Morin v. Empiyah & Co., LLC

389 F. Supp. 2d 506, 36 Employee Benefits Cas. (BNA) 2619, 2005 U.S. Dist. LEXIS 22125, 2005 WL 2384959
CourtDistrict Court, S.D. New York
DecidedSeptember 28, 2005
Docket04 Civ. 3756(DC)
StatusPublished
Cited by3 cases

This text of 389 F. Supp. 2d 506 (Morin v. Empiyah & Co., LLC) 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
Morin v. Empiyah & Co., LLC, 389 F. Supp. 2d 506, 36 Employee Benefits Cas. (BNA) 2619, 2005 U.S. Dist. LEXIS 22125, 2005 WL 2384959 (S.D.N.Y. 2005).

Opinion

OPINION

CHIN, District Judge.

This is an action for recovery of unpaid wages and benefits for carpentry work performed on the construction of a new clubhouse for the Stony Point Golf Club in Stony Point, New York. Plaintiffs brought claims against the contractor and its surety under the Labor Management Relations Act, 29 U.S.C. § 185, the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq., and New York State Finance Law § 137 (“Section 137”). Before the Court is plaintiffs’ motion for summary judgment on their claim against the surety, defendant Gulf Insurance Company (“Gulf’).

STATEMENT OF THE CASE

A. The Facts

1. The Parties

Plaintiffs in this action are Patrick Morin, who brings this action in his representative capacity as president of the Empire State Regional Council of Carpenters (the “Union”) on behalf of numerous carpenter members of the Union 1 who allegedly are owed wages for work performed on the construction project, and various other named plaintiffs, who sue as trustees of union trust funds (the “Funds”) that are allegedly owed fringe benefit payments as a result of the hours worked by the carpenters.

Defendants are Empiyah & Company (“Empiyah”), which was a carpentry contractor on the construction project, and Gulf, Empiyah’s surety on the project. A summary of the relevant facts follows.

2. Background

In April of 2003, the Town of Stony Point (the “Town”) hired Empiyah to perform carpentry work on the construction of a clubhouse at the Stony Point Golf Club. (Craven Aff. ¶ 4). In connection with that project, Empiyah hired numerous Union-member carpenters to perform the required carpentry work. (Id.). Em-piyah and the Union were parties to a Collective Bargaining Agreement (the “CBA”) that governed the period from May 1, 2001, to April 30, 2004. (Id. ¶ 3). The CBA required Empiyah to pay the carpenters specified wages, and also required Empiyah to make certain specified *509 fringe-benefit contributions to the Funds on the carpenters’ behalf. (CBA §§ 5, 10).

On June 9, 2003, a labor and material bond (the “Bond”) in the amount of $1,228,000.00 was executed and issued by Gulf as Surety for the benefit of Empiyah as Principal and the Town as Obligee. (Bond at 6). The Bond provided that

every claimant ... who has not been paid in full before the expiration of a period of ninety (90) days after the date on which the last of such claimant’s work or labor was done or performed ... may sue on this bond for the use of such claimant, prosecute the suit to final judgment for such sum or sums as may be justly due claimant, and have execution thereon.

(Bond ¶ 2). A “claimant,” in turn, is defined as

one having a direct contract with the Principal ... for labor, material, or both, used or reasonably required for use in the performance of the Contract, labor and material being construed to include that part of water, gas, power, light, heat, oil, gasoline, telephone service or rental of equipment directly applicable to the Contract. 2

(Bond ¶ 1).

From the beginning of the project until October 2003, Empiyah issued regular paychecks to the carpenters without incident, but was not always so timely with payments for fringe benefits. (Craven Reply Aff. ¶ 5). As of Friday, October 17, 2003, Empiyah was several weeks delinquent in fringe benefits payments, and Richard Craven, a Council Representative of the Union who is responsible for overseeing construction projects performed within his geographic area (including the Town), attended a number of meetings with Empiyah and the Town on October 20 and 21, 2003, to address the delinquency. (Craven Aff. ¶ 2; Craven Reply Aff. ¶ 2, 5-7). As a result of the meetings, the Town agreed to issue a check for $51,069.34 to cover delinquent benefits payments through October 17, 2003. (Craven Reply Aff. ¶ 6). Craven picked up the check personally on October 21, 2003. (Id. ¶ 7).

Then, on October 23, 2003, several carpenters attempted to cash their paychecks for work performed during the period from October 12-18, 2003, and found that there were insufficient funds to cover the checks. (Craven Aff. ¶ 7). The same day, the Empiyah-employed carpenters protested the dishonored paychecks by staging a strike for the final two hours of the day. (Id ¶ 8). The strike continued on Friday, October 24, Monday, October 27, and Tuesday, October 28, for a total of three work days, plus the two hours on the 23rd. (Id.) It is apparently not in dispute that no work was performed after the 23rd, and no Empiyah-employed carpenters were at the job site for any reason, strike or otherwise, after the 28th. (See Byington Deck Ex. 5).

As to the Union members’ right to strike, the CBA provided that:

The Union is granted all absolute right to strike the job of any delinquent contractor. The union shall be under no compulsion to return carpenters to employment with such contractors until all delinquencies are completely paid in full. Where such action is the result of the delinquency of any contractor in payment of wages or any of the Fringe Benefit payments set forth elsewhere in this Agreement, such delinquent contractor shall be required to pay the striking employees wages for each day on strike, for a period not to exceed *510 three (3) days prior to their return to their employment for such contractor.

(CBA § 14).

Shortly after the end of the strike, by letter dated October 31, 2003, plaintiffs’ counsel informed the Town attorney of Empiyah’s non-payment of wages. (By-ington Deck Ex. 1). On November 4, 2004, plaintiffs’ counsel sent a similar letter to Gulf to provide notice of the carpenters’ claim against the Bond. (Id.). After some communication between plaintiffs’ counsel and counsel for Gulf, in December 2003 Gulf issued cheeks to cover the wages owed to the carpenters by Empiyah for the pay period from October 12-18, 2003. 3 (Craven Aff. ¶ 7; Byington Decl. Exs. 6 & 7).

Plaintiffs now assert that wages and fringe benefits in the amount of $46,673.28 remain unpaid for work performed from October 19-23, 2003, as well as for the strike days, which encompassed two hours on the 23rd and full days on the 24th, 27th, and 28th. 4

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389 F. Supp. 2d 506, 36 Employee Benefits Cas. (BNA) 2619, 2005 U.S. Dist. LEXIS 22125, 2005 WL 2384959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morin-v-empiyah-co-llc-nysd-2005.