# U ni te d S ta te s Co ur t of A pp ea ls

For the Eig hth Circu it

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No. 1 6- 17 91

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Twin Cit y

Pip e Trad es Serv ic e Ass oc ia ti on , Inc

.,

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el le e ,

v.

W en ne r Qua li ty Servi ces , Inc ., a Min ne so ta co rp or at io n, d oi ng bu si ne ss as M r. Ro ot er o f So ut h C en tra l M N,

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll an t

.

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App eal fro m

Uni te d S ta te s Di st ric t Co ur t fo r th e Dis tri ct of M in ne so ta - Mi nn eap ol is

__ __ __ __ __ __

Su bm it te d: May 9, 20 17
Fil ed : Au gu st 29 , 20 17

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Befo re SM ITH, Chi ef J ud ge , COLLOTO N and KELLY , Cir cu it Ju dg es

.

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COLLOTON, Ci rcu it Ju dg e.

Twin Ci ty Pi pe Trad es Serv ic e Ass oc ia ti on is at te m pt in g to reco ve r un pa id

fri ng e-b en efi t co nt rib ut io ns all eg ed ly due un de r a co ll ect iv e b arg ai ni ng ag reem en t.

The di st ric t co ur t gr an te d su m m ary jud gm en t fo r th e Ass oc ia ti on on th e gr ou nd th at

W en ne r Qua li ty Servi ces , In c., was p recl ud ed by a prev io us laws ui t fr om di sp ut in g

li ab il it y f o r th e co nt rib ut io ns as an al te r eg o of a si gn at or y of th e ag reem en t. Theco ur t th en award ed da m ag es an d in jun ct iv e rel ie f to th e Ass oc ia ti on

. W e ag ree th at

th e Ass oc ia ti on was en ti tl ed to jud gm en t on li ab il it y , bu t we co nc lu de th at th e co ur t

erre d in award in g cert ai n da m ag es to th e Ass oc ia ti on

. Acco rd in gl y , we affi rm in pa rt

an d re ve rs e in pa rt.

I.

In 20 04

, Sh awn an d Sara W en ne r pu rch as ed Man ka to Pl um bi ng & H e a t i ng , In c. The W en ne rs were Man ka to Pl um bi ng ’s on ly sh areh ol de rs

. Man ka to Pl um bi ng

was pa rty to a c o l l e c t i v e ba rg ai ni ng ag reem en t wit h two lo cal un io ns fo r pl um be rs

an d p ip efi tt ers . In 20 06

, th e W en ne rs pu rch as ed a Mr. Roo te r fran ch is e an d s ig ne d

th e fran ch ise ag re em en t in di vi du al ly as th e de si gn at ed fran ch is ees

. The y op erat ed th e

fran ch is e us in g Ma n k at o Pl um bi ng ’s faci li ty, em

pl oyees, an d eq ui pm en t, whi le

Man ka to Pl um

bi ng pa id fri ng e-b en efi t co nt rib ut io ns pu rs ua nt to th e CBA on be ha lf

of Mr. Ro ot er.

In 20 10

, th e W en ne rs reo rg an iz ed th ei r bu si ne ss es

. At th e en d of Ja nu ary,

Man ka to P l u mbin g ceas ed op erat io ns , an d th e W en ne rs fo rm ed S&S The rm o Dy na m ic s, In c., to ta ke ov er th e co m m erci al pl um

bi ng op erat io ns

. Aro un d th at sa m e

ti m e, th e W en ne rs fo rm e d W en ne r Qua li ty Serv ic es , In c., (WQ S) to pr ov id e

res id en ti al pl um

bi ng se rv ic es

. Sh awn wro te to th e un io ns th at Man ka to Pl um bi ng

was c e a s i n g op erat io ns , bu t th at S&S wou ld as su m e Man ka to Pl um bi ng ’s

res po ns ib il it y

un de r th e CBA. In a se pa rat e le tt er, Sh awn in fo rm ed th e un io ns th at

Mr. Ro ot er wou ld be di sc on ti nu in g it s op erat io ns ; in fact

, ho wev er, W QS co nt in ue d

to us e th e Mr. Ro ot er n am e in it s re si de nt ia l p lu m bi ng op erat io ns

.

