Justia ERISA Opinion Summaries

South Water Market and Local 703 of the Teamsters Union had a collective bargaining agreement that ran from 2004 through April 30, 2007. On September 12, 2007, they reached a new agreement. Abramson, Market’s bargaining representative, was supposed to draft the agreement. Murdoch, the Union’s president reminded Abramson repeatedly. By February 2008 Murdoch was worried that pension and welfare funds covering the employees would cut off participation or sue. In March, Abramson begged off, stating: “I’m having trouble with my notes.” On April 3 Murdoch sent Abramson a document with terms from Murdoch’s notes. Abramson did not reply, but Market began paying wages, and making pension and welfare contributions specified in Murdoch’s text. Murdoch also sent the document to the pension and welfare funds, which submitted bills calculated according to those terms. In July 2009 Castillo retired. He had been one of two workers in the highly-compensated “driver classification. The Murdoch document stated that Market would employ at least two drivers. After Castillo retired, it refused to provide more than one worker with the wages and benefits of the driver classification. The pension and welfare funds sued under the Employee Retirement Income Security Act, 29 U.S.C. 1145, seeking delinquent contributions for a second driver position. The district judge found that Market had not agreed to the terms. The Seventh Circuit reversed, reasoning that the Labor Management Relations Act makes a written agreement essential to participation in a pension or welfare plan, 29 U.S.C. 186(c)(5)(B), and Market does not contend that it wants to drop out of the plans or that it did withdraw Whatever reservations Abramson had were not conveyed to the funds until August 2009, much too late. View "Russ v. South Water Mkt, Inc." on Justia Law

Plaintiff received benefits under her employer’s long-term disability benefit plan before the administrator for the long-term disability program determined she was no longer eligible for benefits. The administrator denied Plaintiff’s appeal as untimely for her failure to appeal within the benefit plan’s 180-day deadline. Plaintiff filed suit under the Employee Retirement Income Security Act of 1974 (ERISA), claiming that her failure to comply with the 180-day deadline should have been excused because the benefit plan’s written instrument did not mention the deadline. The district court dismissed Plaintiff’s benefits challenge as well as her two other ERISA claims for statutory penalties and for breach of fiduciary duty. The First Circuit affirmed, holding that the district court did not err in (1) dismissing Plaintiff’s benefits challenge, as Plaintiff failed to meet the deadline for appealing internally the decision to cut off her long-term disability benefits, and the benefit plan had expressly incorporated that deadline into the benefit plan’s written instrument; and (2) ruling that Plaintiff could not recover statutory penalties against the administrator or that she had waived her claim for breach of fiduciary duty. View "Tetreault v. Reliance Standard Life Ins. Co." on Justia Law

Two trustees of the Fund filed suit under section 301 of the Labor Management Relations Act (LMRA), 29 U.S.C. 185(a), and section 515 of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1145, to collect unpaid benefit contributions allegedly owed by Goebel. On appeal, the Trustees challenged the dismissal of the ERISA claim. The court read the Trust Agreement to unambiguously require that an employee is actually represented by the Union at the time the Fund claims delinquent contributions were owed on behalf of that employee. As it is undisputed that the Union did not "represent" the employees at the times in question, the Trustees failed to demonstrate the Fund was entitled to the contributions they seek under the terms of the Trust Agreement. Accordingly, the court affirmed the district court's grant of summary judgment to Goebel. View "Kern, et al. v. Goebel Fixture Co." on Justia Law

DiGeronimo and other employers contributed to the Teamsters Local Union No. 293 Pension Plan, which is governed by the Employee Retirement Income Security Act, 29 U.S.C. 1001–1461. Defendants are trustees of the Plan and managed the Plan, including negotiating and ratifying contribution rates and overseeing the Plan’s investments and expenses. Defendants terminated the Plan in December 2009 because substantially all of the Plan’s contributing employers withdrew from paying contributions. Defendants assessed $1,755,733 in “withdrawal liability” to DiGeronimo, which represents its share of the $49,000,000 in unfunded, vested benefits that the contributing employers owed the Plan. DiGeronimo sued defendants under 29 U.S.C. 1451(a), alleging that defendants negligently managed the Plan’s assets, causing increased withdrawal liability. The district court dismissed holding, that there was no substantive basis for the negligence claim in any section of ERISA or under the federal common law. The Sixth Circuit affirmed: a contributing employer to a multiemployer pension plan has no cause of action against plan trustees for negligent management under the federal common law of ERISA pension plans. View "DiGeronimo Aggregates, LLC v. Zemla" on Justia Law

Plaintiff Lucrecia Carpio Holmes appealed a district court’s ruling that her claim for disability benefits under the Employee Retirement Income Security Act (ERISA) was barred due to her failure to exhaust administrative remedies. Finding no reversible error, the Tenth Circuit affirmed. View "Holmes v. Colorado Coalition" on Justia Law

