Cosmopolitan Interior NY Corporation v. District Council 9 International Union of Painters and Allied Trades

CourtDistrict Court, S.D. New York
DecidedNovember 16, 2021
Docket1:19-cv-02669
StatusUnknown

This text of Cosmopolitan Interior NY Corporation v. District Council 9 International Union of Painters and Allied Trades (Cosmopolitan Interior NY Corporation v. District Council 9 International Union of Painters and Allied Trades) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cosmopolitan Interior NY Corporation v. District Council 9 International Union of Painters and Allied Trades, (S.D.N.Y. 2021).

Opinion

SOUTHERN DISTRICT OF NEW YORK

COSMOPOLITAN INTERIOR NY CORPORATION, 19-cv-2669 (JSR) Plaintiff, MEMORANDUM ORDER -v-

DISTRICT COUNCIL 9 INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES,

Defendant.

JED S. RAKOFF, U.S.D.J.: Four days into the bench trial of this case, after the Plaintiff had been fully heard on the issue of whether Defendant District Council 9 International Union of Painters and Allied Trades (“DC 9”) had unlawfully threatened certain unionized painting contractors in connection with a primary labor dispute between DC 9 and Plaintiff Cosmopolitan Interior NY Corp. (“Cosmopolitan Interior”), DC 9 moved under Fed. R. Civ. P. 52(c) for judgment on partial findings. Following argument from both parties, the Court issued an oral ruling, granting in part and denying in part DC 9’s motion for judgment on certain issues but without issuing a final judgment as to any of Cosmopolitan Interior’s claims. See Tr. 473. For the benefit of the parties -- who are assumed to be familiar with the claims, procedural history, trial record, and factual background -- the Court now issues this written order to amplify its oral judgment, which remains unchanged. During a nonjury trial, Fed. R. Civ. P. 52(c) permits the Court to enter judgment on any issue after a party has been fully heard on that issue. If entering judgment, “the court must find the facts specially and state its conclusions of law separately.” Fed. R. Civ. P. 52(a); see id. 52(c). Unlike at summary judgment, Rule 52(c) authorizes the court to make credibility determinations and resolve disputed issues of fact, applying “the same standard of proof and weigh[ing] the evidence as it would at the conclusion of the trial.” EBC, Inc. v. Clark Bldg. Sys., Inc., 618 F.3d 253, 272 (3d Cir. 2010). Moreover, “the district court is not required to draw any inferences in favor of the non-moving party.” Ritchie v. United States, 451 F.3d

1019, 1023 (9th Cir. 2006). The Rule 52(c) standard stands in contrast to the standard applicable to a motion under Rule 50(a) for judgment as a matter of law, for which “the evidence must be viewed in the light most favorable to, and drawing all reasonable inferences in favor of, [the non-moving party].” Burger v. New York Inst. of Tech., 94 F.3d 830, 835 (2d Cir. 1996). However, Rule 50 is expressly limited to jury trials, so it is inapplicable in this bench trial, in which the Court is the sole factfinder. See Fed. R. Civ. P. 50(a)(1). Rule 52(c) does not require that “the court wait until [a] party rests its case in chief to enter judgment [against that party] pursuant to Rule 52(c).” EBC, Inc., 618 F.3d at 272. Here, the Court granted

DC 9 leave to move under Rule 52(c) after Cosmopolitan Interior finished putting on all witnesses in its direct case, other than two witnesses (and whom the defense intended to call as well). However, during argument, counsel for Cosmopolitan Interior was permitted to make an offer of proof as to the testimony it expected to elicit from these DC 9 witnesses. The Court therefore assumed, for the purpose of this motion, the truth of those additional facts proffered by Plaintiff’s counsel. The Court further drew all reasonable inferences in Cosmopolitan Interior’s favor on anything related to the points raised in plaintiff counsel’s offer of proof. However, none of the points raised in the offer of proof effected the Court’s findings of fact relevant to deciding whether DC 9 unlawfully threatened the two painting contractors with respect to whom the Court grants judgment.

II. Findings of Fact The Court will set forth its complete findings of fact at the conclusion of the trial. However, for the purpose of this order, the Court finds the following facts: 1. Cosmopolitan Interior is a construction contractor that was founded in 2013 and has performed painting and wallpapering. Cosmopolitan Interior is owned by Moishe Gold. Trial Transcript (“Tr.”) at 132. 2. DC 9 is a union representing painters, wallpaper installers, and drywall tapers, among other trades. Its President is John Drew. See Plaintiff’s Exhibit (“Pl. Ex.”) 4. 3. DC 9 has entered into a collective bargaining agreement

(“CBA”) with certain painting contractors that, inter alia, sets “area contractors that are party to the CBA must pay at least the area standard wages and benefits to their workers. Under the CBA, before starting any job, a signatory contractor must file paperwork with DC 9 “registering” the jobsite, and it must register with DC 9 any overtime its painters work. The contractor must further submit payroll information and make contributions to DC 9 benefit funds. Tr. 61-62. 4. On certain construction sites in New York City, customers and general contractors require that all subcontractors employ union labor and pay area standard wages for each unionized trade. These jobs are referred to as “union jobs” or “union work.” See, e.g., Tr. 224; 248-249.

5. Cosmopolitan Interior was primarily a sales company that would prepare estimates and bid on interior painting projects in and around New York City. Cosmopolitan Interior was not a signatory to the DC 9 CBA. Therefore, Cosmopolitan Interior could not supply its own union labor for union jobs. Tr. 169-170. 6. When Cosmopolitan Interior was selected for a non-union (i.e., “open shop”) job, it would subcontract the work to a non-union painting company. Cosmopolitan Interior subcontracted much of its non- union work to JLM Decorating, Inc., a company that was also owned by Gold and which operates out of the same office space as Cosmopolitan Interior at 111 John Street. Tr. 128, 283, 313, 501. 7. Companies that are not signatories to the DC 9 CBA may bid

for union work, but the DC 9 CBA requires that the non-union company e.g., Tr. 248. 8. Under DC 9’s interpretation of the CBA, a union subcontractor may supply labor to a non-union contractor, provided that the subcontractor has a contractual relationship with the client contractor and, inter alia, supervises the painters. Tr. 70-71. 9. From 2013 until some point in 2018, Cosmopolitan Interior, when selected for union work, deployed union labor through the auspices of another company, Cosmopolitan Interiors USA Corp. (“Cosmopolitan USA”), which was a signatory to the DC 9 CBA until the summer of 2018. Cosmopolitan USA was owned by Joel Friedman, and, for at least some portion of the period from 2013 through 2018, Cosmopolitan USA and

Cosmopolitan Interior occupied the same office space at 111 John Street in Manhattan. Cosmopolitan Interior also supplied the materials, supervision, and project management for union jobs for which Cosmopolitan USA registered the jobs with DC 9 and paid the workers. Tr. 306-309. 10. At some point before autumn 2018, following several disputes with DC 9 that resulted in DC 9 filing grievances with a Joint Trade Board arbitral panel, Friedman informed Gold that Cosmopolitan USA would no longer operate. Therefore, Cosmopolitan Interior lost its primary source of subcontracted union labor. Tr. 142, 177-178. 11. In late 2018, after Cosmopolitan USA was no longer operating,

Gold approached other companies that were signatories to the DC 9 CBA, union labor to conduct business union jobsites. Tr. 178. 12. Among the companies Gold approached was Par Wall Finishing, Inc.

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Cosmopolitan Interior NY Corporation v. District Council 9 International Union of Painters and Allied Trades, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cosmopolitan-interior-ny-corporation-v-district-council-9-international-nysd-2021.