In 20 11 , th e Ass oc ia ti on , whi ch se rv ed as a tru st ee resp on si bl e fo r co ll ect in g

th e fri ng e-b en efi t co nt rib ut io ns du e un de r th e CBA, di sc ov ered th at Mr. Ro ot er was

st il l op erat in g. It su e d S & S

, Man ka to Pl um bi ng , an d Sh awn W en ne r un de r th e

Em pl oyee Ret ire m en t In co m e S e c ur it y Act, 29 U.S.C. §§ 11 32 , 1 14 5, al le gi ng th at

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-th ey

ha d fa il ed to pa y

fri ng e-b en efi t co nt rib ut io ns ari si ng fro m work pe rfo rm ed for

Mr. Ro ot er fro m Fe b r u ary 20 10 on ward

. The Ass oc ia ti on di d no t su e W QS in th e

S&S Lit ig at io n, be cau se it was no t aware of W QS un ti l Sh awn W en ne r di sc lo se d th at

en ti ty’ s ex is te nc e aft er t he de ad li ne to am en d p le ad in gs ha d p as se d.

The de fen da nt s i n t he S&S Li ti ga ti on m ov ed for su m m ary jud gm en t, and th e
d i s t ric t co ur t he ld a he ari ng

. The co ur t gr an te d su m m ary jud gm en t fo r Man k a t o

Pl um bi ng , be cau se Man ka to Pl um bi ng was no lo ng er do in g bu si ne ss , an d th ere was

no cl ai m th at th e en ti ty fai le d to m ak e co nt rib ut io ns be fo re it ceas ed op e r a t i o n s in

Ja nu ary 20 10

. The co ur t, ho wev er, de ni ed S&S’s m ot io n fo r su m m ary jud gm en t an d

effe ct iv el y gr an te d su m

m ary jud g men t fo r th e Ass oc ia ti on on th e is su e of li ab il it y

. The co ur t co nc lu de d th at S&S, as th e su cces so r si gn at or y to th e CBA, an d W QS, as

Mr. Ro ot er’s op erat or , were al te r eg os of o n e a n o t h e r

. In ot he r wor ds

, th e co ur t

de te rm in ed th at th e co m

pa ni es were in de pe nd en t of each ot he r in fo rm on ly, an d th at

th ey were us ed as a su bt erfu ge to jus ti fy wro ng do in g. On t ha t b as is , th e co ur t he ld

S&S l ia bl e fo r th e p as t-d ue co nt rib ut io ns on be ha lf o f Mr. Ro ot er.

In a su bs eq ue nt or de r, th e di s tri ct co ur t cl ari fie d th at “ [h ]avi ng res ol ve d th e

li ab il it y is su e in fav or of [th e Ass oc ia ti on ],

. . . th e on ly ou ts ta nd in g is su e be fo re th e

Co ur t i s t he am ou nt of d am ag es owed to [th e Ass oc ia ti on ]. ” The co ur t n ev er m ad e

an award of da m ag es , ho wev er, be cau se S & S an d Sh awn W en ne r fil ed fo r
ba nk ru pt cy , and th e cas e was ad m in is tra ti ve ly term in at ed

.

In 20 14

, th e Ass oc ia ti on br ou gh t th is act io n un de r ERISA ag a i ns t W QS an d

Sara W en ne r. The co m

pl ai nt so ug ht th e sa m e unpa id fri ng e-b en efi t co nt rib ut io ns th at

th e Ass oc ia ti on pu rs ue d in th e S&S Lit ig a ti on , pl us in jun ct iv e rel ie f. The di st ric t

co ur t di sm is se d Sara W en ne r pu rs ua nt to a st ip ul at io n aft er sh e fil ed fo r ba nk ru pt cy

. On cro ss -m ot io ns fo r su m m ary jud gm en t, th e di st ric t co ur t th en de te rm in ed th at is su e

pr ecl us io n p rev en te d WQS from di sp ut in g i ts li ab il it y

as a n a lt er eg o o f S&S

.

