William Charles Construction Co. v. Teamsters Local Union 627

827 F.3d 672, 206 L.R.R.M. (BNA) 3465, 2016 U.S. App. LEXIS 11851, 2016 WL 3548363
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 29, 2016
Docket15-1613
StatusPublished
Cited by6 cases

This text of 827 F.3d 672 (William Charles Construction Co. v. Teamsters Local Union 627) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Charles Construction Co. v. Teamsters Local Union 627, 827 F.3d 672, 206 L.R.R.M. (BNA) 3465, 2016 U.S. App. LEXIS 11851, 2016 WL 3548363 (7th Cir. 2016).

Opinion

MANION, Circuit Judge.

William Charles Construction Company, LLC (“William Charles”) entered into a labor agreement with the Illinois Department of Transportation (“IDOT”) for a construction project to expand a section of a two-lane highway into four lanes. At the start of construction, a jurisdictional dispute 1 arose between two unions, each claiming the right for their member drivers to operate the large trucks involved in the excavation work. The dispute was eventually resolved by an arbitrator, but a subsequent award by a Joint Grievance Committee (“JGC”) under a subordinate collective bargaining agreement caused another problem.

That problem is the main subject of this case. William Charles and Teamsters Local Union 627 (“Teamsters”) dispute the validity of the JGC award. The award determined that William Charles owed the Teamsters back pay and fringe benefit contributions (amounting to approximately $1.4 million) for having assigned the operation of the heavy trucks to the International Union of Operating Engineers Local 649 (“Engineers”) rather than the Teamsters. The case also involves a second, much smaller, JGC award that determined that William Charles was liable for two days’ back pay for having assigned work to two Teamsters in violation of two other Teamsters’ seniority rights.

William Charles filed a declaratory action under § 301 of the Labor-Management Relations Act (“LMRA”), 29 U.S.C. § 185, to establish that the arbitration award was the only enforceable award, which would have meant that the JGC awards were invalid. The Teamsters filed a counterclaim seeking enforcement of the JGC awards and a motion for summary judgment on the complaint and counterclaim. The district court granted the Teamsters’ motion for summary judgment *675 after finding that William Charles filed its complaint outside the statute of limitations for challenging the awards.

We reverse the district court’s grant of summary judgment to the Teamsters, dismiss the Teamsters’ counterclaim for enforcement of one of the JGC awards, and remand for further proceedings. William Charles’s challenge to the JGC awards is not barred by the statute of limitations because William Charles did hot receive notice of the awards’ final entry. Furthermore, the greater of the two JGC awards is void because William Charles did not agree to arbitration by the JGC.

I. Background

In January 2013, IDOT started the Biggsville Project. The project’s aim was to widen Route 34 from two lanes to four where it ran past Biggsville, Illinois, a very small town near the western border of central Illinois. IDOT required the various contractors and unions involved to sign a Project Labor Agreement (“PLA”). The PLA served as a master Collective Bargaining Agreement (“CBA”) for everyone working on the project. The PLA required that signatories abide by the pertinent CBAs then in force between the various contractors and unions, provided that the CBAs did not conflict with the PLA. In the event of a conflict, the PLA controlled. The PLA provided that labor disputes were to be resolved by the grievance procedures of the applicable CBA. However, and importantly, the PLA specifically excluded jurisdictional labor disputes from this provision. Instead, the PLA provided its own method for resolving jurisdictional disputes and provided that such resolutions would be final. Both William Charles and the Teamsters were signatories to the PLA.

Work on the Biggsville project began in May 2013. William Charles’s work included the use of sixteen articulated-end dump trucks (“AED trucks”). AED trucks are big off-road dump trucks that bend in the middle like semi-trucks. Because they are a cross between a standard dump truck and a piece of heavy construction equipment, they are within the jurisdictions of both the Teamsters and the International Union of Operating Engineers. At a pre-job conference on May 15, 2013, William Charles assigned the operation of its AED trucks to the Engineers, despite the Teamsters’ objection that the work should be assigned to them. Work commenced on the Biggsville project with the Engineers operating the AED trucks.

Work continued on the project for approximately four months and was approximately 90% complete when, in late September 2013, the Teamsters brought a jurisdictional grievance under the PLA against the Engineers over the operation of the AED trucks. The dispute proceeded to arbitration on October 30, 2013, before Glenn A. Zipp, one of the PLA’s predesignated, neutral arbitrators. Zipp recognized that William Charles’s past practice was to assign AED trucks to Engineers in all but two counties. He also recognized that using the Engineers was likely more efficient since the drivers also had to operate scrapers, which was undisputedly the jurisdiction of the Engineers. Nevertheless, Zipp ruled that the PLA required him to apply- a pre-existing jurisdiction agreement between the two unions, and that the agreement required the AED trucks to be assigned to the Teamsters. William Charles accepted the decision and reassigned the work to the Teamsters the next day. (At this point, only six trucks remained in use because the project was nearly complete.) William Charles then signed a participation agreement with the Teamsters’ benefit fund, and began making benefit contribu *676 tion payments. Zipp’s decision did not award the Teamsters any back pay or benefits.

On November 5, 2013, five days after Zipp’s ruling, the Teamsters filed a new grievance. This time the grievance was against William Charles instead of the Engineers. The grievance alleged the same conduct complained of in the Teamsters’ previous grievance against the Engineers, that is, that William Charles assigned the operation of sixteen AED trucks on the Biggsville project to the Engineers over the objection of the Teamsters. The Teamsters did not submit their grievance under the PLA. Instead, they submitted it under a CBA between the Associated General Contractors of Illinois (“AGCI”) and the Illinois Conference of Teamsters called the Articles of Construction Agreement (“ACA”). The grievance alleged that William Charles violated several articles of the ACA by assigning operation of the AED trucks to the Engineers. However, the sole rationale given for why the assignment was a violation of the ACA was Zipp’s ruling in the previous jurisdictional dispute that the operation of the trucks was the work of the Teamsters.

William Charles was not a signatory to the ACA. However, since the ACA was the applicable area-CBA for the Teamsters, the PLA required William Charles to abide by it, but, importantly, only so long as it did not conflict with the PLA. Under the ACA’s dispute resolution mechanisms, disputes were first referred to a JGC comprised of equal membership from the AGCI and the Teamsters. (William Charles was not a member of the AGCI, though some of its competitors were.) Only if the JGC was deadlocked could the dispute be referred to an outside arbitrator.

In a letter to the Teamsters dated November 20, 2013, William Charles’s general superintendent, James Kohlhorst, objected to the new grievance. Kohlhorst wrote that the grievance was really just the previous jurisdictional dispute between the two unions, not a misassignment by William Charles.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
827 F.3d 672, 206 L.R.R.M. (BNA) 3465, 2016 U.S. App. LEXIS 11851, 2016 WL 3548363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-charles-construction-co-v-teamsters-local-union-627-ca7-2016.