Trustees of Const. Indus. v. Summit Landscape Co.
| Decision Date | 12 February 2004 |
| Docket Number | No. CVS020877RLH(PAL).,CVS020877RLH(PAL). |
| Citation | 309 F.Supp.2d 1228 |
| Parties | TRUSTEES OF THE CONSTRUCTION INDUSTRY AND LABORERS HEALTH AND WELFARE TRUST, et. al, Plaintiff, v. SUMMIT LANDSCAPE COMPANIES, INC., et. al, Defendants. Summit Landscape Companies, Inc., et. al, Third Party Plaintiffs, v. Laborers International Union of North America LOCAL 872, et. al, Third Party Defendants. |
| Court | U.S. District Court — District of Nevada |
Kurt C. Faux, Faux & Associates, Gregory E. Smith, Smith & Kotchka, Las Vegas, Jonathan E. Van Cleave, Irvine, CA, American Motorists Insurance Company, for Defendant.
(Motion for Summary Judgment-# 63 Motion for Extension of Time to Oppose-# 76)
Before the Court is Plaintiffs' Motion for Summary Judgment (# 63), filed September 26, 2003, and Defendant American Motorists Opposition and Request For an Extension of Time to Oppose (# 76), filed December 12, 2003.1 The Court has also considered the South Shores and Summit Landscape Opposition (# 78), filed December 15, 2003 and joined by Defendants American Motorist, Lake Mead Constructors, and Redland Insurance Company (# 79) on the same day; Plaintiffs' Reply to Defendants' Opposition (# 81), filed December 29, 2003; and Plaintiffs' Reply and Opposition to Defendant American Motorist' request for Extension of Time (# 84), filed December 29, 2003. No party has requested a hearing on the motions before the Court.
South Shore Residential and Commercial Development Corporation dba Summit Landscape Services (hereafter Summit) entered into a subcontract agreement with Lake Mead Constructors (hereafter Lake Mead) on March 15, 1999 to perform landscape work on Southern Nevada Water Authority's River Mountain Project. As part of that agreement, Summit executed a Letter of Assent wherein Summit agreed to comply with the terms of the Southern Nevada Water Authority SNWA Improvements Project Labor Agreement, which covers work performed on the River Mountains Project. The Project Labor Agreement incorporates by reference the terms of the Labor Union Master Labor Agreements (hereafter LUMLA). The LUMLA requires contractors and subcontractors to make contributions on behalf of their employees to the Joint Trust Funds.
Summit admits that, from September 1, 2001 — April 1, 2002, it did not pay benefits on the behalf of non-union employees. Summit asserts that its agent met with Doug Neal, the representative of the relevant union, prior to September 1, 2001 because Summit had questions regarding the Project Labor Agreement. At this meeting, Summit asserts that it asked Mr. Neal if it was required under the Project Labor Agreement to make payments into the Joint Trust Funds on the behalf of non-union employees. Summit asserts that Mr. Neal informed Summit's agent that Summit was not required to make such payments, and that Summit could instead make benefits payments directly to the non-union employees.
Summit asserts that it proceeded accordingly until approximately April 1, 2002, at which time Thomas White, the managing authority to the Joint Trust Fund and Union, informed Summit that it was required to pay into the Joint Trust Funds on the behalf of all of Summit's employees, regardless of union membership. Summit asserts that while Mr. White originally required Summit to make the delinquent back payments to the Joint Trust Funds, Summit informed Mr. White that it had been making benefits payments directly to the non-union employees. Summit alleges that Mr. White was ultimately satisfied with such past payment in lieu of actual payment to the Joint Trust Funds, and considered Summit's previous payment directly to non-union employees as cure of the breach. Plaintiffs Joint Trust Funds disputes that Summit ever paid benefits directly to its non-union employees and denies that it ever reached an accord and satisfaction with Summit. Accordingly, on June 27, 2002, Joint Trust Funds brought suit under 29 U.S.C. §§ 1132(a)(3), 1132(e), and 1145, sections of the Employee Retirement Income Act of 1974 (hereafter ERISA), for breach of the Project Labor Agreement and associated damages.
