White Pearl Hospitality LLC d/b/a Hyatt Centric Wall Street New York v. HOTEL & GAMING TRADES COUNCIL, AFL-CIO a/k/a New York Hotel & Motel Trades Council, AFL-CIO

CourtDistrict Court, S.D. New York
DecidedSeptember 5, 2025
Docket1:24-cv-03022
StatusUnknown

This text of White Pearl Hospitality LLC d/b/a Hyatt Centric Wall Street New York v. HOTEL & GAMING TRADES COUNCIL, AFL-CIO a/k/a New York Hotel & Motel Trades Council, AFL-CIO (White Pearl Hospitality LLC d/b/a Hyatt Centric Wall Street New York v. HOTEL & GAMING TRADES COUNCIL, AFL-CIO a/k/a New York Hotel & Motel Trades Council, AFL-CIO) 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
White Pearl Hospitality LLC d/b/a Hyatt Centric Wall Street New York v. HOTEL & GAMING TRADES COUNCIL, AFL-CIO a/k/a New York Hotel & Motel Trades Council, AFL-CIO, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

WHITE PEARL HOSPITALITY LLC d/b/a Hyatt Centric Wall Street New York,

Plaintiff, No. 24-cv-3022 (RA) v. OPINION & ORDER HOTEL & GAMING TRADES COUNCIL, AFL- CIO a/k/a New York Hotel & Motel Trades Council, AFL-CIO,

Defendant.

RONNIE ABRAMS, United States District Judge:

Plaintiff White Pearl Hospitality LLC brings this labor contract action against the Hotel & Gaming Trades Council, AFL-CIO (the “Union”), seeking a declaratory judgment that it is not bound by two labor contracts as well as requesting an injunction ordering the Union to cease attempts to enforce those agreements. Soon after suit was filed, an arbitrator issued two arbitration awards finding that both labor contracts were valid and in force and ordering White Pearl to comply with their terms. The Union then filed a motion to dismiss the complaint along with a motion to confirm the awards, to which White Pearl responded by filing a cross-motion to vacate them. For the reasons that follow, the Court agrees with the Union that White Pearl has not met the high standard for vacating an arbitral award, and on that basis grants the Union’s motion to confirm both awards, denies White Pearl’s cross-motion to vacate them and grants the Union’s motion to dismiss the complaint. BACKGROUND The following facts are drawn from the pleadings, attached materials and various submissions by the parties. See Coscarelli v. ESquared Hosp. LLC, No. 18-cv-5943 (JMF), 2021 WL 5507034, at *1 (S.D.N.Y. Nov. 24, 2021). In 2012, the Hotel Association of New York City entered into a collective bargaining agreement with the Union, a labor organization representing various hotel employees in New York and New Jersey. Dkt. No. 19 (“Compl.”) ¶¶ 2, 6. This agreement, known as the Industry Wide Collective Bargaining Agreement (the “IWA”) took effect

in July 2012, and was later extended through June 2026. Id. ¶¶ 6, 8; see also id. Ex. 1 (“IWA”) at 11. It includes various provisions regulating the terms of employment at hotels within the area, including wages, benefits and terminations. IWA art. 60(B)(2). Like many collective bargaining agreements, the IWA also provided that any disputes would be subject to arbitration, specifically before an arbitrator entitled the “Impartial Chairperson” (the “IC”). Id. art. 26(A).1 Of particular 0F relevance here, the IWA also included a provision—Article 53—directed to “Technological Change,” which required hotel employers to meet with the Union before they implemented any technological improvements in order to discuss whether such changes would lead to layoffs and, if so, whether severance would be provided. Id. art. 53. The IWA also included a successor clause, which provided that any “successor” to one of its parties “shall assume all obligations of the predecessor . . . , including this Agreement and those agreements and practices supplementing this Agreement.” Id. art. 59(C). At the time the IWA took effect in 2012, the hotel now owned by White Pearl was under different ownership, and known as the Andaz Hotel. Compl. ¶ 6. Over the years that followed, the Union and the Andaz Hotel entered into two additional agreements after the hotel sought to

