Lewis v. Local 382, Intern. Broth. of Elec. Workers (AFL-CIO)
| Decision Date | 12 September 1996 |
| Docket Number | AFL-CIO,No. 2573,2573 |
| Citation | 324 S.C. 412,481 S.E.2d 135 |
| Parties | , 154 L.R.R.M. (BNA) 2313 Michael O. LEWIS, as Personal Representative of the Estate of N.G. Lewis, Deceased, Respondent, v. LOCAL 382, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (), Davis Self, Larry Poole, Jerome Jenkins, Doris M. Jones, Bill Davis, John C. Davis and Ronald Goodale, Defendants, of whom Local 382, International Brotherhood of Electrical Workers () is Appellant. . Heard |
| Court | South Carolina Court of Appeals |
Herbert E. Buhl, III, Columbia; and Terry R. Yellig, of Sherman, Dunn, Cohen, Leifer & Yellig, Washington, D.C., for appellant.
Henry Hammer and Howard Hammer, both of Hammer, Hammer, Carrigg & Potterfield; and Scott Elliott, Columbia, for respondent.
This is an action for an alleged violation of the South Carolina Right-to-Work Act. 1 The jury returned a verdict against Local 382 of the International Brotherhood of Electrical Workers (Local 382) in the amount of $82,560 actual damages and $25,000 punitive damages. A defense verdict was returned in favor of the other defendants. The trial court denied Local 382's post-trial motions. The union appeals. We reverse.
In September of 1948, N.G. Lewis joined Local 382 and remained a member until 1986. When he was initiated as a member of Local 382, Lewis signed an oath that he would abide by all of the provisions of the IBEW Constitution, its rules and laws, as well as those of Local 382. Article XXVII, Section 1, Subsection 17 of the IBEW Constitution prohibits members from "[w]orking for any ... company declared in difficulty with a [Local Union] or the I.B.E.W., in accordance with [the] Constitution."
In 1986, Lewis was employed by United Electric Company (United) as a foreman when United refused to sign a collective bargaining agreement with Local 382. Local 382 then petitioned the National Labor Relations Board to conduct a representation election among the employees of United to determine whether they wanted Local 382 to be certified as their exclusive bargaining representative. A majority of those United employees voted not to certify Local 382 as their exclusive bargaining representative.
On April 11, 1986, Local 382's business manager, Davis S. Self, wrote a letter to United employees, including Lewis, who were members of Local 382. In the letter, Self informed the members that United had been declared "in difficulty" by the IBEW International President. Furthermore, the letter advised each Local 382 member that his membership in Local 382 could be in jeopardy if he continued his employment with United. Lewis was a member of the Executive Board of Local 382 at the time this notice was sent.
In a memo dated July 23, 1986, Lewis, citing personal and health reasons, resigned from the Executive Board of Local 382 effective July 25, 1986. Self sent Lewis a letter inviting him to attend the Union's Executive Board meeting on September 12, 1986, at which time a complaint concerning his employment by United would be discussed.
After November 1986, Lewis ceased paying his union membership dues. As a result, Lewis was dropped as a member of Local 382 and the IBEW after he failed to pay his dues for six months. According to Article XXIII, Section 4 of the IBEW Constitution, "any member indebted to his [Local Union] for six (6) months' full dues shall be dropped from membership by the [Financial Secretary]...." Furthermore, Article XXIII, Section 5 provides that "[m]embers in arrears forfeit all rights and previous standing in the I.B.E.W."
In December of 1986, Ronald Goodale, a Local 382 member, filed internal union charges against Lewis because he continued to work for United in violation of Article XXVII, Section 1, Subsection 17 of the IBEW Constitution. On December 19, 1986, pursuant to Goodale's charges, Local 382's Recording Secretary notified Lewis a hearing before the Union's trial board would be convened on January 9, 1987, at which time Lewis could answer the charges against him.
At the hearing, Lewis admitted he was working for United. He argued, however, he could not travel, due to a medical condition, to Augusta, Georgia to work for a contractor covered by the terms and conditions of a collective bargaining agreement negotiated by the IBEW Local Union in that area. The trial board agreed to delay, until it received information about the medical condition of Lewis, its decision whether Lewis had violated the IBEW Constitution by continuing to work for United after it was declared "in difficulty." On January 19, 1987, Dr. Richard T. Alia wrote a letter advising that Lewis had been diagnosed with ulcerative proctitis in 1982, but that as of May 15, 1984, the last time Lewis was seen by Dr. Alia's late partner, the proctitis was in remission.
