Board of Trustees v. Gudgel Yancey Roofing Inc.

225 F. Supp. 3d 1106, 2016 U.S. Dist. LEXIS 168619, 2016 WL 7049240
CourtDistrict Court, N.D. California
DecidedDecember 5, 2016
DocketCase No. 16-CV-04310-LHK
StatusPublished
Cited by6 cases

This text of 225 F. Supp. 3d 1106 (Board of Trustees v. Gudgel Yancey Roofing Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees v. Gudgel Yancey Roofing Inc., 225 F. Supp. 3d 1106, 2016 U.S. Dist. LEXIS 168619, 2016 WL 7049240 (N.D. Cal. 2016).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

■LUCY H. KOH, United States District Judge

Plaintiffs Board of Trustees of the Bay Area Roofers Health & Welfare Trust Fund; Pacific Roofers Pension Plan; East Bay/North Bay Roofers Vacation Trust Fund, Bay Area Counties Roofing Industry Promotion Fund, Bay Area Counties Roofing Industry Apprenticeship Training Fund; and Doug Ziegler, as Trustee (collectively, “Plaintiffs”), are multi-employer employee benefit plans. Plaintiffs bring this action against Defendant Gudgel Yancey Roofing, Inc. (“Defendant”) alleging violations of the Employment Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001, and the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185. ECF No. 1 (“Compl.”). Before the Court is Defendant’s motion to dismiss. ECF No. 15 (“Def. Mot”). The Court finds this matter appropriate for determination without oral argument and hereby VACATES the hearing set for December 8, 2016. See Civil L.R. 7-l(b). Having considered the parties’ submissions, the relevant law, and the record in this case, the Court hereby GRANTS Defendant’s motion to dismiss.

I. BACKGROUND

A. Factual Background

Plaintiffs are multi-employer employee benefit funds. Compl. ¶ 7. Plaintiffs receive contributions from individuals who are parties to a collective bargaining agreement (“CBA”) that exists between Local 81 of the United Union of Roofers, Water-proofers and Allied Workers,. AFL-CIO (“Local 81”), and the Associated Roofing Contractors of the Bay Area Counties, Inc. (“Associated Roofing Contractors”). Id. ¶ 7; see also Compl. Ex. A.

Defendant is a roofing, waterproofing, and contracting business in Sacramento County, California. Compl. ¶ 9. According to the Complaint, Defendant is bound to the CBA between Local 81 and the Associated Roofing Contractors, and thus Defendant must comply with the terms of the CBA. Id. ¶¶ 11-13. Specifically, Plaintiffs allege that Defendant became bound to the CBA “by way of accepting a public works contract to train apprentices.” Id.

According to Plaintiffs, “Defendant accepted” a “Referral Page” from Local 81, and Defendant thereby became bound to the CBA. Id. ¶ 13. Plaintiffs attached to their Complaint a copy of the Referral Page. Compl., Ex. B. The Referral Page is on Local 81 letterhead and is dated August 25, 2015. Id. The Referral Page lists the name “Isidro Quevedo” and states that the individual is to “Report To: Gudgel Yan-cey Roof.” Id. The Referral Page is signed by a Local 81 “Member” and a “Dispatcher.” Id. The Referral Page contains the following “Note”:

By accepting this referral, the individual employer recognizes [Local 81] as the majority collective bargaining representative of his or its employees employed in the counties covered by the [CBA] between Local 81 and the Associated Roofing Contractors of the Bay Area Counties and recognizes the Union as the exclusive collective bargaining agent for such employees and further agrees that it is bound to said [CBA] including all the wages, hours, and all other terms and conditions of such [CBA] including the payment of all wage scales and all ti-ust fund contributions specific and required by said [CBA],

Id.

Plaintiffs also attached to their Complaint “a true and correct copy of the [1109]*1109current [CBA] ” to which Plaintiffs allege that Defendant became bound by accepting the Referral Page. Compl. ¶ 13. The title page of the CBA is dated August 1, 2011-July 31, 2015. Compl., Ex. A. The CBA requires employers “to make timely monthly contributions to the Trust Funds for fringe benefits for its covered employees and to submit to requested payroll audits for verification of accurate employer contributions to employee benefits administered by Plaintiffs.” Compl. ¶ 13. Payments that are “received later than the last day of the month following the month in which the hours were worked are delinquent and liquidated damages shall be assessed on all delinquent contributions to the Trust Funds along with interest.” Id. ¶ 14. Under the CBA, employers are also bound to certain trust agreements, including the trust agreement for the Health and Welfare Trust (“Trust Agreement”) which obligates employers “to make timely contributions to the Trust adopted by the Board of Trustees of the Health and Welfare Trust.” Id. ¶ 16; see also Compl., Ex. C.

According to Plaintiffs, Defendant “failed to submit [to Plaintiffs] its employer contribution report including payment owed for the months of April and May 2016,” as required by the CBA and Trust Agreement. Id. ¶ 19. Further, on March 11, 2016, Defendant “initially agreed to submit to an audit of its payroll records but was refusing to provide [to Plaintiffs] its DE-9C (Quarterly Contribution Return and Report of Wages) or Cash Disbursement Journal for the audit period of July 1, 2013 through September 30, 2013.” Id. ¶ 22.

On April 4, 2016, Defendant sent an email to Plaintiffs stating that Defendant was not a signatory to the CBA, and that Defendant would “only be providing records to Plaintiff that apply to apprentice contributions.” Id. ¶ 23.

On April 6, 2016, Plaintiffs told Defendant that Defendant “is bound to the CBA, including applicable Trust Agreement(s)” since Defendant “accepted the public works contract award referral.” Id. ¶ 24. Plaintiffs thus told Defendant that “the Trust Funds’ Auditor would need access to the DE-9C (Quarterly Contribution Return and Report of Wages) or Cash Disbursement Journal in order to ascertain whether Defendant was correctly reporting all its required hours to the Trust Funds.” Id. Plaintiffs sent subsequent requests to Defendant “but Defendant has failed to submit to an audit of its payroll records in accordance with the applicable CBA and/or Trust agreement(s).” Id. ¶ 25. Further, according to the Complaint, “Defendant is continuing to breach [the CBA] by failing] to pay monies due thereunder to Plaintiffs.” Id. ¶ 26.

B. Procedural History

Plaintiffs filed a Complaint against Defendant in this Court on July 29, 2016. See Compl. Plaintiffs’ Complaint alleges three causes of action.

Count One asserts that the CBA and applicable Trust Agreement authorize Plaintiffs “to conduct an audit of the payroll books and records of employers,” and requests injunctive relief. Id. ¶¶ 28-31. Plaintiffs thus “seek an injunctive order from this Court, requiring an audit of the time period July 1, 2013 through September 30, 2013, and an order requiring all unpaid or underpaid contributions, liquidated damages, and pre-judgment interest revealed to be due and owing as a result of any such audit.” Id. ¶ 32.

Count Two alleges that Defendant violated ERISA, 29 U.S.C. § 1145, by failing to submit monthly transmittals and make contributions to the Trusts. Id. ¶ 37. Spe-[1110]

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Bluebook (online)
225 F. Supp. 3d 1106, 2016 U.S. Dist. LEXIS 168619, 2016 WL 7049240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-v-gudgel-yancey-roofing-inc-cand-2016.