WILLIAM M. NICKERSON, Senior District Judge.
Pending before the Court is Petitioners' Petition for Appointment of Impartial Umpire, ECF No. 1, and Respondents' Cross-Petition for Appointment of Impartial Umpire, ECF No. 4. After reviewing the petitions, the Court requested additional clarification on the parties' preferred appointments. For the reasons stated herein, the Court hereby appoints the Honorable Frederic N. Smalkin to serve as impartial umpire.
Petitioners George Maloney, Carl Buch, Kenneth Grunley, Mark Humphrey, and Stephen Kimball (Employer Trustees), in their capacities as Employer Trustees of the Mid-Atlantic Regional Council of Carpenters' Pension Fund, Health Trust Fund, and Annuity Fund, (Funds), petition this Court to appoint an impartial umpire to resolve a deadlocked motion between Employer Trustees and Respondents Edward Coryell Sr., John Brown, Edward Coryell Jr.,
The Funds were established pursuant to the provisions of § 302(c)(5) of the Labor Management Relations Act of 1947 (LMRA), 29 U.S.C. § 186(c)(5). The Funds are multiemployer plans within the meaning of the Employee Retirement Income Security Act of 1974, (ERISA), 29 U.S.C. § 1002(37)(A). Third-party administrator, GEMGroup, administers and maintains the Funds pursuant to separate Agreements and Declarations of Trust (Trust Agreements). Together, Petitioners and Respondents constitute the Board of Trustees (Trustees) for each of the Funds.
Each Trust Agreement provides that:
ECF Nos. 1-1 pg. 21, 1-2 pg. 21, 1-3 pgs. 17-18.
The deadlock motions at issue stem from the Trustees' attempts to decide who will serve as fund collector. The Funds previously maintained a full-time employee to pursue employers who were delinquent in their contributions to the Funds. The fund collector position is vacant, and both parties have presented the Trustees with candidates for the position.
At a Board of Trustees meeting on July 23, 2015, the Funds' administrator, GEMGroup, offered to make a proposal to provide collection services to the Funds at the October board meeting, to be held on October 22, 2015. Employer Trustees made a motion to allow GEMGroup to make that proposal at the October meeting. There was a tie vote resulting in a deadlocked motion. At the same board meeting, Union Trustees made a motion to allow collection services to be performed by staff employed by the Carpenters' Benefit Funds of Philadelphia & Vicinity. Again, there was a tie vote resulting in a deadlocked motion.
Section 302(c)(5)(B) of the LMRA authorizes this Court to appoint an impartial umpire under these circumstances. Accordingly, this Court appoints the Honorable Frederic N. Smalkin, JAMS Maryland Dispute Resolution Center, 6411 Ivy Lane, Greenbelt, MD 20770. As a former member of this Court, Judge Smalkin's impartial judgment and experience in similar matters is beyond reproach. Barring any unforeseen conflict of interest, JAMS has agreed to advance arbitration in this matter as quickly as possible. Further inquiries can be directed to JAMS Senior Case Manager Teresa L. Menendez, who will contact parties to advance the scheduling of arbitration.
On the issue of arbitration fees, both parties have agreed that under the Trust Agreements, "[a]ll reasonable and necessary costs and expenses in connection with the proceedings before the impartial arbitrator, including the fee, if any, of the impartial arbitrator, and including attorneys' fees incurred by the Trustees in connection with the dispute which are mutually agreed upon by the Union Trustees and Employer Trustees, is a proper charge against the Trust fund and the Trustees are authorized and directed to pay such charges."