On February 13, 1987, the trial board again considered the charges against Lewis in light of Dr. Alia's letter. The trial board decided Lewis had violated the IBEW Constitution by continuing to work for United after it was declared "in difficulty." The board further decided to fine Lewis $2000.00, but indicated the fine would be suspended if Lewis terminated his employment by United and sought employment with a contractor who was a party to a collective bargaining agreement with Local 382 or some other IBEW Local Union.
In a letter dated February 16, 1987, the Local 382 Recording Secretary notified Lewis of the trial board's disposition of the charges against him. The letter advised Lewis the $2,000.00 fine would be suspended if he would terminate his employment with United and accept employment with a union contractor within 30 days. Self, Local 382's business manager, told Lewis he could obtain employment with a union contractor in Augusta, Georgia.
Lewis, who continued to work for United, never paid the $2,000.00 fine, nor did he appeal the trial board's decision to the IBEW Vice President who has jurisdiction over Local 382. Additionally, Local 382 never took any action to collect the fine.
In a February 8, 1988 letter, the IBEW informed Lewis he was ineligible to receive retirement benefits from the IBEW Pension Benefit Fund because he was no longer a member in good standing. 2 Article XII, Section Sec. 1. An "A" member who retires from the electrical trade after January 1, 1967, shall be entitled to benefits in accordance with the following rules as to eligibility:
1(a)(1) of the IBEW Constitution sets forth the criteria for receiving retirement [324 S.C. 418] benefits from the IBEW Pension Benefit Fund. That section in pertinent part provides:
(a)(1) Normal Pension. An "A" member of the I.B.E.W. in continuous good standing with twenty (20) or more years immediately preceding his application, who has attained the age of sixty-five (65) years, shall receive pension benefits computed on the basis of two dollars ($2.00) per month for each full year of such continuous "A" membership.
In May 1988, Lewis retired from United. He lost his benefits and this suit followed.
On April 18, 1989, Lewis initiated this action seeking damages for violation of the South Carolina Right-to-Work Act, S.C.Code Ann. §§ 41-7-10 through -90 (Rev.1986 & Supp.1995). Lewis alleged the defendants, acting individually and as agents of the defendant Local 382, interfered with his right to work, and caused him to lose his pension benefits and to suffer other damages. Lewis further claimed he paid dues and made contributions to the union and its pension plan with the expectation of drawing a pension when he retired.
On May 26, 1989, the defendants filed a petition for removal in the United States District Court for the Columbia Division of South Carolina. Thereafter, Lewis petitioned for a remand to state court. On August 9, 1989, the federal court remanded the case to state court "upon the ground that removal was improvident."
The defendants moved to dismiss this action on several grounds: (1) the alleged violation of the Right-to-Work Act was preempted by § 301 of the Labor Management Relations Act (LMRA), 29 U.S.C. § 185; (2) the alleged violation of the Right-to Work Act was preempted by § 514(a) of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1144(a); (3) the Right-to-Work Act did not preclude Local 382 from enforcing its membership rules against members who violated them; and (4) the prior decision of Layne v. International Bhd. of Elec. Workers, 271 S.C. 346, 247 S.E.2d 346 (1978), was not applicable. Although it did not rule on the defendants' motion to dismiss prior to trial, the trial court denied the motion when it was renewed as a motion for a directed verdict at the conclusion of the presentation of Lewis' case-in-chief.
The jury returned a verdict in favor of the plaintiff 3 against Local 382 on the right-to-work claim, but not against the individual defendants remaining in the case. Further, the jury awarded Lewis $82,560.00 in actual damages and $25,000 in punitive damages against Local 382. The jury also returned verdicts on the claim of outrage 4 in favor of each of the defendants.
Local 382 immediately filed motions for judgment notwithstanding the verdict; remittitur or, in the alternative, for a partial new trial; and/or a reduction in the award of actual and punitive damages. On April 13, 1995, the trial court issued an order denying the defendants' post-trial motions, affirming the award of punitive damages, and entering final judgment against Local 382 in the amount of $82,560, plus court costs, and $25,000 in punitive damages.
I. Did the trial court err in failing to dismiss the claim for violation of the South Carolina Right-to-Work Act because it is II. Did the trial court err in failing to dismiss the claim for violation of the South Carolina Right-to-Work Act because it is preempted by the Employee Retirement Income Security Act?
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Lewis v. LOCAL 382, IBEW
... ... LOCAL 382, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (AFL-CIO), Davis Self, Larry Poole, Jerome Jenkins, Doris ... Int'l Brotherhood of Elec. Workers, 271 S.C. 346, 247 S.E.2d 346 (1978), in which we ... ...