Legal Document

484 U.S. 539 108 S.Ct. 830 98 L.Ed.2d 936 LABORERS HEALTH AND WELFARE TRUST FUND FOR NORTHERN CALIFORNIA, et al., Petitionersv.ADVANCED LIGHTWEIGHT CONCRETE CO., INC. No. 85-2079. Argued Nov. 10, 1987. Decided Feb. 23, 1988. Syllabus An employer may have a contractual duty under collective-bargaining agreement to make contributions pension fund during the agreement's term, and also National Labor Relations Act (NLRA) continue making such after expiration while negotiations for new contract are in process. Section 515 of Employee Retirement Income Security (ERISA) obligates an pay multiemployer plan that required "under terms or collectively bargained agreement." 502(g)(2) ERISA authorizes plan's trustees enforce liability by bringing action federal district court unpaid contributions, prejudgment interest thereon, liquidated damages, reasonable attorney's fees costs, other appropriate relief. Respondent company was party two agreements monthly eight employee benefit plans. made until agreements' date, but no thereafter. The plans' (hereinafter petitioners) brought suit against respondent collect postcontract alleging respondent's actions constituted breach its bargain good faith § 8(a)(5) NLRA, Federal District Court had jurisdiction §§ ERISA. granted summary judgment on grounds does not apply employer's obligation Board (NLRB) has exclusive over petitioners' claims. Appeals affirmed. Held: remedy provided is limited contractual, "promised contributions," confer courts determine whether unilateral decision refuse violates NLRA. Pp. 545-553. (a) text legislative history clearly require this result. Both plainly describe omit any reference noncontractual imposed Conversely, defining contribution wishing withdraw from plan, 4212(a) unambiguously includes both obligations NLRA obligations, thereby demonstrating Congress aware different sources contribute covered 545-549. (b) Petitioners' policy arguments broadly construing include delinquencies rejected light Congress' plain intent, as discussed above, because countervailing it highly unlikely reach statute consequence inadvertence rather than deliberate choice. first argument—that denying delinquency collection leaves "gap" enforcement scheme—is unpersuasive, since there indications be problem serious magnitude; issues must decided dispute more complex those presented simple action; resolution type question usually left NLRB. second remedies available NLRB proceeding less effective action—may correct, ultimately unavailing, asserted defects characteristic all unfair labor practice proceedings. simply broader created protect process, provide with unique preferred procedure obtaining redress. 550-553. 779 F.2d 497 (CA9 1985), STEVENS, J., delivered opinion Court, which Members joined, except KENNEDY, who took part consideration case. Michael B. Roger, San Francisco, Cal., petitioners. Lawrence G. Wallace, Washington, D.C., U.S., amicus curiae supporting petitioners, special leave Court. Mark S. Ross, respondent. Justice STEVENS 1 A term and, addition, In 1980, amended plans delinquent contributions. case encompasses based alleged statutory well contract. We agree Appeals' conclusion contributions." 2 * Prior 1983, member Associated General Contractors California multi-employer negotiated behalf association.1 included provisions requiring plans.2 agreements, were executed date June 15, 1983. 3 On April 1, notified unions terminated association's authority behalf, would bound either master (or successor agreement) prepared negotiate independently. continued trust funds date. 4 December (petitioners)3 Northern period Petitioners allege change conditions employment discontinuing violated 61 Stat. 141, 29 U.S.C. 158(a)(5). complaints ERISA.4 5 Respondent's answer complaint challenged Court's denied reached "impasse."5 "impasse" issue never been resolved motion grounds: That NLRA; 6 1985). It necessarily assumed petitioner could prove refusal practice.6 held, however, claims should court. After examining Multiemployer Pension Plan Amendments 1980 (MPPAA), concluded: "We find persuasive evidence words MPPAA intended section exception general rule preemption narrow category suits seeking recovery accrued between impasse." Id., at 505.7 7 certiorari, 479 1083, 107 1283, 94 142 (1987), now affirm. II 8 amendments ERISA, responded concerns relevant primarily concerned about burden placed upon remaining contributors when one them withdraw.8 response concern enacted elaborate provision imposing "withdrawal liability" withdrawing employers.9 arises ceases "obligation contribute" plan.10 defined purposes withdrawal portion language NLRA.11 definition significant demonstrates 9 arisen substantial number employers failed their contributions" regular timely basis.12 Sections case, concern. describes omits provides: 10 "Every obligated shall, extent inconsistent law, accordance 1295, 1145. 