The Board of Trustees v. Slauson

Background

The plaintiffs were the boards of trustees for four laborer benefit funds: the Laborers Health and Welfare Trust Fund for Northern California, the Laborers Pension Trust Fund for Northern California, the Laborers Vacation-Holiday Trust Fund for Northern California, and the Laborers Training and Retraining Trust Fund for Northern California. They sued Steven Scott Slauson, individually and doing business as Triple S Electric Co. (Triple S).

The plaintiffs alleged that Slauson and Triple S failed to pay employee fringe-benefit contributions, liquidated damages, interest, and audit fees required by collective-bargaining agreements. Their claims arose under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1132, and the Labor Management Relations Act (LMRA), 29 U.S.C. § 185. The court held a bench trial, meaning the judge—not a jury—decided the facts and law.

Findings of Fact

Triple S is a licensed electrical contractor solely owned by Slauson. In March 2008, Slauson signed a Memorandum Agreement on Triple S’s behalf. That agreement incorporated the 2006–2010 Laborers’ Master Agreement between the Association of Construction Employers (ACE) and the Northern California District Council of Laborers. Under the agreements, Triple S understood that it had to pay hourly contributions for covered work performed by its employees.

The Memorandum Agreement stated that it would remain in effect through June 30, 2010, and would continue for the term of future modifications, amendments, supplements, extensions, or renewals of the 2006–2010 Master Agreement negotiated between the parties to that agreement. Triple S paid contributions through September 2012. The parties later disputed whether Triple S had properly ended its obligations and whether the 2014–2019 Master Agreement applied to Triple S.

The plaintiffs audited Triple S for 2014 through 2018. They sought contributions for work performed by Rudy Argueta and Renee Hernandez during that period under the 2014–2019 Master Agreement.

Conclusions of Law

Under ERISA section 515, 29 U.S.C. § 1145, an employer must make contributions to a multiemployer benefit plan when required by the plan’s terms or a collective-bargaining agreement. The plaintiffs therefore had to establish that the trust funds were multiemployer plans, that Triple S was obligated to contribute under the applicable agreement, and that Triple S failed to contribute as required. The first element was not disputed.

The court determined that the 2008 Memorandum Agreement incorporated the 2006–2010 Master Agreement and continued only for extensions or other changes to that agreement negotiated by ACE and the District Council. The 2014–2019 Master Agreement identified the Associated General Contractors of California, Inc. (AGC), not ACE, as a party. It also did not identify an agreement dated June 26, 2006, the date of the 2006–2010 Master Agreement, among the prior agreements it modified or amended.

The court found that the plaintiffs did not present evidence explaining the connection between the ACE agreement and the AGC agreement, proving that the 2014–2019 Master Agreement was a modification or successor to the 2006–2010 Master Agreement, or showing that Triple S otherwise agreed to be bound by the 2014–2019 Master Agreement. The plaintiffs therefore failed to prove that Triple S was required to make the claimed contributions or that Triple S violated 29 U.S.C. § 1145.

Disposition

The court held that the plaintiffs did not prevail on their claim for delinquent contributions under 29 U.S.C. § 1145 and granted judgment to the defendant on that claim. The court denied the defendant’s request for attorney fees and costs under 29 U.S.C. § 1132(g)(1).