An Important Precedent
Published Date: April 11, 2023
P&A’s New Jersey lawyers secured a favorable judgment in the United States District Court for the Eastern District of New York. Our attorneys successfully defended a claim for single employer and alter ego status wherein a labor union’s benefit funds filed a complaint seeking to bind our client, a paving contractor in the New York City area, to a collective bargaining agreement (CBA) and its benefit fund contribution obligations held by a completely unrelated company owned by our client’s father. P&A litigated the case from its onset, through discovery and depositions, and ending with motions and cross motions for summary judgment by all parties involved. In March 2023, the court dismissed the claims against our client in their entirety finding that no single employer and alter ego status existed so as to bind our client to the CBA. The court’s decision represents an important precedent and should assist in cautioning labor union benefit funds from asserting unfounded claims for fund contributions against entities with which they have no contractual relations.