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-T he co ur t award ed th e Ass oc ia tio n unpa id fr ing e- be ne fi t co ntr ibu tio ns, int er es t,

an d a t t o r n e y’s fees an d co st s, bu t de ni ed it s req ue st fo r li qu id at ed da m ag es

. The

co ur t al so en

joi ne d W QS fro m refu si ng to s u b mi t mon th ly fri ng e-b en efi t

co nt rib ut io ns to th e Ass oc ia ti on fo r Mr. Ro ot er e mp lo y ees or ot he r co ve red

em pl oyees fo r so lo ng as W QS ha s a co nt rib ut io n ob li ga ti on

. The co ur t or de red W QS

to po st a bo nd of $1 8,0 00 “ as a se cu rit y fo r th ree m on th s’ fu tu re co nt rib ut io ns .” The

co ur t la te r i s s ue d an or de r am en di ng it s jud gm en t, cl ari fy in g it s pr ev io us jud gm en t

an d st at in g mo r e br oa dl y th at W QS was en joi ne d fro m fai li ng to co m pl y wit h it s
ob li ga ti on s un de r th e CBA. Th e i n ju nc ti on fo rb ad e W QS fro m refu si ng to su bm it

m on th ly rep or ts of ho ur s wor ke d by Mr. Ro o t e r em pl oyees or ot he r co ve red

em pl oyees, an d refu si ng to su bm it m on th ly frin ge -b en efi t co nt rib ut io ns for so lo ng

as W QS ha s a c on tri bu ti on ob li ga ti on

.

II.

W QS arg ue s on ap pe al th at th e di st ric t co ur t erre d by ap pl yi n g o f fen si ve

co ll at eral es to pp el on th e is su e of al te r eg o li ab il it y

. The g e n eral ru le on is su e

pr ecl us io n, als o kn own as co ll at eral es to pp el

, is th at “ [w]hen an is su e of fact or la w
is act ua ll y li ti ga te d an d de te rm in ed b y a v a l i d an d fin al jud gm en t, an d th e
d e t e rm in at io n is es se nt ia l to th e jud gm en t, th e de te rm in at io n is co nc lu si ve in a

su bs eq ue nt act io n be twee n th e pa r t i es , whe th er on th e sa m e or a di ffer en t cl ai m .”

B & B Har dw ar e, In c. v. Har gi s In du s., In c. , 13 5 S. Ct

. 12 93

, 13 03 (2 01 5) (al te rat io n

in o r i g i n a l ) (q uo ti ng Res ta te m en t (Sec on d) of Ju dg m en ts § 27 (1 98 2) ). A co ur t

sh ou ld no t, h owe ve r, ap pl y off en si ve co ll at eral est op pe l wh en it wou ld be un fai r to

a d efen da nt

. Se e Par kl an e Hos ie ry Co . v. Sh or e , 43 9 U.S. 3 22 , 33 1 (1 97 9)

.

Two el em en ts of is su e pr ecl us io n are un di sp ut ed : W QS do es no t di sp ut e th at

th e is s u e of al te r eg o li ab il it y is th e sa m e in bo th cas es or th at th e al te r eg o
de te rm in at io n was es se nt ia l to th e pr io r jud gm en t. A th ird el em en t is id en ti ty of th e

pa rti es

. Alt ho ug h W QS was no t a pa rty in th e S&S Lit ig at io n, is su e pr ecl us io n can

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-ap pl y “ whe n it can be sa id th at th ere is ‘priv it y ’ be twee n a p art y to th e se co nd cas e

an d a pa rty who is bo un d by an earl ie r jud gm en t.” Rich ar ds v. Jef fe rs on Co un ty

, 51 7

U.S. 7 93 , 7 98 (1 99 6)

. A c lo se ly h el d co rp or at io n is in pr iv it y wit h it s sh areh ol de r,

s ee Res ta te m en t (Sec on d) of Ju dg m en ts § 59 (3 )(b ) & cm t. e (1 98 2)

, an d WQ S

co nc ed ed at or al arg um en t th at it is in pr iv it y wit h Sha wn W en ne r, who was a pa rty

in th e S&S Lit ig at io n. Sh awn W en ne r, in tu rn , was al so in pr iv it y wit h S&S, an ot he r

pa rty in t he fir st cas e. As s uc h, WQS can b e b ou nd by the pri or jud gm en t.

