Central States, Southwest and Southeast Areas Pension Fund v. SCOFBP, LLC

Dist. Ct. did not err in finding in instant ERISA action that two solvent business entities, which were under common control with third insolvent entity, were jointly and severally liable for withdrawal liability generated when insolvent entity ceased operations and stopped paying into union's pension fund. Under MPPAA, all trades or businesses under common control are treated as single employer for purposes of determining withdrawal liability under 29 USC section 1301(b)(1), and Dist. Ct. could properly conclude that solvent entities were qualifying trades or businesses where: (1) one solvent entity leased property to insolvent entity; and (2) second solvent entity earned rental income, paid business management fees and claimed business-related income deductions on tax forms. Moreover, all three entities were under common control for purposes of imposing withdrawal liabilty where each entity, which had originally been controlled by single individual, was included in bankruptcy estate of Chapter 11 proceeding that had been filed by insolvent entity prior to ceasing its operations. Fact that solvent entities were limited liability corporations did not require different result.