Bd. of Trs. of the Plumbers v. R. & T. Schneider Plumbing Co.
| Decision Date | 10 July 2015 |
| Docket Number | Case No. 1:13-cv-858 |
| Parties | BOARD OF TRUSTEES OF THE PLUMBERS, PIPEFITTERS & MECHANICAL EQUIPMENT SERVICE, LOCAL UNION NO. 392 PENSION FUND, et al., Plaintiffs, v. R. AND T. SCHNEIDER PLUMBING CO., et al., Defendants. |
| Court | U.S. District Court — Southern District of Ohio |
This civil action is before the Court on Plaintiffs' Motion for Summary Judgment (Docs. 26, 29) and the parties' responsive memoranda (Docs. 30, 34), and Defendant Schneider Plumbing Co.'s Motion for Summary Judgment (Doc. 27) and the parties' responsive memoranda (Docs. 32, 35).
Plaintiffs include the trustees of four multi-employer pension and welfare fringe benefit trust funds, the trustees of an industry promotion trust fund, and a Union.1 Thefive trust funds were created by the terms of a collective bargaining agreement ("CBA") and trust agreements entered into between the Union and the Mechanical Contractors Association of Cincinnati, a multi-employer association that included Defendant R. and T. Schneider Plumbing Co. ("R&T"). The CBA requires employers to submit monthly reports of hours worked by covered employees, make contributions to the Pension, Health and Welfare, and SUB trust funds at fixed rates per employee-hour paid, make contributions to the Education and Industry Promotion trust funds at fixed rates per employee-hour worked, and deduct specified percentages from employees' wages for Union dues. R&T, owned by Tom Schneider, complied with these requirements until it ceased operations in June 2013. Contemporaneously, Defendant Schneider Plumbing Co. ("SP") began operations and considered itself a non-union company not bound by the CBA. SP is owned by Janine, Todd, and Casey Schneider, former employees of R&T and the wife and sons of Tom Schneider, RT's owner.
Pursuant to section 301 of the Labor-Management Relations Act ("LMRA"), 29 U.S.C. § 185, and sections 502 and 515 of the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. §§ 1132, 1145, Plaintiffs filed suit against R&T and SP, alleging that R&T has breached the CBA and that SP is bound by the CBA as the successor and alter ego of R&T. Plaintiffs seek to compel submission of the monthly reports and recover unpaid contributions and wage deductions, along with liquidated damages, "for all months subsequent to June 2013." (Doc. 1).
R&T did not respond to the complaint or otherwise defend in this action. Accordingly, the Court entered default judgment as to liability against R&T on June 11,2014. (Doc. 21). SP timely answered, and the parties commenced discovery. Subsequently, counsel entered an appearance on behalf of R&T and informed the Court at a status conference that R&T had dissolved and that counsel's participation was limited to facilitating discovery. (Doc. 22).
1. The Board of Trustees of the Plumbers, Pipefitters & Mechanical Equipment Service, Local Union No. 392 Pension Fund; the Plumbers, Pipefitters & Mechanical Equipment Service, Local Union No. 392 Health & Welfare Fund; the Plumbers, Pipefitters & Mechanical Equipment Service, Local Union No. 392 SUB Fund; the Plumbers, Pipefitters & Mechanical Equipment Service, Local Union No. 392 Education Trust Fund; and the Cincinnati Plumbing and Pipefitting Industry Promotion Trust Fund (collectively "Trust Funds") are authorized to administer the Trust Funds, which receive contributions from numerous employers pursuant to a Collective Bargaining Agreement ("CBA") between the employers and the Plumbers, Pipefitters & Mechanical Equipment Service, Local Union No. 392 ("Union"). (Doc. 29, Ex. 2 at Art. VIII).
2. Prior to its dissolution in July 2013, Defendant R. and T. Schneider Plumbing Co. ("R&T") was an employer engaged in an industry affecting commerce that agreed to be bound by the provisions of the CBA negotiated between the Union and the Mechanical Contractors Association of Cincinnati ("MCA"). (Id., Ex. 3 at 14).
3. Through the CBA, signatory employers also became bound by the provisions of the Agreements and Declarations of Trust, which created the Trust Funds, the Education Fund, and the Industry Fund (the "Trust Agreements"). (Id., Ex. 2 at Art. VIII).3
4. Pursuant to the provisions of the CBA and Trust Agreements, signatory employers were required to submit monthly reports of hours worked by its employees within the Trade and Territorial Jurisdiction of the Union. (Id.)
5. For each hour worked, signatory employers were required to pay contributions to the Trust Funds at the negotiated rates in the CBA for hours worked by its employees within the Trade and Territorial Jurisdiction of the Union. (Id.)4
6. Pursuant to the provisions of the CBA, signatory employers were required to deduct 2.25% of paid wages for Union dues plus an additional 2.5% check-off for the Local No. 392 Equality and Stabilization Program (hereinafter referred to as "check-off deductions"). Check-off deductions are required to be received or postmarked on or before the 15th day (or the first legal banking day thereafter) of the calendar month following the calendar month during which the work was performed. (Id. at Art. VII, § 4).5
7. Pursuant to the provisions of the CBA, signatory employers were required to deduct 8% of paid wages for submission to the Union administered Vacation & Savings Plan. (Id. at Art. VIII, § 6(a)).
