CENTRAL STATES, ETC. v. ADMIRAL MERCHANTS, ETC., No. 3-80 Civ. 189

CourtUnited States District Courts. 8th Circuit. United States District Court of Minnesota
Writing for the CourtO'Connor & Hannan by Joe A. Walters, and Jeremiah J. Kearney, Minneapolis, Minn., for defendants
Citation511 F. Supp. 38
PartiesCENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, and Central States, Southeast and Southwest Areas Health & Welfare Fund, et al., Plaintiffs, v. ADMIRAL MERCHANTS MOTOR FREIGHT, INC., Defendant. CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, and Central States, Southeast and Southwest Areas Health & Welfare Fund, et al., Plaintiffs, v. JACK COLE-DIXIE HIGHWAY COMPANY, INC., Defendant.
Docket Number3-76 Civ. 42.,No. 3-80 Civ. 189
Decision Date07 August 1980

511 F. Supp. 38

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, and Central States, Southeast and Southwest Areas Health & Welfare Fund, et al., Plaintiffs,
v.
ADMIRAL MERCHANTS MOTOR FREIGHT, INC., Defendant.

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, and Central States, Southeast and Southwest Areas Health & Welfare Fund, et al., Plaintiffs,
v.
JACK COLE-DIXIE HIGHWAY COMPANY, INC., Defendant.

Nos. 3-80 Civ. 189, 3-76 Civ. 42.

United States District Court, D. Minnesota, Third Division.

August 7, 1980.


511 F. Supp. 39

Robins, Davis & Lyons by Ernest I. Reveal, and Alan M. Levy, Minneapolis, Minn., for plaintiffs.

O'Connor & Hannan by Joe A. Walters, and Jeremiah J. Kearney, Minneapolis, Minn., for defendants.

FINDINGS OF FACT CONCLUSIONS OF LAW AND ORDER

ALSOP, District Judge.

This matter comes before the court upon the motions by plaintiffs for a preliminary

511 F. Supp. 40
injunction, for partial summary judgment on their claims for monetary relief against defendant Admiral Merchants Motor Freight, Inc. ("Admiral") and for partial summary judgment against both defendants on most of defendants' counterclaims.1 Memoranda were submitted on behalf of all parties, and oral argument was heard on June 27, 1980

In accord with the Eighth Circuit Court of Appeals' suggestion in Robert Johnson Grain Co. v. Chemical Interchange Co., 541 F.2d 207 (8 Cir., 1976), and with Rule 65 of the Fed.R.Civ.P., the court makes the following:

FINDINGS OF FACT

1. The Central States, Southeast and Southwest Areas Pension Fund ("Pension Fund") and the Central States, Southeast and Southwest Areas Health & Welfare Fund ("Welfare Fund") are trusts established pursuant to trust agreements entered into by and between the Central States Drivers Council, the Southern Conference of Teamsters and their affiliated local unions, the Southeastern Area Motor Carriers Labor Relations Association, the Southwest Operators Association, the Motor Carriers Employers' Conference — Central States and their constituent members, and the individual trustees. In the case of the Pension Fund, the National Automobile Transporters Labor Council, the Cartage Employers' Management Association, the Cleveland Draymen Association, the Northern Ohio Motor Truck Association, Inc., and their constituent members were additional parties to the trust agreement. The respective trusts are intended to provide retirement benefits and health care protection to certain of the employees of employers who were and are bound by the trust agreements establishing the Funds, either by direct participation in the administration of the Funds or by acceptance of that administration through collective bargaining agreements with affiliates of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, and to those employees' families and dependents.

2. The Pension Fund and the Welfare Fund are employee benefit plans within the meaning of Sections 3(1)(2)(3)(21) and 502 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1002(1)(2)(3)(21) and 1132 (Supp.1979).

3. Loran W. Robbins, R. V. Pulliam, Howard McDougall, Robert W. Baker, Thomas F. O'Malley, Harold J. Yates, Earl Jennings and Marion Winstead, and their successors, are the Trustees of the Pension Fund and as such are fiduciaries of the Pension Fund within the meaning of Section 3(21)(A) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(21)(A) (Supp.1979). Pursuant to the language of the trust agreement creating the Pension Fund and the collective bargaining agreement between defendants and the Central States Drivers' Council, the Southern Conference of Teamsters and their affiliated local unions, the Trustees are authorized to bring this action on behalf of the Pension Fund.

4. Loran W. Robbins, R. V. Pulliam, Robert W. Baker, Thomas F. O'Malley, Harold J. Yates, and Earl Jennings, and their successors, are the Trustees of the Welfare Fund, and as such are fiduciaries of the Welfare Fund within the meaning of Section 3(21)(A) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(21)(A) (Supp.1979). Pursuant to the language of the trust agreement creating the Welfare Fund and the collective bargaining agreement between defendants and the Central States Drivers' Council, the Southern Conference of Teamsters and their affiliated local unions, the Trustees are authorized to bring this action on behalf of the Welfare Fund.

