T.H. Eifert, Inc. v. United Ass'n. of Journeymen

• Decision Date: 13 March 2006
• Docket Number: No. 5:05CV107.,5:05CV107.
• Citation: 422 F.Supp.2d 818
• Parties: T.H. EIFERT, INC., et al., Plaintiffs, v. UNITED ASSOCIATION OF JOUNEYMEN and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, et al., Defendants.
• Court: U.S. District Court — Western District of Michigan

422 F.Supp.2d 818

T.H. EIFERT, INC., et al., Plaintiffs, v. UNITED ASSOCIATION OF JOUNEYMEN and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, et al., Defendants.

No. 5:05CV107.

United States District Court, W.D. Michigan, Southern Division.

March 13, 2006.

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David J. Houston, Dickinson Wright, PLLC (Lansing), Kristine Marie Moore, Dickinson Wright, PLLC (Lansing), Lansing, for T.H. Eifert, Inc., Dard Incorporated named as Dard, Inc., plaintiffs.

James R. O'Connell, O'Donoghue & O'Donoghue, Maydad Cohen, O'Donoghue & O'Donoghue ( DC), Nicholas R. Femia, O'Donoghue & O'Donoghue ( DC), Washington, DC, Tinamarie Pappas, Ann Arbor, for United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, Local 333 Plumbers and Pipefitters of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, Abe Rahar, Tim Haggart, defendants.

OPINION

BELL, Chief District Judge.

This is an action under Sections 301 and 303 of the Labor Management Relations Act ("LMRA"), 29 U.S.C. §§ 185, 187, filed by Plaintiffs T.H. Eifert, Inc. ("Eifert") and Dard Incorporated ("Dard") alleging breach of a collective bargaining agreement and violation of Section 8(b)(4) of the National Labor Relations Act ("NLRA"), 29 U.S.C. § 158(b)(4), together with several state-law tort claims. Defendant United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada ("United Association") filed a motion to dismiss the amended complaint (Docket # 37). Defendants Local 333 of that union ("Local 333") and union officers Abe Rahar ("Rahar") and Tim Haggart ("Haggart") filed a separate motion to dismiss (Docket # 39). The matter presently is before the Court on both motions to dismiss. For the reasons that follow, the motions are granted.

I.

The following facts are taken from the complaint in the light most favorable to Plaintiffs.

Both Dard and Eifert are mechanical contractors who are members of a contractor association group, the Mid-Michigan Mechanical Contractors Association (MMMCA), which itself is an affiliate of the Mechanical Service Contractors of America (MSCA). The MSCA and Defendant United Association are signatories to a collective bargaining agreement, referred to as the National Service and Maintenance Agreement (NSMA or "National Agreement"). The MMMCA and Local 333 are signatories to another collective bargaining agreement (the "Master Agreement"). The relationships between Plaintiffs and Defendants and Plaintiffs' service employees are governed by the two agreements.

Under Article X of the National Agreement, the employer must fill its employment openings by first making a request to the home local union for qualified personnel. Upon receiving such request, the local union agrees to furnish duly qualified people with the skills necessary in a sufficient number to execute the employer's work. Article XIII provides that the union is the sole and exclusive source of referral of applicants for employment. Article XX mandates that disagreements under the contract be submitted to a grievance arbitration process, culminating in binding arbitration. Article XVIII, however, includes a "no strike no lockout" clause, which provides:

Neither the Union nor any of the Employees covered by this Agreement will collectively, concertedly or individually induce, engage or participate, directly or indirectly, in any strike, picketing, slowdown, stoppage or other curtailment or interference with the Employer's operations . . . . The Union agrees to exert every effort through its international and local officers and representatives to end any unauthorized interruption of work....

Article XVIII also includes special provisions for the resolution of described interferences with the employer's operations:

The parties agree that, in the manner set forth in Article XX, they will submit to arbitration all grievances and disputes that may arise between them and any misunderstandings to the meaning or intent of all or any part of this Agreement. However, the Employer shall not be required to resort to the grievance arbitration procedures prior to resorting to other remedies in the event of a violation of this Article. In the event of a lockout, or a strike, slowdown, work stoppage, or other curtailment or interference with the Employer's operation the parties agree that any claims for relief, including damages, are to be immediately submitted to arbitration following the grievance procedure as set forth in Article XX. However, under these circumstances, the grievance procedure shall commence with Step 4(b), specified in Article XX, Paragraph 68.

