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NEW YORK — Airplane Fuel Co. has urged a New York federal judge to dismiss a substantial lawsuit claiming the company failed to contribute $157,000 to a Teamsters healthcare plan. The suit, rooted in allegations of underfunding, has been deemed by the company as untimely and lacking in evidence.

Deadline Dispute Throws Case into Question Airplane Fuel Co., formally known as Allied Aviation Services Inc. and its subsidiary, Allied New York Services Inc., argued that the trustees of Health Fund 917 missed the critical deadline for filing a valid Employee Retirement Income Security Act lawsuit. According to the company, the trustees were required to file by July 13, yet the lawsuit was not lodged until August 16. This delay, Airplane Fuel Co. contends, should be enough to nullify the case, which accuses the company of failing to pay nearly $98,000 in contributions from mid-2017 through late 2019, alongside almost $48,000 in interest and approximately $12,000 in audit fees.

A Disputed Audit Uncovers Shortfalls The conflict escalated following a July 2022 audit that uncovered discrepancies in contributions to Health Fund 917, specifically for employees who had not submitted enrollment forms. Airplane Fuel Co. asserts that these employees opted out by not participating, as outlined in a memorandum of agreement with Teamsters Local 553 dated June 30, 2017. This memorandum shifted employees from a company-affiliated healthcare fund to the union-affiliated Health Fund 917 effective July 1, 2017, without stipulating the necessity of an enrollment form for coverage.

Airplane Fuel Co. Seeks To Ax Union Healthcare Dispute: Legal Interpretations Clash Over Employee Participation In a recent legal brief, Airplane Fuel Co. highlighted that the memorandum merely required contributions for employees who participate in the fund. The company's interpretation suggests that non-submission of an enrollment form equates to a decision not to participate, thereby relieving Airplane Fuel Co. of financial obligation.

Frank W. Brennan, representing Airplane Fuel Co., emphasized the crux of the dispute: "This really comes down to a disagreement over whether these employees ever elected to be part of the health plan. We asked for proof of enrollment before the litigation, and instead, we received a lawsuit."

Airplane Fuel Co. Seeks To Ax Union Healthcare Dispute: Local Impact and Ongoing Legal Representation The lawsuit specifically involves Airplane Fuel Co. employees represented by Teamsters Local 553 at John F. Kennedy International Airport in Queens, New York. As the legal battle unfolds, representatives for the trustees have remained silent, while the trustees themselves are represented by Tarter Krinsky & Drogin LLP. Airplane Fuel Co. continues to receive legal counsel from Forchelli Deegan Terrana LLP.

The case, formally titled Natale et al. v. Allied Aviation Services Inc. et al., is pending in the U.S. District Court for the Southern District of New York, bearing case number 1:23-cv-07260.