Watjen et al v. Penn Central Company et al

Motion for to Reinstate and Confirm Arbitration Award

N.D. OhioApril 20, 2011

IN THE U.S. DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION ROBERT WATJEN, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. MICHAEL J. KNAPIK, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. DAVID C. BUNDY, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. G. V. SOPHNER, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. CASE NO.: 69-675 CASE NO.: 69-722 CASE NO.: 69-947 CASE NO.: 74-914 JUDGE SOLOMON OLIVER, JR. PLAINTIFFS’ MOTION TO REINSTATE AND CONFIRM ARBITRATION AWARD The Plaintiffs’ respectfully move this Court to enter an Order confirming the Award of the Arbitration Panel dated July 30, 2009 [Exhibit A] as upheld in the Decision of the Surface Transportation Board (hereinafter the “STB”) dated January 6, 2011 [Exhibit B] in its entirety and with the award of interest as indicated by the STB. Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 1 of 8. PageID #: 433 Plaintiffs in this matter are former railroad workers who filed lawsuits against the Defendants for wage guarantees and benefits to which they were entitled under the 1964 Merger Protection Agreement implementing the terms of consolidation between the New York Central and Pennsylvania Railroads. On or about 1979 the Defendants petitioned the Court to send the cases to binding arbitration. The Plaintiffs opposed that Motion. The Court ordered the parties to binding arbitration in 1979. The instant arbitration occurred in December of 2007. The Arbitration Panel issued its decision in favor of the Plaintiffs in July 2009. One day later the Plaintiffs filed a Motion to Confirm that Award. On August 19, 2009 the Defendants appealed the Arbitration Award to the STB and argued that the District Court did not have jurisdiction to confirm the Arbitration Award until the appeal of the Award was concluded. This Court agreed and ordered the parties to “notify this Court at the conclusion of the STB appeal and/or the appellate process.” On or about January 6, 2011 the STB affirmed the Arbitration Award to Plaintiffs. Pursuant to 28 U.S.C. §2344, Defendants had sixty days to appeal the STB Decision to the Circuit Court. The appeal period has expired and the Defendants have chosen not to exercise their appellate rights. Accordingly the Plaintiffs move this Court to reinstate Plaintiffs’ prior Motion to Confirm Arbitration Award and to confirm and reduce to judgment the Arbitration Award as indicated in the Proposed Order attached hereto and incorporated herein. Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 2 of 8. PageID #: 434 IN THE U.S. DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION ROBERT WATJEN, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. MICHAEL J. KNAPIK, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. DAVID C. BUNDY, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. G. V. SOPHNER, ET AL., PLAINTIFFS, V. PENN CENTRAL, DEFENDANT. CASE NO.: 69-675 CASE NO.: 69-722 CASE NO.: 69-947 CASE NO.: 74-914 JUDGE SOLOMON OLIVER, JR. Now pending before this Court is the Plaintiffs’ Motion to Reinstate and Confirm Arbitration Award in these consolidated cases issued on July 30, 2009, incorporated and attached hereto as Exhibit A, as affirmed by the Surface Transportation Board in its Decision dated January 6, 2011, Pennsylvania Railroad Company – Merger – New York Central Railroad Company Docket No. FD 21989 incorporated and attached hereto as Exhibit B Per the terms of this Court’s prior Order of March 10, 2010, this matter is now reinstated, the appellate review process having concluded by the Defendants’ waiver of their appeal to the Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 3 of 8. PageID #: 435 Circuit Court of the Decision of the Surface Transportation Board. This Court adopts and confirms in their entirety the Arbitration Award issued in the matter pursuant to the Federal Arbitration Act 9 U.S.C. §9 as modified by the Surface Transportation Board with the following addition. The Arbitration Panel