5. Defendant Jack Cole-Dixie Highway Company, Inc. ("Cole") is a corporation organized and existing under the laws of the State of Alabama and has its principal place

511 F. Supp. 41
of business in that state. Defendant Admiral is a corporation organized and existing under the laws of the State of Minnesota with its principal place of business in that state. Both defendants are engaged in an industry affecting commerce within the meaning of Sections 3(5), (11), (12) and (14) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(5), (11), (12) and (14) (Supp.1979), and the Labor-Management Relations Act of 1947, 29 U.S.C. § 151 et seq. (Supp.1979). Neither defendant is a trustee, administrator, beneficiary, participant, or fiduciary of plaintiff Funds, nor is any officer of either defendant. Neither defendant is the Secretary of Labor, nor is any officer of either defendant

6. Defendants both are controlled by 2625 Territorial Road Co., a corporation existing and organized under the laws of the State of Minnesota with its principal place of business in that state. 2625 Territorial Road Co. is not a party to either of the above-entitled actions.

7. At all times relevant herein, with the possible exception of 1976-1978, defendants have been members of the Motor Carrier Labor Advisory Council, a multi-employer bargaining representative authorized to negotiate and execute contracts on behalf of its constituent members. The Motor Carrier Labor Advisory Council is a party to the National Master Freight Agreement and its Central States Area Local Cartage and Over-The-Road Supplemental Agreements for the period 1979-1982 (hereinafter referred to as the "Local Cartage Agreement" and the "Over-The-Road Agreement," respectively), which bind all the Council's members to those Agreements.

8. Article 55 of the Local Cartage Agreement and Article 66 of the Over-The-Road Agreement obligate the employers bound thereto to contribute $41 per week, effective April 1, 1979, to the Pension Fund for each employee covered by those agreements. Effective April 1, 1980, the weekly contribution increased to $46 per week per employee. Effective April 1, 1981, the weekly contribution will be increased to $51 per week per employee. Article 54 of the Local Cartage Agreement and Article 65 of the Over-The-Road Agreement obligate each employer bound thereto to contribute $33.50 per week effective April 1, 1979 to the Welfare Fund for each employee covered by those agreements. Effective April 1, 1980, the weekly contribution was increased to $36.50 per week per employee. Effective April 1, 1981, the weekly contribution will be increased to $39.50 per week per employee.

9. Until September of 1979, Cole made payments in accordance with the terms of the Local Cartage and Over-The-Road Agreements. However, since September of 1979, and continuing to date, Cole has failed to make any payments to either of the Funds, notwithstanding repeated demands that it comply with its obligation to properly report and make contributions for all of its employees covered by the Local Cartage and Over-The-Road Agreements.

10. Until September of 1979, Admiral made payments in accordance with the terms of the Local Cartage and Over-The-Road Agreements. However, since September of 1979, and continuing to date, Admiral has failed, with one exception,2 to make payments to either of the Funds notwithstanding repeated demands that it comply with its obligation to properly report and make contributions for all of its employees covered by the Local Cartage and Over-The-Road Agreements.

11. From September of 1979 to May 31, 1980, the delinquency of Cole to the Pension Fund has grown by $204,155.06 and to the Welfare has grown by $164,562.00. In addition, Cole has a pre-existing delinquency of a total of $684,338.00 incorporated in the prior judgment of this court. Therefore, Cole presently owes the Funds a total of $1,053,055.56. That delinquency continues to grow at the rate of more than $15,000 per month. From October of 1979 to May 31, 1980, the delinquency of Admiral to the Pension Fund increased to $576,251.99 and

511 F. Supp. 42
to the Welfare Fund increased to $380,920.79. That delinquency continues to grow at the rate of more than $79,000.00 per month

12. Notwithstanding the failure of defendants to make payments as required in accordance with the terms of the Local Cartage and Over-The-Road Agreements, the Funds have been obligated to pay benefits to employees of defendants and their dependents. For example, the Welfare Fund has been obligated to provide hospitalization and medical insurance coverage, thereby incurring substantial direct costs. Similarly, the Pension Fund has incurred serious potential liabilities; pension rights and credits for future benefits must be calculated on the basis of employee service, regardless of whether payments are received from the employer. In addition, defendants' failure to make payments as required in accordance with the terms of the Local Cartage and Over-The-Road Agreements results in a loss of investment income on which the Funds' health care and retirement programs are dependent. The net result of the failure of defendants to comply with their obligations under the Local Cartage and Over-The-Road Agreements is, therefore, diminished resources for all participants and beneficiaries in the Funds, both defendants' employees and their dependents, whose status is subject...

