Performing Arts Ctr. of Suffolk Cnty. v. Actor's Equity Ass'n
| Decision Date | 25 August 2022 |
| Docket Number | CV 20-2531 (JS)(AYS) |
| Parties | PERFORMING ARTS CENTER OF SUFFOLK COUNTY (D/B/A THE GATEWAY), ANNMARIE ALLAN, JEFF BELLANTE, SCOT ALLAN, and MICHAEL BAKER Plaintiff s v. ACTOR'S EQUITY ASSOCIATION, EQUITY LEAGUE PENSION TRUST FUND, EQUITY LEAGUE HEALTH TRUST FUND, EQUITY LEAGUE 401(K) PLAN, BOARD OF TRUSTEES OF THE EQUITY LEAGUE PENSION TRUST FUND, BOARD OF TRUSTEES OF THE EQUITY LEAGUE HEALTH TRUST FUND; and the BOARD OF TRUSTEES OF THE EQ UITY LEAGUE 401(K) PLAN Defendants. |
| Court | U.S. District Court — Eastern District of New York |
REPORT AND RECOMMENDATION
Plaintiffs Performing Arts Center of Suffolk County (d/b/a The Gateway) (“Gateway”), Annmarie Allan, Jeff Bellante, Scot Allan, and Michael Baker (the “Individual Plaintiffs”), commenced this action against Actors' Equity Association (the “Union” or “Equity”), and Equity League Pension Trust Fund (“Pension Fund”), Equity League Health Trust Fund (“Health Fund”), Equity League 401(k) Trust Fund (“401(k) Fund”) (the “Funds”), as well as the Board of Trustees of the Equity League Health Trust Fund Wells Fargo Bank, and the Board of Trustees of the equity League 401(k) Trust Fund (the “Trustees”) (collectively the “Funds Defendants”) alleging that Defendants' termination of benefits violated numerous state and federal laws.
Presently before this Court, upon referral by the Honorable Joanna Seybert for Report and Recommendation, see Electronic Order dated 04/08/2022, is the Equity's motion to dismiss the Complaint, see Docket Entry (“DE”) [30] and the Funds' Defendants' motion to partially dismiss the Complaint. See DE [31]. As discussed below, this Court respectfully recommends that Equity's motion to dismiss be granted and that the Funds' Defendants' motion be granted in part and denied in part.
As is required in the context of this motion to dismiss, the factual allegations in the Complaint, though disputed by Defendants, are accepted to be true for purposes of this motion, and all reasonable inferences are drawn therefrom in favor of the Plaintiff.
While facts to consider in the context of a Rule 12 motion to dismiss are generally limited to those set forth in the pleadings, a court may consider matters outside of the pleadings under certain circumstances. Specifically, in the context of a Rule 12(b)(6) motion, a court may consider: (1) documents attached to the Complaint as exhibits or incorporated by reference therein; (2) matters of which judicial notice may be taken; or (3) documents upon the terms and effects of which the Complaint “relies heavily” and which are, thus, rendered “integral” to the Complaint.” Chambers v. Time Warner, Inc., 282 F.3d 147, 152-153 (2d Cir. 2002); see Int'l Audiotext Network, Inc. v. Am. Tel and Tel. Co., 62 F.3d 69, 72 (2d Cir. 1995). Moreover. “[a] court may take judicial notice of documents filed in another court not for the truth of the matters asserted in the other litigation, but rather to establish the fact of such litigation and related filings.” Glob. Network Commc'ns, Inc. v. City of New York, 458 F.3d 150 157 (2d Cir. 2006) (quoting Int'l Star Class Yacht Racing Ass'n Tommy Hilfiger U.S.A., Inc., 146 F.3d 66, 70 (2d Cir. 1998)).
The Court turns now to discuss the facts set forth in Plaintiffs' Complaint, construed in their favor.
Defendant Equity is a national labor union that represents more than 51,000 actors and stage managers that perform in live theater. Complaint (“Compl.”) ¶ 1, DE [1]. Plaintiff Gateway is a Long Island theater company. Compl. ¶¶ 12, 27-28. Plaintiffs Annmarie Allan, Jeff Bellante, Scot Allan, and Michael Baker are employees of Gateway and members of the Union. Compl. ¶¶ 13-16. The Funds are multi-employer plans that receive contributions from various employers pursuant to those employers' collective bargaining agreements with Equity. Compl. ¶¶ 18-21. The Trustees are the named fiduciaries, Plan Administrators, and Plan Sponsors of the Funds. Compl. ¶ 22.
Through Letters of Agreement (“LOAs”) executed by gateway on April 20, 2015, Compl. ¶ 30, and July 24, 2018, id., Gateway agreed to be bound by Equity's Agreement and Rules Governing Employment in Non-Resident Dramatic Stock (“C.O.S.T. Contract”). Compl. ¶ 30; Ex. 1 (collectively the “CBA”).
