Doug Brady, Inc. v. New Jersey Building Laborers Statewide Funds

250 F.R.D. 171, 2008 U.S. Dist. LEXIS 28324
CourtDistrict Court, D. New Jersey
DecidedApril 7, 2008
DocketCivil Action No. 07-5122 (HAA)
StatusPublished
Cited by217 cases

This text of 250 F.R.D. 171 (Doug Brady, Inc. v. New Jersey Building Laborers Statewide Funds) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doug Brady, Inc. v. New Jersey Building Laborers Statewide Funds, 250 F.R.D. 171, 2008 U.S. Dist. LEXIS 28324 (D.N.J. 2008).

Opinion

OPINION & ORDER

ACKERMAN, Senior District Judge.

This matter comes before the Court on four motions by Plaintiff and Defendants. Specifically, Plaintiff Doug Brady, Inc. (“Brady”) seeks a preliminary injunction against all Defendants, enjoining them from enforcing an arbitration award against Brady, and also enjoining Defendants from pursuing further contributions to an employee benefits fund. Brady also seeks default judgment against Defendant New Jersey State Political Action Committee (“NJSPAC”) and Defendant Laborers’ East Region Organizing Fund (“LEROF”) for failing to timely file an Answer to Brady’s Complaint. Relatedly, Defendants NJSPAC and LEROF have filed a motion seeking to file their Answer out of time. In addition, all Defendants have filed a motion to consolidate this action, No. 07-5122, with a related action currently pending before Judge Martini, No. 08-256. For the following reasons, Brady’s motions will be denied and Defendants’ motions will be granted.

I. Factual and Procedural Background

Brady is a New Jersey corporation whose primary work involves excavation services for construction sites. Defendant New Jersey Building Laborers’ Statewide Funds (the “Fund”) is an employee benefits fund for Local Union #593. Defendant NJSPAC is the political action committee for the New Jersey Building Laborers’ Local Unions and District Councils. Defendant LEROF is an organizing fund that is funded by dues collected by the New Jersey Building Laborers’ Local Unions and District Councils.

On or about September 9, 2003, Brady was retained to perform a specific project for which it was necessary to employ union workers. Brady discussed the issue with the president of Building Laborers’ Local # 593, Carmen Perry, who suggested that Brady [173]*173hire one or two union workers for the project. Brady agreed, and Perry then prepared a “Short Form Agreement” with the Building Laborers’ Union, which reads in full:

The undersigned Employer, desiring to employ laborers from the New Jersey Building Laborer Local Unions and District Councils affiliated with the Laborers’ International Union of North America, hereinafter the ‘Unions,’ and being further desirous of building, developing and maintaining a harmonious working relationship between the undersigned Employer and the said Unions in which the rights of both parties are recognized and respected, and the work accomplished with the efficiency, economy and quality that is necessary in order to expand the work opportunities of both parties, and the Unions desiring to fulfill the undersigned Employer’s requirements for construction craft laborers, the undersigned Employer and Unions hereby agree to be bound by the terms and conditions as set forth in the 2002-07 Building, Site and General Construction Agreement, which Agreement is incorporated herein as if set forth in full.

(Compl. Ex. A (emphasis added).) Below the agreement is the date September 9, 2003 and the signatures of Doug Brady and Carmen Perry on behalf of their respective organizations. Brady, however, alleges that “no copy of the Main Agreement was ever produced or sent to [it].” (Compl. H 23.) In its Complaint, Brady characterizes the Short Form Agreement as a “pre-hire agreement,” and alleges that “whenever [ ] Brady worked on a project that required union labor, he would hire union workers____The union workers so hired, and only those workers, would be covered by the New Jersey Building Laborers’ Local Unions and District Council labor contract then in effect.” (Compl.1l 16.) Brady’s Complaint further alleges that “[n]o other employees of [ ] Brady would be covered under the New Jersey Building Laborers’ Local Unions and District Council labor contract.” (Id.) The Complaint also alleges that “Perry represented to Doug Brady that the Short Form Agreement was limited in the manner described in the preceding paragraph[, and Brady] relied on this representation, and upon [the] personal knowledge of Perry’s trustworthiness and honesty.” (Id. 1117.)

Subsequent to signing the Short Form Agreement, Brady hired one union laborer to work on four projects between June 2004 and August 2005. Brady alleges that it paid all compensation and benefits for which this one laborer was entitled under the New Jersey Building Laborers’ Local Unions and District Council labor contract. Furthermore, Brady paid all applicable Fund contributions on behalf of the one laborer.

In March 2007, an attorney for the Fund sent Brady a letter advising it that Brady owed a total of $675,294.31 in “Fringe Benefit Monies” for the time between January 1, 2003 and December 31, 2005. These dues were allegedly assessed based upon every employee of Brady, not just the one union laborer. Brady then retained counsel, and an arbitration was scheduled, but postponed twice. In August 2007, the Fund’s counsel issued a revised finding stating that Brady owed $228,100.98 for the same January 2003 to December 2005 time period. Again, this figure was allegedly assessed based on every Brady employee. It is not clear to the Court why the figure was so dramatically reduced from the previous assessment.

An arbitration was held on September 27, 2007, at which Brady appeared on the record, but declined to participate “based on lack of jurisdiction.” (Compl.H 34.) “Brady specifically denied the existence of any contractual agreement obligating it to make any contributions to the Fund.” (Id.) On December 16, 2007, the arbitrator “rendered a decision in favor of the Funds in the amount of $378,038.22 for lost contributions suffered by the Funds through [Brady’s] failure to apply the collective bargaining agreement at numerous work-sites between May 2003 and December 2005.” (Fund Br. at 4.) On January 11, 2008, Defendants in the present action filed a separate action, namely a petition to confirm the arbitration award. That action was assigned to Judge Martini under Civil Action No. 08-256.

On October 24, 2007, after the arbitration hearing, but before the final decision, Brady filed the instant four-count Complaint. [174]*174Count One seeks a declaratory judgment that Brady is not a party to any collective bargaining agreement (“CBA”) and that Brady is not obligated to make any contributions to Defendants or participate in arbitration. Count Two seeks both preliminary and permanent injunctions against Defendants, restraining them from compelling Brady to (1) engage in arbitration; (2) pay contributions; and (3) allow audit access to Brady’s books and records. Count Three seeks “a declaratory judgment finding that Defendants are estopped from pursuing any claim for unpaid contributions by the Plaintiff arising out of any [CBA].” (Compl. Count III.) Finally, Count Four seeks a declaratory judgment finding that Defendants’ attempt to collect on unpaid contributions or enforce the Short Form Agreement is unconscionable; and further seeks a preliminary and permanent injunction, enjoining Defendants from seeking to enforce any agreement or collecting contributions.

On December 27, 2007, Brady filed the instant motion for a preliminary injunction. In this motion, Brady seeks to enjoin “Defendants from attempting to enforce any alleged [CBA] to which ... [Brady] is allegedly a party, from attempting to compel [Brady] to pay allegedly delinquent contributions under the terms of any such [CBA], and from attempting to force [Brady] to comply with the Arbitration Award.” (Brady Br. at 3.) By way of this same motion, Brady also seeks a default judgment against Defendants NJSPAC and LEROF.

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Bluebook (online)
250 F.R.D. 171, 2008 U.S. Dist. LEXIS 28324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doug-brady-inc-v-new-jersey-building-laborers-statewide-funds-njd-2008.