Bricklayers' Pension Trust Fund—Metropolitan Area v. Chirco

675 F. Supp. 1083, 127 L.R.R.M. (BNA) 2456, 1987 U.S. Dist. LEXIS 11875, 1987 WL 24833
CourtDistrict Court, E.D. Michigan
DecidedDecember 23, 1987
DocketCiv. No. 86 73500
StatusPublished
Cited by2 cases

This text of 675 F. Supp. 1083 (Bricklayers' Pension Trust Fund—Metropolitan Area v. Chirco) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bricklayers' Pension Trust Fund—Metropolitan Area v. Chirco, 675 F. Supp. 1083, 127 L.R.R.M. (BNA) 2456, 1987 U.S. Dist. LEXIS 11875, 1987 WL 24833 (E.D. Mich. 1987).

Opinion

MEMORANDUM OPINION AND ORDER

ANNA DIGGS TAYLOR, District Judge.

This action, which was tried before the Court without a jury, is to collect fringe benefit fund contributions allegedly due pursuant to the terms of a collective bargaining agreement between Gaetano Chir-co and the Bricklayers’ Union.

FINDINGS OF FACT

Defendant Gaetano Chirco came to the United States from Italy in 1967. He became a naturalized American citizen within two years thereafter, and has functioned as a businessman in this community 14 years, but claims an inability to read or write English. Defendant’s wife, Maria Chirco, also is Italian. She is proficient in the English language.

Since 1968, Defendant has been a bricklayer in the Detroit metropolitan area and has owned several companies which do business in the building construction industry. The principal place of business for all of his endeavors has been Southgate, Michigan. Mrs. Chirco is the bookkeeper for the masonry firms Defendant has owned or operated. Her duties include writing checks and performing any other duties that Defendant cannot handle because of his language problem.

Mr. Chirco has signed collective bargaining agreements (known as “Red Book Agreements”) with the International Union of Bricklayers and Allied Craftsmen, AFL-CIO (“Bricklayers’ Union”) on behalf of two business entities. They are: (1) Ami-ci’s Mason Construction Company for the period from July 1, 1972 through June 30, 1974, and July 1, 1974 through June 30, 1977; and (2) Guy’s Mason Company (a/k/a [1084]*1084Guy’s Masonry) covering the period July 1, 1977 through May 31, 1980. By signing these agreement booklets, Defendant un-disputedly agreed to and did, in fact, make pension, health and welfare contributions to Plaintiff Trust Funds based upon the number of hours his employees performed contract work.

In 1983, however, Defendant Chirco began work on a bricklaying job in Taylor, Michigan. Defendant and Vincent Vitale, a partner in Guy’s Masonry, were the sole bricklayers; a laborer also was employed on a part-time basis.

A business agent for Local 35 of the Bricklayers’ Union, Carlo Martina, visited the Taylor job site and provided Defendant with a collective bargaining agreement booklet for his review and signature, for the period June 1, 1982 through May 31, 1986. This agreement, or “Red Book,” as did the previous agreements signed by Defendant, provided for fringe benefit contributions on behalf of Defendant’s employees. Approximately two weeks later, Martina returned to the site and collected the agreement signed by Defendant on behalf of Guy’s Masonry. At the same time, Martina received a $100.00 check designated as “union dues” for both Defendant and his partner, Vitale.

Defendant alleges that he was fraudulently induced into signing the 1982-1986 collective bargaining agreement. Specifically, Defendant claims that union officer Carlo Martina falsely represented to Chirco that he must simply join the union in order to perform the bricklaying job in Taylor, and that a signature of the Red Book was needed for membership. Defendant was under the impression that he was merely signing the agreement to become a union member, and not as an employer accepting a collective bargaining agreement. He testified that he could neither read nor comprehend the significance of the Red Book, on this occasion.

On August 21, 1986, Plaintiffs filed suit under the Labor-Management Relations Act (“LMRA”) and the Employment Retirement Income Security Act (“ERISA”) to collect fringe benefit contributions due and owing from January 1983 to the present. Defendant’s answer thereto affirmatively denied the existence of a valid collective bargaining agreement between the parties obligating Defendant to make any such contributions. The same defense was raised in response to Plaintiffs’ motion to compel production of documents necessary for their audit. The hearing on Plaintiffs’ motion was adjourned pending discovery on the issue of Defendant’s contractual liability-

To determine the truth of Defendant’s assertion that no collective bargaining agreement existed in this case, Plaintiffs conducted the deposition of Defendant, Gaetano Chirco, on January 21,1987. During the course of that deposition, Defendant was shown the 1982-1986 collective bargaining agreement with the Bricklayers’ union and conceded that the signature on page 36 of that agreement was his own.

On May 21, 1987, Plaintiffs filed a motion for partial summary judgment on the contractual liability issue raised in the complaint. This Court heard oral argument on August 10, 1987 and denied the motion, holding there was a genuine issue of material fact whether Defendant was told to sign the collective bargaining agreement in order to join the union, and thereby victimized by the Union agent. The case proceeded to a one-day bench trial on September 22, 1987 to determine Defendant’s contractual liability to Plaintiffs, if any, for the delinquent fringe benefit contributions.

CONCLUSIONS OF LAW

Defendant Chirco is obligated to make fringe benefit contributions only if he is a party to a binding collective bargaining agreement with the Bricklayers’ Union. See Carpenters S. Calif. Admin. Corp. v. Russell, 726 F.2d 1410, 1413 (9th Cir.1984). Surrounding circumstances and the intentions of the parties are relevant in determining if a binding agreement exists. United Steelworkers v. Bell Foundry, 626 F.2d 139, 141 (9th Cir.1980).

Plaintiffs’ standing to maintain this action to recover delinquent contributions is derived from the Trust Funds’ status as a third-party beneficiary of the collective bar[1085]*1085gaining agreement between Defendant and the union. Under traditional contract law, a third-party beneficiary is subject to any contract defenses generally available against the contracting parties themselves. J. Calamari & J. Perillo, The Law of Contracts § 17-8, at 623-24 (2d ed. 1977). A collective bargaining agreement, however, is not a typical third-party beneficiary contract. Accordingly, “traditional contract law does not apply in full force in suits brought under the LMRA and ERISA to collect delinquent trust fund contributions.” Southern California Retail Clerks Union and Food Employers Joint Pension Trust Fund v. Bjorklund, 728 F.2d 1262, 1265 (9th Cir.1984), citing Chicago Dist. Council of Carpenters Pension Fund v. Dombrowski, 545 F.Supp. 325, 326 (N.D.Ill.1982).

For the reasons set forth below, this Court finds that Defendant is a party to an enforceable collective bargaining agreement with the Bricklayers’ Union and is obligated to pay delinquent fringe benefit contributions thereunder.

Both parties agree that the following trilogy of Ninth Circuit cases should govern disposition of the instant case.

In Southern California Retail Clerks Union and Food Employers Joint Pension Trust Fund v. Bjorklund, 728 F.2d 1262

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Related

BRICKLAYERS'PENSION TRUST FUND-METRO. AREA v. Chirco
675 F. Supp. 1083 (E.D. Michigan, 1987)

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Bluebook (online)
675 F. Supp. 1083, 127 L.R.R.M. (BNA) 2456, 1987 U.S. Dist. LEXIS 11875, 1987 WL 24833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bricklayers-pension-trust-fundmetropolitan-area-v-chirco-mied-1987.