Court to Decide Arbitrability in IBEW Union's Case Against DNC

An arbitrator handling a dispute between the International Brotherhood of Electrical Workers Local 98, the Democratic National Committee and several broadcast networks did not have the authority to determine whether that case could in fact be arbitrated, a federal judge has ruled.

An arbitrator handling a dispute between the International Brotherhood of Electrical Workers Local 98, the Democratic National Committee and several broadcast networks did not have the authority to determine whether that case could in fact be arbitrated, a federal judge has ruled.

U.S. District Judge Gene E.K. Pratter of the Eastern District of Pennsylvania granted motions to dismiss, and in doing so, held that the court had jurisdiction to decide the arbitrability of the case.

Union carpenters, Convention Center still, still, still battling in Philly, Harrisburg

At the Convention Center on Monday, more than 6,000 cell biologists and life scientists from the American Society for Cell Biology and the European Molecular Biology Organization will focus on connections between cell biology and neurobiology.

Nearby, at the federal courthouse, there will be another gathering — of lawyers representing the Convention Center and the union carpenters who used to be the center’s main labor force. The courthouse discussion will focus on a lawsuit over whether the union engaged in racketeering after it lost work at the center in May 2014.

Sub-contract agreement at center of litigation between Philadelphia construction companies

PHILADELPHIA – A lawsuit between Philadelphia construction companies has reached state court over one of the businesses allegedly defaulting on a sub-contract agreement for work on a major apartment complex in Center City, Philadelphia.

Hunter Roberts Construction Group, LLC of Philadelphia filed suit in the Philadelphia County Court of Common Pleas on Nov. 6 versus Torrado Construction Co., Inc., also of Philadelphia.

In 2015, Hunter Roberts contracted with HG ASB Property, LLC for the purposes of building an apartment complex at 1213 Walnut Street in Philadelphia. That December, Hunter Roberts sub-contracted with Torrado Construction in order for them to perform the Paints and Coating work, in exchange for the price of $949,000. Through additional necessary work and change orders, that price was later adjusted to $1,037,454.

“Torrado’s work was problematic for several reasons, including, without limitation, failure to maintain an appropriate workforce to timely complete the work, after multiple requests Torrado has refused to increase its workforce and failed to improve the progress of the work, Torrado’s own statement that it was unable to complete the remaining work, and the impact of the work on the final completion date and other trades,” the suit reads.

This caused default of the sub-contract, which Torrado did not correct in the allotted time between Sept. 28 and Oct. 1 of this year, which in turn, led to the sub-contract’s termination.

“As the sub-contract was not complete, Hunter Roberts had some funds to mitigate the cost of Torrado’s default and termination. However, the cost to complete the work exceeded the sums held by Hunter Roberts. Additionally, in significant part, Torrado failed to pay for the (wages or benefits) of its union workforce and important suppliers. To complete, repair and/or finalize the work, Hunter Roberts was required to spend sums exceeding the sub-contract price (as adjusted). These costs are not final at this time, but are in excess of $50,000, notwithstanding any contingent claims, attorneys’ fees and costs, all of which are collectable under the sub-contract,” the suit continues.

For counts of breach of contract, contractual indemnification and unjust enrichment, the plaintiff is seeking damages in excess of $50,000, plus pre-judgment interest, attorneys’ fees, court costs and such other relief as the Court may deem equitable and just.

The plaintiff is represented by Gaetano P. Piccirilli of Klehr Harrison Harvey Branzburg, in Philadelphia.

Philadelphia County Court of Common Pleas case 171100281
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com

Source: Penn Record

 

Union workers win $76M from Midtown construction firm that used alter-ego company to skirt collective bargaining

A Midtown construction company accused of creating a bogus business to avoid union wages and union benefit payments has to cough up $76 million to the workers it cheated.

In a decision with potentially far-reaching consequences for city developers, Manhattan Federal Court Judge Colleen McMahon found that Navillus Tile fraudulently invented an alter-ego company to try and get around collectively bargained agreements it had with several major city construction unions.

The company also had one of its legitimate offshoot businesses act as a Navillus stand-in on a job it wanted to do non-union, the ruling found.

The collusion also involved real estate giant Related, one of the city's most prolific developers.

