AMO WINS AGAIN PART 2

AMO WINS AGAIN PART 2

AMO scores significant win as federal judge sends case against MEBA back to Ohio court
A civil suit brought by American Maritime Officers against the Marine Engineers’ Beneficial Association and others advanced significantly Aug. 25 when a federal judge ordered that the case be heard in state court in Ohio, where it was filed by AMO in December 2005.

Ruling in the United States District Court for the Northern District of Ohio Western Division, U.S. District Judge David A. Katz granted a motion by AMO to send the case back to the state court. MEBA had argued that federal jurisdiction applied under a 1947 federal labor law, but Judge Katz disagreed.

Judge Katz also denied a motion by MEBA and its co-defendants -- including the MEBA benefit funds and top MEBA officials -- to dismiss the claims made by AMO. MEBA had argued that the claims were “pre-empted” under separate federal statutes.

The case brought by AMO late last year alleged “tortious interference” by MEBA and its co-defendants with a valid collective bargaining agreement between AMO and the Ohio-based Interlake Steamship Co. in July 2003. MEBA and Interlake -- which operates seven self-unloading U.S.-flagged Great Lakes bulk carriers -- signed a 10-year contract in secrecy six days before the expiration of the three-year AMO-Interlake collective bargaining agreement.

In its arguments in the U.S. District Court, MEBA said determining whether contract “interference” occurred in violation of Ohio law was a matter of interpretation of the AMO-Interlake collective bargaining agreement, but Judge Katz did not accept that argument.

“Here, defendant (MEBA) is a third-party union accused of the state law tort of interference with contract,” Judge Katz wrote. “While the existence of the relationship between AMO and Interlake, the employer, arose out a collective bargaining agreement, no interpretation of that contract is necessary to the determination of violation of state law, but only the mere existence of the contract.

“In fact, an arbitrator has found that Interlake breached its duty under the collective bargaining agreement by failing to bargain in good faith, and that decision was recently upheld by Chief Judge James G. Carr in Interlake v. American Maritime Officers Union,” Judge Katz continued. “The arbitrator’s decision that Interlake violated the recognition and non-coercion provisions of its contract with AMO through its actions with MEBA stands as controlling authority on the issue of breach of contract. Therefore, the issue before this court or the Court of Common Pleas (in Ohio) involves not interpretation of the collective bargaining agreement, but the relationship between Interlake and AMO and whether any action by MEBA constituted a tort for which AMO may seek redress under Ohio law.”

The suit was brought by AMO in the Lucas County (Ohio) Court of Common Pleas in Toledo, where AMO has its Great Lakes base. The suit named the Marine Engineers’ Beneficial Association, MEBA President Ron Davis, MEBA Vice President Don Keefe, the MEBA Medical and Benefits Plan, the MEBA Vacation Plan, the MEBA Training Plan, the MEBA 401(k) Plan and the MEBA Pension Trust as defendants.

AMO asked for a jury trial and a minimum of $60 million in “direct and consequential” damages and $280 million in punitive damages. AMO also asked for payment of “reasonable” attorneys’ fees and court costs by the defendants and “any further relief in law or equity to which plaintiff (AMO) is entitled.”