New England Carpenters Central Collection Agency v. Arch Insurance Company

CourtMassachusetts Appeals Court
DecidedJune 10, 2026
DocketAC 25-P-74
StatusPublished

This text of New England Carpenters Central Collection Agency v. Arch Insurance Company (New England Carpenters Central Collection Agency v. Arch Insurance Company) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Carpenters Central Collection Agency v. Arch Insurance Company, (Mass. Ct. App. 2026).

Opinion

NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557- 1030; SJCReporter@sjc.state.ma.us

25-P-74 Appeals Court

NEW ENGLAND CARPENTERS CENTRAL COLLECTION AGENCY & others1 vs. ARCH INSURANCE COMPANY.

No. 25-P-74.

Norfolk. October 10, 2025. – June 10, 2026.

Present: Massing, Sacks, & Allen, JJ.

Bond, Public works, Construction contract bond. Public Works, Payment bond, General contractor. Surety. Contract, Collective bargaining contract, Construction contract, Bond, Surety, Public works, Subcontractor, Third-party beneficiary. Notice, Timeliness. Statute, Construction. Practice, Civil, Summary judgment. Words, "Contractual relationship."

Civil action commenced in the Superior Court Department on June 13, 2018.

The case was heard by Beverly J. Cannone, J., on a motion for summary judgment.

Luke Liacos for the plaintiffs. Mansooruddin Ahmed for Arch Insurance Company.

1 The Trustees of the New England Carpenters Pension Fund; New England Carpenters Guaranteed Annuity Fund; New England Carpenters Health Benefits Fund; New England Carpenters Vacation Savings Fund; and New England Carpenters Training Fund. 2

ALLEN, J. This case, arising under G. L. c. 149, § 29,

which governs the posting of and collection against security

bonds in public construction projects, concerns whether a

claimant for unpaid contributions toward employee benefit plans

has a "contractual relationship" with the general contractor for

the purpose of collecting against the surety.

New England Carpenters Central Collection Agency (NECCCA),

together with the trustees for the benefit plans that NECCCA

represents (collectively plaintiffs), sought payment from

defendant Arch Insurance Company (Arch), the payment bond

surety, of delinquent employee benefit plan or "fringe-benefit"

contributions that two subcontractors on public construction

projects were obligated to pay pursuant to a collective

bargaining agreement. A Superior Court judge allowed Arch's

motion for summary judgment, ruling that because the plaintiffs

did not have a "contractual relationship" with the project's

general contractor, their failure to comply with the notice

requirement of G. L. c. 149, § 29, third par., applicable to

claimants who have a contractual relationship only with

subcontractors and not with the general contractor, precluded

recovery under the bond.

We conclude that the plaintiffs were intended third-party

beneficiaries of the collective bargaining agreement and, as a

result, had a "contractual relationship" with the project's 3

general contractor within the meaning of the statute; therefore,

they were not required to comply with the notice provision.

Accordingly, we vacate the grant of summary judgment and remand

for further proceedings.

Background. The facts are largely undisputed.2 CTA

Construction Company, Inc. (CTA), a general contractor for

public construction projects in Massachusetts, began work on two

projects: the Randolph Intergenerational Community Center

(Randolph project) and the Dedham Town Hall (Dedham project).

In turn, CTA contracted with two subcontractors: Mass

Construction & Management, Inc. (Mass Construction) for

carpentry work on both projects, and Galaxy Installation Group,

Inc. (Galaxy),3 for carpentry work on the Dedham project.

1. Collective bargaining agreement. At all times relevant

to this action, CTA, Mass Construction, and Galaxy were

signatories to a collective bargaining agreement (collective

bargaining agreement or agreement) with the New England Regional

2 Although the plaintiffs submitted evidence attempting to raise a genuine issue of fact related to the subcontractors' last day of work on one of the projects at issue, the judge properly concluded that such evidence was insufficient to create a genuine dispute. On appeal, the plaintiffs do not challenge the judge's conclusions regarding when work was completed on the projects at issue.

3 Galaxy is not a party in this case. 4

Council of Carpenters (union).4 NECCCA itself is not a

signatory, nor are the fringe-benefit fund trustees NECCCA

represents. Pursuant to the agreement, however, Mass

Construction and Galaxy, as subcontractors (or "Employers," as

defined within the agreement), were obligated to make

contributions to NECCCA -- the agency designated in the

agreement5 to collect the benefit monies -- on behalf of the

carpenters they employed for the projects. In the event of a

subcontractor's failure to make contributions, art. 15, § 1, of

the collective bargaining agreement provided NECCCA and the

union with the following mechanism to collect delinquencies with

assistance from the general contractor:

"Within seven (7) days of learning that an Employer is delinquent in its employee benefit contributions, the Union or the NECCCA shall notify in writing the Employer and the General Contractor[] for whom the Employer is working of the delinquency amount. . . .

"Upon written notification from . . . [the Union] or the NECCCA that a subcontractor is delinquent in the payment of wages or benefits to the Funds provided for in this Agreement, the general contractor shall assist the Union in collecting those wages and benefit contributions for that specific job to the extent that subcontractor funds are available and in hand. . . .

4 The name of the union has since changed to the North Atlantic States Regional Council of Carpenters.

5 Article 10, § 3, of the agreement provides that "[t]he parties have established a non-profit agency, the New England Carpenters Central Collection Agency . . . (NECCCA) whose purpose shall be to perform the collection, auditing and related activities for the Funds. The Agency shall be directed equally by the Union and Employer designees." 5

"The general contractor shall pay subcontractors who are delinquent in the benefit payments on their jobs, by issuing a two-party check to the subcontractor and the NECCCA for any delinquent subcontractor upon request for this procedure from the Union or the NECCCA."

2. General Laws c. 149, § 29. Under G. L. c. 149, § 29,

general contractors for a publicly funded construction project

must obtain "security by bond . . . for payment of labor

performed or furnished" on the project. Given the

unavailability of mechanic's liens to secure payment on public

construction projects, see Lessard v. Revere, 171 Mass. 294,

294-295 (1898), § 29 affords claimants the benefit of the

security bond, see City Rentals, LLC v. BBC Co., 79 Mass. App.

Ct. 559, 564 (2011). Section 29 also sets forth the procedure

under which claimants may seek recovery of contributions owed to

them. Claimants, as described by the statute, are those

entitled to obtain "the benefit of such bond for any amount

claimed due and unpaid at any time." G. L. c. 149, § 29.

Although § 29 provides for claims by a project's laborers and

materialmen, it also expressly extends security to entities like

the plaintiffs

"for payment . . . of any sums due [to] trustees or other persons authorized to collect such payments . . . for health and welfare plans, . . .

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New England Carpenters Central Collection Agency v. Arch Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-carpenters-central-collection-agency-v-arch-insurance-company-massappct-2026.