Buffalo Laborers Welfare Fund v. Di Pizio Constr. Co.

318 F. Supp. 3d 591
CourtDistrict Court, W.D. New York
DecidedJune 27, 2018
Docket1:16–CV–00677 EAW
StatusPublished
Cited by2 cases

This text of 318 F. Supp. 3d 591 (Buffalo Laborers Welfare Fund v. Di Pizio Constr. Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buffalo Laborers Welfare Fund v. Di Pizio Constr. Co., 318 F. Supp. 3d 591 (W.D.N.Y. 2018).

Opinion

ELIZABETH A. WOLFORD, United States District Judge

INTRODUCTION

Buffalo Laborers Welfare Fund, Buffalo Laborers Pension Fund, Buffalo Laborers Education and Training Fund, Buffalo Laborers Security Fund, Thomas L. Panek, Laborers Employers Cooperation and Education Trust, and Laborers' Local 210, Laborers International Union of North America (collectively, "Plaintiffs") brought this action on August 19, 2016, pursuant to Sections 502(a)(2), 502(a)(3), and 515 of the Employee Retirement Income Security Act ("ERISA"), as amended, *59329 U.S.C. §§ 1132(a)(3) and 1145, and Section 301 of the Labor Management Relations Act of 1947 (the "LMRA"), 29 U.S.C. § 185. (Dkt. 1). Plaintiffs allege that Di Pizio Construction Company, Inc. ("Defendant") breached its collective bargaining obligations and violated ERISA. (Id. ). Plaintiffs allege that Defendant is liable for unpaid benefit contributions. (Id. ). Presently before the Court is Plaintiffs' motion for summary judgment. (Dkt. 15). For the reasons set forth below, the motion for summary judgment is granted.

BACKGROUND

I. Factual Background

Plaintiffs Buffalo Laborers Welfare Fund, Buffalo Laborers Pension Fund, Buffalo Laborers Education and Training Fund, and Buffalo Laborers Security Fund (the "Funds") are jointly-administered, multi-employer, labor-management trust funds established and maintained pursuant to various collective bargaining agreements ("CBA") and trust agreements in accordance with Sections 302(c)(5) and (c)(6) of the LMRA. (Pl. Stmt. ¶ 1; Def. Stmt. ¶ 1 (insufficient information to admit or deny) ).1 The Funds are employee benefit plans and multi-employer plans under ERISA. (Pl. Stmt. ¶ 1; Def. Stmt. ¶ 1 (insufficient information to admit or deny) ). The Funds' purpose is to provide fringe benefits to eligible employees on whose behalf employers contribute to the Funds pursuant to CBAs between employers and Plaintiff Laborers' Local 210, Laborers International Union of North America (the "Union"). (Pl. Stmt. ¶ 1; Def. Stmt. ¶ 1 (insufficient information to admit or deny) ). Plaintiff Thomas L. Panek is the Administrator of the Funds and is a fiduciary under ERISA. (Pl. Stmt. ¶ 2; Def. Stmt. ¶ 2 (insufficient information to admit or deny) ). The Laborers Employers Cooperation and Education Trust (the "LECET") is a jointly-administered, multi-employer, labor-management trust fund established and maintained pursuant to various CBAs in accordance with the LMRA. (Pl. Stmt. ¶ 2; Def. Stmt. ¶ 2 (insufficient information to admit or deny) ). The Funds are authorized to collect contributions to the LECET. (Pl. Stmt. ¶ 2; Def. Stmt. ¶ 2 (insufficient information to admit or deny) ).

Defendant is a for-profit corporation doing business in the State of New York that performs construction work in and around Erie County. (Pl. Stmt. ¶¶ 5-6; Def. Stmt. ¶¶ 5-6). Defendant entered into a series of CBAs through its bargaining representative, the Labor Relations Division of the Western New York Region, Associated General Contractors of America ("AGC"). (Pl. Stmt. ¶¶ 9-12; Def. Stmt. ¶¶ 9-12 (stating AGC was authorized to negotiate terms of potential agreement; disputes the dates that Plaintiffs state Defendant was bound by a CBA) ). Pursuant to those agreements, Defendant paid contributions to the Funds on behalf of its employees for health coverage, deferred compensation, and other benefits. (Pl. Stmt. ¶ 19; Def. Stmt. ¶ 19 (insufficient information to admit or deny) ).

