J. RANDAL HALL, District Judge.
Presently before the Court are Plaintiffs' motion for judgment on the pleadings (Doc. 15), Defendant's motion for summary judgment (Doc. 27), Plaintiffs' cross motion for summary judgment (Doc. 35), and Defendant's motion to quash Plaintiffs' notice of intent to file reply brief (Doc. 40) . For the reasons below, the Court
This case arises out of a dispute between Plaintiffs Plumbers and Steamfitters Local 150 Pension Fund ("Pension Fund") and Jeffrey Rice and Rory LaFontaine, as representative trustees of the Pension Fund, and Defendant Muns Welding and Mechanical, Inc. ("Muns Welding"). In accordance with the collective bargaining agreement between Plumbers and Steamfitters Local Union 150 and the Augusta Mechanical Contractors Association, Inc., Defendant had an obligation to make fringe benefit contributions to the Pension Fund on behalf of its employees. (Compl., Doc. 1.) However, when the agreement expired on September 30, 2013, Defendant was no longer bound. (
After denying the contentions within the Pension Fund's letter, Defendant filed suit in this Court on February 2, 2015, seeking declaratory and injunctive relief from the Pension Fund's allegations. (
Pursuant to Federal Rule of Civil Procedure 12(c), "[a]fter the pleadings are closed—but early enough not to delay trial—a party may move for judgment on the pleadings." Fed. R. Civ. P. 12(c). However, a judgment on the pleadings is only appropriate "where there are no material facts in dispute and the moving party is entitled to judgment as a matter of law."
The legal standards governing Rule 12(c) motions are the same as those governing Rule 12(b)(6) motions to dismiss.
Turning to the instant case, Plaintiffs filed suit seeking (1) all unpaid withdrawal liability payments due and owing by Defendant, (2) interest on those payments, (3) ERISA statutory damages, (4) liquidated damages, and (5) expenses, including attorneys' fees, incurred in bringing this action. (Compl., Doc. 1.) With respect to Plaintiffs' motion for judgment on the pleadings, the Court will determine whether Defendant has any outstanding withdrawal liability and, if so, whether any additional awards are warranted.
Under 29 U.S.C. § 1381, if an employer withdraws from a multiemployer plan in a complete or partial withdrawal, then the employer incurs "withdrawal liability." If a withdrawal has occurred, the plan sponsor shall "determine the amount of the employer's withdrawal liability, notify the employer of [that amount], and collect [that amount] from the employer." 29 U.S.C. § 1382. More specifically, "[a]s soon as practicable after an employer's complete or partial withdrawal, the plan sponsor shall notify the employer of (i) the amount of the liability and (ii) the schedule for liability payments." 29 U.S.C. § 1399(b)(1). Thereafter, the plan sponsor "shall demand payment in accordance with the schedule."
After the plan sponsor's review, should the employer still be unsatisfied with the liability amount or the sheer existence of liability, it can initiate arbitration proceedings. 29 U.S.C. § 1401(a)(1). Following arbitration, a dissatisfied party may file suit in a federal district court. 29 U.S.C. § 1401(b)(2). Yet, as indicated in the parties' earlier suit, "[e]ven if the employer challenges the trustees' withdrawal liability determination ... it must still pay according to the trustees' schedule under the statute's xpay now, dispute later' collection procedure."
Regarding the instant motion, Plaintiffs will prevail if none of the following are in dispute: (1) Plaintiff Pension Fund is a multiemployer plan; (2) Defendant is an employer within Pension Fund's multiemployer plan; (3) Plaintiffs Rice and Lafontaine are "plan sponsor[s]"; (4) Plaintiffs contend that Defendant withdrew from the plan; (5) Plaintiffs notified Defendant of the amount of withdrawal liability and the schedule for its payment; (6) Plaintiffs demanded payment from Defendant; and, (7) Defendant has failed to make one or more withdrawal liability payments.
In paragraph two of their complaint, Plaintiffs allege that Plaintiff Pension Fund is a multiemployer plan within the meaning of 29 U.S.C. § 1301(a)(3). In its answer, Defendant admits to the allegations in this paragraph. Consequently, Plaintiff Pension Fund is a multiemployer plan.
In paragraph twelve of their complaint, Plaintiffs allege that Defendant is an employer within the meaning of 29 U.S.C. § 1002(5), which includes "any person acting directly as an employer ... in relation to an employee benefit plan." In its answer, Defendant admits to the allegations of this paragraph. Additionally, in paragraph sixteen of its complaint, Plaintiffs allege that "Defendant had an obligation to make fringe benefit contributions to the Pension Fund." In its answer, Defendant admits that it "had and continues to have" such an obligation. Consequently, based on these admissions, Defendant is an employer within Plaintiff Pension Fund's multiemployer plan.
In paragraphs four through six of their complaint, Plaintiffs allege that Jeffrey Rice and Rory Lafontaine are representative trustees of the Pension Fund who exercise discretionary authority and control with respect to the management of the Pension Fund and its assets. In paragraph seven, Plaintiffs allege that Rice and Lafontaine are also fiduciaries of the Pension Fund within the meaning of 29 U.S.C. § 1002(21). In its answer, Defendant admits to the allegations of these paragraphs. Thus, because a "plan sponsor" includes a "group of representatives of the parties who establish or maintain the plan," Plaintiffs Rice and Lafontaine are plan sponsors. 29 U.S.C. § 1002(16)(B).
In paragraph twenty-five, Plaintiffs allege that Defendant completely withdrew from the Pension Fund within the meaning of 29 U.S.C. § 1383(b)(2). In paragraph twenty-seven, Plaintiffs allege that they sent a letter (Ex. 3, Doc. 1-2) by certified mail to Defendant notifying it of its withdrawal liability, the schedule for its payment, and Plaintiffs' demand for such payment. In its answer, Defendant admits that it received Plaintiff's letter.
In paragraph thirty-three, Plaintiffs allege that, on February 9, 2015, their counsel demanded from Defendant the quarterly payment that was due on January 30, 2015. In its answer, Defendant acknowledged receiving the demand but denied that any such payment is or ever has been due. Consequently, Defendant has not made the quarterly payment that was due on January 30, 2015.
Based on these excerpts from the parties' pleadings, Plaintiffs are entitled to interim liability payments from Defendant. More specifically, given the demand letter and payment schedule attached to Plaintiffs' complaint (Ex. 3, Doc. 1-2), Defendant was, and continues to be, obligated to pay Plaintiff Pension Fund $59,491.40 each quarter, beginning on January 30, 2015, until $2,416,913 in withdrawal liability is paid. Yet, according to the pleadings, Defendant has not made the first of these quarterly payments. As a result, Plaintiffs' motion for judgment on the pleadings is granted, and Defendant must pay Plaintiff Pension Fund $59,491.40.
In an action to compel an employer to pay withdrawal liability, "any failure of the employer to make any withdrawal liability payment within the time prescribed
To determine the interest and statutory damages owed by Defendant, the Court must know the interest rate and the liquidated damages provided for within the parties' plan.
With this Order, the Court has granted Plaintiffs' motion for judgment on the pleadings and will instruct the Clerk to enter judgment in favor of Plaintiffs. As a result, the Court denies as moot the following motions: Defendant's motion for summary judgment (Doc. 27), Plaintiffs' cross motion for summary judgment (Doc. 35), and Defendant's motion to quash Plaintiffs' notice of intent to file reply brief (Doc. 40).
For the reasons above, the Court