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Appeals court hears dispute over whether union benefit funds must use 65‑day bond-notice process
Summary
A panel considered whether fringe-benefit trustees had a direct contractual relationship with a general contractor or instead had to comply with the 65‑day notice procedure in G.L. c.149 §29 before pursuing a bond claim against Arch Insurance Company.
The Massachusetts Appeals Court heard arguments Oct. 10 in New England Carpenters Central Collections Agency Trustee v. Arch Insurance Co. over whether trustees for union fringe-benefit funds were required to follow the public-construction bond notice and timing rules or could treat the general contractor as a direct contractual party.
Luke Liakos, representing the trustees and affiliated funds, said trustees routinely exhaust remedies against delinquent subcontractors and that, because the collective-bargaining agreement requires signatory employers to contribute to trust funds and obligates general contractors to assist collections, the trustees have a…
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