United Ass'n of Journeymen v. Johnson Controls, Inc.

• Decision Date: 20 May 2022
• Docket Number: Civil Action 4:18-cv-182
• Parties: UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO, LOCAL 188 PENSION FUND; UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO, LOCAL 188 HEALTH & WELFARE FUND; UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO, LOCAL 188 ANNUITY FUND; UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO LOCAL 188; DANNY MACMILLAN, CHAIRMAN OF THE BOARD OF TRUSTEES FOR THE UA 188 PENSION FUND, CHAIRMAN OF THE BOARD OF TRUSTEES FOR THE UA 188 HEALTH & WELFARE FUND, AND CHAIRMAN OF THE BOARD FOR THE UA 188 ANNUITY FUND; and BARRY ZEIGLER, SECRETARY-TREASURER OF THE BOARD OF TRUSTEES FOR THE UA 188 PENSION FUND, SECRETARY-TREASURER OF THE BOARD OF TRUSTEES FOR THE UA 188 HEALTH & WELFARE FUND, AND SECRETARY-TREASURER OF THE BOARD FOR THE UA 188 ANNUITY FUND, Plaintiffs, v. JOHNSON CONTROLS, INC., Defendant.
• Court: U.S. District Court — Southern District of Georgia

UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO, LOCAL 188 PENSION FUND; UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO, LOCAL 188 HEALTH & WELFARE FUND; UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO, LOCAL 188 ANNUITY FUND; UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPE FITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO LOCAL 188; DANNY MACMILLAN, CHAIRMAN OF THE BOARD OF TRUSTEES FOR THE UA 188 PENSION FUND, CHAIRMAN OF THE BOARD OF TRUSTEES FOR THE UA 188 HEALTH & WELFARE FUND, AND CHAIRMAN OF THE BOARD FOR THE UA 188 ANNUITY FUND; and BARRY ZEIGLER, SECRETARY-TREASURER OF THE BOARD OF TRUSTEES FOR THE UA 188 PENSION FUND, SECRETARY-TREASURER OF THE BOARD OF TRUSTEES FOR THE UA 188 HEALTH & WELFARE FUND, AND SECRETARY-TREASURER OF THE BOARD FOR THE UA 188 ANNUITY FUND, Plaintiffs, v. JOHNSON CONTROLS, INC., Defendant.

Civil Action No. 4:18-cv-182

United States District Court, S.D. Georgia, Savannah Division

May 20, 2022

ORDER

R STAN BAKER UNITED STATES DISTRICT JUDGE

Presently before the Court is Defendant Johnson Controls, Inc.'s Motion for Summary Judgment, (doc. 26), and Supplemental Motion for Summary Judgment, (doc. 48). This action arises from Defendant Johnson Controls, Inc.'s (“Johnson Controls”) failure to make contributions for travel time and “standby” time to three employee benefits funds. (Doc. 1 (original Complaint); doc. 46 (Amended Complaint).) Plaintiffs filed this suit pursuant to the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq. (“ERISA”) and the Labor Management Relations Act, 29 U.S.C. § 141 et seq (“LMRA”), in order to recover the alleged delinquent contributions and obtain equitable relief. (Doc. 46.) Johnson Controls filed the at-issue Motion for Summary Judgment, arguing, inter alia, that the unambiguous language of the applicable collective bargaining agreements shows that it was not obligated to make the alleged delinquent contributions. (Doc. 26.) Subsequently with leave of Court, Johnson Controls filed the at-issue Supplemental Motion for Summary Judgment as to Plaintiff United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, AFL-CIO, Local 188's request for an injunction under the Section 301 of the LMRA. (Doc. 48.) The issues have been fully briefed by the parties. (Docs. 26, 29, 31, 48 49.) For the reasons stated below, the Court DENIES Johnson Controls' Motion for Summary Judgment, (doc. 26), and GRANTS Johnson Controls' Supplemental Motion for Summary Judgment, (doc. 48).

BACKGROUND

I. Procedural History

A. The Parties

Plaintiffs are the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, AFL-CIO, Local 188 (“UA Local 188”), which is a labor organization based in Savannah, Georgia, ^[1] three employee benefit funds (the UA Local 188 Pension Fund, the UA Local 188 Health & Welfare Fund, and the UA Local 188 Annuity Fund (collectively, the “Funds”)), and Danny MacMillan and Barry Zeigler, the chairman and secretary-treasurer, respectively, of each of the Funds' boards of trustees. (Doc. 46, pp. 1, 3-8; doc. 47, pp. 2-4.) Defendant Johnson Controls, a Wisconsin corporation, is a construction contractor and subcontractor that does business with the Funds. (Doc. 46, pp. 7-8; doc. 47, p. 4.) Johnson Controls employs individuals who are represented by UA Local 188 (the “UA Local 188 employees”). (Doc. 27, p. 4; see doc. 29-1, p. 8; see also generally doc. 27-1.)

