Dist. Ct. erred in finding that defendant-pension fund was entitled to withdrawal liability that stemmed from two agreements with plaintiff-employer that called for payments of pension benefits for plaintiff’s workers on project that was not covered under either agreement. Record showed that while project was not covered under either agreement, plaintiff had informally agreed to make pension benefit payments for said project under wage rates and pension terms of one agreement. While arbitrator and Dist. Ct. found that plaintiff was required to pay withdrawal liability under “adoption-by-conduct” theory, Ct. of Appeals found that plaintiff was not required to pay withdrawal liability assessment, where there was no written agreement between parties calling for payment of pension benefits for said project.
Federal 7th Circuit Court
Civil Court
Labor Law