United Mine Workers v. Rag American Coal Co.

392 F.3d 1233, 60 Fed. R. Serv. 3d 618, 176 L.R.R.M. (BNA) 2325, 2004 U.S. App. LEXIS 27198, 2004 WL 3017256
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 30, 2004
Docket02-1456
StatusPublished
Cited by6 cases

This text of 392 F.3d 1233 (United Mine Workers v. Rag American Coal Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Mine Workers v. Rag American Coal Co., 392 F.3d 1233, 60 Fed. R. Serv. 3d 618, 176 L.R.R.M. (BNA) 2325, 2004 U.S. App. LEXIS 27198, 2004 WL 3017256 (10th Cir. 2004).

Opinion

SEYMOUR, Circuit Judge.

This dispute arises out of a collective bargaining agreement (CBA) between the United Mine Workers of America (UMWA) and Amax Coal Company (Amax Coal). 1 In 1993, the UMWA and Amax Coal signed the National Bituminous Coal Wage Agreement (NBCWA), which required Amax Coal to include in any sale of its operations contract terms mandating that the purchaser assume Amax Coal’s obligations under the NBCWA; In 1996, Amax Coal sold a coal preparation plant to Cyprus Plateau Mining Company (Cyprus Plateau) but did not include in the terms of the sale provisions for the assumption of Amax Coal’s NBCWA obligations. By that time, both Amax Coal and Cyprus Plateau were wholly owned subsidiaries of a common parent company, Cyprus Amax Minerals Company (Cyprus Amax). Shortly after the plant’s sale, the UMWA filed suit in federal court alleging -that Amax Coal breached its contract with the UMWA and that Cyprus Plateau and Cyprus Amax tortiously interfered with that contract under Colorado law. A bifurcated trial followed, and a jury found for the UMWA on both claims. The parties then settled damages by stipulation. Amax Coal, Cyprus Plateau, .and Cyprus Amax appeal the judgments against them. We affirm in part and reverse in part.

I

The coal preparation plant at issue in this case, , the Castle Gate Plant, is located in central Utah. Prior to 1979, the Bratzah Corporation, a signatory to the 1974 NBCWA, owned the plant and adjacent Castle Gate Mines. Bratzah sold both the plant and the mines in 1979 to Price River Coal Company, which assumed Bratzah’s NBCWA obligations pursuant to the CBA’s successorship clause. Price River operated the facilities for several years, but closed them in 1984. Two years later, Price River sold them to Amax Coal. Amax reopened the Castle Gate Mines and the preparation plant and assumed Price River’s obligations under the NBCWA. As required by the agreement, Amax Coal recalled UMWA workers, formerly Price River employees, to staff the facilities.

'Geological complications at the Castle Gate Mines led to their closure in 1989. The Castle Gate Plant, while operational, had no coal to process without the Castle Gate Mines. Consequently, the plant closed as well) Amax Coal began looking for a buyer for all of its operations at the Castle Gate site, whether as separate mining and preparation facilities or as a whole. In 1990, Amax Coal first approached Cyprus Plateau about purchasing the Castle Gate Plant, but Cyprus Plateau was not interested.

While the Castle Gate Mines declined in productivity, Cyprus Plateau’s nearby Star Point Mine enjoyed success. A new market for Cyprus Plateau’s coal opened in the Pacific Rim, and in the late 1980s and *1236 early 1990s, Cyprus Plateau began searching for additional coal reserves. The company located such reserves very near the Castle Gate facilities at a site called Willow Creek, but the reserves there lacked a preparation plant.

The parent companies of Amax Coal and Cyprus Plateau merged in 1993 to form Cyprus Amax. The officers and directors of Amax Coal, Cyprus Plateau, and the newly formed Cyprus Amax were largely the same. Around the time of the merger, some of these officers began discussing a means by which Cyprus Plateau could acquire the Castle Gate Plant from Amax Coal for processing coal from Cyprus Plateau’s new Willow Creek reserves. In May 1995, Amax Coal and Cyprus Plateau entered into a letter agreement concerning such a transfer, and in January 1996, the two companies closed on a contract transferring ownership of the Castle Gate Plant from Amax Coal to Cyprus Plateau.

Cyprus Plateau was not a NBCWA signatory, and the contract between the two companies did not include a successorship clause requiring Cyprus Plateau to assume Amax Coal’s obligations under the NBCWA. In staffing the Castle Gate Plant, therefore, Cyprus Plateau relied on independent contract employees or non-UMWA workers from its Star Point mine. Cyprus Plateau did not recall former Amax Coal employees, all members of UMWA, to work at the Castle Gate Plant.

Believing the sale of the Castle Gate Plant from Amax Coal to Cyprus Plateau without the latter’s assumption of the former’s obligations under the NBCWA amounted to a breach of contract, the UMWA sued Amax Coal in federal court. It also sued Cyprus Amax and Cyprus Plateau for tortious interference with the contract. After four days of trial, the jury agreed with the UMWA and found for the union on its breach of contract and tortious interference claims. Amax Coal moved for judgment as a matter of law under Fed. R.CivP. 50 and for a new trial under Fed. R.Crv.P. 59, which the district court denied. Amax Coal appeals this ruling and also contends the district court’s instructions to the jury improperly construed the law of this circuit and require reversal. Cyprus Amax and Cyprus Plateau contend that § 301 of the Labor Management Relations Act of 1947 (LMRA), 29 U.S.C. § 185(a), preempts the UMWA’s tortious interference claim and, even if it does not, the district court improperly instructed the jury. We consider each contention in turn.

II

Amax Coal Appeal

A.

The successorship clause in the 1993 NBCWA signed by Amax Coal and the UMWA, was designed to preserve the union’s bargained-for rights upon the sale of certain company properties to non-signatories. The clause reads as follows:

This Agreement shall be binding upon all signatories hereto, including those Employers which are members of signatory associations, and their successors and assigns. In consideration of the Union’s execution of this Agreement, each Employer promises that its operations covered by this Agreement shall not be sold, conveyed, or otherwise transferred or assigned to any successor without first securing the agreement of the successor to assume the Employer’s obligations under the Agreement.

Aple. supp. app. at 211. The outcome of the UMWA’s breach of contract claim, and thus Amax Coal’s appeal, turns on the meaning of the term “operations” in the successorship clause because it is only the sale of “operations” that will trigger suc-cessorship obligations. Amax Coal contends that, as a matter of law, it did not *1237 transfer “operations” to Cyprus Plateau and that the district court erred in refusing to grant its Rule 50 motion on this issue or, at the minimum, grant its motion for new trial.

We review the district court’s denial of a motion for judgment as a matter of law de novo, using the same standard applicable in district court. Webb v. ABF Freight Sys., Inc., 155 F.3d 1230, 1238 (10th Cir.1998). “Despite the breadth of our de novo standard of review, we may upset the jury’s conclusion ‘only if the evidence points but one way and is susceptible to no reasonable inferences supporting the nonmoving party.’ ” Id. (quoting Yearous v. Niobrara County Mem. Hosp., 128 F.3d 1351, 1353 (10th Cir.1997)).

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392 F.3d 1233, 60 Fed. R. Serv. 3d 618, 176 L.R.R.M. (BNA) 2325, 2004 U.S. App. LEXIS 27198, 2004 WL 3017256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-mine-workers-v-rag-american-coal-co-ca10-2004.