Bu t W QS di sp ut e s a fo ur th el em en t. The co m pa ny arg ue s th at th ere was no

va li d an d fin al jud gm en t in th e S&S Lit ig at io n, be cau se th e co ur t ne ve r award ed

da m ag es an d en te red a fin al jud gm en t. Is su e pr ecl us io n, ho wev er, ha s be en ap pl ie d

“ to m at te rs res ol ve d by pr el im in ary ru li ng s or to de te rm in at io ns of li ab il it y th at ha ve

no t yet be en co m

pl et ed by an award of d am ag es or o th er re li ef.” In re N an gl e , 27 4

F.3 d 48 1, 48 5 (8 th Ci r. 20 01 ) (in te rn al qu ot at io ns om it te d) (q uo ti ng 18 Ch arl es Alan

W rig ht

, Arth ur R. Mi ll er, & Edwar d H. Co op er, Fed er al Pr a c ti ce an d Pro ced ur e § 44 34 (1 98 1) ). “ [F]in al it y fo r pu rp os e[s ] of ap pe al un de r [2 8 U.S.C. § 12 91 ] is no t

ne ces sa ril y th e fin al it y th at is req ui red fo r is su e pr ecl us io n pu rp os es .” Jo hn Mor re ll

& Co . v. L oc al Uni on 30 4A o f Un it ed Foo d & Co mmerc ia l Wor ker s , 91 3 F .2d 54 4,

56 3 (8 th Ci r. 19 90 ). Quo ti ng Ju dg e Fri en dl y , t hi s co ur t ob se rv ed th at “ [f]in al it y in

th e co nt ex t [o f is su e p r e c l u s i o n ] m ay m ean li tt le m or e th an th at th e li ti ga ti on of a

pa rti cu la r is su e ha s reac he d su ch a st ag e th at a co ur t se es no real ly g oo d reas on fo r

pe rm it ti ng it to be li ti ga te d ag ai n.” Id

. (al te rat io ns in or ig in al ) (q uo ti ng Lu mmus Co

. v. Co mmon wea lt h Oi l Ref . Co. , 29 7 F .2d 80 , 89 (2d Cir . 19 61 )).

W e co nc lu de th at th e di st ric t co ur t’s or de r s reg ard in g it s al te r eg o
de te rm in at io n in th e S&S Lit ig at io n co ns t i t u t e a va li d an d fin al jud gm en t fo r

pu rp o s e s o f is su e pr ecl us io n. The co ur t in th e fir st cas e ga ve th e pa rti es am pl e

op po rtu ni ty to be he ard on al te r eg o li ab il it y

. Fo ll owi ng br ie fin g and a he ari ng , th e

co ur t co nc lu de d th a t S &S an d W QS were al te r eg os , a nd th e co ur t fil ed a reas on ed

or de r th at ex pl ai ne d th e de te rm in at io n. Alt ho ug h th e am ou nt of dam ag es rem ai ne d

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-un res ol ve d, th ere was no reas on to be li ev e th at th e co ur t’s jud gm en t on li ab il it y was

“ te nt at iv e o r li ke ly to b e ch an ge d.” In re N an gl e , 27 4 F .3d at 4 85

.

