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Inter County Glass, Inc. v. Trustees of Local Union 580 of the International Association of Bridge Structural and Ornamental Iron Workers Employee Benefit Funds

September 28, 2007

IN THE MATTER OF THE APPLICATION OF INTER COUNTY GLASS, INC., PETITIONER,
v.
FOR A JUDGMENT STAYING THE ARBITRATION COMMENCED BY TRUSTEES OF LOCAL UNION 580 OF THE INTERNATIONAL ASSOCIATION OF BRIDGE STRUCTURAL AND ORNAMENTAL IRON WORKERS EMPLOYEE BENEFIT FUNDS, RESPONDENTS.



The opinion of the court was delivered by: Wall, Magistrate Judge

MEMORANDUM AND ORDER

Before the court is the motion for summary judgment by the Respondents, Trustees of Local Union 580 of the International Association of Bridge Structural and Ornamental Iron Workers Employee Benefit Funds (the "Trustees" or "respondents"). Docket Entry [21]. Petitioner Inter County Glass, Inc. ("Inter County") has cross-moved for summary judgment. [24]. For the reasons set forth herein, the respondents' motion for summary judgment is granted, and the petitioner's cross-motion is denied.

BACKGROUND

The material facts, drawn from the Complaint and the parties' Local 56.1 Statements, are undisputed unless otherwise noted.

Inter County is a New York corporation authorized to do business in the State of New York. Richard Patiri is the President of Inter County. Local Union 580 of the International Association of Bridge Structural and Ornamental Iron Workers ("Local 580") is a labor organization representing construction workers in the iron working industry. Resp. Rule 56.1 Statement at ¶ 4. The terms and conditions of Local 580 workers' employment are governed by a collective bargaining agreement ("CBA"). Id. The respondents are Trustees of employee benefit plans covering Local 580 workers, and collect benefits on behalf of those workers. Id. at ¶ 5; Petitioner's Rule 56.1 Counter Statement at ¶ 5.

On November 6, 1996, Patiri, on behalf of Inter County, entered into a Jobsite Agreement with Local 580 for work to be performed at Roosevelt Field (the "Roosevelt Field Jobsite Agreement"). Resp. Ex. C. The agreement states in part that: this jobsite agreement is given on a one time only basis, and that any work performed in the jurisdiction of Local #580 outside of the above referenced jobsite subjects this employer to the Local #580 Collective Bargaining Agreement in effect this date.

Id. For the work performed at the Roosevelt Field jobsite, Inter County paid the Local 580 workers union wages, submitted Weekly Payroll Reports, and made benefit contributions in the amounts set forth in the CBA. Resp. Rule 56.1 Statement at ¶ 7. There is no money due regarding work performed at Roosevelt Field. Petitioner's Rule 56.1 Counter Statement at ¶ 7.

On June 14, 2001, Patiri, on behalf of Inter County, entered into a second Jobsite Agreement with Local 580, this time covering work to be performed at a Coach store at 44th Street and Madison Avenue in Manhattan (the "Coach Jobsite Agreement"). Resp. Ex. C. The Coach Jobsite Agreement also contained the provision, quoted supra, stating that any work outside this jobsite would subject Inter County to the CBA. As at the Roosevelt Field jobsite, Inter County paid the Local 580 workers union wages, submitted Weekly Payroll Reports, and made benefit contributions in the amounts set forth in the CBA for the work performed at the Coach jobsite. Resp. Rule 56.1 Statement at ¶ 8. There is no money due regarding work performed at Coach. Petitioner's Rule 56.1 Counter Statement at ¶ 8.

Subsequent to the execution and performance of work under the Roosevelt Field and Coach Jobsite Agreements, Inter County used Local 580 workers to perform work at additional jobsites outside the two Jobsite Agreements. Inter County submitted Weekly Payroll Reports for work performed at J. Crew at 45th St. and Madison Avenue from August to September 2001, and for work performed at the Nassau Credit Union in Westbury from November to December 2001. Resp. Ex. D. In total, thirteen such reports were submitted. Every one of those reports, signed by Patiri, contains the following provision:

These contributions shall constitute the acceptance by the employer-purchaser to abide by all terms and conditions of the collective bargaining agreement currently in force between the Allied Metal Building Industries, Inc., and the International Association of Bridge, Structural and Ornamental Iron Workers Local 580. The employer agrees further to be bound by and become a party to the Trust Fund Agreements of said Local Union and accepts all terms, conditions and provisions thereof. The collective bargaining Agreement and its related trust agreement is deemed to be incorporated herein as if it were herein set forth at length.

Id.*fn1 The Weekly Payroll Reports further contain the following certification directly above the signature line:

I hereby certify (1) that this report reflects all wages paid during the period shown to all employees of the Employer herein named who are covered by the current collective bargaining agreements of Local 580, and (2) that the amounts shown are true and correct, and (3) all information in this report is true and accurate.

Id.

Inter County submitted to an audit by the Funds' auditor. Resp. Rule 56.1 Statement at ΒΆ 17. The auditor prepared a report covering the audit period of June 19, 2001 through August 31, 2002. The report, dated September 26, 2002, found that additional contributions were due for work performed at the Nassau Credit Union site during 2001. Resp. Ex. E. The audit report further found that Inter County owed contributions for work performed from January to June 2002 at the National Amusements ...


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