Kennedy & Co., Inc. v. International Broth. of Teamsters, 4:02-CV-40521.

Decision Date26 April 2004
Docket NumberNo. 4:02-CV-40521.,4:02-CV-40521.
Citation315 F.Supp.2d 992
PartiesKENNEDY & COMPANY, INC.; and The Weitz Company, LLC, Plaintiff, v. INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL UNION NO. 90, Defendant.
CourtU.S. District Court — Southern District of Iowa

Kelly R. Baier, Bradley & Riley, Cedar Rapids, IA, for Plaintiff.

Gerry M. Miller, Andrea F. Hoeschen, Previant Goldberg Uelmen Gratz Miller &amp Brueggemann SC, Milwaukee, WI, Paige E. Fiedler, Fiedler Townsend & Newkirk PLC, Johnston, IA, for Defendant.

ORDER ON MOTIONS FOR SUMMARY JUDGMENT

GRITZNER, District Judge.

This matter is before the Court on a Motion for Summary Judgment filed by Plaintiff Weitz. Co. (Clerk's No. 22) and a Motion for Summary Judgment filed by Defendant Local Union No. 90 (Clerk's No. 18). Attorneys for Plaintiffs are Kelly R. Baier and Benjamin B. Dvergsten; attorneys for Defendant are Paige Fiedler, Gerry M. Miller, and Andrea F. Hoeschen. No hearing has been requested, and the Court finds that a hearing is not necessary. The Court considers the matter fully submitted for ruling on the pending motions.

PROCEDURAL HISTORY

The Plaintiffs, The Weitz Company, LLC ("Weitz"), and Kennedy and Company, Inc. ("Kennedy"), filed separate complaints against Defendant, International Brotherhood of Teamsters Local Union No. 90 ("Local 90" or "the Union"), individually on October 9, 2002, respectively. The Court consolidated these lawsuits on December 1, 2003.1

On December 4, 2003, both Weitz and Local 90 filed motions for summary judgment. While Kennedy did not file a separate motion for summary judgment, it did join Weitz in resisting the Union's motion. The Union has in turn resisted the motion filed by Weitz. Trial is scheduled for the week beginning May 17, 2004.

BACKGROUND FACTS

Weitz is an Iowa limited liability company engaged as a construction contractor in the building and construction industry. Its principal place of business is located in Des Moines, Iowa. Weitz was the general contractor at construction projects for Wells Fargo and the Iowa Blood Center. Weitz is an employer engaged in interstate commerce within the meaning of sections 2(2), 2(6), and 2(7) of the National Labor Relations Act ("NLRA"), 29 U.S.C. § 152(2), (6), (7).

Kennedy is an Iowa corporation engaged as a construction contractor in the building and construction industry. Its principal place of business is located in Des Moines, Iowa. Kennedy was a subcontractor to J.E. Dunn and Taylor Ball on the construction project at the Allied Mutual Insurance Company Building and to Neumann Brothers, Inc., on the construction of the Iowa Judicial Branch Building. Kennedy provided drywall installation and finishing work. Kennedy is an employer engaged in interstate commerce within the meaning of NLRA sections 2(2), 2(6), and 2(7), 29 U.S.C. § 152(2), (6), (7).

Local 90 is a labor organization within the meaning of section 2(5) of the NLRA, 29 U.S.C. § 152(5). Local 90 is comprised of truck drivers, various haulers, warehouse employees, and machine operators. Local 90 has officers and representatives located in Des Moines, Iowa. The Union is the certified collective bargaining representative for employees of A-1 Ready Mix ("A-1") and Crown Redi-Mix ("Crown").

Local 90 had collective bargaining agreements with A-1 and Crown for a term of three years. The collective bargaining agreements expired on April 30, 2002. Local 90, A-1, and Crown agreed to operate under the expired contract until May 10, 2002, while they attempted to negotiate a new collective bargaining agreement. The ready-mix companies and Local 90 were unable to reach a final agreement on a collective bargaining agreement by May 10, 2002. The Union went on strike against the ready-mix companies. The strike against A-1 lasted until May 27, 2002, and the strike against Crown lasted until June 25, 2002.

While Weitz had a collective bargaining agreement with Local 90 to hire union drivers, it did not employ anyone in the ready-mix business, and there was no labor dispute between Weitz and Local 90. Likewise, there was no labor dispute between Kennedy and Local 90.

