TEAMSTERS HEALTH AND WELFARE FUND OF PHILADELPHIA AND VICINITY et al v. COURIER-POST COMPANY
Filing
36
MEMORANDUM OPINION WITH FINDINGS OF FACT AND CONCLUSIONS OF LAW. Signed by Magistrate Judge Joel Schneider on 12/30/2015. (drw)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY
CAMDEN VICINAGE
TEAMSTERS HEALTH AND WELFARE
FUND OF PHILADELPHIA AND
VICINITY, et al.,
Civil No.
Plaintiffs,
15-844 (JS)
v.
COURIER-POST COMPANY,
Defendant.
MEMORANDUM OPINION WITH
FINDINGS OF FACT AND CONCLUSIONS OF LAW
This
Memorandum
Opinion
with
findings
of
fact
and
conclusions of law serves as the Court’s decision with regard to
the non-jury trial of this matter held on December 14 and 15,
2015.
Pursuant to 28 U.S.C. § 636(c), the parties consented to
the jurisdiction of this Court to hear this matter. The Court
has
jurisdiction
over
this
matter
pursuant
to
29
U.S.C.
§§
185(a), 1132 and 1145, and 28 U.S.C. § 1367. For the reasons to
be discussed, the Court will enter Judgment in plaintiffs’ favor
in the amount of $6,891.72, plus appropriate liquidated damages,
interest, attorney’s fees and costs.
Background
Plaintiffs,
Teamsters
Health
and
Welfare
Fund
of
Philadelphia and Vicinity (“H&W Fund”), Teamsters Pension Fund
1
of Philadelphia and Vicinity (“Pension Fund”), and Adam Garner,
Administrator, filed this ERISA collection action on February 4,
2015.
(The
H&W
Fund
and
Pension
Fund
will
be
collectively
referred to as the “Funds.”) In brief summary, the Funds are
multi-employer
medical
Trust
Funds
insurance,
participants
who
work
among
for
that
provide
other
pension
benefits,
contributing
benefits
to
employers.1
and
eligible
Plaintiffs
seek to recover from defendant, Courier-Post Company (“C-P”),
alleged delinquent payments due the Funds for the calendar years
2010-2011. Plaintiffs claim C-P owes $27,216.21 to the Pension
Fund and $2,824.93 to the H&W Fund for a total delinquency of
$30,041.14.
At all relevant times C-P was an employer and a party to
three Collective Bargaining Agreements (“CBA’s”) with Teamsters
Local
Union
Drivers,
(2)
No.
628.
The
Circulation
three
bargaining
Representatives
units
(“DSMs”),
were:
(1)
and
(3)
Single Copy Merchandisers (“SCMs”). Pursuant to the CBA’s the CP contracted to make payments to the Funds. The amount of the
payments depended upon the language and dollar sums set forth in
the CBA’s. Since the CBA’s were different for each of the three
relevant bargaining units, a summary of the pertinent provisions
for each unit is provided.
Drivers
1
The Trust Agreements were entered into evidence as Joint
Exhibits (“J”) 10, 11.
2
Time Period
1.
Trial Exhibit
9/1/00–
8/31/06
Joint Exhibit
(“J”)-1
Pension Payment
Due
For “all shifts
worked by
regulars and
regular extras,
as well as
vacation and
holiday
shifts.”
2A. 11/9/063/11/11
J-5 (a/k/a P9A)
2B. 11/9/06 –
3/11/11
J-4
For “each shift
worked, as well
as vacation
shifts covered
by this
Agreement.”
3.
J-6
For “all shifts
worked by
regulars and
regular extras,
as well holiday
shifts (not
including
personal
holidays.)”
3/12/113/11/13
H&W Payment Due
For “each shift
worked.”
For “each shift
worked by
regulars and
regular
extras.”
For “all
drivers on the
regular extra
list…, the
total number of
shifts
worked[.]”
For “each shift
worked by
regulars and
regular
extras.”
Rows 2A and 2B above concern a fact dispute between the
parties.
Plaintiffs
contend
the
signed
November
9,
2006
extension for the Drivers (J-5) was in effect through March 11,
2011. C-P disagrees. C-P contends the terms of the Drivers’
unexecuted November 9, 2006 Proposal (J-4) was in effect through
March 11, 2011. As discussed infra, the Court finds that J-5,
and not J-4, was in effect for the Drivers through March 11,
2011.
Nevertheless,
as
will
also
3
be
discussed,
it
makes
no
difference to the result in the case whether plaintiffs or C-P
is right on this issue.
