Bricklayers and Allied Craftworkers v. C.G. Yantch, 00-CV-073.
| Citation | 316 F.Supp.2d 130 |
| Decision Date | 03 December 2003 |
| Docket Number | No. 00-CV-073.,00-CV-073. |
| Parties | BRICKLAYERS AND ALLIED CRAFTWORKERS LOCAL 2, Albany, New York, AFL-CIO, by Albert Catalano, as President; Bricklayers and Allied Craftworkers Local 2, Albany, New York Pension and Annuity Funds, by its Trustees Albert B. Catalano, Luke Renna, Timothy O'Donnell, Raymond DeThorne, Donald Cote, Stephen O'Sick, J.D. Gilbert, James G. Bradt, Victor Mion, Jr., Thomas Murray, and Earl Hall; Bricklayers and Allied Craftworkers Local 2, Albany, New York Health Benefit Fund, by its Trustees Albert B. Catalano, Luke Renna, Timothy O'Donnell, Raymond DeThorne, Joseph Satalino, Stephen O'Sick, J.D. Gilbert, James G. Bradt, Victor Mion, Jr., Thomas Murray, and Earl Hall; Bricklayers and Allied Craftworkers Local 2, Albany, New York Education & Training Fund, by its Trustees Albert B. Catalano, Luke Renna, Timothy O'Donnell, Peter Coons, Michael Supreant, John Buck, James Bradt, Thomas Murray, J.D. Gilbert, Kevin Augustini, Thomas Marinello, and Vic Mion; and Bricklayers & Trowel Trades International Pension Fund, by its Trustees John Flynn, John T. Joyce, Louis Weir, Gerry O'Malley, James Boland, George Harbison, Dominic Spano, James Songer, Charles Velardo, Eugene George, John Wallner, Walter Kardy, Dan Schiffer, and Joseph Speranza, Jr., Plaintiffs, v. C.G. YANTCH, INC.; Christopher Yantch, individually; and Yantch Plaster & Stucco Systems, LLC, Defendants. |
| Court | U.S. District Court — Northern District of New York |
Blitman & King LLP (Charles Blitman, Esq., Jennifer A. Clark, Esq., Nathaniel G. Lambright, Esq., of Counsel), Syracuse, NY, for Plaintiffs.
Law Offices of Joseph Camardo (Joseph Camardo, Esq., Brian J. Smith, Esq., of Counsel), Auburn, NY, for Defendants.
On March 7, 2003, plaintiffs Bricklayers and Allied Craftworkers Local 2, Albany, New York, AFL-CIO ("Union") and various funds into which employers that are party to certain collective bargaining agreements must pay ("funds")1 (collectively "plaintiffs"), filed a second amended complaint against defendants C.G. Yantch, Inc. ("C.G.Yantch"), Christopher Yantch, and Yantch Plaster & Stucco Systems, LLC ("Yantch Plaster") (collectively "defendants"), alleging six causes of action: first — that C.G. Yantch failed to remit $14,368.13 in fringe benefit contributions and deductions from January 1996 to May 1998 under a collective bargaining agreement, in violation of the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. § 1145; second — that C.G. Yantch failed to remit $8,325.24 in fringe benefit contributions and deductions from January 1, 1999, to April 31, 2000, under another collective bargaining agreement, in violation of 29 U.S.C. § 1145; third — that defendants are further delinquent in remitting required fringe benefit contributions and deductions, in an amount to be determined, from January 1996 to May 1998, in violation of 29 U.S.C. § 1145; fourth — that Yantch Plaster is liable for the delinquencies claimed in the first three causes of action; fifth — that defendants should be enjoined from further breaches of the collective bargaining agreements (and documents incident thereto) and ERISA; and sixth — that Christopher Yantch is personally liable for the delinquencies claimed in the first three causes of action.
Pursuant to Federal Rules of Civil Procedure 12 and 56, both plaintiffs and defendants have filed motions to dismiss and/or for partial summary judgment. Plaintiffs have also moved to strike and/or dismiss certain counterclaims asserted by defendants in their second amended answer.
Oral argument was heard May 9, 2003, in Utica, New York. Decision was reserved.
The Union is a labor organization whose members work in the bricklaying/masonry/plastering business. The funds were established to ensure that Union members working for employers party to certain collective bargaining agreements would receive fringe benefit contributions. The funds are administered by trustees, see supra note 1, and act as collection agent for the International Union, the Defense Benefit Fund, the Promotional Fund, the Industry Advancement Program/Industry Advancement Fund, the Political Action Committee, and the International Masonry Institute, all of which employers must also pay into pursuant to the collective bargaining agreements.
