Garcia v. MacKinnon et al., (2015) 331 O.A.C. 270 (CA)

• Judge: Doherty, Gillese and Lauwers, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: February 05, 2015
• Jurisdiction: Ontario
• Citations: (2015), 331 O.A.C. 270 (CA);2015 ONCA 230

Garcia v. MacKinnon (2015), 331 O.A.C. 270 (CA)

MLB headnote and full text

Temp. Cite: [2015] O.A.C. TBEd. AP.004

David Garcia (applicant/appellant) v. Jim MacKinnon in his capacity as Trustee of the Liuna Local 1059 Members Benefit Trust, Brandon MacKinnon in his capacity as Trustee of the Liuna Local 1059 Members Benefit Trust, Tom Dool in his capacity as Trustee of the Liuna Local 1059 Members Benefit Trust and Joe Liberatore in his capacity as Trustee of the Liuna Local 1059 Members Benefit Trust and Global Benefit Plan Consultant Inc. (respondents/respondents)

(C59265; 2015 ONCA 230)

Indexed As: Garcia v. MacKinnon et al.

Ontario Court of Appeal

Doherty, Gillese and Lauwers, JJ.A.

April 8, 2015.

Summary:

The applicant (Garcia) was a member of the United Brotherhood of Carpenters and Joiners of America (Carpenters). The respondents were associated with the Labourers' International Union of North America, Local 1059 (Local 1059). Garcia was a long-time member of Local 1059 until he was expelled in 2012 for violating and challenging its Dual Union Policy. He claimed to be a beneficiary of a benefit trust and benefit plan administered by Local 1059. Garcia applied for an order permitting him to make claims against the benefit plan after the termination of his union membership by Local 1059. The application judge dismissed his application. Garcia appealed.

The Ontario Court of Appeal dismissed the appeal.

Labour Law - Topic 2287

Constitution and bylaws - Expulsion - Interpretation - Discipline or expulsion - The applicant (Garcia) was a member of the United Brotherhood of Carpenters and Joiners of America - The respondents were associated with the Labourers' International Union of North America, Local 1059 (Local 1059) - Garcia was a long-time member of Local 1059 until he was expelled in 2012 for violating and challenging its Dual Union Policy - He claimed to be a beneficiary of a benefit trust and benefit plan administered by Local 1059 - Garcia applied for an order permitting him to make claims against the benefit plan after Local 1059 had terminated his union membership - The application judge dismissed his application - Garcia appealed - The Ontario Court of Appeal held that the application judge did not err in reading the Trust Agreement and the Benefit Plan Text together to determine the beneficiaries of the Benefit Trust, and find that those who ceased to be members of Local 1059 pursuant to article 5.01(a) of the Benefit Plan Text were no longer beneficiaries and, under article 5.02, the notional balance attributed to them in the "Dollar Bank Account" (a conceptual device used to determine eligibility for benefits) became "part of the general funds of the Plan" - There was no conflict between the Trust Agreement provisions that conferred benefits on Garcia, and the operation of articles 5.01 and 5.02 of the Benefit Plan Text that terminated his access to the benefits on the ending of his membership in Local 1059 - Further, there was no merit to Garcia's argument that he did not have adequate notice that he would lose his benefits if he were expelled - Garcia could have avoided the claimed loss by staying with Local 1059; he was aware of that opportunity throughout and chose to forego it - Finally, the court rejected Garcia's submission that two union officials breached their fiduciary duties as trustees of the Benefit Trust by adopting and enforcing the Dual Union Policy.

Trusts - Topic 5934

The trustee - Duties - General - Trustee of pension funds - [See Labour Law - Topic 2287 ].

Cases Noticed:

Arlington Crane Service Ltd. v. Ontario (Minister of Labour) (1988), 67 O.R.(2d) 225 (H.C.), refd to. [para. 4].

Carpenters (United Brotherhood of Carpenters and Joiners of America) v. Labourers International Union of North America, 2012 CanLII 4286 (O.L.R.B.), refd to. [para. 12].

Sun Indalex Finance, LLC v. United Steelworkers - see Indalex Ltd. et al., Re.

Indalex Ltd. et al., Re [2013] 1 S.C.R. 271; 439 N.R. 235; 301 O.A.C. 1; 2013 SCC 6, revsing. (2011), 276 O.A.C. 347; 2011 ONCA 265, consd. [paras. 44, 54].

Imperial Oil Ltd. v. Ontario (Superintendent of Pensions) (1995), 18 C.C.P.B. 198 (Pen. Com. Ont.), refd to. [para. 56].

Authors and Works Noticed:

Adams, George W., Canadian Labour Law (2nd Ed. 1993) (Looseleaf, consulted February 23, 2015), c. 15, para. 10 [para. 6].

Counsel:

David P. Jacobs and Steven G. Bosnick, for the appellant;

Lorne Richmond and Charles Sinclair, for the respondents.

This appeal was heard on February 5, 2015, by Doherty, Gillese and Lauwers, JJ.A., of the Ontario Court of Appeal. Lauwers, J.A., delivered the following decision for the court on April 8, 2015.