An Invalid Short Form Agreement and a Common Sense Win for Contractors
An agreement signed under conditions of misrepresentation and time pressure is void ab initio.
June 29, 2022 at 10:00 AM
7 minute read
Alternative Dispute ResolutionIn 2002, MZM Construction Company, Inc., began working on a project at the Newark Airport, Terminal C (the "Project"). After MZM had begun working at the Project, the New Jersey Building Laborers' Union approached MZM's president, Marjorie Perry, and required her to execute a single job short form agreement in order to remain on the Project. The Union representative, who Perry knew and trusted, was intimately aware that MZM would not be a full signatory to a Collective Bargaining Agreement (CBA) and repeatedly advised MZM that its business was too small to be a full signatory. After MZM received the one-page short form single-job agreement, the Union confirmed to MZM that the one-page agreement was in fact a single-job agreement, and all sides operated under that presumption for more than 15 years, with MZM working a substantial amount of non-union jobs within the Union's jurisdiction without any issues.
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