Hayssen and its employees were parties to a Plant Closing Agreement that promised medical benefits upon retirement. In 1996, Bemis acquired Hayssen and assumed its obligations. Bemis reduced benefits under the Agreement: increasing co-pays and deductibles and eliminating its prescription drug program. Former employees sued under the Employee Retirement Income Security Act, 29 U.S.C. 1132, and the Labor-Management Relations Act, 29 U.S.C. 185(a). The court certified a class, but granted summary judgment to Bemis, reasoning that the Agreement did not establish a lifetime interest in a certain level of benefits. About a month later, Bemis eliminated all medical benefits under the Agreement. The Seventh Circuit reversed, concluding that the parties intended to provide lifetime medical coverage. On remand, the court granted a preliminary injunction forcing Bemis to restore the benefits eliminated in 2009 and provide a basic Medicare Part D drug benefit. The court awarded fees and costs, finding that the company’s position was not substantially justified. The judge struck billing entries that were vague or for time not reasonably expended on the case, concluded that the lawyers’ billing rates were reasonable, and calculated the lodestar amount to reach an award of $403,053.75, for four years of advocacy, including an appeal and trial preparation. The Seventh Circuit affirmed. View "Temme v. Bemis Co., Inc." on Justia Law

In 2005, General Warehouse, an employer obligated to contribute to the Central States Pension Fund on behalf of certain employees ceased to have an obligation to the Fund, which led to a complete withdrawal, incurring withdrawal liability of $1,262,568. Under the Multiemployer Pension Plan Amendments Act, 29 U.S.C. 1301(b)(1), if a withdrawing employer is unable to pay in full, a pension plan can recover the deficiency jointly and severally from any other business under common control with the withdrawing The Fund sued to collect from General Warehouse, GEOBEO and other businesses under common control. The parties entered into a consent judgment, acknowledging that the named defendants were jointly and severally liable. The Fund then initiated an action to add the defendants to the group of business entities from which it can collect. The district court granted summary judgment in favor of the Fund. The Seventh Circuit affirmed, finding “overwhelming evidence” that the entities were under common control. View "Cent. States, Southeast SE & SW Areas Pension Fund v. CLP Venture LLC" on Justia Law

The New Jersey Prevailing Wage Act, N.J. Stat. 34:11-56.25 (PWA) provides that laborers on certain public works projects are to be paid the prevailing wage. Carpenters hired to work on the Revel Casino Project in Atlantic City claimed that the Revel Casino Project is a “public work” within the meaning of the PWA because it received financial assistance in the form of incentives, tax exemptions, and tax reimbursements from the New Jersey Economic Development Authority (EDA), which, they argued is a “public body” within the meaning of the Act. They assigned their claims for unpaid prevailing wages to the plaintiffs, employee benefit plans within the meaning of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1001, and trust funds within the meaning of the Labor Management Relations Act (LMRA), 29 U.S.C. 141. The district court held that the claims were completely preempted under ERISA section 502(a). Although it did not directly address LMRA complete preemption, the court also noted that the complaint “seeks interpretation of the collective bargaining agreement.” The Third Circuit vacated and remanded with instructions to remand to state court, holding that neither statute completely preempts the PWA. View "NJ Carpenters v. Tishman Constr. Corp. of NJ" on Justia Law

Alpine was an irrigation business owned by Robert from 1961 until it closed in 2009. Alpine was in arrears on pension fund payments to the Union. After a Joint Arbitration Board awarded it $56,269.97, the Union sought to compel the award under the Labor Management Relations Act, 29 U.S.C. 185, and the Employee Retirement Security Act, 29 U.S.C. 1132(e)(1). During a deposition, Robert’s son, Jeffery, admitted his sole ownership of RWI and JV, which were established upon Alpine’s closing. Like Alpine, RWI services and installs lawn irrigation systems. JV’s sole business is leasing to RWI equipment that it purchased from Alpine. RWI operates out of Jeffery’s home, Alpine’s prior business address; all but one of RWI’s employees worked for Alpine. Almost all of RWI’s customers are former Alpine customers. The magistrate first denied the Union’s motion to impose judgment against RWI and JV as successors, but determined that the companies were successors under ERISA and that FRCP 25(c) provided an appropriate procedure and granted a motion to substitute. The Seventh Circuit affirmed, holding that the court properly applied the multifactor ERISA successorship test to find that an “interest” had been transferred within the meaning of FRCP 25(c) and properly resolved the motion without an evidentiary hearing.View "Sullivan v. Running Waters Irrigation, Inc." on Justia Law

Plaintiff filed suit against her former employer, Andalex, alleging claims of discrimination, retaliation, and hostile work environment under federal and state law, as well as claims that Andalex failed to notify her of her right to continuing health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), 29 U.S.C. 1166 et seq. The district court granted summary judgment in favor of Andalex and dismissed her claims. The court affirmed the district court's judgment except with respect to plaintiff's retaliation claims. Based on the discrepancies between the EEOC statement and subsequent testimony, a reasonable juror could infer that the explanation given by Andalex was pretextual, and that, coupled with the temporal proximity between the complaint and the termination, the complaint at issue was a but-for cause of defendant's termination. Accordingly, there was sufficient evidence to require denial of the summary judgment motion on the retaliation claims. View "Kwan v. The Andalex Group LLC" on Justia Law