Kyle Bragg, as Trustee, Building Services 32BJ Pension Fund, Building Service 32BJ Legal Services Fund, Building Service 32BJ Thomas Shortman Training, Scholarship, and Safety Fund, and Building Service 32BJ Supplemental Retirement and Savings Plan v. Triangle Services, Inc.

District Court, S.D. New York·Decided March 16, 2026·No. 1:24-cv-07725·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK KYLE BRAGG, as Trustee, BUILDING SERVICES 32BJ PENSION FUND, BUILDING SERVICE 32BJ 3/16/2026 LEGAL SERVICES FUND, BUILDING SERVICE 32BJ THOMAS SHORTMAN TRAINING, SCHOLARSHIP, AND SAFETY FUND, and 24-cv-7725 (MKV) BUILDING SERVICE 32BJ SUPPLEMENTAL RETIREMENT AND SAVINGS PLAN, OPINION AND ORDER GRANTING MOTION TO Petitioners, CONFIRM ARBITRATION AWARDS AND DENYING -against- CROSS-MOTIO N TO VACATE TRIANGLE SERVICES, INC, Respondent. MARY KAY VYSKOCIL, United States District Judge: Petitioners Kyle Bragg, as Trustee and the Trustees of the Building Service 32BJ Health Fund, Building Service 32BJ Pension Fund, Building Service 32BJ Legal Services Fund, Building Service 32BJ Thomas Shortman Training, Scholarship, and Safety Fund, and Building Service 32BJ Supplemental Retirement and Savings Plan (collectively the “Funds” or “Petitioners”) move to confirm two arbitration awards against Respondent Triangle Services, Inc. (the “Employer” or “Respondent”) pursuant to collective bargaining agreements [ECF Nos. 25, 26, 27, 28, 33]. Respondent cross-moves to vacate the awards [ECF Nos. 29, 30, 31, 32]. For the reasons set forth below, Petitioners’ motion to confirm the awards is GRANTED, and Respondent’s cross-motion to vacate the awards is DENIED. I. BACKGROUND A. Facts1 0F Petitioners are trustees of trust funds organized pursuant to the Taft-Hartley Act of 1947. See 56.1 ¶¶ 1–2; Counter 56.1 ¶¶ 1–2. The Funds are established pursuant to collective bargaining agreements and exist to, inter alia, collect contributions from employers and distribute benefits to employees. See 2016 CBA at 27–40; 2020 CBA at 30–44. Respondent is a New York for-profit corporation that “provides custodial and security services” in many New York City buildings. LoBasso Decl. ¶ 10; 56.1 ¶ 3; Counter 56.1 ¶ 3. At all relevant times, Respondent was a party to collective bargaining agreements with the Service Employees International Union, Local 32BJ (the “CBAs”), which CBAs “appl[ied] to all service employees” in its buildings.2 2016 CBA at 1F 2; 2020 CBA at 2; 56.1 ¶ 4; Counter 56.1 ¶ 4. The CBAs require Respondent to “notify the Union . . . of each new employee” and to make regular contributions to the Funds on behalf of its eligible employees. 2016 CBA at 10; 2020 CBA at 10; 56.1 ¶ 4; Counter 56.1 ¶ 4. The CBAs also govern, among other things, which of Respondent’s employees are covered by the CBA and eligible for contributions. In particular, as pertinent here, the CBAs recognize a category of “vacation replacement” workers. 2016 CBA

1 The facts are taken from the arbitration awards [ECF Nos. 30-1 (the “First Award”), 30-8 (the “Second Award”)] and the parties’ submissions. See Squarepoint Ops LLC v. Sesum, No. 19-cv-7317 (LAP), 2020 WL 996760, at *1 (S.D.N.Y. Mar. 2, 2020) (explaining that, in resolving cross-petitions to confirm and vacate an arbitration award, the “facts are taken from the Award and each party’s submission.”). The pertinent submissions include: the two relevant collective bargaining agreements, which are substantially identical as relevant to this dispute [ECF Nos. 1-1 (the “2016 CBA”), 1-2 (the “2020 CBA”) (collectively, the “CBAs”)], the petitions to confirm the arbitration awards [ECF No. 1-6 (the “First Petition”); ECF No. 28-6 (the “Second Petition”)], the responses to the petitions [ECF Nos. 9, 26-9], the parties’ Local Civil Rule 56.1 Statements [ECF Nos. 28 (“56.1”), 31 (“Counter 56.1”), the Affidavit of Ira A. Sturm [ECF No. 26 (“Sturm Decl.”)], the exhibits attached thereto, and the Declaration of Steve Lobasso [ECF No. 30 (“Lobasso Decl.”)] and the exhibits attached thereto. 2 Before the Arbitrator and earlier in this litigation, Respondent argued that there was no evidence that it had signed the CBA. See Lobasso Decl. ¶ 11. However, Respondent has withdrawn this argument [ECF No. 26-10]. See Counter 56.1 ¶ 4. at 106; 2020 CBA at 103. The key provision states: A person hired solely for the purpose of relieving employees for vacation shall be paid sixty percent (60%) of the minimum applicable regularly hourly wage rate. Should a vacation relief employee continue to be employed beyond five (5) months, such employee shall be paid the wage rate of a new hire or experienced person, as the case may be. If a vacation replacement is hired for a permanent position immediately after working as a vacation replacement, such employee shall be credited with time worked as a vacation replacement toward completion of the thirty (30) or forty-two (42) month period, whichever applies, required to achieve the full rate of pay under the “New Hires” provision.