11 enforced pursuant 502. meeting mandatory award plus damages amount least equal interest, costs.13 12 these explains added strict give strong incentive honor facilitate accounts.14 contains mention being conducted.15 Thus, firm support constitutes violation NLRA.16 III 13 Petitioners, supported United States, Amicus Curiae, advance giving broad construction delinquencies. First, they argue reasons post-contract arising unwise scheme. Second, proceedings inadequate. 14 Our principal reason rejecting our conviction intent so kind addressed body amend legislation, whose interpreting it. nevertheless note 15 With respect scheme, three observations pertinent. incidence gap unknown. Presumably most anticipate continuing relationship union preserve status quo If signed, define subsequent preceding contract; therefore, 515. hand, if ever possibility impasse before, only short time after, old fact appears even called attention indicates magnitude.17 16 action. Whereas entirely failure payments specified contract, problematic cases good-faith existence liability. often matter evaluation parties' bargaining standards imprecise best.18 17 Third, discontinue routinely administrative agency expertise law. There situations judges occasionally resolve issues, surely represent rule. like this, involve actual "arguable" typically defer See Diego Building Trades Council v. Garmon, 359 236, 245, 79 773, 779, 775 (1959).19 18 correct contending be. Under entitled fees, whereas scope relief discretion. Moreover, charge filed within 6-month counsel discretion she persuaded merit sufficient importance justify prosecution. Finally, enter into settlement reduces, might waive, fund. 19 But law before legislation repealed, toto, petitioners basis whatsoever claiming commitment do so. exist Unilateral changes prohibited, vindicate interests motivated enactment carry out net effect duties provides trustees, redress union. 20 Affirmed. 21 KENNEDY One Plasterers Cement Masons Laborers. Those are: Laborers Health Welfare Trust Fund California; Vacations-Holiday-Dues Training Retraining Funds Masons' Vacation-Holiday-Supplemental Dues Apprenticeship Fund. named parties plans, refers "by fiduciary plan." 1132(g)(2). "As rule, activity [that] 'arguably subject [NLRA],' 'must competence Board.' " Kaiser Steel Corp. Mullins, 455 72, 83, 102 851, 859, 70 833 (1982) (quoting 780, (1959)). "federal decide questions emerge collateral independent remedies. . ." Connell Construction Co. Plumbers & Steamfitters, 421 616, 626, 95 1830, 1837, 44 418 (1975). provided, through 515, "independent remedy." 301 Management (LMRA), 156, 185, rely jurisdiction. As correctly stated: 'Impasse' art: "The 'impasse' understandable enough—that point exhausted prospects concluding further discussions fruitless application can difficult. Given many factors commonly itemized cases, perhaps said confidence 'state facts parties, despite best faith, deadlocked.' look matters meetings union, length transpired start breaking off. magic meetings, hours weeks will reliably occurred. "R. Gorman, Basic Text Law: Unionization Collective Bargaining 448 (1976) (citation omitted)." 497, 500, n. indeed impasse, then maintain negotiations, see 6, infra, end. See, e.g., American Ship NLRB, 380 300, 318, 85 955, 967, 855 (1965) (no "when, reached, [employer] temporarily shuts down his plant lays off employees sole purpose economic pressure bear legitimate position"); Taft Broadcasting Co., 163 N.L.R.B. 475, 478 (1967) ("[A]fter is, agreement, violate reasonably comprehended pre-impasse proposals"), aff'd sub nom. Federation Television Radio Artists 129 U.S.App.D.C. 399, 395 622 (1968). Here, determined entertain plaintiffs' claim, factually disputed resolved. "Freezing ante collective expired promotes industrial peace fostering non-coercive atmosphere conducive pending bad sections 8(a)(1), 8(d) Act. Katz, 369 736, 743 [82 1107, 1111, 230] (1962). Consequently, arrangements practice. Peerless Roofing 641 734, 735 (9th Cir.1981); Producer's Dairy Delivery Western Conference Teamsters Fund, 654 625, 627 Cir.1981)." F.2d, 500. All Courts same New Bedford Fishermen's Baltic Enterprises, Inc., 813 503 (CA1 1987); Moldovan Great Atlantic Pacific Tea 790 894, 900-901 (CA3 1986); U.A. 198 Welfare, Education Rester Refrigeration Service, 423 (CA5 1986). 