USMX Animated PDFs

[ ] R E P O R T PA G E 5 (confim;ed Jrom Page 4) 2 0 0 8 U S M X L e g a l News & Updates port of Discovery Arbitration On April 16, 2008, Arbitrator lohn E Sands issued his Ion~ awaited decision m the Port of D~scovery arbitration¸ The Opinion and Second Interim A w a r d W a s a c o m p r o m i s e balancing the interest of Local 1804 1, International Longshoremen's Association, AFL CIO, in maintaining its junsdictton over the mainten ante and repair of containers against the interest of manage ment in seeing that the flow of goods ~s not impeded when damage to a loaded container does not affect its structural integrity¸ The Arbitrator held that Artide IX ot the Master Contract between USMX and the ILA applies to loaded containers with malor damage (major damage loads) The decision sets Iorth the remedy of liquidated damages ($I,000 or $2,000, depending upon willfulness) for a violation of Article IX The decision con firnred management's right to direct the delivery of a nmlor damage load to its consignee An employee may not r~fuse to comply and stop the pro~ cessmg of tire malor damage load The effective date of tire Award was June I, 2008 On May 8, a lawsuit was commenced in the Umted State~ District Court for the District of New Jersey, Naa York Shippitlg Assoctatiotl, In, v Local I804 1, ltlternatiotlaI Longshoremetl's Association, AFL C[O, 08 cv 2205 (FSH), seeking an order vacating the April 16 Award and a dedara tory judgment that tire liquid ated damages provision in Article IX, section 4 of the Master Contract is an invalid, unenfon:eable penalty that is contrary to pubhc pohcy because it is not a reasonable forecast ot just compen~atton for the alleged harl~a caused Local 18041 responded by filing a counter~uit on June 19, seeking to confirm the Award Both actions were then consolidated Magistrate Judge Patty Shwar tz directed the parties to prepare, as a substitute for discovery, a document setting forth the Iacts upon which both parties agree The par tie~' stipulation ot laets was submitted on October l0 The parties then exchanged dispositive motion~ on October 24 and responsive briels on November 50 They are still awaiting District Judge Faith S Hochberg's decision or an order scheduling oral argu ment on the parties' motions Fraud Investigation in the port of Boston Yields Indictments h 2005 criminal investigation, commenced by the Massachu setts At tor~ey Genera] into fraudulent benefits, payroll, and unemployment compensalaon schemes involving longshoremen in the Port of Boston, has resulted in the indictment and conviction of 20 individuals, some of whom were longshoremen who were fraudulently credited for hour~ they did not work m ord~ to receive health Insurance benefits from MILA The Suffolk Superior Court has ordered that over $~50,000 in restitution be paid A total ot t~n defendants in the benefits fraud cases have been ordered to pay over $155,000 in restitution MILA is working with the Boston Shipping Association in an attempt to be recompensed for the cost ot providing health coverage to tho~e individuals who received but were not eligible Ior the c o v e r a g e ~ The I~mbos Firm USMX Counsel

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