In the event that the Arbitrator finds that an Employer is using this rate as a subterfuge, such Arbitrator may, among other remedies, award full pay from the date of employment at the applicable hiring rate.

No contributions to any Benefit Funds shall be made for a vacation relief person. Vacation relief persons are not eligible for 32BJ Benefit Fund coverage.

2016 CBA at 105–06 (emphases added); 2020 CBA at 103–04 (emphases added). The CBAs also include several pertinent provisions concerning security guards. At the outset, the CBAs provide: “All security employees shall be covered by this Agreement unless the Union and the Employer execute a separate collective bargaining agreement covering security guards.” 2016 CBA at 3; 2020 CBA at 2. In a definitions section, the CBAs state: Guard - An employee whose function is to enforce rules to protect the property of the Employer or to protect the safety of persons on the Employer’s premises and whose duties shall not include the work performed under any other job classification covered in this Agreement.

2016 CBA at 124; 2020 CBA at 123.

Relevant to this case, the CBAs provide for an audit when the Employer is “delinquent” in making payments. 2016 CBA at 133; 2020 CBA at 132. Similarly germane, the CBAs contain a broad arbitration clause. See 56.1 ¶ 4; Counter 56.1 ¶ 4. The arbitration clause provides that the “Contract Arbitrator” shall “decide all differences arising between the parties as to interpretation, application or performance of any part of this Agreement.” 2016 CBA at 17; 2020 CBA at 19. It further provides that arbitration in accordance with the CBAs “shall be the sole and exclusive method for the determination of all such issues.” 2016 CBA at 19; 2020 CBA at 21. It is undisputed that the Funds caused an audit of Respondent to be conducted for a period from 2016 to 2019 (the “First Audit”). 56.1 ¶ 5; Counter 56.1 ¶ 5. The parties agree that

Respondent cooperated with that audit by providing the auditor with requested records. 56.1 ¶ 5; Counter 56.1 ¶ 5. In connection with the First Audit, the auditor found that Respondent owed unpaid contributions on behalf of employees whom Respondent had classified as vacation replacements and on behalf of security guards at one of Respondent’s buildings. See LoBasso Decl., Ex. 3 (the “First Audit Report”); 56.1 ¶ 5; Counter 56.1 ¶ 5; First Award at 2–3. It is undisputed that Respondent did not pay the contributions identified in the First Audit Report, instead challenging the auditor’s analysis, and the Funds demanded arbitration. 56.1 ¶ 5; Counter 56.1 ¶ 5. The Arbitrator held multiple hearing over the course of approximately a year and a half, and both parties fully participated in the arbitration. See 56.1 ¶¶ 6, 7; Counter 56.1 ¶¶ 6, 7. Thereafter, the parties agree, the Arbitrator issued an award in favor of the Funds, directing

Respondent to pay $1,550,900.09 in unpaid contributions, $908,614.40 in interest, $310,180.02 in liquidated damages, $52,218.75 in attorney’s fees, and the cost of the arbitration [ECF No. 30-1 (the “First Award”) at 54]. See 56.1 ¶¶ 8, 9; Counter 56.1 ¶¶ 8, 9.

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Kyle Bragg, as Trustee, Building Services 32BJ Pension Fund, Building Service 32BJ Legal Services Fund, Building Service 32BJ Thomas Shortman Training, Scholarship, and Safety Fund, and Building Service 32BJ Supplemental Retirement and Savings Plan v. Triangle Services, Inc., (S.D.N.Y. 2026).

Kyle Bragg, as Trustee, Building Services 32BJ Pension Fund, Building Service 32BJ Legal Services Fund, Building Service 32BJ Thomas Shortman Training, Scholarship, and Safety Fund, and Building Service 32BJ Supplemental Retirement and Savings Plan v. Triangle Services, Inc. (Kyle Bragg, as Trustee, Building Services 32BJ Pension Fund, Building Service 32BJ Legal Services Fund, Building Service 32BJ Thomas Shortman Training, Scholarship, and Safety Fund, and Building Service 32BJ Supplemental Retirement and Savings Plan v. Triangle Services, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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