1 The arbitration clause provided, in relevant part, that “[a]ll complaints, disputes or grievances arising between the parties hereto involving questions or interpretation or application of any clause of this Agreement, or any acts, conduct or relations between the parties, directly or indirectly, which shall not have been adjusted by and between the parties involved shall be referred to a permanent umpire(s) to be known as the Impartial Chairperson, and his/her decision shall be final and binding upon the parties hereto. Any questions regarding arbitrability, substantive, procedural, or otherwise, or regarding the Impartial Chairperson’s jurisdiction or authority, shall be submitted to the Impartial Chairperson in accordance with this Article.” IWA art. 26(A). implement new technological changes to its facilities. Id. ¶ 9. In 2013, the two reached an agreement (the “2013 Agreement”) that permitted the Andaz Hotel to implement an automatic answering system in its phone system. Id. Under the terms of that Agreement, the parties agreed that the Andaz Hotel could use its “auto-answer feature on a full time basis for all external

incoming telephone calls,” although all “internal calls” and those routed through the “switch” would be answered by a “live” guest services host. Dkt. No. 19 Ex. 3 (“2013 Agreement”) ¶ 1. The Andaz Hotel also agreed to pay about $14,000 to several guest services hosts in satisfaction of “any and all claims” they had over its implementation of the auto-answering system. Id. ¶ 2. The Agreement expressly acknowledged that both parties were also parties to the IWA, and provided that any disputes regarding its terms would be subject to the same arbitration procedures set forth in the IWA. Id. ¶ 4. Several years later, in 2019, the parties entered into another agreement (the “2019 Agreement”) after the Andaz Hotel sought to implement a keyless entry system for guests. Compl. ¶ 10; Dkt. No. 19 Ex. 4 (“2019 Agreement”). Like the 2013 Agreement, the 2019 Agreement also

acknowledged that both parties were subject to the IWA, and required that any disputes arising from it be subjected to the IWA arbitration protocol. 2019 Agreement ¶ 8. According to its terms, this new Agreement permitted the Andaz Hotel to implement the keyless entry system, provided that it would not cause any employees to be laid off or to have their hours reduced. Id. ¶¶ 1–2. It also included a penultimate paragraph—Paragraph 7—that purported to limit the Andaz Hotel’s ability to rely on IWA Article 53 to implement additional technological changes to its facilities. See id. ¶ 7 (“The Hotel may not rely on Article 53(D) of the IWA to implement any changes which would result in any bargaining unit employee being laid off, placed on a reduced work week, or otherwise adversely affected, nor which would result in a reduction in the number of bargaining unit positions without the consent of the Union. The final sentence of Article 53(D) of the IWA shall not apply to the Hotel.”). Two years later, in December 2021, Plaintiff White Pearl purchased the Andaz Hotel and renamed it the Hyatt Centric Wall Street Hotel. Compl. ¶ 11. White Pearl subsequently entered

into an agreement to assume all of Andaz Hotel’s obligations under the IWA and all agreements supplementing it. Id. Then, in February 2024, White Pearl notified the Union that it planned to implement a new telephone system called a “private branch exchange” (“PBX”) at the hotel. Id. ¶ 12. The Union wrote back that it would be “improper and unlawful to unilaterally implement this New Technology absent agreement with the Union,” and asked for more information about the planned system. Id. ¶ 13. Although the parties met twice to discuss White Pearl’s plans, they were unable to reach an agreement. Id. ¶¶ 14–15. At the second meeting, on March 11, 2024, the Union produced copies of the 2013 and 2019 Agreements and told White Pearl that it was prohibited from implementing the PBX system without the Union’s consent. Id. ¶ 15. About a week later, White

Pearl emailed the Union and stated it was ready to resume bargaining, but received no response. Id. ¶ 16. The next month, on April 5, 2024, White Pearl sent a letter to the Union stating that it had decided to “exercise its discretion” and “terminate” the 2013 and 2019 Agreements. Id. ¶ 17. In the letter, White Pearl took the position that both Agreements were terminable at will, since neither specified an end date. Id.

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White Pearl Hospitality LLC d/b/a Hyatt Centric Wall Street New York v. HOTEL & GAMING TRADES COUNCIL, AFL-CIO a/k/a New York Hotel & Motel Trades Council, AFL-CIO, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-pearl-hospitality-llc-dba-hyatt-centric-wall-street-new-york-v-nysd-2025.