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Bigham v. Duluth Sheet M & Roofing Co.

United States District Court, D. Minnesota

September 5, 2014

James Bigham, John Quarnstrom, Robert Vranicar, Jim Bowman, Mike McCauley, and Matt Fairbanks as Trustees of the Sheet M Local #10 Control Board Trust Fund, and the Sheet M Local #10 Control Board Trust Fund, Plaintiffs,
v.
Duluth Sheet M & Roofing Company, Defendant.

FINDINGS OF FACT CONCLUSIONS OF LAW AND ORDER FOR ENTRY OF JUDGMENT

MICHAEL J. DAVIS, District Judge.

This matter came before the undersigned upon the Plaintiffs Motion for Entry of Judgment. A hearing was held on September 5, 2014. Christy E. Lawrie of McGrann Shea Carnival Straughn & Lamb, Chartered, appeared for and on behalf of the Plaintiffs. There was no appearance on behalf of the Defendant.

FINDINGS OF FACT

1. Plaintiffs filed the Summons and Complaint in this matter on April 1, 2014.

2. Duluth Sheet M & Roofing Company ("Duluth Sheet Metal') was served with the Summons and Complaint, by and through Mark Jam, its authorized agent on April 7, 2014.

3. Duluth Sheet M failed to file and serve a response or Answer to the Summons and Complaint.

4. The Clerk entered default on May 1, 2014.

5. Plaintiffs are Trustees of the Sheet M Local #10 Control Board Trust Fund ("Control Board"). The Control Board is a clearinghouse which provides various services to employee benefit plans and is designated by various labor agreements as the entity to, among other things, accept and distribute contributions to the employee benefit plans specified in the labor agreements.

6. The Control Board Trustees are fiduciaries of the employee benefit plans specified in the labor agreements. The employee benefit plans on whose behalf the Control Board seeks contributions, and which the Control Board forms a part, are multi-employer jointly-trusteed fringe benefit plans created and maintained pursuant to Section 302(c)(5) of the Labor Relations Management Act of 1974 ("LMRA"), as amended, 29 U.S.C § 186(c)(5).

7. The employee benefit plans are administered in accordance with the provisions of the ERISA, as amended 29 U.S.C. § 1001, et. seq. and are exempt from federal income taxation pursuant to Internal Revenue Code.

8. On May 29, 1996, Defendant Duluth Sheet M & Roofing Company ("Duluth Sheet Metal") applied for membership in the Sheet Metal, Air Conditioning & Roofing Contractors' Association of Minnesota, North Dakota & South Dakota, Inc. ("SMARCA").

9. SMARCA's Board of Directors approved Duluth Sheet Metal's membership in SMARCA on July 17, 1996.

10. SMARCA's Articles of Incorporation provide that members of SMARCA delegate to SMARCA the authority to negotiate labor agreements with the Sheet M Workers Local No. 10.

11. SMARCA and Sheet M Workers' International Association Local No. 10, Duluth-Superior negotiated a collective bargaining agreement with a term of June 13, 2011 through April 28, 2013 ("Collective Bargaining Agreement") to which Duluth ...


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