Finkel v. J&H Electrical Contracting, Inc.

CourtDistrict Court, E.D. New York
DecidedJune 12, 2023
Docket1:22-cv-04293
StatusUnknown

This text of Finkel v. J&H Electrical Contracting, Inc. (Finkel v. J&H Electrical Contracting, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Finkel v. J&H Electrical Contracting, Inc., (E.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT E YA OS RT KERN DISTRICT OF NEW EASTERN DISTRICT OF NEW YORK BROOKLYN OFFICE --------------------------------------------------------------- GERALD R. FINKEL, as chairman of the Joint Industry Board of the Electrical Industry, MEMORANDUM & ORDER Petitioner, 22-CV-4293 (MKB) v. J&H ELECTRICAL CONTRACTING, INC., Respondent. --------------------------------------------------------------- MARGO K. BRODIE, United States District Judge: Petitioner Gerald R. Finkel, chairman of the Joint Industry Board of the Electrical Industry, filed the above-captioned petition on July 21, 2022, to confirm an arbitration award against Respondent J&H Electrical Contracting, Inc. (Pet. to Confirm Arb. Award (“Pet.”), Docket Entry No. 1; Pet’r’s Mem. in Supp. of Pet. (“Pet’r’s Mem.”), Docket Entry No. 4.) Petitioner alleges that Respondent failed to remit required contributions to certain employee benefit plans pursuant to collective bargaining agreements, section 502(a)(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, 29 U.S.C. § 1132(a)(3), and section 301 of the Labor Management Relations Act of 1947, as amended, 29 U.S.C. § 185. (Pet. ¶ 1.) On August 17, 2022, the Court granted Petitioner’s request to deem the petition unopposed. (Order dated Aug. 17, 2022; Pet’r’s Letter dated Aug. 16, 2022, Docket Entry No. 11.) For the reasons set forth below, the Court grants Petitioner’s motion to confirm the arbitration award in the amount of $117,381.14, plus interest accrued until entry of judgment, and awards Petitioner $625 in attorneys’ fees and $477.57 in costs for a total damages award of $118,483.71 plus accrued interest. I. Background Petitioner is the chairman of the Joint Industry Board (the “JIB”) located in Flushing,

New York. (Pet. ¶ 4.) The JIB is “the administrator of various employee benefit multi-employer plans [including ERISA Plans,1] established and maintained pursuant to a collective bargaining agreement between Local Union No. 3 of the International Brotherhood of Electrical Workers” (the “Union”), the American Federation of Labor and Congress of Industrial Organizations, and certain other employers and employer associations. (Id.) “Per the . . . collective bargaining agreement, the JIB receives directly from each signatory employer a weekly remittance consisting of contributions to each of the ERISA Plans, except the DSP,[2] as well as a Union

1 The JIB “is the administrator and fiduciary within the meaning of . . . 29 U.S.C. §§ 1002(16)(A)(i) and 1002(21)(A)” of certain employee benefit plans, including: the Pension, Hospitalization and Benefit Plan of the Electrical Industry, the Dental Benefit Fund of the Electrical Industry, the Educational and Cultural Trust Fund of the Electrical Industry, the Annuity Plan of the Electrical Industry, . . . the Health Reimbursement Account Plan of the Electrical Industry, the Deferred Salary Plan of the Electrical Industry (the “DSP”), . . . the Joint Apprenticeship and Training Program . . . , and the National Electrical Benefit Plan (“NEBF”) (collectively the “ERISA Plans”). (Pet. ¶ 5.) “Each of the ERISA Plans is an employee benefit multiemployer plan within the meaning of” 29 U.S.C. §§ 1002(3) and 1002(37) and “is also jointly administered by a board of trustees that is comprised of labor and management representatives who share equal representation in the administration of the [p]lans in accordance with . . . 29 U.S.C. § 186(c)(5).” (Id. ¶ 7.)