Procedural history. Plaintiffs filed the instant Motion for Summary Judgment on September 26, 2003.2 On October 14, 2003, Defendants filed both a motion for extension of time within which to respond to Plaintiffs' motion (# 67) and a motion requesting withdrawal of Jonathan Van Cleave and Gregory Smith as counsel for Defendants (# 68). According to Defendants' representations, Defendant Summit apparently decided to seek indemnification from other Defendants. Subsequently, attorneys Van Cleave and Smith asserted that associated conflicts of interest required that they withdraw as defense counsel from the litigation. Plaintiffs opposed the requested extension of time relating to obtaining new counsel. On November 7, 2003, this Court received and executed a stipulation to substitute Joseph Rodarti for Van Cleave and Smith as counsel for the South Shores and Summit Landscape Defendants (# 73), leaving Van Cleave and Smith as the counsel of record for the remaining Defendants, Redland Insurance Company (hereafter Redland), American Motorists Insurance Company (hereafter American Motorists), and Lake Mead. On December 3, 2003, Magistrate Judge Peggy Leen granted Defendants' motion requesting an extension of time (# 67); however, with reference to this Court's execution of the November 7, 2003(# 73) stipulation agreement, Judge Leen dismissed Defendants' request to withdraw (# 68) as moot.
Following Judge Leen's order, American Motorists Insurance Company apparently procured new counsel in Mr. Faux; however, as of the date of this Court's order, there is no indication in the record that Faux or Van Cleave and Smith have requested and obtained judicial approval for the apparently-desired substitution. Nonetheless, American Motorist (per the services of attorney Kurt Faux) filed an Opposition on December 12, 2003. On December 15, 2003, Summit filed its Opposition to Plaintiffs' motion. Also on December 15, Van Cleave and Smith, noting that they were still counsel of record for Redland, American Motorists, and Lake Mead, filed a motion joining Summit's Opposition. Thus, before the Court are two sets of Opposition filed on behalf of American Motorists.
In an effort to prevent prejudice to Defendant American Motorists and believing that Plaintiffs will not be thereby prejudiced, the Court has considered all filed Oppositions in reaching its Order. However, the Court notes that attorneys Van Cleave and Smith are the counsel of record for Defendants American Motorists, Redland, and Lake Mead. If any of these Defendants wish to have substitute counsel and desire that counsel's arguments and filings to be countenanced by this Court in further proceedings on this matter, these Defendants must formally request this Court's permission to substitute counsel within three weeks of the filing date of this Order. The Court advises the parties that It will not grant any type of extension of time in conjunction with such substitution, given that such substitution, if desired, should have been formalized long before this moment.
Plaintiffs assert that they are entitled to Summary Judgment because there is no dispute as to relevant questions of material fact in this matter. After reviewing the record, the Court finds that Defendants have admitted such facts as indicate that they are bound to contribute to the Joint Trust Funds on behalf of all employees, belonging to a union or otherwise. Further, after reviewing the relevant statutes and case law, the Court holds that the contractual agreement between Plaintiffs and Defendants was unambiguous, and Defendants' reading of the law is incorrect insofar as Defendants assert that an accord and satisfaction may be reached by an oral agreement in an ERISA-controlled case. Accordingly, the Court finds that Defendants have breached the contract, and Plaintiff is entitled to Summary Judgment and the awards contemplated under 29 U.S.C. § 1132(g)(2). Specifically, the Court awards Plaintiffs their requested unpaid contributions and interest on those unpaid contributions, reduces Plaintiffs' requested liquidated damages award according to ERISA's requirements, and directs Plaintiffs to provide the Court with an affidavit indicating the number of hours spent on the case and by whom (i.e., partner, associate, paralegal, etc.) to aid the Court in determining whether Plaintiffs' requested attorneys' fees and costs are reasonable. The Court declines to exercise its discretion under 29 U.S.C. § 1132(g)(2)(E) to award further legal or equitable relief.
Summary judgment is proper when "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). An issue is "genuine" only if there is a sufficient evidentiary basis on which a reasonable fact finder could find for the nonmoving party, and a dispute is "material" only if it could affect the outcome of the suit under the governing law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248-49, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Matsushita Elec. Ind. Co. v. Zenith Radio, 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The party moving for summary judgment has the burden of showing the absence of a genuine issue of material fact, and the court must view all facts and draw all inferences in the light most favorable to the...
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