Thursday, March 27th, 2008...9:01 am

9th Cir: “Covered Employees” and the Parol Evidence Rule

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The 9th Circuit has held that the phrase “covered employees,” in a CBA (here, a “subscription agreement” for IBEW inside wiremen), unambiguously includes employees hired after the start of the contract but before the union began suppling workers from its hiring hall.  Thus, the trial court erred in admitting extrinsic evidence, and, the appeals court held, the pension trustees were able to collect pension fund contributions for employees hired directly by the contractor defendant.  The Court of Appeals held that non-union, as well as union employees were clearly included when it considered the recognition clause, the contactual promise to contribute benefits, and the definition of covered employees (with the typical exclusion of supervisors, guards, etc.).   The Court concluded:

When a collective bargaining agreement defines covered employees by job classification, it generally covers ‘all employees within those classifications, regardless of union membership.’

(quoting from a 6th Circuit opinion).

Trustees of the So. Cal. IBEW-NECA Pension Trust Fund v. Flores, 2008 WL ______ (9th Cir. Mar. 27, 2008)

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