Central States, Southeast & Southwest Areas Pension Fund v. Bay

Summary

The court addressed cross-motions for summary judgment in an action seeking interim withdrawal-liability payments under ERISA and the Multiemployer Pension Plan Amendments Act. It held that entities in a commonly controlled group were jointly liable for interim payments and that notice and demand served on the contributing employer and other group members constituted sufficient notice to the defendants. The plaintiffs' motion for summary judgment was granted, and the defendants' motion was denied.

Holdings

1. Lakeshore Properties was properly included in the controlled group because Walter Bay owned and controlled at least ninety percent of its profit and capital interests as of the withdrawal date.
2. The sole-proprietorship leasing arrangement operated by Walter and Carolyn Bay was properly included in the controlled group because Walter Bay was deemed to completely own and control it through ERISA attribution rules.
3. Notice and demand for withdrawal liability served on the contributing employer and other members of the controlled group constituted notice and demand to the defendants; separate service on every controlled-group member was not required.
4. Defendants were liable for interim withdrawal-liability payments pending arbitration.

Questions Presented

1. Whether Lakeshore Properties was a trade or business under common control with St. Louis Freight Lines and therefore part of the controlled group for ERISA withdrawal-liability purposes.
2. Whether the Bays' sole-proprietorship leasing arrangement was part of the controlled group for ERISA withdrawal-liability purposes.
3. Whether members of a controlled group that did not individually receive the notice and demand for withdrawal liability are nevertheless jointly and severally liable for interim withdrawal-liability payments.
4. Whether interim withdrawal-liability payments must be made while the amount or liability determination is pending arbitration.

Disposition

other