Road Sprinkler Fitters Local Union No. 669 v. Dorn Sprinkler Co.
2012 U.S. App. LEXIS 3931
| 6th Cir. | 2012Background
- Union Suit seeks arbitration under a collective bargaining agreement; district court grants summary judgment finding Dorn Fire Protection not alter ego of Dorn Sprinkler.
- Dorn Sprinkler formed in 1977; operation controlled by David Dorn; breached benefit fund contributions for three months in 2006–2007; caused a work stoppage January 2007 and closure in March 2007.
- Christopher Dorn, son of David Dorn, formed Dorn Fire Protection, Inc., later Dorn Fire Protection, LLC, in the 1990s and began operations around 2006.
- Union seeks to compel arbitration with Dorn Fire Protection as alter ego of Dorn Sprinkler; Dorn Fire Protection refuses arbitration, arguing no contract and no alter ego.
- District court held no alter-ego relationship; held Dorn Fire Protection not liable for Dorn Sprinkler’s arbitration obligations.
- On appeal, Court reviews de novo the alter-ego determination and factors including management, operation, equipment, customers, and ownership.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Dorn Fire Protection is the alter ego of Dorn Sprinkler | Union contends alter ego due to shared leadership and business integration. | Dorn Fire Protection is distinct in management, operations, and assets. | Not an alter ego; no arbitration duty imposed. |
| What is the proper standard of review for alter-ego determinations at summary judgment | Standard supports clear-error review for factual findings. | De novo review appropriate for summary-judgment context. | De novo review applies. |
Key Cases Cited
- NLRB v. Fullerton Transfer & Storage Ltd., 910 F.2d 331 (6th Cir. 1990) (articulates traditional alter-ego factors)
- Trs. of Resilient Floor Decorators Ins. Fund v. A & M Installations, Inc., 395 F.3d 244 (6th Cir. 2005) (alter-ego standard and summary-judgment context)
- Detroit Carpenters Fringe Benefit Fund v. Indus. Contracting Co., 581 F.3d 313 (6th Cir. 2009) (discusses standard of review for alter-ego findings and clear-error language)
- Yolton v. El Paso Tennessee Pipeline Co., 435 F.3d 571 (6th Cir. 2006) (discusses flexible, fact-intensive alter-ego analysis)