Circulation Representatives (“DSM’s”)
Time Period
Trial Exhibit
1. 9/1/00–
8/31/06
J-2
2. 3/12/113/11/13
J-7
Pension Payment
Due
For “all shifts
worked, as well
as vacation and
holiday shifts.”
For “all shifts
worked, as well
holiday shifts
(not including
personal days.)”
H&W Payment Due
For “all shifts
worked, as well
as vacation and
holiday shifts.”
For “each shift
worked.”
Single Copy Merchandisers (“SCM’s”)
Time Period
Trial Exhibit
1. 9/1/00–
8/31/06
J-3
2. 3/12/113/11/13
J-7
Pension Payment
Due
For “each shift
worked, as well
as vacation and
holiday shifts.”
For “all shifts
worked, as well
holiday shifts
(not including
personal days.)”
H&W Payment Due
For “each shift
worked covered
by this
agreement.”
For “each shift
worked.”
As is apparent, the CBA for the DSM’s and SCM’s merged (J-7) for
the March 12, 2011 – March 11, 2013 time period.
Although not the only issue in dispute, the primary focus
of the trial, and the major portion of plaintiffs’ damage claim,
involves whether Pension Fund payments had to be paid for Local
628’s “personal holidays.” It was apparent from the testimony at
trial,
and
the
Court
so
finds,
4
that
the
parties
equated
“personal holidays” and “personal days” in the sense that these
were paid days off. In other words, a personal holiday or a
personal day was a work day that someone could take off with pay
for any reason.2 (Personal holidays/personal days are different
from vacation or sick days.) The resolution of whether Pension
Fund
payments
had
to
be
made
for
“personal
holidays”
is
dependent on how the term “holiday shift” is interpreted. In
addition to personal holidays/personal days and vacation days,
Local 628 members were entitled to six (6) paid holidays.3 The
crux of the parties’ dispute is whether C-P was required to make
payments
to
the
Funds
for
the
workers’
paid
personal
holidays/personal days. Plaintiffs say yes; C-P says no. C-P
contends that although it agreed to make payments to the Pension
Fund
for
the
six
paid
holidays,
it
did
not
agree
to
make
payments to the Pension Fund for paid personal holidays/personal
days.
The Court’s damage analysis is discussed infra. For present
purposes the Court notes that the main issue just discussed only
applies to Pension Fund payments for the years 2010 and 2011.4 An
2
Albeit, the CBA’s required that notice be given for a requested
personal day. Pursuant to the CBA (J-1, Section VI) the Drivers
were entitled to 5 or 6 personal holidays/personal days.
3 These are New Year’s Day, Memorial Day, Fourth of July, Labor
Day, Thanksgiving and Christmas.
4 To be clear, as to the Drivers only J-1 and 5 are at issue.
Since J-5 did not change the amount and terms of required
payments to the Pension Fund, the controlling language for the
Drivers carried over from J-1 until March 11, 2011. As to the
5
alleged deficiency exists for all three bargaining units but
most of the delinquency involves the Drivers.
The parties do
not dispute that as of March 12, 2011, Pension Fund payments
were not due for paid personal holidays/personal days. See J-6
and 7. Thus, the CBA interpretation issue to be addressed only
involves payments due the Pension Fund for the time period of
January 1, 2010 to March 11, 2011.
The relevant language in J-
1, 2 and 3 is essentially the same.
Plaintiffs presented three (3) witnesses at trial: (1) Adam
Garner, (2) Fred Del Giorno and (3) Beth Raddi. C-P presented
one witness—Thomas Hearon. Garner is employed by Administrative
Personnel Services, Inc. (“ASP”) and replaced William J. Einhorn
on September 1, 2015 as the Administrator of the Funds.5 Prior to
this
he
worked
as
Assistant
Administrator.
Tr.
32:18-20.
He
started working for the Funds on April 30, 2012. Id. 54:21-23.
Del Giorno is also employed by ASP but as a Senior Auditor. Like
Garner and Del Giorno, Raddi is employed by ASP and is the Audit
and Accounts Receivables Manager. She supervised Ed Stipa who
did the audits at issue in the case. Hearon is currently the
Regional
Director
and
General
Manager
for
Gannett
Publishing
DSM’s the controlling language is in J-2. As to the SCM’s
controlling language is in J-3. Even though J-2 and
originally expired on October 31, 2006, the parties do
dispute that the Pension Fund payment terms carried over
March 11, 2011.
5 ASP provides administrative services to the Funds. Trial
Transcript (“Tr.”) 32:2-9.
