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MI employer barred from pursuing contractual interference claim against union

February 2020 employment law letter
Authors: 
Gary S. Fealk, Bodman PLC

A Michigan employer filed a lawsuit claiming a union and its president tortiously interfered with its performance of a time-sensitive demolition project. The employer alleged (1) the union failed to dispatch the required number of experienced, qualified operators, causing it to breach its contractual obligations, and (2) defamatory statements were made that affected the company's reputation. Rather than seek relief in a contractual arbitration case, the employer filed tort (or wrongful injury) claims in court.

Facts

Prior to March 2018, Adamo Demolition Company was awarded a subcontract to complete a substantial demolition project at a Ford assembly plant. The job was covered by a national maintenance agreement (NMA) that required contractors to accept referrals from the International Union of Operating Engineers Local 150.

Before starting the project, Adamo advised the union it would provide 35 qualified, well-trained operators and needed the union to provide 47 such operators. The union was told the project was time-sensitive. The company further claims:

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