Opinion ID: 4387662
Heading Depth: 2
Heading Rank: 2

Heading: Gramercy’s Claims Against the Union

Text: In its Second Amended Petition, Gramercy appears to seek the following forms of relief as to the Union: (1) a declaratory judgment that it is not a signatory to the CBA and (2) indemnification should it be required to pay withdrawal liability to the Fund – which by its terms is better characterized as a request for a declaratory judgment.1 Again, the district court dismissed all of Gramercy’s claims and ordered arbitration pursuant to the CBA and JSA. As an initial matter, we disagree with the Union that Gramercy’s declaratory judgment claims against it are “premature.” Before a declaratory judgment may issue under the Declaratory Judgement Act, 28 U.S.C. § 2201(a), the district court must be presented with an actual case or controversy within the meaning of Article III such that “there is a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant [its] issuance.” Duane Reade, Inc. v. St. Paul Fire & Marine Ins. Co., 411 F.3d 384, 388 (2d Cir. 2005) (internal quotation marks omitted). Here, even though Gramercy has not yet arbitrated its withdrawal liability claims pursuant to the MPPAA – and indeed may successfully defend itself in the MPPAA arbitration – it nevertheless is currently responsible for the demanded withdrawal liability amount. See 29 U.S.C. § 1401(a)(3)(A) (a plan’s assessment of withdrawal liability is “presumed correct”); id. § 1401(d) (“Payments shall be made by an employer . . . until the arbitrator issues a final 1 To the extent that Gramercy’s complaint includes a claim that the Union be equitably estopped from seeking withdrawal liability, that claim is meritless since only the Fund – not the Union – may seek withdrawal liability pursuant to the MPPAA. See 29 U.S.C. § 1381(a). 4 decision . . .”). Since the Fund’s “Notice and Demand” made Gramercy responsible for the Fund’s withdrawal liability determination unless and until an MPPAA arbitrator rules otherwise, see 29 U.S.C § 1401(d), and since the Union denies that it has an obligation to indemnify that liability, Gramercy’s claims present a ripe case or controversy, see Pittsburgh Mack Sales & Serv., Inc. v. Int’l Union of Operating Eng’rs, Local Union No. 66, 580 F.3d 185, 192 (3d Cir. 2009) (finding a claim seeking a declaratory judgment that an MPPAA employer be indemnified by a union for withdrawal liability ripe prior to MPPAA arbitration). Gramercy argues that by signing the JSA it did not agree to arbitrate “all disputes” arising out of the Meadowlands Project, because the JSA “contains no language incorporating or otherwise requiring compliance with the arbitration provision of the CBA.” Appellant’s Br. at 1516. Gramercy also argues—in the alternative—that there “is an obvious and significant factual dispute as to whether Gramercy and the Union intended to incorporate all of the terms of the CBA into the JSA.” Id. at 16.2 We disagree. Gramercy, by executing the JSA, unambiguously agreed to “abide by all terms and conditions of employment” set forth in the CBA. See App. at 160 (Gramercy acknowledges that it “has received from the Union a copy of its current Collective Bargaining Agreement of the Associated General Contractors of the State of New Jersey and agrees to abide by all terms and conditions of employment for its employees”). One of those terms is that “any 2 Gramercy waived the argument that it should not have to arbitrate its claims against the Union because the JSA is no longer in effect by failing to raise it below. See Norton v. Sam’s Club, 145 F.3d 114, 117 (2d Cir. 1998) (“[I]ssues not sufficiently argued in the briefs are considered waived and normally will not be addressed on appeal.”). Accordingly, we do not consider whether Gramercy’s agreement to arbitrate disputes regarding the Meadowlands Project expired upon conclusion of the Meadowlands Project pursuant to the JSA’s provision that the agreement shall remain in full force only “until such time as [the Meadowlands Project] . . . is completed.” App. at 160. 5 dispute” between Gramercy and the Union shall, if it cannot be resolved between the parties, “be submitted to an impartial Arbitrator selected pursuant to the rules and regulation of the New Jersey State Board of Mediation.” Id. at 122. And even if Gramercy were correct that the JSA is ambiguous as to whether it incorporates the CBA’s arbitration clause—because the JSA includes specific reference to the CBA’s terms relating to wage rates and benefit contributions but does not mention the CBA’s terms relating to arbitration—the extrinsic evidence Gramercy would have the court consider bears only on Gramercy’s intent to avoid withdrawal liability. See App. at 161-62 (asserting that Gramercy intended to be bound by a CBA only to the extent that it agreed to make contributions in connection with its work at the Meadowlands project). Gramercy does not claim that the parties intended to avoid the arbitration clause. Accordingly, we conclude that Gramercy is required to pursue its claims against the Union before an arbitrator.