Bancroft Owners Inc. v. New York Hotel and Motel Trades Council, AFL-CIO

Background

Bancroft Owners Inc. petitioned to preliminarily enjoin, or temporarily stop, arbitration proceedings instituted by the New York Hotel and Motel Trades Council, AFL-CIO. On June 26, 2020, the court issued an order requiring the Council to respond and entered a temporary restraining order that paused the arbitration while the court considered preliminary injunctive relief. The court held a telephonic hearing on June 30.

Court’s Analysis

The court concluded that Bancroft was unlikely to succeed on the merits of its petition. Bancroft had expressly consented to Associated Hotels and Motels of Greater New York negotiating and binding Bancroft to a collective bargaining agreement, including extensions or successor agreements. Bancroft provided no evidence that it had revoked that consent.

The court also relied on Bancroft’s conduct. Bancroft had complied with the collective bargaining agreement for years, including paying wages according to the agreement’s schedules, making benefit-fund contributions, and submitting remittance reports. The court stated that these facts provided multiple bases for concluding that Bancroft was bound by the agreement and its arbitration provision, even though the opinion does not say that Bancroft signed the agreement.

The court further found that Bancroft had not shown that arbitration would cause irreparable harm, that the balance of the equities favored an injunction, or that an injunction would serve the public interest.

Disposition

Judge Alvin K. Hellerstein denied Bancroft’s motion for a preliminary injunction. The court also vacated the temporary restraining order that had enjoined arbitration. The opinion states that the reasons were given on the record during the telephonic hearing and does not provide those additional reasons in the written order.