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BOARD OF TRUSTEES OF LOCAL 825 v. L.B.S. CONST. CO.

148 N.J. 561 (1997)

691 A.2d 339

BOARD OF TRUSTEES OF OPERATING ENGINEERS LOCAL 825 FUND SERVICE FACILITIES, PLAINTIFF-RESPONDENT, v. L.B.S. CONSTRUCTION CO., INC.; AND "A" COMPANY; AND "B" COMPANY, FICTITIOUS COMPANIES, DEFENDANTS, AND FIRST INDEMNITY OF AMERICA INSURANCE COMPANY, A CORPORATION, DEFENDANT-APPELLANT. BOARD OF TRUSTEES OF OPERATING ENGINEERS LOCAL 825 FUND SERVICE FACILITIES, PLAINTIFF-RESPONDENT, v. INTERNATIONAL FIDELITY INSURANCE COMPANY, A CORPORATION, DEFENDANT-APPELLANT.

The Supreme Court of New Jersey.

Decided April 9, 1997.

Attorney(s) appearing for the Case

Thomas J. Demski argued the cause for appellant International Fidelity Insurance Company (Sills Cummis Zuckerman Radin Tischman Epstein & Gross, attorneys; Mr. Demski and Mark E. Duckstein, on the briefs).

Joseph C. Glavin, Jr., argued the cause for appellant First Indemnity of America Insurance Company.

N. Janine Dickey argued the cause for respondent Board of Trustees of Operating Engineers Local 825 Fund Service Facilities (A-72).

Albert G. Kroll argued the cause for respondent Board of Trustees of Operating Engineers Local 825 Fund Service Facilities (A-73) (Kroll & Heineman, attorneys).

Lauretta A. Rush-Masuret argued the cause for amicus curiae The Surety Association of America.

James R. Zazzali argued the cause for amici curiae New Jersey State Carpenter Benefit Funds, Carpenter Local No. 6 Benefits Fund, Laborers Local Nos. 472 and 172 Welfare and Pension Funds, Teamsters Local 408 Pension and Welfare Funds, and Laborers Local Nos. 72, 156, 569 and 711 Welfare and Pension Funds (Zazzali, Zazzali, Fagella & Nowak, attorneys; Mr. Zazzali and Kenneth I. Nowak, on the letter briefs).

O'HERN, J.

These appeals concern the liability of a surety company to pay contributions into fringe benefit plans for employees on public works projects when the employer-principal defaults on its payments to the plans. The primary issue is whether federal employee benefit law preempts provisions of the New Jersey Public Works Bond Act, N.J.S.A. 2A:44-143 to 147 (Bond Act or Act) that require contractors to post bonds for payment for labor performed on public...

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