B. The National Agreement and Working Agreement

In March 2014, Johnson Controls and the Union entered into the National Installation and Service Agreement for the United States of America (the “National Agreement”). (Doc. 27, p. 2; doc. 29-1, p. 2; see doc. 27-2.) Paragraph 3 of the National Agreement states that Johnson Controls and the Union “desire to mutually establish and stabilize wages, hours and working conditions for journeymen, apprentices, servicemen and tradesmen employed on a nationwide basis.” (Doc. 27-2, p. 3.) Paragraph 13, which sets forth the “[s]cope of [w]ork” covered by the National Agreement, provides, in relevant part, “This Agreement covers the rates of pay, hours and working conditions of journeymen, apprentices, servicemen and tradesmen engaged in the installation and service of all plumbing and/or pipefitting systems . . . .” (Id. at p. 5.) Paragraph 46 states that, for employees covered by the National Agreement,

wage rates, . . . hours of work, . . . on call time, . . . and contributions . . . for plans, programs, or funds . . . for . . . pensions, health and welfare, . . . shall be in accordance with those established for all employees in local agreements, negotiated by the local union of [the Union] and the historically recognized local Contractor's bargaining group.

(Id. at p. 10 (emphasis added).) Paragraph 60 of the National Agreement provides,

All travel time for service work only, in excess of reasonable commuting time before and after an employee's normal work hours, shall be paid for at the straight time rate, and such travel shall not be considered hours worked and the pay, therefore, shall not be considered as pay for hours worked. . . . Where there is a bonafide [sic] locally negotiated service agreement clearly defining commuting time or a distance that is in conflict with this Agreement, the provisions of the local service agreement shall prevail.”

(Id. at pp. 12-13.)

On September 1, 2014, UA Local 188 entered into a local collective bargaining agreement (the “Working Agreement”) with the South Georgia Mechanical and Erectors Association. (Doc. 29-1, p. 4; see doc. 27-3.) The Working Agreement “covers the rates of pay, hours and working conditions of all employees engaged in the installation of all plumbing and/or pipe fitting systems and component parts thereof . . . in the trade jurisdiction of [UA Local 188].” (Doc. 27, p. 4; doc. 29-1, p. 4; see doc. 27-3, p. 6.) Article XI of the Working Agreement, titled “Benefits, ” provides that each “Contractor”^[2] shall make contributions to the Funds “based on the per man hours actually worked” by the journeymen and apprentices “in its employ.”^[3] (Doc. 273, pp. 34-35.) Additionally, Article XVII provides that the Working Agreement's “terms and conditions . . . shall continue in full force and effect from September 1, 2014[, ] until July 31, 2017, and, thereafter renew itself [sic] from year to year unless terminated as herein provided.” (Id. at p. 41.) In order to terminate the Working Agreement, the party “desiring to discontinue . . . the existing Agreement upon the termination date must send a written notice of such intent by registered mail at least ninety (90) days prior to the termination date.” (Id. at pp. 41-42.)

C. Johnson Controls' Contributions to the Funds and the 2017 Audit

It is undisputed that Johnson Controls made some contributions to the Funds for its UA Local 188 employees while the Working Agreement was in effect. (Doc. 27, p. 7; doc. 29-1, p. 6; see generally doc. 27-1.) However, in 2017, the Funds conducted audits of Johnson Controls' contributions to the Funds for the period of March 1, 2014, to February 29, 2016, (the “Audit Period”). (Doc. 27, pp. 11-12; doc. 29-1, pp. 8-10; see doc. 27-9.) The auditors determined that Johnson Controls did not make contributions to each of the Funds for 855 hours of standby time and 75.75 hours of travel time during the Audit Period. (Doc. 27, pp. 11-12; doc. 29-1, pp. 810; see doc. 27-9.) When the auditors contacted a representative of Johnson Controls concerning these delinquent contributions, the representative indicated that Johnson Controls was not obligated to make contributions for standby time and travel time because standby time and travel time were not “hours actually worked” under the Working Agreement. (See doc. 27, pp. 11-12; doc. 29-1, pp. 8-10.) Furthermore, Tracy Thomas, a member of Johnson Controls' payroll accounting department, testified that Johnson Controls did not make contributions to the Funds for travel time and standby because the Working Agreement did not contain “specific language” requiring it to do so. (Doc. 27-8, pp. 38-40.)

II. Procedural History

A. Plaintiffs' Claims under ERISA and the LMRA

On July 31, 2018, Plaintiffs initiated this action to collect the alleged delinquent contributions for standby time and travel time. (See doc. 1, pp. 4-8; doc. 46, pp. 8-13.) In their Amended Complaint, Plaintiffs assert two counts against Johnson Controls: (1) a violation of Section 515 of ERISA, as amended, 29 U.S.C. § 1145 (Count I), and (2) a request for injunctive relief under ERISA and the LMRA (Count II). (Doc. 46, pp. 9-12.) In Count I, Plaintiffs allege that the Working Agreement required Johnson Controls to make contributions for standby time and travel time during the Audit Period. (Id. at pp. 9-11.) Plaintiffs contend that, in failing to make these contributions, Johnson Controls violated Section 515. (See id.) Accordingly, Plaintiffs seek to recover all unpaid contributions plus interest, liquidated damages, and costs incurred in this action or the collection or enforcement of a judgment. (Id. at pp. 12-13.) In Count II Plaintiffs request injunctive relief under Section 502(a)(3) of ERISA, and Plaintiff UA Local 188 requests injunctive relief under Section 301 of the LMRA, 29 U.S.C. § 185, on behalf of the UA Local 188 employees. (Id. at pp. 11-12.) Plaintiffs allege that they are entitled to injunctive...