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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

PENSION FUND OF CEMENT MASONS’ 

UNION LOCAL UNION NO. 502; CEMENT 

MASONS’ INSTITUTE LOCAL 502 WELFARE 

TRUST FUND; CEMENT MASONS’ LOCAL 502 

AND PLASTERERS AREA 5 ANNUITY FUND; 

CEMENT MASONS’ LOCAL NO. 502 RETIREE 

WELFARE FUND; CEMENT MASONS’ ROCK 

ASPHALT AND COMPOSITION FLOOR 

FINISHERS LOCAL UNION NO. 502 A.F.LC.I.O. SAVINGS FUND; CEMENT MASONS’ 

UNION LOCAL 502 APPRENTICE 

EDUCATIONAL AND TRAINING TRUST; 

CEMENT MASONS’ LOCAL UNIONS 502, 803 

AND 11 AREAS 161, 362 AND 638 LABOR 

MANAGEMENT COOPERATION TRUST FUND; 

and CEMENT MASONS’ UNION LOCAL NO. 

502 PLASTERERS AREA 5,

Plaintiffs, 

vs.

AREATHA CONSTRUCTION CO., INC., an 

Illinois Corporation,

Defendant. 

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CASE NO.: 20-cv-2654

JUDGE:

MAG. JUDGE: 

COMPLAINT

NOW COME the Plaintiffs, the PENSION FUND OF CEMENT MASONS’ UNION 

LOCAL UNION NO. 502, the CEMENT MASONS’ INSTITUTE LOCAL 502 WELFARE 

TRUST FUND, the CEMENT MASONS’ LOCAL 502 AND PLASTERERS AREA 5 ANNUITY 

FUND, the CEMENT MASONS’ ROCK ASPHALT AND COMPOSITION FLOOR 

FINISHERS LOCAL UNION NO. 502 A.F.L.-C.I.O. SAVINGS FUND, the CEMENT 

MASONS’ UNION LOCAL 502 APPRENTICE EDUCATIONAL AND TRAINING TRUST, 

the CEMENT MASONS’ LOCAL NO. 502 RETIREE WELFARE FUND, the CEMENT 

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MASONS’ LOCAL UNIONS 502, 803 AND 11 AREAS 161, 362 AND 638 LABOR 

MANAGEMENT COOPERATION TRUST FUND and the CEMENT MASONS’ UNION 

LOCAL NO. 502 PLASTERERS AREA 5, complaining of the Defendant AREATHA 

CONSTRUCTION CO., INC., and in support, allege as follows:

JURISDICTION AND VENUE

1. This action arises under Sections 502 and 515 of the Employee Retirement Income Security 

Act (“ERISA”) (29 U.S.C. §§ 1104, 1132 and 1145) and Section 301 of the LaborManagement Relations Act (“LMRA”) (29 U.S.C. § 185). The Court has jurisdiction over 

the subject matter of this action pursuant to 29 U.S.C. §§ 185, 1132 and 1145, and 28 

U.S.C. § 1331. 

2. Venue is proper in this Court pursuant to 29 U.S.C. §§ 1132(e)(2) in that the PENSION 

FUND OF CEMENT MASONS’ UNION LOCAL UNION NO. 502, the CEMENT 

MASONS’ INSTITUTE LOCAL 502 WELFARE TRUST FUND, the CEMENT 

MASONS’ LOCAL 502 AND PLASTERERS AREA 5 ANNUITY FUND, the CEMENT 

MASONS’ ROCK ASPHALT AND COMPOSITION FLOOR FINISHERS LOCAL

UNION NO. 502 A.F.L.-C.I.O. SAVINGS FUND, the CEMENT MASONS’ UNION 

LOCAL 502 APPRENTICE EDUCATIONAL AND TRAINING TRUST, and the 

CEMENT MASONS’ LOCAL NO. 502 RETIREE WELFARE FUND (collectively the 

“TRUST FUNDS”) are administered at 739 25th Ave., Bellwood, Illinois 60104 and 

pursuant to 28 U.S.C. § 1391(b)(2) in that a substantial part of the events or omissions 

giving rise to Plaintiffs’ claims occurred in the Northern District of Illinois, Eastern 

Division. 