W QS co m

pl ai ns th at Sh awn W en ne r an d S&S ha d no op po rtu ni ty to ap pe al in

th e S&S Lit ig at io n, bu t th e un av ai la bi li ty of ap pe ll at e rev ie w do es no t by it se lf m ak e
is su e pr ecl us io n in ap pr op ria te

. In re Na ng le

, 27 4 F.3 d at 48 5; se e Jo hn so n St eel St

. Rai l Co

. v. W

il li am W ha rt on
, Jr

., & Co

. , 15 2 U.S. 25 2, 26 1 (1 89 4)

. It is “ m erel y on e

fact or to co ns id er in de te rm in in g whe th er is su e pr ecl us io n ap pl ie s.” Jo hn Mor re ll &

Co

. , 91 3 F.2 d at 56 3. Here, th e in ab il it y of Sh awn W en ne r an d S&S to ap pe al in th e

S&S Lit ig at io n was a pr od uc t of th ei r own m ak in g: The y vo lu nt ari ly fil ed fo r
b a n kr up tc y , th us tri gg eri ng an au to m at ic st ay an d le ad in g th e cas e t o b e
ad m in is tra ti ve ly te rm in at ed

. Un d e r t h e se ci rcu m st an ces , th e ab se nc e of ap pe ll at e

rev ie w in th e fir st cas e di d no t req ui re th e co ur t to al lo w rel it ig at io n of the al te r eg o
de te rm in at io n. Cf

. Gre en le af v. Gar lo ck, In c. , 17 4 F.3 d 35 2, 36 0- 61 (3 d Ci r. 19 99 ).

W QS arg ue s th at as id e fro m th e tra di ti on al el em en ts

, is su e pr ecl us io n is

in ap pl ic ab le whe n th e un de rlyin g le ga l is su e in vo lv es an al te r eg o de te rm in at io n. In

Cr es t Ta nk

er s, In c. v. Na ti on al Mar it ime Uni on of Ameri ca , 79 6 F .2d 23 4 (8 th Cir

. 19 86 ), th is co ur t co n c l u d e d th at co ll at eral es to pp el on a de te rm in at io n of al te r eg o

st at us was in ap pr op ria te

. In th at cas e, th e se co nd co ur t face d a di sp ut e ab ou t whe th er

th ere was pri vi ty bet ween th e pa rty who lo st in th e fi rs t ca se an d t he pa rti es ag ai ns t

who m pr ecl us io n was as se rte d on al te r eg o li ab il it y in th e se co nd

. Thi s co ur t

ob se rv ed th at “ th e pr oc ed ur al is su e of pr iv it y is

, in es se nc e, al so th e su bs ta nt iv e is su e

to whi ch [th e de fen da nt ] wou ld ap pl y co ll at e r al es to pp el : Are th es e en ti ti es so
cl os el y al li ed as to be co ns id ered th e sa m e? ” Id

. at 23 9. Bec au se of “ [t]he ci rcu la rit y

in vo lv ed in an swe rin g th is qu es ti on ,” th e co ur t de cl in ed to ap pl y co ll at eral es to pp el

. Id

.

Thi s cas e do es no t rai se th e sa m e pr ob le m of ci rcu la rit y

. W QS is in di sp ut ab ly

in pr iv it y wit h Sh awn W en ne r, a pa rty in th e fir st cas e, be cau se Sh awn W en ne r is on e

-6

-of th e two sh areh ol de rs of W QS. Se e In re Got th ei ne r , 70 3 F.2 d 11 36

, 11 39 -4 0 (9 th

Ci r. 19 83 ); Res ta te m en t (Sec on d) of Ju dg men t s § 59 (3 )(b ) & cm t. e. Fo r th e sa m e

reas on , S ha w n We n n e r is in pr iv it y wit h S&S. S&S co nt es te d al te r eg o li ab il it y in

th e fir st cas e, an d Sha wn W en ne r ha d eve ry in cen ti ve to do so , ei th er on hi s own or

as th e pr es id en t an d m ajor it y sh areh ol de r of S&S. The de te rm in at io n th at W QS was

in pr iv it y wit h a p a r t y in th e fir st cas e is th eref or e se pa rat e fro m th e de te rm in at io n
whe th er S& S an d WQS are al te r eg os of o ne an ot he r.