6
the
J-3
not
to
Services. Tr. 240:22-25. He worked at the C-P’s Cherry Hill
facility from April 2007 to April 2013. Tr. 241:22 to 242:1.
Prior to 2011 he was the General Manager and Operations Director
at the Cherry Hill location. Tr. 241:18-21.
As noted, pursuant to the CBA C-P was required to make
monthly contributions to the Funds. According to Garner, C-P’s
payments
were
made
on
the
“honor
system.”
Tr.
36:14-19.
Nevertheless, the Funds conducted audits to verify that C-P made
the correct monthly payment. Tr. 37:15 to 38:2. Sometime in 2014
Ed
Stipa
completed
completed
his
his
audits
audits
Del
of
Giorno
the
did
a
Funds.
“peer
After
Stipa
review”
and
determined that the audits were correct. Tr. 163:21-23. Stipa’s
audits
were
introduced
(Drivers-2010),
2010),
9D
9B
into
(Drivers-2011),
(Circulation
Merchandisers-2010),
evidence
and
9C
as
(Single
Exhibits
(Circulation
Managers-2011)
9F
Joint
Copy
9E
9A
Managers-
(Single
Copy
Merchandisers-2011).
Each of the audits contains a Difference Code Classification and
Audit Code Classification.
From these Codes one is able to
determine how Stipa calculated the total amount owed to the
Funds. The Codes also identify the particular employee involved
in the alleged delinquency and the relevant time period.6 The
relevant Difference Code Classification at issue here is P (“Up
through March 11, 2011, contributions are due the Pension Fund
6
The Codes identify the who, when and why regarding Stipa’s
conclusion that C-P made overpayments and underpayments.
7
for paid personal holidays.”). Plaintiffs contend wherever a P
is listed in the last column of Stipa’s audits C-P did not make
a required Pension Fund payment for a personal holiday/personal
day. The number of “P” days at issue for the years 2010 and 2011
is listed on the Difference Code Classification sheet.
See
generally Tr. 145:6 to 171:20.
On
May
23,
2014,
Stipa
notified
C-P
of
the
alleged
deficiency at issue. Stipa contended that $27,216.21 was due the
Pension Fund and $2,824.937 was due the H&W Fund. (P-4).8 After
Stipa sent his May 23, 2014 notice the parties exchanged letters
and emails regarding plaintiffs’ audit. (P5 to 9; J-8). The sum
and substance of these exchanges was that C-P disputed whether
it was required to make payments to the Pension Fund for the
members’
paid
personal
holidays/personal
days.
The
correspondence did not address any other substantive dispute.
Discussion
1.
Prior
objected
Motion to Amend/Request to Strike Del Giorno
to
to
the
the
presentation
of
introduction
of
plaintiffs’
any
evidence
evidence
C-P
regarding
plaintiffs’ damage claim other than whether Fund payments had to
7
Of the $2,824.93 allegedly due the H&W Fund, $2,262.08 was for
medical bills the H&W Fund paid that should not have been paid
but for C-P’s errors.
8
Stipa’s audit revealed C-P made $2,745.89 in overpayments.
However, the Funds did not give C-P a credit because C-P did not
send a timely written credit request. P-4; see also Tr. 134:10
to 135:17.
C-P does not challenge this assertion and has not
requested a credit for its overpayments.
8
be paid for the Drivers’ personal holidays/personal days. C-P
claimed this was the only claim made in plaintiffs’ complaint.
C-P also objected to testimony from Del Giorno who was only
identified as a witness on the eve of trial. The Court overruled
C-P’s objections. The Court will expand on the reasons it gave
for its ruling.
It is well-settled that requests to amend complaints are
liberally granted unless there is undue delay, bad faith or
dilatory motive on the part of the movant, repeated failure to
cure
deficiencies
by
amendments
previously
allowed,
undue
prejudice to the opposing party or futility of amendment. See
generally Cincerella v. Egg Harbor Tp. Police Dept., C.A. No.
06-1183 (RBK), 2007 WL 2682965, at *2 (Sept. 6, 2007). It is
also “well-settled that prejudice to the non-moving party is the
touchstone for the denial of an amendment.” Cornell & Co., Inc.
v. Occupational Safety and Health Review Commission, 573 F.2d
820, 823 (3d Cir. 1978). Plaintiffs’ oral motion to amend the
complaint
plaintiffs’
was
granted
amendment
because
seeking
C-P
to
was
not
prejudiced
recoup
all
their
by
claimed
damages. The reason is because C-P was on notice of plaintiffs’
damage claim since the outset of the case. Plaintiffs seek the
same damages they identified in their complaint.
