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MacKey v. Sterling Systems Inc.

United States District Court, D. Minnesota

November 7, 2014

Tim Mackey and John Nesse as Trustees of the Minnesota Laborers Health and Welfare Fund, Gary Reed and John Nesse as Trustees of the Minnesota Laborers Pension Fund, James Brady and Martha Henrickson as Trustees of the Minnesota Laborers Vacation Fund, Gary Reed and John Bartz as Trustees of the Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, Dan Olson and Chris Born as Trustees of the Minnesota Laborers Employers Cooperation and Education Trust, the Minnesota Laborers Health and Welfare Fund, the Minnesota Laborers Pension Fund, the Minnesota Laborers Vacation Fund, the Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, and the Minnesota Laborers Employers Cooperation and Education Trust, Plaintiffs,
v.
Sterling Systems Inc. and Jason Jones, Individually, Defendants.

ORDER FOR ENTRY OF JUDGMENT

MICHAEL J. DAVIS, Chief District Judge.

This matter was heard before the undersigned on November 7, 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 Defendants.

FINDINGS OF FACT

1. The Complaint was filed with the Court on June 20, 2014.

2. The Complaint was served on Sterling Systems Inc. ("Sterling Systems") and Jason Jones ("Jones") on June 24, 2014.

3. Sterling Systems and Jones failed to file an Answer with the Clerk of Court or serve an appropriate Answer upon the Funds' counsel, and the time allowed by law for Sterling Systems and Jones to answer the Complaint lapsed.

4. The Clerk entered default on July 16, 2014.

5. Plaintiffs are Trustees and fiduciaries of the Minnesota Laborers Health and Welfare Fund, the Minnesota Laborers Pension Fund, the Minnesota Laborers Vacation Fund, the Construction Laborers Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, and the Minnesota Laborers Employers Cooperation and Education Trust ("the Funds").

6. The Funds are multi-employer, jointly-trusteed fringe benefit plans created and maintained pursuant to Section 302(c)(5) of the Labor Management Relations Act of 1947 ("LMRA"), as amended 29 U.S.C. § 186(c)(5).

7. The Funds are administered in accordance with the provisions of the Employee Retirement Income Security Act of 1974, as amended 29 U.S.C. § 1001, et seq. ("ERISA").

8. The Funds are exempt from federal taxation pursuant to the Internal Revenue Code.

9. Sterling Systems accepted and agreed to be bound to the terms of a collective bargaining agreement between a multi-employer bargaining committee of Commercial Cleaning Contractors and the Laborers' District Council of Minnesota and North Dakota on behalf of its affiliated Unions with a term of May 1, 2010 through April 30, 2013 ("Cleaning CBA").

10. The Cleaning CBA contains an evergreen clause which provides that failure to give notice of intent to terminate or amend the Cleaning CBA shall cause the Cleaning CBA to automatically renew for a period of twelve months. As such, Sterling Systems is bound to the Cleaning CBA through at least April 30, 2014.

11. The Cleaning CBA provides that the individual signing the Acceptance of Agreement shall be personally bound by and assume all obligations arising under the Cleaning CBA. As such, Jones is personally liable for ...


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