Baker v. Iron Workers Local 25

Docket: 20-1946 

Opinion Date: May 28, 2021

Judge: Jeffrey S. Sutton 

Areas of Law: Arbitration & Mediation, Civil Procedure, ERISA, Labor & Employment Law

The Labor Management Relations Act forbids employers from directly giving money to unions, 29 U.S.C. 186(a); an exception allows an employer and a union to operate a trust fund for the benefit of employees. Section 186(c)(5)(B) requires the trust agreement to provide that an arbitrator will resolve any “deadlock on the administration of such fund.” Several construction companies and one union established a trust fund to subsidize employee vacations. Six trustees oversaw the fund, which is a tax-exempt entity under ERISA 26 U.S.C. 501(c)(9). A disagreement arose over whether the trust needed to amend a tax return. Three trustees, those selected by the companies, filed suit, seeking authority to amend the tax return. The three union-appointed trustees intervened, arguing that the dispute belongs in arbitration. The court agreed and dismissed the complaint. The Sixth Circuit affirmed. While ERISA plan participants or beneficiaries may sue for a breach of statutory fiduciary duty in federal court without exhausting internal remedial procedures, this complaint did not allege a breach of fiduciary duties but rather alleges that the employer trustees’ own fiduciary duties compelled them to file the action to maintain the trust’s compliance with tax laws. These claims were “not directly adversarial to the [union trustees] or to the Fund.”

Garland v. Orlans, PC

Docket: 20-1527 

Opinion Date: May 28, 2021

Judge: Nalbandian 

Areas of Law: Civil Procedure, Consumer Law, Legal Ethics

The Orlans law firm, sent a letter on law-firm letterhead, stating that Wells Fargo had referred the Garland loan to Orlans for foreclosure but that “[w]hile the foreclosure process ha[d] begun,” “foreclosure prevention alternatives” might still be available if Garland contacted Wells Fargo. The letter explained how to contact Wells Fargo “to attempt to be reviewed for possible alternatives,” the signature was typed and said, “Orlans PC.” Garland says that the letter confused him because he was unsure if it was from an attorney and “raised [his] anxiety” by suggesting “that an attorney may have conducted an independent investigation and substantive legal review ... such that his prospects for avoiding foreclosure were diminished.” Garland alleges that Orlans sent a form of this letter to thousands of homeowners, without a meaningful review of the homeowners’ foreclosure files, so the communications deceptively implied they were from an attorney. The Fair Debt Collection Practices Act (FDCPA) prohibits misleading debt-collection communications that falsely imply they are from an attorney. The Sixth Circuit affirmed the dismissal of the purported class action for lack of jurisdiction. Garland lacks standing. That a statute purports to create a cause of action does not alone create standing. A plaintiff asserting a procedural claim must have suffered a concrete injury; bare allegations of confusion and anxiety do not qualify. Whether from an attorney or not, the letter said nothing implying Garland’s chance of avoiding foreclosure was “diminished.”

Wyatt v. Nissan North America, Inc.

Docket: 20-5021 

Opinion Date: May 28, 2021

Judge: Karen Nelson Moore 

Areas of Law: Labor & Employment Law

Wyatt began working as a Nissan project manager in 2013. For two years she received positive annual performance reviews. During those years, Wyatt twice had medical leave. Nissan restored Wyatt to her position and granted nearly all the work accommodations recommended by Wyatt’s doctor. In 2015, Wyatt began working on a project headed by Mullen who sexually harassed and assaulted her. Wyatt’s complaints led to Mullen leaving the company. At the same time, Wyatt took medical leave for back surgery. Upon her return, she and her doctors requested workplace accommodations, similar to those she had previously requested. Nissan denied her request for a 40-hour workweek. Wyatt claims that managers harassed her about her requests and gave Wyatt her first “below expectations” annual evaluation, Wyatt filed a charge of discrimination with the EEOC. Her managers later issued Wyatt a Performance Improvement Plan. Wyatt refused to sign the PIP, believing that it was retaliatory. In February 2017, Wyatt took medical leave and continues to be on leave. Wyatt filed suit, alleging hostile work environment, Title VII, 42 U.S.C. 2000e; failure-to-accommodate, Americans with Disabilities Act, 42 U.S.C. 12101l and retaliation claims under Title VII, the ADA, and the Family and Medical Leave Act, 29 U.S.C. 2601. The district court granted Nissan summary judgment. The Sixth Circuit affirmed with respect to Wyatt’s ADA discrimination claim and claims that were based on retaliatory harassment but reversed with respect to Wyatt’s hostile work environment and retaliation claims based on adverse employment actions.