Trustees of the Sheet Metal Workers Local Union No. 17 Insurance Annuity Funds v. United States Fire Insurance

23 Mass. L. Rptr. 53
CourtMassachusetts Superior Court
DecidedAugust 28, 2007
DocketNo. 061977
StatusPublished

This text of 23 Mass. L. Rptr. 53 (Trustees of the Sheet Metal Workers Local Union No. 17 Insurance Annuity Funds v. United States Fire Insurance) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of the Sheet Metal Workers Local Union No. 17 Insurance Annuity Funds v. United States Fire Insurance, 23 Mass. L. Rptr. 53 (Mass. Ct. App. 2007).

Opinion

Henry, Bruce R., J.

The plaintiffs are trustees of various sheet metal union benefit funds (“Trustees”). The defendant, United State Fire Insurance Co. (“United”), is the surety on a payment bond for a private project. Trustees have brought a claim to recover on the payment bond for unpaid union benefit contributions claimed due from a sub-subcontractor, New England Ventilation Co. (NEVC), under a collective bargaining agreement. Trustees make their claim on the payment bond in two counts: in Count I, they seek to recover the unpaid union benefit contributions under c. 149, §29A; and in Count II they seek the same recovery in contract. The parties have each moved for summary judgment. For the reasons that follow, United’s Motion for Summary Judgment is ALLOWED and Trustees’ motion is DENIED.

FACTS

The relevant undisputed facts are as follows.

N.B. Kenney Company, Inc. (Kenney) entered into a subcontract with the prime contractor William A. Berry & Sons (Berry) to perform heating, ventilation and air conditioning work in the construction of the Harvard University Center for Government and International Studies (Project). Kenney provided a Subcontract Payment Bond on the Project in which Kenney is identified as bond “Principal,” United is identified as bond “Surety,” and Berry is identified as “Obligee.” The Payment bond includes the following provisions:

Now therefore the condition of this obligation is such that if the Principal shall promptly make payment to all Claimants as herein defined for all labor and materials used or reasonably required for use in the performance of the Subcontract, then the obligation shall be void;
Otherwise shall remain in full force and effect subject, however, to the following conditions:
(1) A Claimant is defined as one having a direct contract with the Principal for labor, materials or both used or reasonably required for use in the performance of the contract.
(2) . . . every Claimant as herein defined who has not been paid . . . may sue on the bond in Claimant’s own name ..."

Kenney entered into a sub-subcontract with NEVC for sheet metal work required under Kenney’s subcontract with Berry for the Project. NEVC failed to complete its sub-sub contract with Kenney and abandoned the Project prior to substantial completion, requiring Kenney to hire a replacement sheet metal sub-subcontractor.

Plaintiffs are trustees of jointly-trusteed multi-em-ployer fringe benefit pension, health and welfare, annuity, and other funds established, maintained and managed pursuant to the Taft Hartley Act, 29 U.S.C. section 186(c)(5) (“Funds”). Plaintiff Trustees administer the Funds for the sole and exclusive use and benefit of the Funds’ beneficiaries and participants, in accordance with their plan documents and the law. In and before 2005, NEVC was bound by a collective bargaining agreement (“Agreement”) with the Union by virtue of its membership in the Sheet Metal and Air Conditioning Contractors National Association Boston, Inc. The Agreement contains the agreed-upon terms under which labor is supplied to NEVC and other signatory employers.

NEVC employed sheet metal workers covered by the Agreement as labor to perform its subcontract with Kenney on the Project in 2005. NEVC allegedly failed to pay Trustees certain union benefit contributions as provided in the collective bargaining agreement to which NEVC was bound. Kenney never entered into any contract with Trustees nor was it party to any collective bargaining agreement for payment of sheet metal union benefit contributions. Trustees’ claim against United on the payment bond is exclusively for union benefit contributions claimed due from NEVC under the collective bargaining agreement to which NEVC was a party, but Kenney was not.

Under the subcontract between NEVC and Kenney, NEVC assumed “responsibility and liability for any and all damages and injury of any kind or nature whatsoever to all persons, whether employees or otherwise, and to all property growing out of or resulting from the labor or material or both used in the performance of this contract or occurring in connection therewith ...”

Under the terms of the Agreement, the Union was the exclusive representative of sheet metal workers employed by NEVC, and thereby authorized to represent those workers regarding the terms and conditions of their employment, including their rate of wages and fringe benefits. By virtue of the Agreement, those employees assigned to the Union their rights to negotiate the rate and payment of their wages and benefits. The Agreement between NEVC and the Union required NEVC to pay, in addition to wages, contributions for each hour worked by those employees to the Funds for their fringe benefits, including health insurance, pension, annuity, and apprenticeship and training. The contribution rates to the Funds on behalf of covered employees are updated and increased approximately every six months from a portion of the wage increase set forth in the Agreement, and the Union issues a notice with the updated rates to the employers and members covered by the Agreement. The Union workers, through the Union and the Agreement, assign a portion of their compensation for their work to the Trustees of the Funds, who in turn provide health insurance, retirement and other fringe benefits.

Under the Agreement, the contributions required from employers by NEVC to the Funds are included in calculating the total wage package or total amount of compensation paid to Union employees for their work. They are also included in determining whether the Union employees are paid the prevailing minimum [55]*55wage on public projects. Under the Agreement, an employer’s failure to pay contributions to the Funds permits the Union to remove its members from the job. NEVC failed to pay the total amount of contributions owed for the period February 21, 2005, through June 12, 2005, for the hours worked by Union employees to perform its subcontract with Kenney on the Project.

The Trustees of the Funds made a claim against United in the amount of $56,976.53, representing the contributions NEVC failed to pay the Funds. The Trustees and the Union filed a notice of their bond claim and suit on the bond within the time and in the place required.

DISCUSSION

Summary Judgment Standard

Summary judgment shall be granted where there are no genuine issues of material fact and where the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community National Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party bears the burden of demonstrating affirmatively the absence of a triable issue, and that it is entitled to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). The moving party may satisfy this burden either by submitting affirmative evidence that negates an essential element of the opposing party’s case or by demonstrating that the opposing party has no reasonable expectation of proving an essential element of its case at trial. Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991). All evidence must be viewed in the light most favorable to the non-moving party. Williams v.

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Related

United States Ex Rel. Sherman v. Carter Constr. Co.
353 U.S. 210 (Supreme Court, 1957)
Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
General Electric Co. v. Lexington Contracting Corp.
292 N.E.2d 874 (Massachusetts Supreme Judicial Court, 1973)
Williams v. Hartman
597 N.E.2d 1024 (Massachusetts Supreme Judicial Court, 1992)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
Kourouvacilis v. General Motors Corp.
575 N.E.2d 734 (Massachusetts Supreme Judicial Court, 1991)
Flesner v. Technical Communications Corp.
575 N.E.2d 1107 (Massachusetts Supreme Judicial Court, 1991)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Choate, Hall & Stewart v. SCA Services, Inc.
392 N.E.2d 1045 (Massachusetts Supreme Judicial Court, 1979)
M. Lasden, Inc. v. Decker Electrical Corp.
360 N.E.2d 1068 (Massachusetts Supreme Judicial Court, 1977)
James D. Shea Co. v. Perini Corp.
321 N.E.2d 831 (Massachusetts Appeals Court, 1975)

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Bluebook (online)
23 Mass. L. Rptr. 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-the-sheet-metal-workers-local-union-no-17-insurance-annuity-masssuperct-2007.