2 “The DSP is . . . a tax-qualified profit-sharing plan with a cash or deferred arrangement within the meaning of 401(k) of the Internal Revenue Code.” (Id. ¶ 8.) assessment collected by the signatory employer from each Union member employed (the “Union Assessment”).3 (Id. ¶ 6.) On May 15, 2020, the Union notified Petitioner by letter that Respondent had agreed to the terms of the New York City Housing Authority’s Project Labor Agreement (the “NYCHA

PLA”). (Id. ¶¶ 14, 17; see also Union’s May 2020 Letter, annexed to Pet. as Ex. A, Docket Entry No. 1-1; NYCHA PLA 3–4, Schedule A, annexed to Pet. as Ex. B, Docket Entry No. 1-2.) Pursuant to the NYCHA PLA, Respondent agreed to be bound to the collective bargaining agreement among (1) the Union, (2) the New York Electrical Contractors’ Association, Inc. and (3) the Association of Electrical Contractors, Inc., covering the periods from April 10, 2019 through April 13, 2022 and April 13, 2022 through April 9, 2025 (the “CBAs”). (Pet. ¶¶ 15–16; Agreement & Working Rules 2019–2022, annexed to Pet. as Ex. C, Docket Entry No. 1-3; Mem. of Agreement, annexed to Pet. as Ex. D, Docket Entry No. 1-4.) “The CBAs require Respondent . . . to make [r]equired [c]ontributions to the ERISA [p]lans, the [n]on-ERISA [p]lans, and to the Union for all work within the trade and geographical

jurisdiction of the Union and to submit weekly payroll reports that provide the name, gross wages, and hours worked for each worker employed by the company on whose behalf [r]equired [c]ontributions are made.” (Pet. ¶ 19.) The CBAs further provide that (1) “the parties . . . agree to . . . be bound by the provisions of the [plan and its supporting documents] . . . including . . . the Policy for the Collection of Delinquent Contributions” and that (2) “an employer ‘shall be liable for the remedies under [s]ection 502(g)(2) of ERISA, including liquidated damages . . . in

3 “The JIB acts as a . . . collection agent with respect to the Union Assessment and NEBF contribution.” (Id. ¶ 6.) “[T]he JIB may also collect employee loan payments due to the Union and certain [p]lans, and contributions to fund the operations of the JIB (collectively, the ‘Non- ERISA Plans’).” (Id. ¶ 9.) the event of entry of judgment against the [e]mployer in an action to collect delinquent contributions.’” (Id. ¶¶ 20–21.) The JIB established (1) a “Policy for the Collection of Delinquent Contributions” (the “Collection Policy”), (Id. ¶ 22), and (2) “Arbitration Procedures and Rules Governing Employer

Delinquency Disputes and Audits” (the “Arbitration Procedures”), (Id. ¶ 23). Pursuant to the Collection Policy, “if an employer fails to remit contributions and has not submitted payroll reports for such unpaid contributions, the JIB may ‘use a prior week’s payroll report submitted by the employer to calculate the amount of [c]ontributions due from the employer.’” (Id. ¶ 24; Collection Policy art. II(F)(1), annexed to Pet. as Ex. F, Docket Entry No. 1-6.) The Collection Policy also provides that an employer shall be liable for liquidated damages and attorneys’ fees and costs if legal action is commenced. (Pet. ¶ 26; Collection Policy art. II(E)(2)). “The Arbitration Procedures provide that the arbitrator shall have the jurisdiction to determine any disputes between the ‘JIB against an [e]mployer, related to the [e]mployer’s obligation to contribute to the [f]unds, including but not limited to [a]udits, [d]elinquencies,

interest, liquidated damages, and attorneys’ fees and costs,’” and “that if the arbitrator finds in whole or in part for the JIB, the employer shall be liable for the arbitrator’s fees and attorneys’ fees and costs.” (Pet. ¶¶ 27, 28; Arb. Procs. §§ 1(K), II(A), and X, annexed to Pet. as Ex.

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Bluebook (online)
Finkel v. J&H Electrical Contracting, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/finkel-v-jh-electrical-contracting-inc-nyed-2023.