See Complaint
¶¶ 10, 13, 15, 19. Further, all of Stipa’s audits were attached
as exhibits to plaintiffs’ complaint. See Complaint Exhibits 2,
9
7 [Doc. Nos. 1-5, 10]. And, plaintiffs produced Stipa’s audits
in discovery.
The Court is not persuaded by C-P’s argument that it did
not know until the day of trial that plaintiffs would be seeking
damages
beyond
Drivers’
holidays/personal
Pension
days.
The
Fund
reason
payments
is
for
because
personal
plaintiffs
produced their audit reports in discovery and these reports were
introduced in evidence as Joint Exhibits. See J-9(A-F). Also,
the audits were attached to plaintiffs’ complaint. Plaintiffs
are not seeking damages other than what is identified in the
audit
reports
produced
in
attached
discovery.
to
their
Thus,
the
complaint,
Court
which
finds
they
that
at
also
all
relevant times C-P was on notice of plaintiffs’ damage claim and
had an opportunity to conduct discovery to contest the claim.
This
being
the
case
C-P
was
not
prejudiced
by
plaintiffs’
amendment.
It is true that plaintiffs’ oral motion to amend was made
late. However, the mere fact that plaintiffs’ motion could have
been
made
earlier
is
not
determinative
on
whether
the
proposed amendment should be granted. See Adams v. Gould, Inc., 739
F.2d 858, 869 (3d Cir. 1984)(the mere passage of time, without
more, does not require that a motion to amend a complaint be
denied); Deakyne v. Commissioners of Lewes, 416 F.2d 290, 300 n.
19 (3d Cir. 1969)(delay alone is an insufficient ground to deny
10
an amendment). It is not unusual for pleadings to be amended
long after a complaint is filed and even at the summary judgment
stage of a case.
Adams, 739 F.2d at 869.
Indeed, amendments may
be made during trial, after the close of testimony, or even after
judgment.
See
Wright,
Miller
&
Kane,
Federal
Practice
and
Procedure: Civil 3d §1494, pp. 56-57.
As to the request to strike Del Giorno, C-P’s objection was
also overruled. It is true that he was identified late. However,
the substance of his testimony was not a surprise to C-P. Del
Giorno merely “peer reviewed” Stipa’s audits and his testimony
was not materially different from what Garner offered. Moreover,
C-P’s
counsel
Further,
“[t]he
was
prepared
Third
to
Circuit
cross-examine
has,
on
Del
several
Giorno.
occasions,
manifested a distinct aversion to the exclusion of important
testimony absent evidence of extreme neglect or bad faith on the
part of the proponent of the testimony.” ABB Air Preheater, Inc.
v. Regenerative Environmental Equipment Co., Inc., 167 F.R.D.
668, 671 (D.N.J. 1996)(citations omitted). This did not occur
here.
2.
Which Driver Proposal was in Effect from 11/9/06 –
3/ll/11?
Although not determinative, the Court will briefly address
whether J-5 or J-4 was in effect for the Drivers from November
9, 2006 to March 11, 2011. Not surprisingly, the Court holds
that the signed copy of the Proposal (J-5) was in effect. This
11
Proposal
President
was
and
signed
on
Publisher
November
9,
2006
Courier-Post,
by
and
Mark
John
J.
P.
Frisby,
Laigaie,
President Teamsters Union Local No. 628. J-5 was admitted into
evidence
and
there
is
no
contention
the
signatures
on
the
Proposal are not genuine or authentic. Notably, Hearon did not
testify that J-5 was not the controlling contract. Nor could he
justify
why
the
Court
should
give
effect
to
the
unsigned
Proposal (J-4) rather than the signed Proposal (J-5). Hearon
simply testified he was given J-4 and that is what he used to
govern the relationship with plaintiffs. Tr. 282:24 to 283:3.
Although Hearon assumed J-4 was in effect, he did not challenge
the validity of J-5. Although Hearon had a good faith belief
that J-4 was in effect, this is not enough to discredit the
validity of J-5. Nonetheless, this ruling is for naught. No
matter which Proposal was in effect the Court would still rule
in C-P’s favor on the main issue to be addressed.
3.
Fund Payments for Personal Holidays/Personal Days
The Court will now focus on the crux of the case--how to
interpret the parties’ CBA’s. As noted, although J-1, 2 and 3
are at issue, the relevant language in the CBA’s is essentially
the same. The relevant provision at issue states that payments
are due to the Pension Fund for “all shifts worked by regulars
and regular extras, as well as vacation and holiday shifts.” The
meaning of the term “holiday shifts” is what is in dispute.
