Central States, Southeast and Southwest Areas Pension Fund and Howard McDougall, as Trustee v. 888 Corporation

Summary

The Sixth Circuit affirmed summary judgment limiting 888 Corporation’s withdrawal liability under the Multiemployer Pension Plan Amendments Act, as amended by section 558 of the Deficit Reduction Act of 1984. The court held that contributions associated with the Barry Steel Division could not be included in calculating liability, while any remaining liability associated with the Intervale Steel Division could be resolved through arbitration. The court reversed the award of attorney’s fees because the Pension Fund had not acted culpably or in bad faith.

Holdings

1. 888's failure to initiate arbitration within the statutory period did not bar judicial consideration of its DEFRA defense because the defense did not exist when the arbitration deadline expired.
2. The withdrawal-liability assessment against 888 was invalid to the extent it was calculated using the contribution history generated by the Barry Steel division.
3. The district court's award of attorney's fees to 888 could not stand and was reversed.

Questions Presented

1. Whether 888 was barred from contesting the withdrawal-liability assessment because it did not initiate MPPAA arbitration within the statutory period.
2. Whether DEFRA section 558 and 29 U.S.C. § 1397 required exclusion of the Barry Steel division's contribution history from the calculation of 888's withdrawal liability.
3. Whether the district court properly awarded attorney's fees to 888 under 29 U.S.C. § 1451(e).

Disposition

other