Until the strike, Crown provided all of the ready-mix for the Wells Fargo Project, and A-1 provided all of the ready-mix for the Blood Center of Iowa project, the Iowa Judicial Branch Building project, and the Allied Mutual Insurance project. Neither Crown nor A-1 drivers delivered any ready-mix during their respective strikes. In addition, Weitz did not schedule or attempt to have concrete deliveries made to their construction sites on May 13, 14, or 15, 2002.

On May 13, 14, and 15, 2002, Union members positioned themselves near the entrances to each of the four construction sites. There were no reserve gates at any of the sites. According to Local 90, Union members did not march, display picket signs, or block entrances, nor did they ask any employees of the contractors to stay away from the construction sites.

Admittedly, Union members did have some pickets signs. Some of the signs identified Crown and A-1 and were to be displayed in the event either company tried to use replacement workers to deliver ready-mix to the construction sites. The remainder of the signs were jeopardizing, area standards signs to be displayed in the event nonunion companies with below-standard wages or benefits tried to deliver ready-mix. According to Local 90, the Union instructed its members that they could only display jeopardizing or area standards signs at the constructions sites, and only if a nonunion truck was trying to make a delivery. None of the picket signs identified Weitz or Kennedy.

Weitz asserts the Union members' actions on May 13, 2002, constituted picketing by Local 90. Weitz contends that as a result of the Union's actions, Weitz employees who were union members in trades other than those represented by Local 90 refused to cross the picket to work at the Wells Fargo and Iowa Blood Center construction sites, even though there was productive work for them to do. Work on the Wells Fargo and Iowa Blood Center sites was shut down for the day as a result.

Scott Norvell, a representative of the trade organization Master Builders of Iowa, went to the picket sites to determine the objective of the pickets and to express his opinion that the picket was illegal given that there were no concrete deliveries attempted for the day. Mr. Norvell suggested to the Union members that they seek advice about the legality of their actions from their Union representatives. After contacting a Union representative, the picketing Union members remained at the work sites but took extra care to make sure that picket signs of any sort were stored out of sight.

On May 14, 2002, Union members were still present at the Wells Fargo and Iowa Blood Center construction sites, this time without picket signs but displaying American flags. Local 90 did not provide American flags to its members nor did it suggest or instruct Union members to display American flags at the sites. According to Weitz, as a result of the actions of Local 90, Weitz employees who were union members in trades other than those represented by Local 90 refused to work at the Wells Fargo and Iowa Blood Center constructions sites.

On May 15, 2002, Union members were again present at the Wells Fargo and Iowa Blood Center construction sites and were again displaying American flags. A complaint was filed with the National Labor Relations Board ("NLRB") regarding Local 90's alleged picketing. Local 90 instructed its members to not display the American flag after Region 18 of the NLRB condemned the display of the American flag at construction sites.

Weitz contends that as a result of the actions of Local 90 at the Weitz construction sites on May 13, 14, and 15, 2002, Weitz employees who were not Teamsters did not work, and Weitz was damaged. Local 90 disagrees and contends the employees did not work because there was no work to be done due to the lawful primary strike and that the damages sought are not attributable to the Union's actions. It is uncontroverted that the strike against A-1 and Crown significantly slowed operations at all four construction sites. There were no ready-mix deliveries at any of the sites until near the end of May. Plaintiffs contend that the actions of Local 90 constituted an illegal secondary boycott and caused Weitz damages in the amount of $50,521.69, and caused Kennedy damages in the amount of $2,094.67.

ANALYSIS

Kennedy and Weitz brought their actions pursuant to section 303 of the Labor Management Relations Act of 1947 ("LMRA") to recover damages for an alleged illegal secondary boycott engaged in by Defendant. Plaintiffs state that Local 90 violated Section 8(b)(4)(i)(B) and 8(b)(4)(ii)(B) of the NLRA, 29 U.S.C. sections 158(b)(4)(i) and (ii), by conducting an illegal secondary boycott against Weitz and Kennedy while the Union was on strike against two ready-mix concrete companies. Plaintiffs assert that Defendant also engaged in illegal signal picketing by congregating in the same locations each day, wearing clothing identifying them as members of the Teamsters Union, and displaying the American flag while stationed outside the Weitz and Kennedy job sites.

A. Standard for Summary Judgment

Rule 56 of the Federal Rules of Civil Procedure provides that summary judgment should be rendered

if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.

Fed.R.Civ.P. 56(c). To avoid summary judgment, the nonmoving party must make a sufficient showing on every essential element of its case for which it has the burden of proof at trial. See Celotex v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Wilson v. Southwestern Bell Tel. Co., 55 F.3d 399, 405 (...

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