3(a)(4), 1209, 1001a(a)(4). 104, 1217-1244, 1381-1405. 4203(a) "For part, complete occurs employer— "(1) permanently "(2) operations 1218, 1383(a). Neither nor suggests withdrawn subhead contribute; rules," 'obligation contribute' means arising— related) result applicable labor-management relations "does 1233, 1392(a). "Delinquencies Failure promised fashion imposes variety costs While remain unpaid, loses investment income earned past due amounts received invested time. additional incurred detecting collecting Attorneys legal arise connection efforts." Senate Committee Human Resources, 96th Cong., 2d Sess., 1076, 1980: Summary Analysis Consideration 43 (Comm.Print 1980) (emphasis added). "In title favor awarded, shall plan— "(A) "(B) "(C) greater of— "(i) "(ii) excess percent higher percentage permitted State law) subparagraph (A), "(D) action, paid defendant, "(E) equitable deems appropriate. paragraph, using rate or, none, prescribed 6621 Internal Revenue Code 1954." "Recourse current insufficient unnecessarily cumbersome costly. Some converted lengthy, costly litigation concerning defenses unrelated promise entitlement This permit recover efficaciously. Sound national demands providing repudiate promises." Print, supra 12, (emphases infra. selected excerpts history, none duty, some actually tend disprove Senator Williams, Chairman remarked floor "[o]n whole collection, bill direct I suggest unambiguous cause employer." 126 Cong.Rec. 20180 (1980). statement address source obligations. Representative Thompson, House Committee, explained similarly "a direct, 23039. He added: public foster preservation private system necessitates discourage simplify collection. already sponsor prevails owed damages. promote prompt payment assist recovering delinquencies." Ibid. add emphases brief, highlighted sentences speak fact, parts Thompson's excerpted At point, he stated "[f]ailure plans." bit later, exclaimed "[s]ound Immediately following, cited, "[i]n regard," five judicial decisions, endorsing criticizing two. explains, "concerned extraneous interposed clear Brief 18, 11. dealt statutory, obligation. Lewis Benedict Coal Corp., 361 459, 80 489, 442 (1960) (union's promises precedent royalties fund; endorsed); Mill Ridge Coals, 298 552 (CA6 1962) (employer owes regardless consideration; Huge Long's Hauling 590 457 1978) antitrust practices; Washington Laborers-Employers McDowell, 103 LRRM 2219 (WD Wash.1979) (failure achieve majority relieves prehire agreement; criticized); Area Carpenters' Overhead Door 488 F.Supp. 816 (DC (same), rev'd, 220 273, 681 (1982), cert. denied, 461 926, 2085, 77 296 (1983). 23288 (1980) (floor Sen. identical Rep. Thompson). unpersuasive opposite conclusion. offer alternative reading what deem 515's "operative phrase," i.e., "employer "can read refer measured exists So read, adhere collectively-bargained original). words, construe word "under" mean "defined by," "obligated" duties. meant say done clearly; written, themselves "plan" "collectively next 4301(b) compel liability, treated manner (within meaning 515)." 1263, 1451(b). Because "statutory linkage" contend, "it instructive gleaning examine how purposes." 21. Since 4212(a), 11, supra, conclude engendered. easy argument false syllogism, similar erroneous equivalent originated we text, though, cuts makes duties, origin "were duplicative LMRA, creates contracts." 24. But, points out, "this conveniently ignores specific 515." 22. appropriate, "the potent weapon previously unavailable under" LMRA. 23. Even concede "most existing 6; id., 13. 5, supra. Other raise factual asserted. example, avers "issues unions' waiver rights satisfy 8(b)(3) NLRA." 36 (footnote omitted). 4, true, necessary occurred withdrawal. proceeding, normally claim guilty mandated misjudged

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