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Manderson v. Elliott Contracting Corp.

United States District Court, D. Minnesota

April 1, 2019

David Manderson and Peter Lindahl, as Trustees of the IBEW Local No. 292 Health Care Plan; Trustees of the Electrical Workers Local No. 292 Pension Fund; as Trustees of the Electrical Workers Local No. 292 Defined Contribution Plan; as Trustees of the Electrical Workers Local No. 292 Vacation & Holiday Fund; Trustees of the Electrical Workers Local No. 292 Supplemental Unemployment Plan; and as Trustees of the Minneapolis Electrical Industry Board/JATC/LMCC; and each of their successors, and the Minneapolis Electrical Industry Receiving Agency, Plaintiffs,
v.
Elliott Contracting Corporation, Defendant.

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

          DONOVAN W. FRANK UNITED STATES DISTRICT JUDGE

         This matter was heard before the undersigned District Court Judge on March 29, 2019. Amanda R. Cefalu of Kutak Rock, LLP appeared for and on behalf of the Plaintiffs. There was no appearance on behalf of the Defendant.

         FINDINGS OF FACT

         1. Plaintiffs filed a Summons and Complaint in this matter on August 31, 2018. Defendant was personally served with the Summons and Complaint in this matter on September 13, 2018. (Doc. Nos. 1, 3.)

         2. Plaintiffs David Manderson and Peter Lindahl, and any subsequently appointed successors, are Trustees of the IBEW Local No. 292 Health Care Plan, the Electrical Workers Local No. 292 Pension Fund, the Electrical Workers Local No. 292 Defined Contribution Plan, the Electrical Workers Local No. 292 Vacation & Holiday Fund, the Electrical Workers Local No. 292 Supplemental Unemployment Plan and the Minneapolis Electrical Industry Board/JATC/LMCC (collectively “the IBEW Local 292 Fringe Benefit Funds” or “Funds”).

         3. The Plaintiff Funds are trustees and fiduciaries of the above-referenced funds (the “Funds”). The Funds are joint fringe benefit trust funds which are multi-employer plans as defined by 29 U.S.C. section 1002(37) established to provide pension, health and welfare, vacation benefits and training to employees performing covered work. The fringe benefit plans for which Plaintiffs are Trustees are maintained by the Union and employers for the benefit of workers pursuant to a Collective Bargaining Agreement.

         4. Plaintiff the Minneapolis Electrical Industry Receiving Agency (“MEIRA”) is a receiving agency established pursuant to an agreement with the Funds and the IBEW Local 292 and empowered pursuant to a labor agreement to take action to collect all amounts owed pursuant to that labor agreement.

         5. At all times material herein, Defendant, through its execution of a Letter of Assent was bound by a certain Collective Bargaining Agreement (a/k/a Inside Agreement) between the Minneapolis Chapter, National Electrical Contractors Association, and the International Brotherhood of Electrical Workers, Local Union Number 292, A.F.L.-C.I.O.

         6. The Inside Agreement requires employers such as Defendant to make contributions to the Funds in accordance with their terms. These contributions must be made on behalf of all employees covered by the Inside Agreement, in amounts set forth and agreed upon therein, for the purpose of funding employees' benefits.

         7. Defendant, per the Inside Agreement, is required to compute its contribution obligation and pay it to the agent of the Trustees on or before the 15th day of the month following the month for which the contribution is being made.

         8. Defendant is also required to submit to the agent a monthly payroll report on a standard form containing such information about the employees in the bargaining unit as the Trustees may require.

         9. At the time the Complaint was filed in this action, Defendant had breached the Inside Agreement by failing to timely submit the fringe fund reports and the contributions due and owing pursuant to the Funds for hours worked during the months of April and May 2018.

         10. The Plaintiff Funds requested that Defendant submit employment and payroll records for audit and review for the period of January 2016 through May 2018 for audit and ...


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