In ERISA action seeking declaration that plaintiff-pension fund did not owe defendant-employer $49,000 refund for payments made to fund on behalf of one employee, Dist. Ct. did not err in finding that no refund was due, where: (1) defendant was responsible for any error in making such payments; and (2) relevant collective bargaining agreements indicated that said employee was covered so as to make proper such payments on behalf of employee. Dist. Ct. erred, though, in finding that plaintiff could not enforce its own rules requiring defendant to initiate arbitration of withdrawal liability issue between parties through procedures set forth by American Arbitration Association (AAA) that in turn required defendant to pay $6,100 (as set forth in 2013 amended rules) as opposed to $650 under old rules. While Dist. Ct. found that old rules applied since Pension Benefit Guaranty Corp. (PBGC) had not approved amended rules calling for $6,100 fee, Ct. held that AAA was not required to await PBGC approval of 2013 amended rules, and thus could charge defendant $6,100 to initiate its arbitration of withdrawal liability issue with plaintiff.
Federal 7th Circuit Court
Civil Court
ERISA