Pittsburgh engineering union claims it's missing $464K from Philly bonding company

By Nicholas Malfitano | Dec 21, 2017

PITTSBURGH – An engineering union based in Pittsburgh claims a Philadelphia bonding company has not paid it more than $464,000 in contributions and wage deductions, and is looking to recoup that outstanding amount through litigation.

Operating Engineers Local 66, AFL-CIO and Construction Industry Combined Funds, Inc. of Pittsburgh filed suit in the Allegheny County Court of Common Pleas on Dec. 14 versus Allied World Insurance Company, of Philadelphia.

The plaintiff serves as agent for the collection of employee wage deductions and advancement fund contributions mandated to be paid by employers to the Operating Engineers Construction Industry and Miscellaneous Pension Fund, Operating Engineers Local 66 Benefit Fund, Operating Engineers Local 66 Welfare Fund and Western Pennsylvania Operating Engineers Joint Apprenticeship and Training Program.

Accordingly, the defendant serves as the bonding company for R&B Contracting & Excavation, Inc. At all times relevant to the litigation, R&B is a construction contractor which entered into an agreement with the Operating Engineers Local 66, AFL-CIO Union, where R&B pledged to submit certain monthly payments to the plaintiff for medical, pension, annuity, apprentice and journeyman training and annuity benefits, for the benefit of employees covered under such labor agreement.

The lawsuit alleges R&B violated the agreement by failing to make payments of such contributions and wage deductions for work on two separate projects spanning March 2016 to October 2017, resulting in a total deficiency of $464,650.21, plus additional interest from Nov. 30 of this year.

“After receipt of a bond premium from contractor, defendant bonding company issued a certain payment bond assuring the payment of all wages and fringe benefits arising out of all work performed by contractor on the projects [Upper Tyrone 2015-03 Project and Upper Tyrone 2015-01 Project]. Pursuant to the terms of said bond, defendant bonding company is liable to pay to the funds a total of $464,650.21, plus additional interest from Nov. 30. Plaintiff Funds have demanded payment of these amounts, but bonding company has neglected and continues to neglect to pay such amounts,” the suit states.

For breach of contract, the plaintiff is seeking total damages of $464,650.21, plus additional interest dating back from Nov. 30.

The plaintiff is represented by Jeffrey J. Leech and Neil J. Gregorio of Tucker Arensberg, in Pittsburgh.

Allegheny County Court of Common Pleas case GD-17-017065

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com

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