Step 4b: of Article XX provides:

Step 4(b): (This step of the grievance procedure applicable ONLY to any grievance involving a lockout or any strike, picketing, slowdown, stoppage or other curtailment or interference with the Employer's operations . . .). The grievance shall be reduced to writing in terms of the issues to be arbitrated and shall be filed .. . . (Compl. Ex. 1, p. 12).

According to the complaint, Eifert elected to implement certain unspecified con tract provisions that were favorable to it. Defendants allegedly discriminated against Eifert and in favor of MMMCA members who did not implement such provisions. Such alleged discrimination includes the coercion of Eifert employees to quit their jobs with Eifert and accept employment with other MMMCA contractors.

In 2003 and 2004, Dard and Eifert, through their respective owners Rebecca Wade and Tom Eifert, began discussions about a possible sale of the Dard service department to Eifert. On or about January 14, 2005, Wade told Defendant Rahar that she was considering selling Dard to Eifert. Rahar purportedly told Wade not to sell to Eifert because his employees were not from Local 333 and there were other contractors that would buy Dard. On January 20, 2005, Tom Eifert and Wade met with two of Dard's five service employees, Craig Sperry and Jason Wood, about the potential sale of Dard to Eifert. Both Wood and Sperry allegedly indicated to Wade and Eifert that they would work for Eifert, if the sale were completed. Three days later, on January 23, 2005, Wood informed Wade that he was immediately quitting his employment with Dard. On January 27, 2005, Eifert and Wade met with another two of Dard's service employees, Al Edgeworth and Mick McNamara. According to the complaint, both Edge-worth and McNamara expressed their willingness to work for Eifert in the event of a sale.

One day later, on January 28, 2005, Defendant Rahar allegedly called Wade to inquire what he could do to stop the exodus of Dard's employees. Wade requested that Rahar attempt to convince the employees to at least try the employment with Eifert for 30 days. Later that day, the four remaining Dard service employees, Sperry, Wood, McNamara and Alan Nequette, met with Wade and informed her that they would not work for Eifert if the business was sold. None of the employees gave a reason for his decision.

On February 1, 2005, Local 333 business manager Davis scheduled a meeting at the local union hall. The following individuals were present at the meeting: Davis, Defendant Haggart, Defendant Rahar, Tom Eifert, Miller, Wade, Edgeworth, Nequette, McNamara and Sperry. The participants discussed Wood's resignation and the refusal of the other Dard service employees to work for Eifert in the event of a sale. No resolution was reached. Wade informed those present that she intended to cease operating Dard as a business.

On February 3, 2005, Edgeworth and Sperry quit Dard without notice or reason. On February 4, 2005, the final Dard service employees, McNamara and Nequette quit Dard without notice or reason. Shortly thereafter, Nequette began working for another MMMCA member, Gunthorpe Plumbing and Heating, where he performed essentially the same service work for most of the same customers he had served while at Dard. Those customers were not previously customers of Gunthorpe. With the exception of McNamara, the remaining service employees who left Dard are now working for other MMMCA members.

The amended complaint alleges five counts: (1) tortious interference with business relationship, expectancy and/or contract between Dard and Eifert by Defendants Local 333, Rahar and Haggart; (2) tortious interference with business relationship or expectancy between Dard and its employees by Defendants Local 333, Rahar and Haggart; (3) tortious interference with business relationship between Dard and its customers by Defendants Local 333, Rahar and Haggart; (4) breach of a collective bargaining agreement by Defendants United Association and Local 333, in violation of Section 301 of the Labor Management Relations Act (LMRA); and (5) violation of Section 303 of the LMRA by Defendant Local 333.

Specifically, Plaintiffs allege that Defendants Local 333, through Haggart and Rahar, discriminated against Eifert because Eifert implemented certain contractual terms that were beneficial to it and that the union did not prefer. Plaintiffs allege that Haggart and Rahar coerced, intimidated and influenced Dard service employees to quit employment with Dard in order to keep them from working for Eifert. Because customer relationships typically are formed between the service employees and their clients (rather than between the service company and the clients), the movement of Dard employees to different companies left Dard without either employees or customers. As a result, the anticipated sale of Dard to Eifert was never completed, and the value of the Dard service department was eviscerated.

II.

Defendants have moved to dismiss the complaint for failure to state a claim upon which relief can be granted, pursuant to...