Restrepo v. New Phase Electrical Contractors, Inc.

CourtDistrict Court, E.D. New York
DecidedAugust 28, 2025
Docket1:25-cv-00321
StatusUnknown

This text of Restrepo v. New Phase Electrical Contractors, Inc. (Restrepo v. New Phase Electrical Contractors, 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
Restrepo v. New Phase Electrical Contractors, Inc., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------x HUMBERTO RESTREPO,

Petitioner, MEMORANDUM & ORDER - against - 25-CV-0321 (PKC) (MMH)

NEW PHASE ELECTRICAL CONTRACTORS, INC.,

Respondent. -------------------------------------------------------x PAMELA K. CHEN, United States District Judge: Petitioner Humberto Restrepo (“Petitioner”), as Chairman of the Joint Industry Board of the Electrical Industry (the “JIB”), filed his Petition in this district on January 1, 2025, seeking to confirm an arbitration award rendered pursuant to the collective bargaining agreement between Local Union #3 of the International Brotherhood of Electrical Workers (the “Union”) and New Phase Electrical Contractors, Inc. (“Respondent”). (Pet., Dkt. 1, at 1.) On April 23, 2025, after Respondent failed to appear or otherwise defend this action, Petitioner requested that his Petition be deemed as an unopposed motion for summary judgment. (Pet’r’s Ltr., Dkt. 11.) On June 20, 2025, the Court granted Petitioner’s request and converted his Petition to a motion for summary judgment (“Motion”). (See 6/20/2025 Dkt. Order.) For the reasons set forth below, the Court now grants summary judgment in favor of Petitioner. BACKGROUND1 I. The JIB and Employment Benefit Plans The JIB is the administrator of various multiemployer employee benefit plans established and maintained pursuant to a collective bargaining agreement between the Union, certain employer associations, and independent or unaffiliated employers in the electrical and other related

industries, including Respondent. (Pet., Dkt. 1, ¶¶ 4, 16.) The JIB is the administrator and fiduciary of applicable employee benefit plans (“ERISA Plans”) within the meaning of §§ 3(16)(A)(i) and 3(21)(A) of Employee Retirement Income Security Act of 1974 (“ERISA”)2, codified as 29 U.S.C. §§ 1002(16)(A)(i) and 1002(21)(A).3 (Id. ¶ 5; see Finkel v. Firequench, Inc., No. 23-CV-4868 (EK) (JAM), 2024 WL 320870, at *1 (E.D.N.Y. Jan. 29, 2024), R&R adopted as modified, No. 23-CV-4868 (EK) (JAM), 2024 WL 4249224 (E.D.N.Y. Sep. 20, 2024); 29 U.S.C.A. § 1002 (West).

1 The following facts are taken from the Petition and exhibits thereto and presumed true, given Respondent’s failure to respond. Trs. of the Ne. Carpenters Health, Pension, Annuity, Apprenticeship, & Lab.-Mgmt. Coop. Funds v. Countrywide Home Improvement, Inc., No. 17-CV-2570 (DRH) (ARL), 2017 WL 5690922, at *1 (E.D.N.Y. Nov. 27, 2017). 2 These include 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. (Pet., Dkt. 1, ¶ 5.) Each plan is an employee benefit plan within the meaning of § 3(3) of ERISA, codified as 29 U.S.C. 1002(3), and a multi-employer plan within the meaning of § 3(37) of ERISA, codified as 29 U.S.C. § 1002(37). (Id. ¶ 7); see 29 U.S.C.A. § 1002 (West). 3 Each of the ERISA Plans 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 ERISA Plans in accordance with Section 302(c)(5) of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 186(c)(5). (Pet., Dkt. 1, ¶ 7.) As administrator and fiduciary, the JIB undertakes several roles. First, it receives a weekly remittance consisting of contributions to each of the ERISA Plans4 (“JIB Contributions”) directly from each signatory employer and a Union assessment collected by the signatory employer from each Union member employed (the “Union Assessment”).5 (Pet., Dkt. 1, ¶ 6.) The JIB also retains

a third-party record-keeper and investment manager Empower, who receives employee-elective contributions (“Employee Contributions”) and employer contributions (“Employer Contributions”) (collectively, “DSP Contributions”) remitted by the signatory employers, allocates these remittances to the relevant individual accounts, and enables individuals to then “direct the investment of their DSP Contributions from among various investment alternatives selected by the JIB in conjunction with Empower.” (Id. ¶¶ 8, 11.) Finally, the JIB may collect employee loan payments due to the Union, payments against loans made from benefits plans, and contributions to fund the operations of the JIB via employee deductions from their paychecks. (Id. ¶¶ 9–10.) II. The Collective Bargaining Agreement The Union entered into a collective bargaining agreement with the New York Electrical

Contractors’ Association, Inc. and the Association of Electrical Contractors, Inc. (collectively, the “Associations”) covering the period of April 10, 2019 through April 13, 2022 (the “2019-2022 CBA”). (Id. ¶ 17.) The 2019-2022 CBA states that it “shall remain in effect until April 13, 2022 at 4:00 P.M., unless otherwise provided in this Agreement. It shall continue in effect from year to year thereafter, provided, however, any party hereto may terminate this Agreement on April 13, 2022, and any time thereafter by giving the other party at least ninety (90) days’ notice in writing of modification or termination prior to April 13th of such year.” (Id. ¶ 19 (quoting

4 Except for the DSP. (Id. ¶ 6.) 5 The JIB acts as a mere collection agent with respect to the Union Assessment. (Id.) Agreement and Working Rules, Dkt. 1-2, at 99).) On May 11, 2022, the Union and the Associations extended the 2019-2022 CBA until April 9, 2025. (Id. ¶ 18; see Mem. of Agreement (“MoA”), Dkt. 1-3, at 1 (setting new contracting term until April 9, 2025 (the “2022-2025 CBA,” together with the 2019-2022 CBA, the “CBA”)).) On December 19, 2023, Respondent assented

to “be bound by all of the provisions of the [CBA] and working rules.” (Pet., Dkt. 1, ¶ 16; Ltr. of Assent, Dkt. 1-1). To date, neither the Union, the Associations, nor Respondent have provided the required notice to terminate the CBA, which remains in effect upon all parties including Respondent. (Pet., Dkt. 1, ¶¶ 20–21.) Under the CBA, Respondent is required to make the employee benefit plan payments discussed supra, including to the ERISA Plans and the Non-ERISA Plans, “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 [the relevant contributions] are made.” (Id. ¶ 22 (citing Agreement and Working Rules, Dkt. 1-2, at 11–18).) If Respondent fails to remit contributions and has not submitted payroll

reports for such unpaid contributions, under the CBA’s Policy for the Collection of Delinquent Contributions (the “Delinquency Policy”), the JIB may “use a prior week’s payroll report submitted by the employer to calculate the amount of Contributions due from the employer.” (Pet., Dkt. 1, ¶ 27; Delinquency Policy, Dkt. 1-4, at 5.) The Delinquency Policy also holds that “interest shall be calculated at the rate set forth in Section 6621 of the Internal Revenue Code.” (Delinquency Policy, Dkt.

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Restrepo v. New Phase Electrical Contractors, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/restrepo-v-new-phase-electrical-contractors-inc-nyed-2025.