Frank L. Todd, Etc., Plaintiffs-Appellants/cross-Appellees v. Benal Concrete Construction Co., Inc., Defendant-Appellee/cross-Appellant

This is an action by trustees of four employee fringe benefit trust funds to recover contributions from Benal Concrete Construction Company for work performed by trenchers on Benal jobs. The district court granted summary judgment for Benal, holding that the trenchers were independent contractors and that section 302 of the Labor Management Relations Act (LMRA) prohibits payments to trust funds on behalf of such individuals. We affirm. We also affirm the district court’s denial of costs and attorneys’ fees to Benal which Benal challenges on cross-appeal.

The facts are all as stipulated in the district court proceeding. Benal is a party to a collective bargaining agreement with the International Union of Operating Engineers Local No. 12. That agreement incorporates by reference the terms of the industry-wide San Diego Master Labor Agreement (MLA). The MLA requires signatory employers to use workers referred by Local 12 and to make fringe benefit contributions to the trusts for all covered work they perform. However, the agreement also contemplates that employers may need to hire independent subcontractors and owner-operators to perform covered work, and it includes specific…