David Gillick v. Gary Elliott

Summary

Employer-appointed trustees of a multi-employer benefit trust deadlocked on a motion to allow each trustee faction to hire separate counsel paid from trust assets. The Eighth Circuit affirmed dismissal of the complaint seeking appointment of an impartial umpire under LMRA §302(c)(5), holding that the proposed delegation was beyond the trustees' authority and would require an amendment to the trust agreement, which the trustees could not make. Because the deadlock concerned an extraordinary matter (amendment) rather than day-to-day trust administration, it was not arbitrable under either the trust agreement or §302(c)(5)’s definition of "administration." Key topics: LMRA §302(c)(5), equal representation, trustee deadlock, impartial umpire, ordinary vs. extraordinary matters, trust amendment.

Holdings

1. The deadlocked motion is not a matter of trust administration under either the Trust Agreement or § 302(c)(5) of the LMRA, because it would require an amendment to the Trust Agreement, which the trustees lack authority to implement, and therefore the district court did not err in declining to appoint an umpire.

Questions Presented

1. Whether the deadlocked motion, which sought to allow each faction of trustees to hire separate counsel paid from the Trust, is a matter of trust administration under the LMRA and the Trust Agreement such that the district court should appoint an impartial umpire to resolve the deadlock.

Disposition

affirmed