ordered the claimants to update the prejudgment interest award from December 31, 2007 to the date of the award. See Award Exhibit A at 177. The Surface Transportation Board further ordered that the Plaintiffs are entitled to interest for the time elapsed since the prior interest calculation. See Decision Exhibit B at 25. The Plaintiffs have supplied those additional interest figures based on the prime rate compounded quarterly, the method used by the Panel and approved by the Surface Transportation Board. Accordingly, the following awards for each claimant are confirmed into judgment as follows: Knapik Claimants 69-722 Personal Representatives Displacement Allowance (with pensions) Prejudgment Interest Prime Rate (thru 03/31/2011) Total Judgment Acre, Jack Berk, Gerald 10,556 334,855 345,411 Benko, Edward Berk, Gerald 123,110 2,648,437 2,771,547 Day, Ken Day, Ken Jr. 48,267 1,233,957 1,282,224 Doran, Harvey Berk, Gerald 12,210 362,701 374,911 Gastony, Joseph Berk, Gerald 16,632 437,305 453,937 Gentile, George Berk, Gerald 7,562 232,988 240,550 Norris, George Polson, Catherine 50,156 129,2696 1,342,852 Steimle, Christ Steimle, Christ III 3,540 107,642 111,182 Tomczak, Clarence Berk, Gerald 52,667 130,7978 1,360,645 Uher, Frank Gath, Judith 23,560 698,467 722,027 Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 4 of 8. PageID #: 436 Sophner Claimants Personal Displacement Prejudgment Interest Total Judgment 74-914 Representatives Allowance (with pensions) Prime Rate (thru 03/31/2011) Bilinsky, William Bilinsky, Theresa 2,293 55,706 57,999 Crtalic, Joseph Crtalic, Judy 2,959 69974 72,933 Foecking, Paul Berk, Gerald 13,767 207,721 221,488 Gallagher, John N/A 3,053 91,999 95,052 Janke, Gus Berk, Gerald 4,146 109,345 113,491 Jarabeck, Joseph Tomsik, Donald 3,557 40,272 43,829 Kochenderfer, E.W. Rossman, Susan 6,784 164,544 171,328 McLaughlin, Patrick Violini, John Jr. 34,433 874,132 908,565 McNeely, Robert Donna L. Quellos 5,146 113,618 118,764 Novotny, Andrew N/A 2,195 54,086 56,281 Opalk, Martin Campbell, Donna 9,469 241,867 251,336 Pentz, L. S. Pentz-Kirchener, Ann Marie 5,397 125,340 130,737 Schreiner, Robert Rich, Linda 20,815 541,796 562,611 Scuba, Paul Scuba, Paul W. 12,892 323,751 336,643 Sophner, George Berk, Gerald 16,738 451,883 468,621 Sowinski, Peter Oleksak, Donna 9,100 219,814 228,914 Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 5 of 8. PageID #: 437 Watjen Claimants 69-675 Personal Representative Separation Allowance Prejudgment Interest Prime Rate (thru 03/31/2011) Total Judgment Franz, Phillip N/A 10,473 305,248 315,721 O’Neil, Thomas N/A 10,406 301,275 311,681 Watjen, Robert Watjen, Judith 10,950 317,012 327,962 Wilger, Ana Mae Stone, Joyce W. 10,435 310,285 320,720 Bundy Claimants 69-947 Separation Allowance Prejudgment Interest Prime Rate (thru 03/2011) Total Judgment Bundy, David Berk, Gerald 10,793 312,460 323,253 Feldscher, James Berk, Gerald 10,759 307,264 318,023 IT IS SO ORDERED. __________________________ JUDGE SOLOMON OLIVER Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 6 of 8. PageID #: 438 Respectfully submitted, /s/ Carla M. Tricarichi Carla M. Tricarichi (0014164) Counsel for Plaintiffs Tricarichi & Carnes, L.L.C. 23600 Commerce Park, Suite A Beachwood, OH 44122 Phone: 216-378-9550 Fax: 216-378-9557 E-mail:ctricarichi@aol.com Mark Griffin (0064141) Thorman & Hardin - Levine Co. LPA 1220 West Sixth Street, Suite 207 Cleveland, Ohio 44113 Phone : (216) 621-9767 E-mail : mgriffin@thllaw.com Randy J. Hart (0046793) 23600 Commerce Park, Suite A Beachwood, OH 44122 Phone: 216-378-9550 Fax: 216-378-9557 E-mail:rjhart@hahnlaw.com Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 7 of 8. PageID #: 439 CERTIFICATE OF SERVICE A copy of the foregoing was sent by regular U.S. Mail and electronic mail to: Michael L. Cioffi cioffi@blankrome.com Nathaniel R. Jones Jason Groppe Blank Rome, LLP 1700 PNC Center 201 East Fifth Street Cincinnati, Ohio 45202 on this 20th day of April, 2011. /s/ Carla M. Tricarichi Carla M. Tricarichi Attorney for Plaintiffs Case: 1:69-cv-00675-SO Doc #: 13 Filed: 04/20/11 8 of 8. PageID #: 440