W. W. Gay v. Brencorp, Inc.

554 F. App'x 811
CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 4, 2014
Docket13-13075
StatusUnpublished
Cited by1 cases

This text of 554 F. App'x 811 (W. W. Gay v. Brencorp, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W. W. Gay v. Brencorp, Inc., 554 F. App'x 811 (11th Cir. 2014).

Opinion

PER CURIAM:

Brencorp, Inc., an industrial contracting company, appeals the district court’s entry of judgment in favor of the trustees of the Jacksonville Plumbers and Pipefitters Local Union 234 (the Union) based on Bren-corp’s failure to make contributions to the Union’s fringe benefit funds required by a collective bargaining agreement (CBA). Brencorp argues the district court erred in deciding that Brencorp was bound by the CBA because Kenneth Welchel, the employee who signed the CBA on Brencorp’s behalf, was not authorized to do so. 1 In *813 addition, Brencorp argues the district court erred by finding that, regardless of Welchel’s authority, Brencorp ratified his signing of the CBA through its conduct. Upon review, we conclude the district court did not err and affirm.

I. BACKGROUND

Brencorp’s negotiations with the Union began after Anheuser-Busch contracted with Brencorp to install equipment at its Jacksonville, Florida, facility beginning on August 6, 2007. 2 On August 1, 2007, Ted Brennan, Brencorp’s president and sole executive officer, sent a letter to the Union proposing to staff the project with union labor and pay wages and benefits according to the Union’s CBA. However, Brennan proposed that the agreement would self-terminate upon the project’s completion, whereas the Union preferred Bren-corp to agree to the CBA and its standard three-year duration. Accordingly, Jimmy Johnson, the Union’s business manager, responded to Brennan’s letter by sending him two copies of the CBA and asking him to sign and return one of them. Brennan received this response on August 3, 2007, three days before the project’s start date. Later that day, Brennan and Johnson had a 41-minute telephone conversation during which they reiterated their positions on whether they would enter into a one job agreement or the standard CBA.

Brencorp assigned Welchel to the project. Welchel was a member of the Plumbers, Pipefitters, and Service Technicians Local Union 72 based in Atlanta, Georgia who worked with Brencorp as a project supervisor. At trial, Welchel testified to a number of facts surrounding his signing of the CBAs.

Welchel stated that he worked on the project for three-to-four weeks at Bren-corp’s offices in Cartersville, Georgia, before traveling to Jacksonville to supervise the project and meet with Union representatives. At the time he traveled to Jacksonville, Welchel believed Brencorp and the Union had already reached an agreement, but Johnson told him that no agreement had been signed and that, despite Brencorp’s preference for a one job agreement, the Union would not provide labor if Brencorp did not sign a CBA. Welchel initially told Johnson the issue was “out of [his] hands” and that he did not come to Jacksonville to sign an agreement. Wel-schel testified that he subsequently spoke to Brennan about the need to sign a CBA, but Brennan “kept putting it off’ until the project was soon to begin. In the following exchange, Welchel described what happened next:

Q. And what happened when it came down to the wire and the job was supposed to start?
A. Well, I’ve had a couple of conversations with Mr. Brennan about that, you know, and I told him, I said, you know, if he doesn’t sign with [the Union], then I’m not going to run the job with nonunion people. And — you know. Well, he knew that before I left Cartersville.
And when it came right down to when we had to actually put manpower on site, and I had talked to Mr. Brennan on that particular day, I believe it was, and, you know, I asked him, you know, “What are we going to do? I can’t hire anybody because we don’t have an agreement with them.”
*814 And I believe his comments were, “Well, I’m not going to sign it. If you want to sign it, go down there and sign it.” And so I did.
Q. Mr. Welchel, did you believe that Mr. Brennan had authorized you to go sign the agreement?
A. Yeah. I would not have went down there on my own if I hadn’t of [sic] communicated with him about it. I would have just came back to Carters-ville.

Brennan’s testimony at trial concerning this exchange was substantially similar. He testified, “I told Mr. Welchel that I’m not signing an agreement. You do it if you want.” He then elaborated, testifying, “I said, ‘I’m not signing the agreement. You go fucking sign it if you want to.’ ” Contrary to Welchel’s testimony, Brennan testified that because he only needed three workers for the first month of the project, “[t]here was no press on time.”

Welchel signed the CBA on August 3, 2007. However, the CBA’s three-year term was set to expire only 28 days after it was signed and 25 days after the project began. Consequently, the Union asked Brencorp to sign a second CBA shortly after Welchel had signed the first.

Welchel gave conflicting testimony regarding the signing of the second CBA. At trial, he first testified that he did not recall having a discussion with Brennan about signing the second CBA because “[i]t didn’t really seem necessary” given he had just signed the first. Welchel stated, “we had signed the [first] agreement, and that time period or that time frame of that particular agreement had run out and for us to continue working down there, we had to sign the updated agreement.” However, at his deposition Welchel stated that he told Brennan that the second CBA “[had] to be signed if we’re going to keep these people out here” and that Brennan responded by telling him something to the effect of “sign it if you want to.” At trial, when counsel for the Union read this deposition testimony to him and asked if it refreshed his recollection, Welchel said, ‘Yes, it does, absolutely.” He then testified that he had shown Brennan the agreement and that Brennan “kind of tossed it across the room there.” Brennan agreed that he had thrown a CBA across the room but stated that he did not recall any conversations about the second CBA. He could only recall telling Welchel to sign the first CBA if he wanted to sign it and denied ever seeing that the CBAs had been signed. Brennan added that he first learned Welchel had signed the CBAs on Brencorp’s behalf after the project had been completed.

Brencorp completed the project in June 2008 with Union labor and made all the benefit-fund contributions the CBA required for that labor. Brencorp later worked on other jobs covered by the second CBA without making the required contributions, prompting the Union to commence this action.

The parties consented to a bench trial before a magistrate judge. Following the bench trial, the magistrate judge made two credibility determinations. First, finding Welchel’s testimony more credible than Brennan’s, the magistrate judge determined that Brennan did tell Welchel to sign the second CBA if he wanted to sign it. The magistrate judge noted an inconsistency between Brennan’s deposition and trial testimony 3 and observed that Brennan “testified merely that he did not recall *815

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554 F. App'x 811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-w-gay-v-brencorp-inc-ca11-2014.