The International Painters and Allied Trades Industry Pension Fund (IPAT) has filed an amended complaint against Alden, N.Y.-based CBO Glass, along with Seneca CBO Glass LLC and South Buffalo Glazing LLC, which the complaint references as CBO’s “alter egos.” The suit, which alleges that the company has “failed to pay amounts due under the Labor Contracts, Trust Agreements and Plan,” was originally filed in March 2012.
The amended complaint describes CBO Glass and South Buffalo LLC as “alter egos or a single employer.” “Thus, South Buffalo is liable to the funds for CBO Glass’ obligations,” writes counsel for IPAT. Likewise, the complaint describes Seneca Glass as “an alter ego/successor of CBO Glass and/or South Buffalo” and alleges it also is liable for the obligations of all three companies.
The complaint alleges that all three companies have substantially identical officers and management, are all operated at the same address, share employees and equipment, have the same or similar type of customers, and that Seneca and South Buffalo have had “full awareness and knowledge of CBO Glass’ unpaid obligations to the fund.”
“Seneca Glass does business with the Fund that is sufficient to create personal jurisdiction over Seneca Glass in this district and a substantial part of the events or omissions giving rise to the claim occurred from transactions with the Funds’ offices in this district,” reads the complaint.
The complaint alleges that CBO “was party to or agreed to abide by the terms and conditions of a collective bargaining agreements … with one or more local labor unions or district councils affiliated with IPAT, AFL-CIO [and/] CLC.”
In addition, the company is alleged to have agreed to abide by the terms of “the agreement and declaration of trust of the fund, made between certain employers and employee representatives in an industry affecting interstate commerce to promote stable and peaceful labor relations, and the plan documents for the ERISA funds.”
IPAT alleges that the company agreed to make full and timely payments to the Funds and to file monthly remittance reports with the Funds, detailing all employees or work for which contributions were required under the labor contract.
Further, the complaint alleges that in November 2011, CBO vice president and CFO Lawrence Gildersleve signed a promissory note agreeing that the companies owed the fund $319,650.42 and that the compan[ies] would pay a settlement sum of $266,747.63 in 12 consecutive monthly installments.
“Companies defaulted on the note by failing to submit the settlement installments and by failing to submit remittance reports and contributions for the period of December 2011 through February 2012,” writes counsel for IPAT.
Yesterday, the U.S. District Court for the District of Maryland, where the case is under review, granted CBO, Seneca and South Buffalo Glazing an extension to respond to the complaint until May 20.