Heirs' Liability for Contractual Penalty Under Collective Bargaining Agreement Upon Death

The case concerned the imposition of a contractual penalty under a collective bargaining agreement (CBA) by a joint commission following a contractor's alleged violations of the industry agreement. The contractor's heirs entered the proceedings after the contractor's death, and while a lower court partially upheld the penalty, the higher court ultimately overturned the decision. The court reasoned that CBA penalties possess a penal character, akin to a private fine intended for punishment rather than solely compensation, which is supported by jurisprudence and legal doctrine; consequently, such a fundamentally personal liability terminates upon the death of the person being penalized, necessitating the termination of the proceedings against the heirs, especially since the penalty had not yet become legally final.