Fo r th es e reas on s, we co nc lu de th at al l of th e el em en ts req ui red to ap pl y is su e

pr ecl us io n are pr es en t he re. W QS do es no t r a i se an y ad di ti on al fai rn es s

co ns id erat io ns th at wou ld pr ecl ud e ap pl ic at io n of the do ct rin e in th is ci rcu m st an ce.

W e th eref

or e affi rm th e di st ric t co ur t’s de te rm in at io n th at W QS is li ab le fo r th e

un pa id fri ng e-b en efi t co nt rib ut io ns du e fro m Mr. Ro ot er.

III.

W QS ne xt arg ue s th at th e di st ric t co ur t erre d in gr an ti ng cert ai n da m ag es an d

rel ie f to th e Ass oc ia ti on

. W e co nc lu de th at th e Ass oc ia ti on ha s a r i g h t t o c o ll ect

co nt rib ut io ns un de r th e CBA, bu t th at two cat eg or ie s of da m ag es were no t au th or iz ed
by ERISA an d th at th e award sh ou ld b e red uc ed acco rd in gl y

. W e al so up ho ld th e
di st ric t co ur t’s g ran t o f in jun ct iv e rel ie f.

A.

W QS fir st arg ue s th at th e Ass oc ia ti on ha d no rig ht to co ll ect cert ai n b en efi ts

un de r th e CBA, so it la ck s Arti cl e III st an di ng to br in g cer ta in cl ai m s. Thi s is no t

real ly an arg um en t ab ou t st an di ng : th e Ass oc ia ti on was in jure d by no t rece iv in g th e

co nt rib u t i on s, th e in

jury was cau se d by W QS’s no n- pa y m en t, an d an award of

-7

-da m ag es wou ld rem ed y th e in jury. W QS is act ua ll y pr es si ng an arg um en t on th e

m eri ts

— i.e. , th at th e Ass oc ia ti on ha s n o ri gh t t o t he co nt rib ut io ns

.

The CBA pr ov id es fo r th e co ll ect io n of te n cat eg or ie s of co nt rib ut io ns , an d si x

are in di sp ut e: Cred it Uni on , W or k i n g F e e Fu nd

, TCPT Pen si on , Pen si on

Su pp le m en t

, I n te rn at io na l Trai ni ng Fu nd

, an d In du st ry Fu nd be ne fit s. The CBA

st at es th at e m

pl oyers m

us t se nd th e In du st ry Fu nd pa y m en ts to th e Mi nn es ot a

Mec ha ni cal Co nt ract or s In du st ry Fu nd

. The CBA do es no t ot he rwis e ad dr es s whe re

th e d is pu te d p ay m en ts sh ou ld be sen t o r who sh ou ld co ll ect th es e p ay m en ts

.

The “ pr act ic e, us ag e an d cu s t o m” o f th e pa rti es are si gn ifi can t whe n

i n t e r p r e t i ng a CBA. Tr an sp .-Co mmc’n Emps

. Uni on v. Uni on Pac

. R.R. Co

. , 38 5

U.S. 15 7, 161 (1 966 ). The ev id en ce sh ows th at th e Ass oc ia ti on tra di ti on al ly co ll ect ed

th e di s p u t e d p ay m en ts

. The Ass oc ia ti on ’s e xe cu ti ve ad m in is tra to r av erre d th at th e

Ass oc ia ti on co ll ect s al l of th e di sp ut ed be ne fit s, an d th at em pl oyers su bjec t to th e

CBA m us t su bm it on e ch eck to th e Ass oc ia ti on fo r al l of th e rel ev an t co nt rib ut io ns

. S&S, th e su cces so r si gn at or y to th e CBA, se nt th e di sp ut ed pa y m en ts to th e

Ass oc ia ti on

. The re is no ev id en ce th at th e di sp ut ed pa y m en ts were se nt to an y ot he r

or ga ni zat io n. Alt ho ug h th e CBA pr ov id ed th at cert ai n pa y m en ts sh ou ld go to th e

Mi nn es ot a Mec ha ni cal Co nt ract or s In d u s t ry Fu nd

, th e ad m in is tra to r of th at fu nd

de ni ed co ll ect in g an y co nt rib ut io ns

. The Ass oc ia ti on th eref or e ha s a rig ht to reco ve r

th es e p ay m en ts

.