12
Plaintiffs contend “holiday shifts” not only includes the six
approved holidays but also paid personal holidays/personal days.
C-P contends “holiday shifts” only means the six paid holidays.
The general principles of construction that apply to the
parties’
dispute
including
those
are
relatively
establishing
ERISA
straightforward.
plans,
are
CBA’s,
interpreted
according to ordinary principles of contract law. M&G Polymers
USA, LLC v. Tachett,
U.S.
, 135 S.Ct. 926, 933 (2015). In
this regard the Court must determine and implement the intention
of the parties. Tessmar v. Grosner, 23 N.J. 193, 201 (1957). It
is the objective, not subjective, intent of the parties that the
Court must determine, as manifested in the language of their
CBA’s in light of the circumstances surrounding their execution.
Dome Petroleum Ltd. V. Employers Liability Ins. Co. of Wisc.,
767 F.2d 43, 47 (3d Cir. 1985).
The first step in the Court’s analysis is to determine if
the relevant CBA language is clear or ambiguous. Schor v. FMS
Financial Corp., 357 N.J. Super. 185, 191 (App. Div. 2002). An
ambiguity exists if the terms of a contract are susceptible to
at
least
two
reasonable
alternative
interpretations.
Id.
To
determine if an ambiguity exists the Court must examine the
CBA’s as a whole. The Court should not torture the language in
the CBA’s to create an ambiguity where one does not exist. Id.
Ultimately
the
Court’s
task
is
13
to
ascertain
the
parties’
intention from the language in their CBA taken in its entirety,
“the situation of the parties, the attendant circumstances, and
the objects the parties were [attempting] to attain.” Celanese
Ltd. v. Essex County Improvement Authority, 404 N.J. Super. 514,
528 (App. Div. 2009).
The Court finds that the term “holiday
shift” as used in Section XIV (J-1) is ambiguous. The term is
not
specifically
defined
in
the
CBA
and
plaintiffs
and
defendants offer reasonable alternative interpretations of the
term.
The Court now has to interpret the term “holiday shift.”
Other than citing to the language and structure of the CBA’s the
parties did not submit any persuasive extrinsic evidence as to
what was intended when the CBA’s referenced the term “holiday
shifts.” No testimony was presented from anyone who participated
in
negotiating
introduce
the
any
relevant
exhibits
language.
regarding
Nor
did
the
any
party
contemporaneous
negotiations for the CBA’s. Plaintiffs’ position was based on
what their auditor, peer reviewer and Administrator believed was
the
correct
involved
in
interpretation.
the
None
negotiations
for
of
these
J-1,
2
individuals
or
3.
In
were
fact,
plaintiffs are not even parties to the CBA’s. C-P’s position was
based
on
its
General
Manager’s
belief
as
to
the
correct
interpretation. He also did not negotiate J-1, 2 or 3. Albeit,
14
Hearon was involved in negotiations for later versions of the
CBA’s.
Based on the evidence in the record, the Court rules in CP’s favor. What is most compelling is the fact that the parties
separately
used
the
terms
“holidays”
and
“personal
holidays/personal days” in the CBA. This evidences the parties
knew the terms were different and were not interchangeable. The
Court finds that if the parties intended for the C-P to make
Pension
this
Fund
could
Instead,
payments
have
the
and
CBA
for
“personal
should
only
have
required
holidays/personal
been
specifically
Pension
Fund
days,”
stated.
payments
for
“holiday shifts.” The Court does not interpret the term “holiday
shifts”
as
used
in
the
CBA’s
to
include
“personal
holidays/personal days.” Instead, the term only referred to paid
holidays.
The Court will refer to J-1, the Drivers’ CBA, for its
illustrative analysis. Since J-5 made no change to the required
Pension
Fund
payments
set
forth
in
the
September
2,
2000
–
August 31, 2006 CBA (J-1), the provision in Section XIV (a) of
J-1
applied
through
March
11,
2011.9
This
provision,
which
dictated the Pension Fund payments that were due to the Drivers
from July 1, 2010 to March 11, 2011, reads as follows:
9
The parties agree that the interpretation the Court gives to
“holiday shifts” in J-1 also applies to J-2 and J-3.
15
a) In addition to the wages paid under Section IV, the
Courier-Post shall contribute monthly to the Teamsters
Pension Trust Fund of Philadelphia and Vicinity, the
sums set forth below for each shift worked covered by
this Agreement.
1.
As of September 1, 2000, the contribution by
the Courier-Post will be $38.60 per shift or
$193.00 per week.