Pursuant to the CBA, Gateway is required to make weekly contributions to the Pension and Welfare Fund on behalf of its employees who are covered under the CBA, at a rate of 8% of all gross weekly salary earned per week per employee. Compl. ¶ 31: Ex. 2, 3. Gateway is also required to make a weekly contribution to the Welfare Fund that ranged from $173 per week per employee in 2015 to $177 per week per employee in 2018. Id. ¶ 32; Ex. 2, 3.
Union members must pay a $1,700 initiation fee, $174 in annual dues, and 2.5% of their gross earnings while performing work covered under the CBA. Compl. ¶ 25. In exchange the Union negotiates with employers on behalf of its members for among other things, higher wages and benefits. Compl. ¶ 26.
The CBA covers employees who are engaged in work as “Actors” as defined under the CBA. Compl. ¶ 36. Section 20(A) of the CBA and Section 7 of the LOAs define “Actor” broadly to include persons who are signed to the Equity Contracts, including principals, stage managers, assistant stage managers, understudies, professional theater interns, supplemental extras, and extras. Id.; Ex. 1-3. Prior to engaging in any performance, Gateway enters into individual employment contracts with each Actor called “Equity Contracts” that detail the terms of employment, including rate of pay, production schedules, and position. Compl. ¶ 35. Gateway files a copy of the Equity Contract with the Union. Compl. ¶ 38.
Both LOAs contain an arbitration clause requiring that: “[a]ny controversy arising from the application or interpretation of this Agreement or affecting the relationship between any Actor or Equity and the Producer, including disputes as to the existence or validity of any employment contract, shall be submitted to arbitration[.]” Compl.; Ex. 2 at § 1; Ex. 3 at § 1. The LOAs also provide that arbitration is the “exclusive remedy for the resolution and adjustment of disputes[.]” Compl. Ex. 2 at § 1(A); Ex. 3 at § 1(A).
Plaintiffs contend that since 1995 to present, Equity has represented to them that “on-call” or “standby” understudies or assistant stage managers are covered by the CBA. Compl. ¶¶ 40, 57.
In particular, Plaintiffs allege that in 1995 Gateway hired Jerry Lapidus (“Lapidus”), a former Equity employee, to work as a manager for Gateway. Compl. ¶ 42. Although Lapidus was hired for administrative work, he was assigned an Equity Contract as an on-call or standby assistant stage manager on various productions. Compl. ¶¶ 44-45. In or about 2013, Matthew Conti (“Conti”), the Equity business representative for Gateway at the time, told Gateway's Artistic Director, Paul Allen, that on-call/standby assistant stage managers to production were covered under the CBA. Compl. ¶ 52. In June 2014, Conti also told Paul Allen that on-call or standby understudies were also covered by the CBA. Compl. ¶ 54.
From 1995 through late 2018 and early 2019, Equity and the Funds accepted contributions and dues from actors engaged in on-call or seasonal roles. Compl. ¶¶ 56, 61. At no time were Gateway or any of its employees, including the Individual Plaintiffs, informed that on-call or standby roles were not covered by the CBA. Compl. ¶ 57. Therefore, Gateway continued to make contributions to Equity and to the Funds on behalf of the Individual Plaintiffs because of the understanding that the Individual Plaintiffs were engaged in covered work under the CBA and thus were entitled to pension, health, and 401(k) benefits from the Funds. Compl. ¶¶ 59, 6366.
In late 2018 and early 2019, the Funds terminated the Individual Plaintiffs' benefits due to the determination that the Individual Plaintiffs had not performed work covered under the CBA. Compl. ¶¶ 67-69, 73. Specifically, on November 28, 2018, the Funds notified Annmarie Allan that it would terminate her pension, health and 401(k) benefits. Compl. ¶ 68. On March 6, 2019, the Funds notified Scot Allan, Michael Baker, and Jeff Bellante that it would no longer accept contributions on their behalf. Compl. ¶ 68. The Funds also terminated Scot Allan's and Michael Baker's health benefits and removed certain pension credits from each of the Individual Plaintiffs. Id.
The Individual Plaintiffs appealed the Funds' determinations on or before May 3, 2019. Compl. ¶ 70. On July 29, 2019, the Funds notified Gateway and the Individual Plaintiffs of the Funds' decision to deny their appeals. Compl. ¶ 71. On December 20, 2019, the Funds issued their final determination regarding Gateway and the Individual Plaintiffs. Compl. ¶ 72. The Funds rejected most of the Individual Plaintiffs' appeals and determined that the Individual Plaintiffs were not entitled to certain pension, health, and 401(k) benefits and demanded the repayment of over $200,000 in medical costs paid because the Individual Plaintiffs were not Covered Employees. Id. The Funds determined that when the Individual Plaintiffs were employed as understudies and/or assistant stage managers, they were not engaged in covered in employment. Compl. ¶ 73.
Plaintiffs commenced this action on June 5, 2020. See generally Compl. On August 11, 2020, both Equity and the Funds Defendants requested a pre-motion conference in anticipation of filing motions to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6)....
To continue reading
Request your trial