B.

ERISA pe rm it s a fid uc ia ry of a pl an , li ke th e Ass oc ia ti on , to br in g a ci vi l act io n

to en fo rce th e ob li ga ti on s ari si ng un de r a pl an or a co ll ect iv el y ba rg ai ne d ag reem en t.

29 U.S.C. §§ 11 32 (a)( 3)

, (g )(2 ), 11 45

. Und er ERISA, “ ‘em pl oyee be ne fit pl an ’ or ‘pla n’ m ean s an em

pl oyee welf

are be ne fit pl an or an em

pl oyee pe ns io n be ne fit pl an

-8

-or a pl an whi ch is bo th an em p l o ye e welf

are be ne fit pl an an d an em pl oyee pe ns io n
be ne fit pl an .” Id

. § 10 02 (3 ). Bec au se § 11 32 is li mi t e d t o ci vi l act io ns en fo rci ng
ob li ga ti on s un de r a “ pl an ,” an y co nt rib ut io ns th at fal l o u t s i d e t h e de fin it io n of an

em pl oyee be ne fit or em

pl oyee pe ns io n be ne fit pl an are no t reco ve rab le in an ERISA

act io n. Se e U.A. Lo ca l No

. 46 7 Pen si on Tr

. Fun d v. Hyd ra Ven tu re s In c. , No. C-1 2-

34 6, 20 13 W L 10 07 31 1, at *9 -1 0 (N.D. Cal

. Mar

. 13

, 20 13 ); W il li ams v. Sa lt Ci ty

Pai nt in g, In c. , No. 91 -CV-0 32 0, 19 92 W L 26 59 44

, at *1 3 (N.D.N.Y. Oct. 1, 19 92 ).

The Ass oc ia ti on m ay

reco ve r on ly unp ai d c on tri bu ti on s t o a pl an est ab li sh ed

fo r a p ur po se sp eci fie d i n th e st at ut e. The se pu rp os es in cl ud e p ro vi di ng ret ire m en t

in co m e to em

pl oyees, an d pr ov id in g pa rti ci pa nt s wit h m ed ic al be ne fit s, be ne fit s in

th e ev en t of si ck ne ss , acci de nt

, di sa bi li ty, de at h or un em pl oym en t, or ot he r be ne fit s,

su ch as va cat io n be ne fit s, tra in in g pr og ram s, an d sc ho la rs hi p fu nd s. Se e 29 U.S.C.
§ 1 00 2( 1) , (2)

.

W QS co nt en ds th at th e Ass oc ia ti on was no t en ti tl ed to reco v e r th e Cred it

Uni on , th e W or ki ng Fee, an d th e In du st ry Fu nd co nt r i b u ti on s, be cau se th es e

co nt rib ut io ns do no t ari se un d e r a n ER I S A pl an

. The di st ric t co ur t th ou gh t W QS

rai se d t hi s ar gu m en t t oo lat e in th e li ti ga ti on , bu t t he arg um en t was ti m el y rai se d i n

res po ns e to th e Ass oc ia ti on ’s m ot io n fo r jud gm en t, be cau se th at is whe n th e am ou nt

of da m ag es was rip e fo r res ol ut io n. At ora l ar gu m en t i n t hi s co ur t, th e Ass oc ia ti on

co nc ed ed th at th e W or ki ng Fee an d th e In du st ry Fu nd do no t ari se un de r a “ pl an ” as
de fin ed by ERISA, an d th us are no n- ERISA da m ag es

. The refo re, un pa id

co nt rib ut io ns du e to th es e fu nd s sh ou ld no t h a v e be en award ed as da m ag es in th is

ERISA l aws ui t.

