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C.E.K. Industrial Mechanical Contractors, Inc. v. National Labor Relations Board

Citation: 921 F.2d 350Docket: No. 89-2008

Court: Court of Appeals for the First Circuit; December 16, 1990; Federal Appellate Court

Narrative Opinion Summary

The case involves C.E.K. Industrial Mechanical Contractors, Inc. (CEK) and CAM-FUL Industries, Inc. (Cam-Ful), who petitioned against the National Labor Relations Board's (NLRB) finding of unfair labor practices, with the NLRB seeking enforcement of its order. Central to the dispute was whether the Companies violated the National Labor Relations Act (NLRA) by not adhering to a collective bargaining agreement. The court examined whether CEK and Cam-Ful were alter egos, if the collective bargaining agreement was terminated or renewed, and if the Companies were subject to new Board rules on 8(f) prehire agreements. The court found substantial evidence supporting the Board's findings but refused enforcement, citing manifest injustice in retroactively applying new rules on prehire agreements. The court acknowledged an alter ego relationship due to shared ownership, which bound Cam-Ful to the agreement, but recognized CEK's effective repudiation of the agreement under pre-Deklewa standards. Additionally, the Board's finding of unfair labor practices for failure to provide information was supported by substantial evidence. Ultimately, the court declined to enforce the Board's order, balancing historical legal standards with the principles of justice.

Legal Issues Addressed

Application of Alter Ego Doctrine under NLRA

Application: The Board determined that CEK and Cam-Ful were alter egos due to common ownership and business purpose, which bound both to the collective bargaining agreement.

Reasoning: The Board disagreed, asserting an alter ego relationship existed based on common ownership and business purpose, dismissing the relevance of Cam-Ful's prior existence.

Collective Bargaining Agreement Automatic Renewal

Application: The Board concluded that the CEK agreement automatically renewed due to lack of proper termination notice, continuing CEK's obligations under the agreement.

Reasoning: The Board determined the CEK contract had automatically renewed since no termination notice was sent by CEK, which had not delegated its bargaining authority.

Repudiation of Prehire Agreements

Application: The court found that CEK effectively repudiated the prehire agreement through conduct inconsistent with its terms, consistent with pre-Deklewa law.

Reasoning: Bradley informed Union representatives in spring 1983 that Cam-Ful would not sign prehire agreements, indicating that only a non-union company could compete on non-prevailing rate work.

Retroactive Application of Deklewa Rule

Application: The court declined to apply the Deklewa rule retroactively, deeming it would result in manifest injustice for the Companies.

Reasoning: Applying Deklewa retroactively would unjustly penalize the Companies for actions that were lawful under previous law and violate reasonable expectations regarding prehire agreements.

Unfair Labor Practice for Failure to Provide Information

Application: The Board found that Bradley's failure to provide the Union with requested information constituted an unfair labor practice due to suspicions of alter ego operations.

Reasoning: Substantial evidence supports the Board's determination that Bradley's failure to provide requested information to the Union constituted an unfair labor practice.