The opinion of the court was delivered by: ROBERT SWEET, Senior District Judge
The respondents Iron Workers Locals 40, 361 and 417 Union Security
Funds (the "Funds") and Iron Workers Local 417 (the "Union")
(collectively, the "Respondents") have moved under Rule 56, Fed.R. Civ.
P., to dismiss the petition of petitioner Coast to Coast Installations,
Inc. ("Coast to Coast") to stay an arbitration. For the reasons set forth
below, the motion is granted.
The Funds and the Union requested arbitration on January 16, 2003,
relying upon a collective bargaining agreement signed on January 10, 2001
by Michael Kares, the president of Coast to Coast ("Kares"). By order to
show cause of February 11, 2003, issued in the Supreme Court of the State
of New York, County of New York, Coast to Coast obtained a stay of the
On February 20, 2003, the Funds and the Union removed the petition to
stay to this Court. Discovery proceedings were undertaken, the deposition
of Gary Gaydos, a business manager and financial secretary-treasurer of
the Union, was noticed by Coast to Coast on November 5, 2003, and
adjourned, and the instant motion was marked fully argued and submitted
on January 30, 2004. The Facts
The following facts are gleaned from the parties' Local
Rule 56.1 Statements and submissions and are undisputed except as noted below.
Coast to Coast is a New York corporation and has its principal place of
business at 250 Moonachie Road, Moonachie, New Jersey.
Kares is the owner and president of Coast to Coast. Coast to Coast is a
non-union employer that installs conveyors and racking systems.
The Funds, located at 451 Park Avenue South, New York, New York, are a
group of Taft-Hartley employee benefit funds governed by trust agreements
and operating under the laws of the United States, including, without
limitation, the Labor Management Relations Act ("LMRA") and the Employee
Retirement Income Security Act ("ERISA").
The Union is a labor organization representing workers governed by,
inter alia, the National Labor Relations Act ("NLRA"), LMRA and ERISA. In August 2000, a Project Labor Agreement ("PLA") was entered into
between The Gap, Inc. ("The Gap") as owner, Clayco. Construction Company,
Inc. ("Clayco") as contractor, and unions affiliated with the Dutchess
County Building Trades Council, including the Union, relating to the
construction of a store in Fishkill, New York, to be operated by Old
Navy, a subsidiary of The Gap (the "Fishkill Project").
On September 11, 2000, The Gap faxed the PLA to Coast to Coast. The PLA
had already been signed by other subcontractors working on the Fishkill
Project. The PLA provided that: (1) a composite work crew of union and
non-union workers would be used, and (2) the agreement was specific to
the particular job, that it applies as a "single project agreement" and
"not to any other work at any other site" and that the "terms and
conditions of this Agreement shall be extended to include all
Subcontractors" on the Project. The PLA stated further that where
"conflicts exist between various Local Collective Bargaining Agreements
and this Agreement, this Agreement shall prevail." The PLA was executed
by Gary Gaydos on behalf of the Union.
On September 14, 2000, Coast to Coast, as a subcontractor, faxed a
bid proposal for the installation of the storage system to the company
providing certain equipment for the Fishkill Project. The bid proposal
listed the Fishkill Project as non-union, but also confirmed that Coast to Coast would use a composite crew of
union and non-union workers on this specific project.
On November 21, 2000, Coast to Coast was awarded the contract for the
unloading, erecting and installing of all the storage systems in the
On January 10, 2001, after a tour of the job site, Kares attended a
breakfast meeting at a Fishkill-area Holiday Inn with the representatives
of all the involved unions to discuss how the work would be performed for
Coast to Coast's portion of the Fishkill Project. Representatives from
the operating engineers, the millwrights, the ...