* the above Pension payments will apply to all
shifts worked by regulars and regular extras, as
well as vacation and holiday shifts. (emphasis
added).
** The Employer shall not be required to make
Health
&
Welfare
contributions
or
Pension
contributions
for
those
employees
who
upon
retirement elect to receive their vacation and
holiday pay in a lump sum.
b)
In addition to the wages paid under Section IV,
the Courier-Post shall contribute monthly to the
Teamsters Health & Welfare Plan of Philadelphia and
Vicinity, the sums set forth below for each shift
worked covered by this Agreement.
When analyzing J-1 it is apparent that the parties used
different terms to refer to the different kinds of days covered
by the CBA. That is why in different portions of the CBA the
parties used the following terms:
vacation time
holidays
jury duty
funeral leave
personal days
personal holidays
vacation days
vacation shift
holiday shifts
shifts worked.
16
Given
the
fair
knowledgeable
inference
and
that
reasonably
the
parties
sophisticated
were
experienced,
negotiators,
the
Court assumes the parties knew what they intended. By using the
term “holiday shifts” the parties only intended to refer to the
six holidays named in Section VI (p. 18) of J-1. Just like
Section XIV made it clear that Pension Fund payments would be
made for paid vacation days the workers did not work, Section
XIV also made it clear that Pension Fund payments would be made
for paid holidays the workers did not work. If, as plaintiffs
contend, the parties intended for Pension Fund payments to also
be paid for personal holidays/personal days, the CBA would have
read
that
Pension
Fund
payments
would
“apply
to
all
shifts
worked …, as well as vacation, holiday shifts, and personal days
[or personal holidays].” As Hearon noted, there is a difference
between a paid shift, a benefit shift and a credit shift. Tr.
285:14-24. Given the experience and likely sophistication of the
personnel who negotiated the parties’ CBA’s, the Court finds
that if the parties intended for personal holidays/personal days
to be considered benefit days for the purpose of Pension Fund
payments, this would have been explicitly stated. This was not
done.
not
The Court finds this was not done because the parties did
intend
for
Pension
Fund
payments
personal holidays/personal days.
17
to
be
made
for
paid
The
parties
shifts”
or
clearly
“holidays,”
holidays.”
This
“holidays”
and
separately
is
used
distinguished
and
“personal
evidenced
“personal
in
the
the
by
days”
CBA.
the
or
terms
or
“personal
days”
fact
that
“personal
Indeed,
“holiday
the
terms
holidays”
there
is
a
were
separate
denomination of “Personal Holidays” in the Holiday portion (J-1,
Section
VI,
parties
intended
personal
pp.
18-19)
for
holidays
of
the
Pension
or
CBA.
Fund
personal
This
shows
payments
days,
this
to
that
would
the
paid
be
if
for
have
been
specifically stated. The parties’ use of these specific terms in
the CBA provides support for the holding that if the parties
intended
the
term
“holiday
shift”
to
also
include
“personal
holidays” or “personal days,” this would have been specifically
stated.
When
interpreting
Section
XIV
in
the
context
of
the
language of the entire CBA there is nothing to indicate the
parties intended the term “holiday shifts” in Section XIV to
include personal holidays/personal days. A general principle of
contract
interpretation
is
that
“identical
words
used
in
different parts of the same [contract] are intended to have the
same meaning.” Celanese Ltd., 404 N.J. Super. at 528 (citation
omitted).
in
The Court does not interpret the term “holiday shift”
Section
because
XIV
when
to
include
the
CBA
personnel
intended
18
holidays/personnel
to
refer
to
days,
personal
holidays/personal
days
it
specifically
used
these
terms.
Instead, the term “holiday shifts” just referred to one of the
listed “holidays.”
Plaintiffs’
contrary
arguments
are
not
convincing.
Plaintiffs alluded to the fact that when they previously audited
C-P
the
same
delinquency
was
listed
and
C-P
acknowledged
plaintiffs were right. However, there is no credible evidence in
the
record
to
support
this
contention.
None
of
plaintiffs’
witnesses had personal knowledge about an earlier audit and no
exhibits
were
introduced
into
evidence
regarding
an
earlier
audit. In fact, the Court sustained C-P’s objection to portions
of
the
parties’
exhibits
and
testimony
that
made
fleeting
references to an earlier audit. Tr. 111:9-23. Quite simply, any
allusion to an earlier audit is a non-issue in the case.
