Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Alegion, Inc. v. Central States

United States District Court, M.D. Alabama, Northern Division

August 30, 2019

ALEGION, INC., Debtor-Defendant-Appellant,
v.
CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, Creditor-Plaintiff-Appellee.

          MEMORANDUM OPINION

          ANDREW L. BRASHER UNITED STATES DISTRICT JUDGE.

         This matter comes to the Court on appeal from the Bankruptcy Court's order overruling Appellant Alegion, Inc.'s (“Alegion”) objection to Appellee Central States, Southeast and Southwest Areas Pension Fund's (“the Fund”) proof of claim. Having reviewed the record, the parties' briefs, and applicable law, and with the benefit of oral argument, this Court affirms.

         Background

         The Fund is a multiemployer pension plan that is governed by the Employee Retirement Income Security Act of 1974 (“ERISA”). Alegion is a construction company that participated in the Fund. While it participated, Alegion was bound by a collective bargaining agreement to contribute to the Fund on behalf of its employees. Alegion stopped participating in the fund in 2011.

         In 2017, the Fund assessed Alegion a “withdrawal liability” in the amount of approximately $390, 000. Under ERISA, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (“MPPAA”), an employer that “withdraws from a multiemployer plan in a complete withdrawal . . . is liable to the plan” for “the amount determined under section 1391 of this title to be the allocable amount of unfunded vested benefits” with some adjustments. 29 U.S.C. § 1381. ERISA provides that, for most employers, a “complete withdrawal” occurs “when an employer-(1) permanently ceases to have an obligation to contribute under the plan, or (2) permanently ceases all covered operations under the plan.” 29 U.S.C. § 1383(a). But ERISA provides a separate definition of “complete withdrawal” for employers in the building and construction industry:

(1) Notwithstanding subsection (a), in the case of an employer that has an obligation to contribute under a plan for work performed in the building and construction industry, a complete withdrawal occurs only as described in paragraph (2), if-
(A) substantially all the employees with respect to whom the employer has an obligation to contribute under the plan perform work in the building and construction industry, and
(B) the plan__
(i) primarily covers employees in the building and construction industry, or
(ii) is amended to provide that this subsection applies to employers described in this paragraph.
(2) A withdrawal occurs under this paragraph if__
(A) an employer ceases to have an obligation to contribute under the plan, and
(B) the employer__
(i) continues to perform work in the jurisdiction of the collective bargaining agreement of the type for which ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.