Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_03-cv-03958/USCOURTS-cand-3_03-cv-03958-4/pdf.json

Nature of Suit Code: 720
Nature of Suit: Labor Management Relations Act
Cause of Action: 29:185 Labor/Mgt. Relations (Contracts)

---

U

nite

d

States District C

o

u

rt

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

U

nite

d

States District C

o

u

rt

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

ABLE BUILDING MAINTENANCE CO.,

Plaintiff,

 v.

BOARD OF TRUSTEES OF GENERAL

EMPLOYEES TRUST FUND, et al.,

Defendants.

 /

No. C 03-03958 CRB

ORDER

Now pending before the Court for decision are the following: (1) the motion of Able

Building Maintenance Company (“Able”) to recall the writ of execution; (2) Able’s motion

to stay judgment pending petition for certiorari; and (3) the motion of the Board of Trustees

defendants (the “Trust Fund”) for attorneys’ fees and costs. After carefully considering the

papers filed by the parties, the Court concludes that oral argument is unnecessary, see Local

Rule 7-1(b), and rules as set forth below.

Able’s motion to recall the writ of execution is DENIED as moot.

Able’s motion to stay the judgment is DENIED. Able has not submitted evidence that

it filed a petition for certiorari by the deadline; in any event, even if it filed, the Court is not

persuaded that there is a reasonable probability that certiorari will be granted. See Barnes v.

E-Systems, 501 U.S. 1301, 1302 (1991). Nor has Able demonstrated irreparable harm. See

Case 3:03-cv-03958-CRB Document 149 Filed 09/12/06 Page 1 of 4
U

nite

d

States District C

o

u

rt

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

id.

The Trust Fund’s motion for attorneys’ fees and costs is GRANTED. There is no

dispute that the Trust Fund is entitled to attorneys’ fees and costs incurred in recovering the

delinquent contributions; the disputed issue is whether it is also entitled to attorneys’ fees and

costs incurred in recovering losses it suffered as a result of Able’s improper contributions. 

The Trust Fund contends that it is entitled to such fees and costs pursuant to Section 8.8 of

the Indentured Trust Agreement.

Section 8.8 sets forth the employer’s liability for failure to make contributions. It

provides that “any employer who fails to make his required contributions prior to

delinquency shall be liable” to the Trust Fund for the full amount of the contributions, plus

interest as set forth in the agreement. (Indentured Trust Agreement at 19). The next

paragraph provides:

In addition to the foregoing, the employer shall be liable for all court costs,

arbitration costs, collection costs and fees and attorneys’ fees incurred by the

trust in collecting such contributions and the amount defined below as

liquidated damages.

Id. at 19). The above provisions demonstrate that section 8.8 is limited to attorneys’ fees and

costs incurred in collecting “delinquent contributions,” that is, the contributions that are

identified in the Indentured Trust Agreement.

This Court has already ruled that a claim for losses arising from an employer making

improper contributions, that is, contributions that should not have been made, is not a claim

for “delinquent contributions” within the meaning of sections 7.13 and 8.8 of the Indentured

Trust Agreement. May 4, 2004 Memorandum and Order at 9. The Ninth Circuit agreed with

the Court’s interpretation. Able Building Maintenance Co. v. Board of Trustees of General

Employees Trust Fund, 175 Fed.Appx. 118, 2006 WL 897588 *1 (9th Cir. March 31, 2006)

(“the district court reasoned correctly that the arbitration permitted by the Trust Indenture, in

Section 7.13, does not apply to the part of the dispute that relates to losses incurred by the

Trust Fund as a result of ‘improper contributions’ made by the appellee”). Thus, the plain

Case 3:03-cv-03958-CRB Document 149 Filed 09/12/06 Page 2 of 4
U

nite

d

States District C

o

u

rt

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

G:\CRBALL\2003\3958\order1refees.wpd 3

language of the Indentured Trust Agreement does not entitle the Trust Fund to its attorneys’

fees and costs incurred in pursuing its claim for losses arising from improper contributions.

The Ninth Circuit, however, also ruled that Able had waived any objection to the

arbitrator exercising jurisdiction under section 7.13 over the Trust Fund’s claim for losses

arising from improper contributions, including an objection that “delinquent contributions”

do not include losses arising from improper contributions. Id. at *1-2. Accordingly, the

Ninth Circuit directed this Court to confirm the arbitration award “in full.” Id. at *2. The

award, which has now been confirmed “in full,” specifically found that the Trust Fund’s

losses from improper contributions are “delinquencies” within the meaning of the Indentured

Trust Agreement. Arbitration Award at 9, 12. This Court is not aware of any authority that

would permit it to disregard an arbitrator’s findings made in an arbitration award that has

been “confirmed in full.” Thus, pursuant to section 8.8, the Trust Fund is entitled to recover

all of its attorneys’ fees and costs reasonably incurred in recovering its losses from the

improper contributions, including those incurred in the district court and appellate

proceedings. The Trust Fund’s motion for attorneys’ fees and costs is therefore GRANTED. 

The Trust Fund’s failure to raise the waiver issue--the issue upon which the Ninth

Circuit based its decision--in this Court or before the Ninth Circuit does not mean that the

Trust Fund is not entitled to its attorneys’ fees and costs incurred in those proceedings. 

Nothing is section 8.8 so limits the Trust Fund’s recovery; instead, section 8.8 provides that

the Trust Fund shall recover all attorneys’ fees and costs incurred in collecting delinquent

contributions. 

The Court will take Able’s objections to the amount of attorneys’ fees and costs

sought by the Trust Fund under submission and issue a ruling on that issue at a later date.

IT IS SO ORDERED.

Dated: September 12, 2006

 

CHARLES R. BREYER

UNITED STATES DISTRICT JUDGE

Case 3:03-cv-03958-CRB Document 149 Filed 09/12/06 Page 3 of 4
U

nite

d

States District C

o

u

rt

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

G:\CRBALL\2003\3958\order1refees.wpd 4

Case 3:03-cv-03958-CRB Document 149 Filed 09/12/06 Page 4 of 4