Valley Group Pipe Trades Trust Fund v. L. R. Strain Plumbing & Heating Co.

280 P.2d 536, 131 Cal. App. 2d 432, 36 L.R.R.M. (BNA) 2132, 1955 Cal. App. LEXIS 2068
CourtCalifornia Court of Appeal
DecidedMarch 11, 1955
DocketCiv. No. 4914
StatusPublished
Cited by1 cases

This text of 280 P.2d 536 (Valley Group Pipe Trades Trust Fund v. L. R. Strain Plumbing & Heating Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley Group Pipe Trades Trust Fund v. L. R. Strain Plumbing & Heating Co., 280 P.2d 536, 131 Cal. App. 2d 432, 36 L.R.R.M. (BNA) 2132, 1955 Cal. App. LEXIS 2068 (Cal. Ct. App. 1955).

Opinion

GRIFFIN, J.

This is an action for an accounting between the plaintiffs and appellants, as members of the Valley Group Pipe Trades Trust Fund, and defendant and respondent L. R. Strain Plumbing and Heating Company, Inc., a corporation. It arises out of claimed written collective bargaining agreements, not signed by defendant corporation, which provide that the employer shall contribute to said trust fund (welfare fund) 7% cents per hour for each hour worked by each employee, for the purpose of purchasing certain insurance benefits for the employees. The claim is that although defendant did not sign these instruments, it did, by oral declarations, promises and acts of the officers [433]*433of the corporation, agree to be bound by them and failed to make such payments. The court found against plaintiffs’ contentions and found generally that defendant neither “orally agreed or otherwise” to become bound by the agreement to pay any amount into said welfare trust fund, nor did it agree to be bound by the provisions of the collective bargaining agreement and declaration of trust.

Defendant was engaged in the general plumbing and contracting business. It was incorporated in 1948. L. R. Strain was president and principal stockholder. Apparently, defendant was then operating under an agreement dated June 23, 1947, between the “Northern California Conference of the Plumbing and Heating Industry, Inc” (of which defendant was not a member) and such other employers as “may become signatory hereto” and certain listed local unions. The agreement applied to all workmen employed by the individual employers covered by the agreement in which they recognized the union as the sole collective bargaining representative of all such employees performing work over which the nnion had jurisdiction. Therein the union agreed to furnish competent workmen for the production of all work covered by the agreement. It likewise contained a provision in reference to a contemplated welfare plan in which the parties signatory agreed “subject to any wage stabilization policies” or requirements, that they will establish a health and welfare plan for workmen covered by the agreement to be jointly administered by a board of trustees of five representatives of employers and five representatives of the union, commencing August 1, 1951, and that the individual employer shall pay $.075 per hour for each hour worked by workmen into the welfare fund. It also provided that in the event no welfare fund was established, etc., the $.075 should be returned to the individual employer paying into the fnnd. It provided that the agreement was to be effective as of June 30, 1951, and remain in force until June 30, 1952, and from year to year thereafter unless 60 days’ notice was given of a desire to modify or change its terms. The agreement received in evidence (Ex. 5) does not indicate that defendant became a signatory thereto. The health and welfare plan here referred to was never established or set up under that agreement, and defendant made no payments under it.

A “Master Contract” (Ex. 1) between Northern California Plumbing and Heating Industry, Inc., as employer on behalf [434]*434of certain designated employer associations, and individual employers covered by the agreement and the Valley Group Negotiating Committee, was entered into on July 20, 1952. This represented certain specific local unions in different districts, including Fresno Local No. 246, of which L. R. Strain, individually, was a card-holding member. Defendant corporation was not a member of any one of these named associations and it did not sign the agreement. By its terms, among other things (§14), provision is made for a welfare plan whereby each individual employer shall pay to the welfare fund $.075 per hour for each hour worked by each employee employed on work covered by the agreement, effective “as of June 30, 1951, since January 1, 1952” to July 20, 1952; the fund to be administered by a board of trustees in accordance with the provisions of a trust instrument executed on June 24,1952 (Ex. 2) and all payments for hours already worked since January 1, 1952 to April 4, 1952, should be “made in full thirty (30) days from the date of C.I.S.C. approval” and all payments made for hours worked after July 20, 1952, shall be made in accordance with the provisions of the trust agreement (Ex. 2). Exhibit 2 declares and creates a trust fund to be known as Valley Group Pipe Trades Trust Fund. It defines “employer” as used in the agreement to be Northern California Conference of the Plumbing and Heating Industry, Inc., and the Northern California and Central California Negotiating Committee for Industrial Pipe Work Contractors, as representing “individual employers,” which means any employer covered by a collective bargaining agreement with the “Union” and who “assents and consents” to participate in and contribute to the fund. It then sets out the powers of the trustees and includes the right to collect said contributions. The agreement and declaration of trust is made effective as of January 1, 1952. It was signed by the parties indicated, the Valley Negotiating Committee, five “Union trustees” and five “Employer trustees. ’ ’ Defendant corporation was not a signatory thereon and was not a member of any of these groups under the name or title indicated.

On July 28, 1952, it is claimed that a circular letter (Ex. 7) was addressed and mailed to L. R. Strain individually, from one Reeves, business manager for the union, advising him that “an Agreement covering Plumbing, Heating, Refrigeration and Piping has been reached effective July 3rd, 1952, between the Northern California Conference of the [435]*435Plumbing and Heating Industry, Inc., also the Northern and Central Chapters of the Associated General Contractors of America and the Valley Group Negotiating Committee. The Valley Group Negotiating Committee represents Local Unions 62- 228- 246. . . . Seven and one half ($.075) per hour retroactive to January 1st, 1952, to be paid within 30 days of date of approval which was obtained on July 21st. Employers have until August 20th to send their payments to Valley Group Pipe Trades Trust Fund. . . . Forms will be mailed to you in the near future which will be self explanatory so these payments can be made properly.”

The letter also contained other changes that had been made in reference to wages, overtime, etc. (There is no direct proof that defendant received this letter.) Exhibits 1 and 2 were submitted to Strain for signature, but the corporation refused to sign it. Strain died on September 28, 1952. The corporation ceased to employ members of the union after December, 1952, and it ceased business on February 9, 1953.

It is plaintiffs’ contention, as pleaded in their complaint, that notwithstanding defendant corporation was not a signatory of either Exhibits 1 or 2, or a member of any association or group therein mentioned, it did, through its president, Strain, prior to the effective date of the welfare plan, ‘ ‘ agree orally” with Local Union No. 246, one of the participating unions, “in consideration of the furnishing” of workmen to work for defendant corporation by said union, to be bound by all of the provisions of Exhibits 1 and 2, requiring defendant to pay into that trust fund, for the purpose therein indicated, the sum therein provided; that after January 1, 1952, workmen were supplied and defendant refused to pay about $3,000 into that fund. An accounting is sought under these agreements for the period between January 1, 1952, and February 9, 1953.

In support of their contentions plaintiffs cite such cases as

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280 P.2d 536, 131 Cal. App. 2d 432, 36 L.R.R.M. (BNA) 2132, 1955 Cal. App. LEXIS 2068, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valley-group-pipe-trades-trust-fund-v-l-r-strain-plumbing-heating-co-calctapp-1955.