Plaintiffs argue their interpretation is right because the
CBA’s
effective
on
March
12,
2011
specifically
excluded
“personal holidays.” See J-6, 7. This, plaintiffs argue, shows
that personal holidays were previously included within the term
“holiday
shifts.”
Plaintiffs
argue
there
was
no
reason
to
specifically exclude personal holidays starting March 12, 2011
unless personal holidays were included up to March 11, 2011. The
Court disagrees. The Court does not accept plaintiffs’ argument
because plaintiffs did not present any evidence from someone
involved in the negotiations for the March 12, 2011 to March 11,
19
2013 CBA’s, e.g, J-6 and 7. The Court would be speculating as to
C-P’s
intent
if
it
accepted
plaintiffs’
argument.
In
fact,
Hearon was involved in the negotiations for the new CBA in 2011
(Tr. 265:25 to 266:14) and he disputed plaintiffs’ contention.
Hearon testified it was always C-P’s position that no Pension
Fund payments were due for paid personal holidays/personal days.
Id.;
Tr.
270:13-18.
The
Court
does
not
accept
plaintiffs’
argument because it is just as likely C-P wanted to document its
consistent position as it is that C-P wanted to change what had
been in existence.
The Court is also not persuaded by plaintiffs’ argument
that
since
the
members’
“Personal
Holiday”
benefits
were
included in Section VI dealing with “Holiday Pay,” the parties
intended that “personal holidays” and “holidays” be treated the
same. If this were the case “holidays” and “personal days” would
not have been separately listed in Section V-Vacations (pp.1718). Contract provisions should be “read as a whole, without
artificial emphasis on one section, with a consequent disregard
for others.” Borough of Princeton v. Bd. of Chosen Freeholders
of Mercer, 333 N.J. Super. 310, 325 (App. Div. 2000), aff’d, 169
N.J. 135 (2001). Words and phrases should not be isolated but
instead should relate to the context and contractual scheme as a
whole and given the meaning that comports with their probable
intent
and
purpose.
Newark
20
Publishers’
Ass’n
v.
Newark
Typographical
Court,
of
Union,
course,
No.
103,
understands
22
N.J.
that
419,
a
426
(1956).
contract
should
The
be
interpreted in a common sense manner. Hardy ex rel. Dowdell v.
Abdul-Matin, 198 N.J. 95, 103 (2009). There is nothing illogical
about interpreting the CBA to provide that Pension Fund payments
need to be made for paid holidays but not for paid personal
holidays/personal days.10
4.
Damages
The Court now turns to damages.
To support their damage
claim plaintiffs rely on the audits prepared by Ed Stipa. See J9(A-F).
business
10
These
audits
records
were
hearsay
admitted
into
exception.
Fed.
evidence
R.
Evid.
under
the
803(6).11
To the extent plaintiffs argue the CBA’s should be interpreted
against C-P as the drafter of the CBA’s, the argument is
rejected. There is no evidence in the record regarding who
drafted J-1, 2, and 3. Instead, a fair inference is that the
parties
mutually
drafted
the
CBA’s
with
the
input
of
sophisticated legal and/or business personnel.
11 This is not surprising since records of this type ordinarily
qualify as business records.
See United States v. Blackwell,
954 F. Supp. 944, 976 (D.N.J. 1997)(admitting financial audit
where this type of record was created and maintained in the
ordinary course of the preparer’s business); United States v.
Sololow, 91 F. 3d 398, 402-403 (3d Cir. 1996)(compilation and
summary of over $7 million in unpaid insurance claims prepared
by a third-party administrator admitted as a business record
where the record was made and kept in the third-party
administrator’s regular course of business), cert. denied, 519
U.S. 1116 (199&); United States v. Frazier, 53 F.3d 1105, 1110
(10th Cir. 1995)(regulatory compliance audit prepared by an
independent contractor admissible under Rule 803(6) where this
type of audit “was made in the course of [the independent
contractor’s] regular business activity and … it was the regular
practice of
[the independent contractor] to create such a
report.
21
Further, not only were plaintiffs’ audits admitted into evidence
as
Joint
Exhibits,
but
plaintiffs’
witnesses
testified
extensively about how the audits were carefully prepared and
checked for accuracy. Tr. 79:3 to 84:7; 139:14 to 143:23.
C-P
argues
plaintiffs
did
not
satisfy
their
burden
of
proving damages. It argues that even though Stipa’s audits were
admitted into evidence, Stipa should have appeared at trial to
testify concerning how the audits were prepared.
disagrees.
The
admissibility
of
business
records
records
relieves
rule
the
The Court
permitting
offering
party
the
from
producing the witness who prepared the records. United States v.
