CBO Glass Denies Allegations That It Failed to Pay Local Unions

July 11, 2012

by Erica Terrini, eterrini@glass.com

CBO Glass has responded to and denied allegations that it failed to pay Trustees of the Iron Workers Local Union No. 5 and Iron Workers Employers Association, Employees Pension Trust, which claim the company failed to make payments to the groups from November 2011 to March 2012, a total of about $157,000. The unions therefore claimed CBO has not upheld the "terms and conditions of employment" included in the contract and filed suit in May 2012.

According to CBO's response, the company denies allegations laid out in the initial complaint filed by the unions that claim in addition to the monthly payments, the company owes other costs including liquidated damages, interest, court expenses and any other relief deemed appropriate. CBO has requested " … the court dismiss the complaint with prejudice and grant such other and further relief as is appropriate and just."

CBO further claims that "the complaint fails to state a claim upon which relief can be granted," according to the response. Additionally, the company claims it paid " … some or all of the amounts [the] plaintiffs claim are due and oweing" and that the "plaintiffs released some or all of their claims against CBO Glass."

The unions had alleged that " … an employer who fails to pay the amounts required by the Collective Bargaining Agreement on time shall be obligated to pay, in addition to the contributions owed, liquidated damages in the amount of 10 percent of the total amount due, plus an interest at the rate of 12 percent per annum from the date through the date of payment." In addition to these payments and other court costs, the unions claimed they have the right to conduct an audit of CBO Glass records-a claim which CBO also denied.

This suit is one of two that CBO Glass currently is facing. The International Painters and Allied Trades Industry Pension Fund also had filed suit against the company in March, alleging that the company and two of its officials (Gilbert DiMaio, president and CEO and Paul F. Hogan, principal) owe roughly $470,000 " … under the Labor Contracts, Trust Agreements and Plan."

CBO had denied these allegations as well. Additionally, DiMaio and Hogan had filed a motion to dismiss the suit claiming they "have no contacts with Maryland," where the case was filed, "making it unreasonable for Maryland to exercise jurisdiction over the individual defendants." The motion to dismiss recently was denied.

This story is an original story by USGlass magazine/USGNN™. Subscribe to USGlass magazine.
Subscribe to receive the free e-newsletter.