8. Contribution Reports, contributions, check-off deductions and Vacation & Savings Plan deductions were required to be received or postmarked by the bank on or before the 15th day (or the first legal banking day thereafter) of the calendar month following the calendar month during which the work was performed. (Id. at Art. VIII, § 9).
9. Pursuant to the CBA, and the Trust Agreements, signatory employers who failed to submit their monthly Contribution Reports and contributions to the Trust Funds on a timely basis were responsible for the payment of liquidated damages equal to 8% of the amount unpaid plus any reasonable attorney's fees and costs of enforcing the payment of any contributions to the Trust Funds. (Id.)
10. Pursuant to the Evergreen Clause in the CBA, signatory employers agreed to be bound by successor CBAs, unless 60 days prior to the expiration date the Union or signatory employer gave notice of its intent to modify or terminate the CBA. (Id. at Art. XVII, § 18).
11. In 1986, Tom Schneider ("Tom") and Robert Schneider began operating R&T. (Id., Ex 3 at 8).
12. R&T performed both repair and construction plumbing work for residential and commercial clients. (Id. at 9-10).
13. Tom became the sole owner of R&T in 1993 or 1994. (Id. at 11).
14. Around 1993-1994, Tom ran the day to day operations of R&T and was the sole plumber working in the field for the company. (Id. at 15).
15. Janine Schneider ("Janine"), Tom's wife, worked as a secretary for R&T, and in the mid-to-late 1990s, began to take on more responsibility for financial matters, such as accounts receivable, accounts payable, payroll, and meeting with accountants. (Id., Ex. 4 at 13, 19-21).
16. From 1990 until June 2013, R&T operated out of Tom's and Janine's home at 7867 Foxtrot Drive, North Bend, Ohio 45052. (Id., Ex. 3 at 12, Ex. 4 at 6, 15-16).
17. Around 2009, R&T began leasing a garage on Harrison Street and Morgan Road (hereinafter referred to as the "Harrison Street Garage") to store vehicles, tools, and leftover material from other jobs. (Id., Ex. 3 at 24-27).
18. Tom and Janine have four sons: Todd Schneider ("Todd"), Casey Schneider ("Casey"), Tommy Schneider ("Tommy"), and Jake Schneider ("Jake"). (Id., Ex. 4 at 8).
19. Todd began working for R&T as an apprentice in 1999. Todd received his journeyman's card in 2004, after five years in the Local 392 Apprenticeship Program. (Id., Ex. 5 at 7-8, Ex. 7).
20. Casey began working for R&T as an apprentice in 2001 or 2002. Casey received his journeyman's card five years afterward and began working for R&T as a journeyman plumber in 2006 or 2007. (Id., Ex. 6 at 8-9, Ex. 7).
21. Scott DeGolyer ("Scott") worked as a journeyman plumber for R&T for many years until its dissolution in June 2013. (Id., Ex. 4 at 40, Ex. 7).
22. Ryan Keller worked for R&T as a helper. (Id., Ex. 4 at 41; Doc. 35-5 at ¶ 2).
23. Jon Schneider, the cousin of Todd and Casey, also worked for R&T as a helper. (Ex. 4 at 40-41, Ex. 5 at 18; Doc. 35-4 at ¶ 2).
24. R&T used the same telephone number until it ceased doing business on June 15, 2013. (Doc. 29, Ex. 4 at 7).
25. Beginning in the mid-1990s, all of R&T's invoices identified the company name as "Schneider Plumbing." (Id., Ex. 3 at 18-19, Ex. 4 at 18, Ex. 8).
26. From the early 1990's until June 2013, R&T did business as "Schneider Plumbing." (Id., Ex. 3 at 17-19).
27. R&T's vans and Tom's business cards displayed the name "Schneider Plumbing." (Id. at 19, 37).
28. R&T advertised in the Cincinnati Bell Yellow Pages as "Schneider Plumbing." (Id., Ex. 20).
29. Since the mid-to-late 1990s, Janine was the sole individual in charge of R&T's financial operations. (Id., Ex. 4 at 13, 18-19).
30. R&T maintained its only bank account with Cincinnati Federal Savings and Loan. (Id. at 20).
31. Janine was in charge of corresponding and submitting payments to the Yellowbook for advertising and was responsible for R&T maintaining liability insurance with Iori Insurance Company and workers compensation policy with Frank Gates. (Id. at 24-25, 30, 101).
32. Janine handled R&T's correspondence and payments with the individuals in the Fund Office at the Union for contributions and Contribution Reports. (Id. at 31-32).
33. Tom, Todd, Casey, and Scott worked in the field performing plumbing work and corresponding with the customers. Every morning, Todd, Casey, and Scott would go to the Harrison Street Garage to receive their assignments...
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