Wilson v. A&K Rock Drilling, Inc
2:16-cv-00739
S.D. OhioJan 24, 2018Background
- The Ohio Operating Engineers Funds (multiemployer ERISA fringe benefit plans) audited A&K Rock Drilling for Jan. 1, 2004–Nov. 1, 2015 and alleged unpaid contributions for employees including Gregory Klodt and D.T. Colopy.
- A&K had executed collective bargaining agreements (CBAs) obligating the employer to pay fringe contributions for “all hours paid to each employee.”
- The Funds sued (2016) under ERISA § 515 and the LMRA to collect delinquent contributions, interest, and liquidated damages; A&K moved to dismiss arguing statute of limitations and that Klodt was an employer (not an employee) so no contributions were owed.
- The court denied dismissal (applying the 15‑year limitations period applicable when claims accrued) and later considered cross-motions for summary judgment on whether contributions were owed for Klodt.
- The court held Klodt was not an “employer” under the Trusts/CBAs, but was an “employee” because he was “in the employ” of A&K and was listed on wage reports; therefore A&K owed contributions for Klodt and Colopy.
- Judgment awarded to the Funds: $201,110.14 plus $38.54 per day from April 15, 2017 until paid; Funds’ summary judgment granted and A&K’s denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether A&K owes contributions for Klodt | Funds: CBAs/Trusts require contributions for “all hours paid to each employee”; Klodt is listed as an employee on wage reports so contributions are due | A&K: Klodt was an owner/authorized representative (an employer), performed only managerial work outside CBA scope, so no contributions due; statute of limitations (earlier) defense | Court: Klodt is not an “employer” under the Trust definitions and is an “employee”; contributions owed for all hours paid regardless of work type; statute of limitations previously rejected at motion to dismiss |
| Whether LMRA or other federal law prohibits contributions on Klodt’s behalf | Funds: No legal bar; Trust/CBAs control | A&K: Federal labor law prohibits employer contributions for owner/manager | Court: Previously rejected at motion to dismiss; federal law does not bar contributions here |
| Whether type of work (managerial vs. covered construction) matters for contribution obligation | Funds: CBAs require contributions for all hours paid to employees regardless of task | A&K: Only work within CBA scope is compensable for contributions; Klodt’s managerial work falls outside scope | Court: Work type irrelevant—controlling language requires contributions for all hours paid to employees |
| Measure of damages/remedies under ERISA § 502(g) | Funds: Seek unpaid contributions, interest, liquidated damages, fees and costs | A&K: Disputes entitlement (not amounts) | Court: Awarded unpaid contributions, interest, liquidated damages (equalling interest here), and daily late charges as calculated |
Key Cases Cited
- M & G Polymers USA, LLC v. Tackett, 135 S. Ct. 926 (Sup. Ct.) (ERISA/CBAs interpreted under written terms)
- Orrand v. Scassa Asphalt, Inc., 794 F.3d 556 (6th Cir.) (enforcing contributions for owners listed as employees)
- Operating Engineers Local 324 Health Care Plan v. G & W Const. Co., 783 F.3d 1045 (6th Cir.) (written agreement requirement and interpretation)
- Bunn Enterprises, Inc. v. Ohio Operating Eng’rs Fringe Benefit Programs, [citation="606 F. App'x 798"] (6th Cir.) (CBA requires contributions for all hours worked)
- Wilson v. Bridge Overlay Sys., Inc., 129 F. Supp. 3d 560 (S.D. Ohio) (contributions required for all hours worked even when work not listed in CBA)
- Noe v. R.D. Jones Excavating, Inc., 787 F. Supp. 759 (S.D. Ohio) (rejecting argument that supervisory or non-listed tasks obviate contribution obligation)
- Trustees of Detroit Carpenters Fringe Benefit Funds v. Patrie Const. Co., [citation="618 F. App'x 246"] (6th Cir.) (individual owners/officers not automatically liable absent separate agreement or veil-piercing)