William Waggoner v. Robert Lee Dallaire

Trustees of four employee benefit trusts appeal a district court judgment. The trustees brought the action to collect delinquent fringe benefit contributions allegedly required by a collective bargaining agreement between a union and the appellee, the President of A-Jay Excavating Company. The district court held the collective bargaining agreement to be unenforceable under federal and California law. We reverse.

I. Facts

On March 5, 1969, Robert Lee Dallaire (“Dallaire”), President of the A-Jay Excavating Company (“A-Jay”), signed a “short form” collective bargaining agreement with the International Union of Operating Engineers Local Union No. 12 (“Local 12”). The agreement incorporated by reference the terms of the “Master Labor Agreement” (“MLA”), an agreement between Local 12 and the Southern California General Contractors Associations. The MLA establishes four employee benefit trusts and requires employers to contribute to the trusts according to a specified formula for “hours worked by (or paid) each employee under this agreement.” MLA arts. VIII, IX & X.

On May 6, 1977, the trustees of the MLA trusts (“the Trustees”) brought suit in federal district court against…