The crux of the dispute in this case is whether Defendant was bound by a CBA during the period in question-August 31, 2014, through April 30, 2016-and whether Defendant failed to pay $95,224 in fringe benefit contributions owed to the funds as a result of work performed during that time period that was covered by that agreement. According to Plaintiffs, Defendant was bound by the 2014-2017 Highway Heavy, Utility and Tunnel Agreement *594(hereinafter, the "Agreement") entered into on or about April 1, 2014, with a term of April 1, 2014, through March 31, 2017. (Pl. Stmt. ¶ 12). Defendant denies that allegation and states that the last CBA it entered into was for the 2008 to 2013 time period. (Def. Stmt. ¶ 12).2 The parties also dispute whether AGC was authorized to enter into the Agreement on behalf of Defendant. Plaintiffs contend that Defendant authorized AGC to act as its bargaining representative and agreed to be bound by any agreement reached on its behalf by AGC. (Pl. Stmt. ¶ 10 (citing AGC Auth. (Dkt. 16-11) ). Defendant denies that statement and clarifies that it only authorized AGC to negotiate the terms of a potential agreement. (Def. Stmt. ¶ 10). Defendant states that it signed all previous collective bargaining agreements on its own behalf. (Id. at ¶ 9).

On February 24, 2014, Plaintiffs filed an action against Defendant captioned Buffalo Laborers Welfare Fund, et al. v. Di Pizio Construction Company, Inc. , 14-CV-135 (the "Prior Action") seeking unpaid contributions. (Pl. Stmt. ¶ 21; Def. Stmt. ¶ 21). The parties settled the dispute, requiring Defendant to pay a portion of the statutory damages in addition to the full principal owed. (Pl. Stmt. ¶¶ 22-23; Def. Stmt. ¶¶ 22-23).

After settling the Prior Action, the Funds audited Defendant for the period from August 31, 2014, through April 30, 2016 (the "Audit"). (Pl. Stmt. ¶ 25; Def. Stmt. ¶ 25 (insufficient information to admit or deny) ). The Audit revealed that Defendant had failed to pay $95.224 in fringe benefit contributions owed to the Funds, $3,306.36 in dues checkoffs owed to the Union and $408.50 in contributions to the LECET. (Pl. Stmt. ¶ 84; Def. Stmt. ¶ 84 (insufficient information to admit or deny) ).

The Funds provide all employers with partially completed remittance forms for employers to use to report their hours of covered work, but rather than using that standard form, Defendant submitted reports using its own unique form. (Pl. Stmt. ¶ 35; Def. Stmt. ¶ 35 (stating that the reports were sent for information only) ). Defendant submitted remittance forms reporting covered work performed between September 2014 and April 2016. (Pl. Stmt. ¶ 40; Def. Stmt. ¶ 40). Of the 33 remittance forms submitted for that time period, 18 were not accompanied by payments. (Pl. Stmt. ¶ 42; Def. Stmt. ¶ 42 (Defendant denies, citing Dkt. 26-5 (Di Pizio Aff. at ¶ 10 (not directly responsive) ) ) ). According to Plaintiffs, a remittance report submitted without payment is an acknowledgement of debt owed by the employer. (Pl. Stmt. ¶ 43; Dkt. 17 (Panek Decl. ¶¶ 16-17) ). In response, Defendant refers to the affidavit of Heather Grimaldi ("Grimaldi"), Defendant's controller, who states that her submissions did not certify or agree to the terms and conditions of the remittance reports. (Def. Stmt. ¶ 43 (citing Dkt. 26-1 (Grimaldi Aff. ¶¶ 9-10) ) ).

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318 F. Supp. 3d 591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buffalo-laborers-welfare-fund-v-di-pizio-constr-co-nywd-2018.