Console, 13 F.3d 641, 656-57 (3d Cir. 1993). Further, by its
terms Rule 803(6) permits foundation evidence for the admission
of a business record to be provided by the custodian of the
records or other “qualified witness.” Since plaintiffs’ audits
are in evidence, C-P’s arguments are directed to the weight the
Court should give the audits rather than whether the audits are
competent evidence. U.S. v. Onyenso, C.A. No. 12-602 (CCC), 2013
WL 5322686, at *3 (D.N.J. 2013); Muller-Paisner v. TIAA, 528
Fed.
Appx.
admissible
37,
under
41
n.2
Rule
(2d
803(6)
Cir.
2013)
despite
the
(call
summaries
plaintiff’s
are
general
argument that the circumstances of preparation indicate a lack
of trustworthiness); United States v.Kaiser, 609 F.3d 556, 576
(2d Cir. 2010)(noting that once the requirements of a business
22
record
are
met,
questions
about
trustworthiness
go
to
the
weight, not the admissibility of the evidence).
The Court finds that plaintiffs’ audits are in order and
trustworthy and will defer to their accuracy. No evidence has
been presented to lead the Court to question the accuracy of
plaintiffs’ audits. C-P has not cited to any material mistakes
in the audits. Nor has C-P offered alternative calculations. It
is not insignificant that C-P had an adequate opportunity to
challenge plaintiffs’ audits and chose not to do so. The Court
will not discredit plaintiffs’ audits which have been admitted
into evidence, along with supporting testimony, in the absence
of
a
credible
reason
to
believe
they
are
inaccurate.
No
evidence has been introduced in this regard.
As
Pension
noted,
Fund
delinquency
entitled
plaintiffs’
and
of
to
interpretation
claim
$2,824.93
$30,041.14.
any
damages
issue.
C-P
to
C-P
the
C-P
if
they
argues
owes
H&W
argues
lose
$27,216.21
Fund
for
plaintiffs
the
plaintiffs
to
a
the
total
are
not
“holiday
shift”
did
submit
not
competent proof as to any other damages. The Court disagrees and
finds that Stipa’s audits (J-9(A-F)) satisfy plaintiffs’ burden
of proof. As discussed, Stipa did not have to testify at trial
for the Court to credit his conclusions and findings and to
award damages to plaintiffs.
23
Having decided that plaintiffs’ can recover damages, the
Court must determine how much to award. This is computed by
subtracting
the
disallowed
“holiday
shift”
claim
from
plaintiffs’ total damage claim. Based on the evidence at trial,
the Court computed the total amount of plaintiffs’ Pension Fund
“holiday shift” claim to be $23,149.42.12 Since plaintiffs’ total
damage claim is $30,041.14, plaintiffs’ total award excluding
the
“holiday
shift”
claim
is
$6,891.72
($30,041.14
-
$23,149.42). Of this amount $2,824.93 is for the medical bills
plaintiffs paid.
In sum, therefore, Judgment in the amount of $6,891.72 will
be
entered
damages,
in
plaintiffs’
interest,
favor,
attorney’s
plus
fees
appropriate
and
costs.13
liquidated
This
total
includes $2,824.93 in medical bills plaintiffs paid.
Conclusion
Accordingly, for all the foregoing reasons, the Court finds
that Judgment will be awarded in plaintiffs’ favor in the total
amount
12
of
$6,891.72,
plus
appropriate
liquidated
damages,
The Driver’s claim totals $16,892.82. (2010 (311 days x $44.69
= $13,898.59) plus 2011 (67 days x $44.69 = $2,994.23)). The
Circulation claim totals $5,720.32 (2010 (99 days x $44.69 =
$4,424.31) plus 2011 (29 days x $44.69 = $1,296.01). The SCM
claims totals $536.28 (2010 (6 days X 44.69) plus 2011 (6 days x
$44.69)).
13 See 29 U.S.C. § 1132(g)(2).
24
interest, attorney’s fees and costs.14 Plaintiffs shall submit a
timely form of Judgement in accordance with L. Civ. R. 58.1.
Plaintiffs’
attorney’s
fee
and
cost
claims
shall
be
submitted in accordance with the applicable Federal and Local
Rules of Civil Procedure.15
s/Joel Schneider
JOEL SCHNEIDER
United States Magistrate Judge
DATED: December 30, 2015
14
The parties stipulated that only $4,066.79 is subject to
liquidated damages ($6,891.72 - $2,824.93 (medical bills)).
15 The parties are encouraged to meet and confer to see if they
can agree on the total sum due without further litigation.
25
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