Former union members sued a union, its local, and trustees of a health and welfare trust seeking an accounting and payment of alleged surplus contributions accumulated in a “dollar bank” benefit system after their expulsion following employer decertification.
The defendants brought a Rule 21 motion to strike the claim for disclosing no cause of action and argued the Superior Court lacked jurisdiction.
The court held the motion was improperly brought without leave after the matter had been set down for trial and was not brought promptly, as the pleadings had been unchanged for over three years.
In any event, the claim raised numerous factual issues requiring evidence, including the interpretation of trust agreements, the effect of an employee benefit booklet, and entitlement to credits upon termination of union membership.
The court also held that the Superior Court had jurisdiction because issues of fiduciary duty and punitive damages fell outside the Labour Relations Board’s authority.
