collective bargaining agreement, defendants agreed to contribute to the Kansas Building Trades Open End Health and Welfare Trust and Topeka Bricklayers Pension Plan.

The collective bargaining agreement was signed by the parties without the Union establishing that it was selected by a majority of the employer’s employees within an appropriate unit to represent them for purposes of collective bargaining with regard to the terms and conditions of employment. The agreement signed by the parties is often referred to as a “prehire agreement” as that term is used by the Labor Management Relations Act. 29 U.S.C. § 158(f). The defendant is an employer engaged in “primarily the building and construction industry” as such term is used within the Labor Management Relations Act. 29 U.S.C. § 158(f).

Article XV, paragraph 1 of the agreement between the Union and the defendants provides for automatic renewal of the contract unless reopened for negotiation by written notification.

In a letter dated January 23, 1992, Nelven Smith (“Smith”), Business Representative for Bricklayers & Allied Craftsmen Local No. 3 requested the opportunity to begin negotiations with defendants for the purpose of arriving at a new contract. In a letter dated January 27, 1992, defendant, Charles Lillich (“Lillich”), owner and partner in Perfection II Masonry responded with written notice to the Union that it would like to re-open negotiations and not automatically renew the contract in force at the time.

Article XV of the agreement between the Union and the defendants calls for the parties to present their proposals for a new contract at the first called meeting for renegotiation. Article XV, paragraph 2, requires that upon re-opening the contract the parties begin negotiation not later than 40 days before the expiration of the agreement.

The January 23, 1992, letter Smith sent to the defendants read:

We would like the oppertunity (sic) to commence negotiations with you for the purpose of arriving at a contract. I will need to know if February 19, 1992, 2:00 p.m. is agreeable with you. There will be several contractors to get together with us at the same time.
The January 27, 1992, memo from Lillich read:
In accordance with our contract, we are giving you our initial written notice, not less than 60 days prior to the expiration date of March 30, 1992 that we would like to re-open the agreement and not automatically renew it.

Following this exchange of correspondence, the Union met with other employers on February 19, but defendant did not attend the meeting.

Article XV, paragraph 3 of the Agreement provides:

If this Agreement is re-opened and negotiations settlement is not reached by the expiration date, the Agreement shall remain in full force and effect until negotiations are broken off by either party through letter advice, addressed to the appropriate party, sent by Certified Mail, return receipt requested.

The Union signed a contract with other masonry contractors on February 19, 1992. The Union and the defendants did not meet to negotiate and the defendants did not sign on to the agreement signed by the other contractors. No notice was given by either the Union or the defendants that negotiations were deemed “broken off.”

Defendant ceased making contributions to the fund on April 1, 1992.

On October 13, 1992, counsel for plaintiffs wrote to defendants advising that plaintiffs considered the old agreement valid and in full force and effect. The letter also stated a willingness to listen to any proposals defendants had for a new collective bargaining agreement. On November 2, 1992, the defendants, through their attorney notified the fund attorney and rejected the Union’s request to renegotiate until such time as the Union established its majority status by secret ballot election conducted by the National Labor Relations Board.

[444]*444By letters dated October 13, 1992, and December 23, 1992, plaintiffs made demand for payment of delinquent contributions from the defendant.

On November 30, 1993, the present action was commenced.

By order filed on March 14, 1994, the magistrate ruled that no discovery or trial was required and that the matter should be determined upon dispositive motions. Both parties filed motions for summary judgment and appropriate responses thereto.

The court has now thoroughly reviewed the file and the relevant law and is prepared to rule.

III. STANDARD OF REVIEW

A court shall render summary judgment upon a showing that there is no genuine issue of material fact and that the movant is entitled to a judgment as a matter of law. Fed.R.Civ.P. 56(c). The rule provides that “the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The substantive law identifies which issues are material. Id. at 248, 106 S.Ct. at 2510. A dispute over a material fact is genuine when the evidence is such that a reasonable jury could find for the nonmovant. Id.

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889 F. Supp. 441, 1995 U.S. Dist. LEXIS 9625, 1995 WL 400080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-the-kansas-building-trades-open-end-health-welfare-trust-fund-ksd-1995.