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21 practice notes
  • Bugher v. Feightner, No. 81-2899
    • United States
    • United States Courts of Appeals. United States Court of Appeals (7th Circuit)
    • December 19, 1983
    ...Inc., 640 F.2d 1350 (6th Cir.1981); Central States, Southeast and Southwest Areas Pension Fund v. Admiral Merchants Motor Freight, Inc., 511 F.Supp. 38 (D.Minn.1980), aff'd sub nom. Central States, Southeast and Southwest Areas Pension Fund v. Jack Cole-Dixie Highway Co., 642 F.2d 1122 (8th......
  • American Commercial Barge Lines Co. v. Seafarers Intern. Union of North America, Atlantic, Gulf, Lakes and Inland Waters Dist., AFL-CIO, AFL-CIO
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • April 23, 1984
    ...Inc., 672 F.2d 246, 250 (1st Cir.1982); Sellers v. O'Connell, 701 F.2d 575, 578 (6th Cir.1983); Central States v. Admiral Merchants, 511 F.Supp. 38, 46-47 (D.Minn.1980), aff'd, 642 F.2d 1122 (8th Cir.1981); Souza v. Trustees of Western Conference of Teamsters, 663 F.2d 942, 945 (9th Cir.198......
  • Mamula v. Satralloy, Inc., No. C-2-83-0258
    • United States
    • United States District Courts. 6th Circuit. United States District Courts. 6th Circuit. Southern District of Ohio
    • January 18, 1984
    ...551 F.Supp. 429 (N.D.Ohio 1982); Central States, Southeast and Southwest Areas Pension Fund v. Admiral Merchants Motor Freight, Inc., 511 F.Supp. 38 (D.Minn.1980), aff'd, 642 F.2d 1122 (8th Cir. 1981); Central States, Southeast and Southwest Areas Pension and Health & Welfare Funds v. McNam......
  • Whitworth Bros. Storage Co. v. Central States, Southeast and Southwest Areas Pension Fund, No. 85-3247
    • United States
    • United States Courts of Appeals. United States Court of Appeals (6th Circuit)
    • August 26, 1986
    ...1000, 1013 (D.Conn.1982) (actions limited to parties enumerated in section 502); Central States v. Admiral Merchants Motor Freight, Inc., 511 F.Supp. 38, 46 (D.Minn.1980), aff'd, 642 F.2d 1122 (8th Cir.1981) ("ERISA by its terms permits actions only by the Secretary of Labor and participant......
  • Request a trial to view additional results
21 cases
  • Bugher v. Feightner, No. 81-2899
    • United States
    • United States Courts of Appeals. United States Court of Appeals (7th Circuit)
    • December 19, 1983
    ...Inc., 640 F.2d 1350 (6th Cir.1981); Central States, Southeast and Southwest Areas Pension Fund v. Admiral Merchants Motor Freight, Inc., 511 F.Supp. 38 (D.Minn.1980), aff'd sub nom. Central States, Southeast and Southwest Areas Pension Fund v. Jack Cole-Dixie Highway Co., 642 F.2d 1122 (8th......
  • American Commercial Barge Lines Co. v. Seafarers Intern. Union of North America, Atlantic, Gulf, Lakes and Inland Waters Dist., AFL-CIO, AFL-CIO
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • April 23, 1984
    ...Inc., 672 F.2d 246, 250 (1st Cir.1982); Sellers v. O'Connell, 701 F.2d 575, 578 (6th Cir.1983); Central States v. Admiral Merchants, 511 F.Supp. 38, 46-47 (D.Minn.1980), aff'd, 642 F.2d 1122 (8th Cir.1981); Souza v. Trustees of Western Conference of Teamsters, 663 F.2d 942, 945 (9th Cir.198......
  • Mamula v. Satralloy, Inc., No. C-2-83-0258
    • United States
    • United States District Courts. 6th Circuit. United States District Courts. 6th Circuit. Southern District of Ohio
    • January 18, 1984
    ...551 F.Supp. 429 (N.D.Ohio 1982); Central States, Southeast and Southwest Areas Pension Fund v. Admiral Merchants Motor Freight, Inc., 511 F.Supp. 38 (D.Minn.1980), aff'd, 642 F.2d 1122 (8th Cir. 1981); Central States, Southeast and Southwest Areas Pension and Health & Welfare Funds v. McNam......
  • Whitworth Bros. Storage Co. v. Central States, Southeast and Southwest Areas Pension Fund, No. 85-3247
    • United States
    • United States Courts of Appeals. United States Court of Appeals (6th Circuit)
    • August 26, 1986
    ...1000, 1013 (D.Conn.1982) (actions limited to parties enumerated in section 502); Central States v. Admiral Merchants Motor Freight, Inc., 511 F.Supp. 38, 46 (D.Minn.1980), aff'd, 642 F.2d 1122 (8th Cir.1981) ("ERISA by its terms permits actions only by the Secretary of Labor and participant......
  • Request a trial to view additional results

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