It knowingly engaged with one of the alter-ego companies on its Upper East Side luxury development on 92nd St., Judge McMahon's ruling said.

C. Raymond Davis & Sons alleges photos were used without consent on website

PHILADELPHIA – A Kimberton general contractor claims that its copyrighted photos were unlawfully used on a Tullytown company's website.

C. Raymond Davis & Sons Inc. filed a complaint on Aug. 4 in the U.S. District Court for the Eastern District of Pennsylvania against Worthington Davis Associates LLC, Mark Davis, Mark Worthington and Daniel L. Eppehimer alleging copyright infringement and other counts.

According to the complaint, the plaintiff alleges that Davis formerly was president of the company before his termination in May 2016. The plaintiff holds Worthington Davis Associates LLC, Davis, Worthington and Eppehimer responsible because the defendants allegedly made unauthorized copies of plaintiff's photographs and posted them on the Worthington Davis Associates website.

The plaintiff seeks to enjoin the defendants, all damages, profits, court costs and any further relief the court grants. It is represented by George C. Werner and Salvatore Anastasi of Barley Snyder LLP in Malvern.

U.S. District Court for the Eastern District of Pennsylvania case number 2:17-cv-03491-JS

Source: Penn Record

 

Mechanical contractor says it's owed money for work on constructing new police station

MEDIA – A mechanical contractor is suing a local municipality for allegedly unpaid costs, relating to construction work performed for the municipality’s new police station.

JBM Mechanical, Inc. of Nazareth filed suit in the Delaware County Court of Common Pleas on Aug. 2 versus Marple Township, located within Broomall.

JBM submitted a bid to complete the HVAC portion of the construction project for the new Marple Police Department building, which it was awarded, and JBM and the municipality entered into a contract for that work on Dec. 14, 2015.

Prosecutors: Construction company helped construction firms launder funds

CINNAMINSON, N.J. (AP) — Prosecutors say multiple construction companies along the East Coast used a New Jersey business as part of a scheme to launder up to $100 million in concealed payments to workers who are living in the country illegally.

The owner of Cinnaminson-based MAIA Consulting and two other men are facing money laundering charges. The arrests announced Monday stem from an investigation that started last November after authorities suspected the Cinnaminson-based firm was involved in an illegal check cashing operation.

Burlington County prosecutors say MAIA cashed checks written to "shell" construction companies that existed solely for concealing the payments. They say this allowed the construction companies to skirt tax obligations and labor regulations.

A voicemail message left with the company was not returned Monday.

Authorities say the three men charged are all from Brazil and were living in the United States illegally.

 

Source: Times Union

2nd Circ. Revives Ironworkers-Carpenters Union Turf War: Another reason why developers need to be weary of who manages their projects and their signatory obligations. The industry has changed and so has the building model.

Provisions in collective bargaining agreements crafted to win unions new work rather than preserve existing jobs violate federal antitrust law, the Second Circuit said Wednesday in an order reviving a “turf battle” over New England construction jobs between ironworkers’ and carpenters’ unions.

This case arose out of a dispute over subcontracting clauses in collective bargaining agreements (CBAs) between the Carpenters' Union and various construction companies and construction managers. The clauses effectively barred subcontracting of construction work with non-Carpenter affiliates. Ironworkers alleged that the Carpenters have used these subcontracting clauses to expand the scope of work assigned to the Carpenters Union to include work traditionally assigned to the Ironworkers. The district court granted summary judgment to the Carpenters. The Second Circuit held that the Carpenters have met the requirements of the construction industry proviso of Section 8(e) of the National Labor Relations Act, but that, on this record, there were factual disputes that precluded a decision on whether the conduct fell within the non‐statutory exemption to antitrust liability. The court explained, to demonstrate that the disputed subcontracting practices were sheltered by the non‐statutory exemption (and thus to defeat the Ironworkers' antitrust claim completely), the Carpenters must show that these practices furthered legitimate aims of collective bargaining, in a way that was not unduly restrictive of market competition. Accordingly, the court vacated the district court's judgment as to the Sherman Act claim; affirmed as to the unfair labor practices claim; and remanded.

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Source: Justia US Law