National Ben. Fund, Etc. v. Presby. H., Etc.
The National Benefit Fund for Hospital and Health Care Workers and the National Pension Fund for Hospital and Health Care Workers (the Funds) sued Presbyterian Hospital in the City of New York, Inc. (Hospital) to recover allegedly owed contributions based on collective bargaining agreements. The Hospital moved to dismiss, asserting the action was barred by a prior arbitration award between the Union (District 1199, National Union of Hospital and Health Care Employees) and the Hospital, which concerned the same contributions and was dismissed due to the Union's unreasonable delay. The District Court, treating the motion as one for summary judgment, held that the arbitration award had res judicata effect. The court determined that the Funds were either in privity with the Union or acted as third-party beneficiaries subject to the same defenses as the promisee Union. Consequently, the court granted the Hospital's motion to dismiss the complaint.