C.G. Yantch is a now-dissolved corporation that started doing business in 1986 or 1987. The company was a contractor largely engaged in the plastering and stucco business, with approximately 75% of its work attributable to exterior insulation finish systems, which comprised both plastering and carpentry work, 10% attributable to conventional plastering and lathing, including thin coat plastering, and 15% attributable to building construction/addition or metal framing. Christopher Yantch was the company's sole shareholder and director. He was also the company president and vice president, while his wife was the secretary and treasurer. Corporate meetings were held once a year, but mainly consisted of an accountant going over the financial aspects of the business with him.
Aside from Christopher Yantch, C.G. Yantch employed Michele Vivenzio as a full-time bookkeeper, Christopher Yantch's brother David as a field supervisor, and a part-time estimator. Though his brother was given the authority to sign contracts and checks, the final authority on which jobs the company bid, and on all other decisions of consequence, rested with Christopher Yantch. The company also employed several work crews, but these individuals were laid off during the winter months, during which the company performed little to no work.
C.G. Yantch had three business addresses throughout its tenure, the last of which was on property owned by Christopher Yantch where a warehouse existed. He would lease space in the warehouse to the company, which would pay him monthly rent.
Yantch Plaster was formed October 31, 2000, while C.G. Yantch was still in business and several months after the initial complaint in this lawsuit was filed. Christopher Yantch is its sole shareholder and director, though his wife receives a weekly paycheck from the new company as well. Yantch Plaster's business involves many of the same types of activities as C.G. Yantch, but Christopher Yantch claims the new company is more diversified. Yantch Plaster successfully bid for a contract some time around its formation, but had to subcontract the work to C.G. Yantch because the new company did not yet have workers' compensation insurance or a payroll for employees. C.G. Yantch performed the work on the contract, and Yantch Plaster paid it for the labor. Yantch Plaster paid C.G. Yantch roughly $23,000 in November of 2000.
Some time in the fall or winter of 2000, Christopher Yantch unilaterally decided to dissolve C.G. Yantch. He claims such dissolution was necessary because of the poor workers' compensation rates the company had to pay, and because he was going through a divorce and wanted his then-wife Nina disassociated with his business.
Yantch Plaster began leasing the same office space that C.G. Yantch had leased from Christopher Yantch, and all of C.G. Yantch's full-time employees were transferred over to Yantch Plaster's payroll on January 1, 2001, the same day a payroll was established and workers' compensation insurance was obtained for the new company. Because the work on some contracts successfully bid on by C.G. Yantch had yet to be performed, and C.G. Yantch at that point no longer had workers' compensation insurance, some labor was subcontracted to Yantch Plaster, for which it was paid by C.G. Yantch. This apparently occurred on several occasions, and Christopher Yantch characterized the contracts as being Yantch Plaster's.
Through an auction, Yantch Plaster acquired $25,300 worth of C.G. Yantch's equipment, including vehicles and trailers. Christopher Yantch claims, however, that he used his own personal finances to capitalize Yantch Plaster, and no proceeds from C.G. Yantch projects were transferred to the new company. At the advice of an insurance agent, Yantch Plaster was added as an additional insured to a C.G. Yantch insurance policy, and the new company set up a bank account at one of the institutions used by C.G. Yantch. The same thing was done with respect to leases on certain vehicles. Yantch Plaster also loaned money to C.G. Yantch on a few occasions to help the latter pay bills and make payments on the leased vehicles.
Yantch Plaster purchased a new computer system, and did not use the one C.G. Yantch utilized while it was in business. Christopher Yantch sent out notices to certain customers, informing them that his company had changed names, though he claims this was done in order to prevent C.G. Yantch's name from coming up on the customers' computer screens when his name was typed in. He had developed personal relationships with many of these customers, who, in addition to some new customers, became customers of Yantch Plaster.
Yantch Plaster never signed a collective bargaining agreement. Christopher Yantch claims none of its employees are Union members.
The substantive dispute between plaintiffs and defendants centers around two collective bargaining agreements. The first was entered into by the Union and the Construction Employers of Central New York, Inc., the Labor Relations Section of Mohawk Valley Builders Exchange, Inc., and the Labor Relations Section of Northern Builders Exchange, Inc. (the "CEA Agreement") and generally encompassed all masonry/plastery work performed by Union members in and around Utica, Syracuse, Oswego, Watertown, and Ogdensburg, from June 27, 1995, to May 31, 1998. (Docket No. 55, Ex. 3.) The second was entered into by the Union and the ...
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