PAS Owner Cesar Galvan ARRESTED in Proceeding Concerning his Failure to Comply with Federal Order to Pay Local 727 Owed Back Dues

| July 11, 2019

PAS LLC owner Cesar Galvan was taken into custody on Tuesday by local authorities.  The bench warrant for Galvan’s arrest was previously issued after he failed to comply with proceedings concerning a federal judgement enforcing an arbitration award that required him to pay more than $225,000 to Teamsters Local 727.

The case against Galvan initially stems from the shuttering of the valet parking company VPS of Illinois, which ceased operations in 2013 without paying thousands in owed back dues to Local 727.  Immediately after, PAS began operating nearly half of VPS of Illinois’ former parking locations with virtually identical management, including VPS of Illinois owner George Ongay as PAS operations manager.  Like VPS of Illinois, PAS disregarded its contractual obligations and failed to pay the Union owed dues.

Local 727 pursued the matter to arbitration where the Union contended that PAS was as alter ego for VPS of Illinois and, as such, Galvan was responsible for all dues, penalties, and late fees owed by both VPS of Illinois and PAS.  In December 2015, arbitrator Edwin Benn sided with Local 727, describing PAS as a “sham,” and ordered the Company to pay the Union an estimated $228,885.20.  Since Galvan has yet to pay the arbitration award, Local 727 filed an enforcement action against PAS.

In 2018, a judge ordered Galvan to comply with the arbitration award and to produce financial documents to assist the Union in verifying the exact amount in back dues owed by PAS and VPS of Illinois.  The PAS owner’s failure to comply with this court order resulted in the issuing of a bench warrant earlier this year and Galvan’s subsequent arrest on Tuesday.  Now that he has been apprehended, Galvan will be required to appear before a judge to answer for his actions later this month.

“We hope that Mr. Galvan will serve as a lesson to all those companies who mistakenly believe they can disregard their CBAs and circumvent labor law—no company is above the law,” said John Coli, Jr., Secretary-Treasurer of Local 727.  “Local 727 looks forward to justice being served.”

In addition to owing Local 727 more than $225,000 in back dues, penalties, and late fees, PAS has also been ordered by the National Labor Relations Board to pay Local 727 back dues from July 2014, totaling approximately $4,555.  The United States Court of Appeals for the Seventh Circuit issued a judgement enforcing the NLRB’s order in February 2017.  Local 727 is optimistic that both matters will be resolved in the near future.

Members with questions should contact Business Representative Ben Rodriguez at (847) 696-7500 or [email protected].

Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law.  The union does not forfeit its right to make any and all supplemental arguments.

Category: PARKING, Valet

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