As to th e Cred it Uni on fu nd

, th e Ass oc ia ti on p r e se nt ed ev id en ce th at

co nt rib ut io ns se rv ed to fu nd va cat io n be ne fit s, a pe rm is si bl e el em en t of an em pl oyee
welf are be ne fit p l a n

. S

e e 29 U.S.C. § 10 02 (3 ). An of fic ia l of th e Mi nn es ot a

-9

-Mec ha ni cal Co nt ract or s Ass oc ia ti on av erre d th a t c o n tri bu ti on s to va cat io n fu nd s

“ in cl ud e[] th e cred it un io n co nt rib ut io ns .” The 20 08 W or ki ng Agr eem en t sim il arl y

re fe rs to “ Cr ed it Uni on an d Vacat io n/ Sav in gs Req ui rem en ts .” Thu s, we co nc lud e tha t

th e co ur t pro pe rly al lo wed th e Ass oc ia ti on to reco ve r th es e ERISA-b as ed da m ag es

.

C.

W QS al so co nt en ds th at t h e d i s tri ct co ur t erre d in gr an ti ng a pe rm an en t

in jun ct io n. ERISA pe rm it s a fid uc ia ry of a pl an to s e e k r e co ve ry of un pa id

co nt rib ut io ns , in te res t on th os e co nt rib ut io ns , reas on ab le at to rn ey ’s fees an d co st s of

th e act io n, an d su ch ot he r le ga l or eq ui ta bl e rel ie f as th e co ur t de em s ap pr op ria te

. 29

U.S.C. § 11 32 (g )(2 ). Equ it ab le rel ie f can in cl ud e en joi ni ng a reca lc it ran t em

pl oyer

fro m fai li ng to pa y co nt rib ut io ns to an ERISA fu nd a r i si ng un de r a co ll ect iv e
ba rg ai ni ng ag reem en t. L ab or er s Fri ng e Ben ef

it Fun ds Detr oi t & Vici ni ty v. Nw.

Co nc re te & Co ns tr

., In c. , 64 0 F.2 d 13 5 0

, 1 3 5 1- 53 (6 th Ci r. 19 81 ) (p er cu ria m ).

Ci ti n g Var it

y Co rp

. v. How e , 51 6 U.S. 48 9 (1 99 6)

, an d W al d v. So ut hw es te rn Bell

Co rp

. Cu st omc ar e Med ic al Pla n , 83 F.3 d 10 02 (8 th Ci r. 19 96 ), W QS co nt en ds th at

in jun ct iv e rel ie f was in ap pr op ria te he re be cau se th e di st ric t co ur t pr ov id ed ad eq ua te

rel ie f in th e fo rm

of m on ey

da m ag es . In Var it

y Co rp

. , t he Co ur t st at ed th at “ whe re

Co ng res s el se whe re pr ov id ed ad eq ua te rel ie f fo r a be ne fic ia ry ’s in jury, th ere wil l

li ke ly be no ne ed fo r fu rth er eq ui ta bl e rel ie f, in whi ch cas e su ch rel ie f no rm al ly wou ld

no t be ‘ ap pr op ria te .’ ” 51 6 U.S. at 51 5. Bu t here

, th e Ass oc ia ti on di d no t seek on ly

pa y m en t fo r pa st un pa id co nt rib ut io ns ; it so ug ht an or de r req ui rin g W QS to fu lfi ll it s

on go in g ob li ga ti o n s u n d e r th e CBA. The in jun ct io n pr ov id es a se pa rat e rem ed y , in de pe nd en t o f d am ag es , to en su re th at W QS wil l pa y fu tu re fri ng e-b en efi t

co nt rib ut io ns . There fo re, t he di st ric t co ur t d id no t er r in gra nt in g i nju nc ti ve rel ie f.

* * *

-1 0-Fo r th e fo reg oi ng reas on s, th e jud gm en t of th e di st ric t co ur t is affi rm ed in pa rt

an d rev ers ed in pa r t

. Th e c as e is rem an de d fo r th e di st ric t co ur t to ex cl ud e

co nt rib ut io ns d u e to th e W or ki ng Fee an d In du st ry Fu nd fro m th e da m ag es award

,

an d t o re du ce t he award of i nt eres t ac co rd in gl y

.

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-1 1-