Lawsuit: $94K in contributions and wage deductions for seven construction projects not paid

By Nicholas Malfitano | Jan 3, 2018


PITTSBURGH – A group from Pittsburgh claims a Philadelphia bonding company has neglected to pay it in excess of $94,000 in contributions and wage deductions, and seeks to recoup that sum in state court.

Laborers’ Combined Funds Of Western Pennsylvania of Pittsburgh filed suit in the Allegheny County Court of Common Pleas on Dec. 27 versus Allied World Specialty Insurance Company, of Philadelphia.

The plaintiff serves as agent for the collection of employee wage deductions and advancement fund contributions required to be paid by employers to the Laborers’ District Council Dues Deduction Fund and Advancement Fund respectively.

Accordingly, the defendant acts as the bonding company for R&B Contracting & Excavation, Inc. At all times relevant to the suit, R&B is a construction contractor which entered into an agreement with the Laborers’ Union, where R&B pledged to submit certain monthly payments to Laborers’ Funds for pension, welfare, industry and dues for the benefit of employees covered under such labor agreement.

The suit alleges R&B violated the agreement by failing to make payments of such contributions and wage deductions for work on seven separate construction projects spanning June to October 2017, resulting in a total deficiency of $94,606.97, plus additional interest dating back from Nov. 30, 2017.

The seven projects include the Slippery Rock Township Community Center Parking Lot Project, West Newton Paving Project, Smith Township Paving Project, Municipal Authority of Westmoreland County Project, Borough of Irwin Project, North Allegheny Intermediate High School Project and the Bethel Park Slope Reconstruction Project.

“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 project. Pursuant to the terms of said bond, defendant bonding company is liable to pay to the funds a total of $94,606.97, plus additional interest from Nov. 30. Plaintiff has demanded payment of these amounts, but defendant has neglected and continues to neglect to pay such amounts,” the suit explains.

For breach of contract, the plaintiff is seeking damages of $94,606.97, 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-17-017750

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

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