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PARTIES

3. The TRUST FUNDS receive contributions from numerous employers pursuant to the 

Collective Bargaining Agreement (“CBA”) entered into between the CEMENT MASONS’ 

UNION LOCAL NO. 502 PLASTERERS AREA 5 (“UNION”) and the Concrete 

Contractors Association of Greater Chicago/Mid-America Regional Bargaining 

Association, and therefore are multiemployer plans under 29 U.S.C. § 1002(37).

4. The CEMENT MASONS’ LOCAL UNIONS 502, 803 AND 11 AREAS 161, 362 AND 

638 LABOR MANAGEMENT COOPERATION TRUST FUND (“LMCC”) is a labor 

management cooperation committee that is administered in Bellwood, Illinois.

5. Pursuant to Sections 502(a)(3) and 515 of ERISA (29 U.S.C. §§ 1132 and 1145), the 

TRUST FUNDS and the LMCC are authorized to bring this action on behalf of their 

participants and beneficiaries for the purpose of collecting unpaid contributions. 

6. The UNION is the bargaining representative of the Defendant AREATHA 

CONSTRUCTION CO., INC. (“AREATHA CONSTRUCTION”)’s bargaining-unit 

employees.

7. The Defendant AREATHA CONSTRUCTION is an Illinois corporation with its principal 

place of business in Streamwood, Illinois.

COUNT I - BREACH OF CONTRACT – AREATHA CONSTRUCTION CO., INC.

8. Plaintiffs re-allege and incorporate the allegations contained in Paragraphs 1-7 of this 

Complaint with the same force and effect as if fully set forth herein. 

9. AREATHA CONSTRUCTION is an employer engaged in an industry affecting 

commerce, which agreed to be bound by the terms of the CBA through a Memorandum of 

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Agreement. (A copy of the Memorandum of Agreement is attached as Exhibit 1); (A copy 

of the CBA is attached as Exhibit 2). 

10. Through the CBA and Memorandum of Agreement, AREATHA CONSTRUCTION 

agreed to be bound by the provisions of the Agreements and Declarations of Trust which 

created the TRUST FUNDS (hereinafter referred to as the “Trust Agreements”).

11. Pursuant to the provisions of the CBA, Memorandum of Agreement, and Trust 

Agreements, AREATHA CONSTRUCTION is required to make monthly reports of the 

number of hours worked by its bargaining-unit employees and pay contributions to the 

TRUST FUNDS and LMCC for each hour that a bargaining-unit employee performs any 

work at the negotiated rate set forth in the CBA. The monthly reports and contributions 

during all relevant times were due on or before the 15th day of the calendar month following 

the calendar month during which the work was performed. (Exhibit 2). 

12. Pursuant to the CBA, AREATHA CONSTRUCTION is required to deduct five dollars 

($5.00) from its bargaining-unit employees’ wages for each hour worked and remit it to 

the CEMENT MASONS’ ROCK ASPHALT AND COMPOSITION FLOOR FINISHERS 

LOCAL UNION NO. 502 A.F.L.-C.I.O. SAVINGS FUND. (Exhibit 2). 

13. Pursuant to the CBA and properly executed check-off cards, AREATHA 

CONSTRUCTION is required to deduct $3.50 from its bargaining-unit employees’ wages 

for each hour worked and remit it to the UNION. (Exhibit 2).

14. Pursuant to Section 502(g)(2) of ERISA (29 U.S.C. § 1132) and the provisions of the CBA 

and Trust Agreements, employers who fail to submit their monthly reports and 

contributions to the TRUST FUNDS and the LMCC, and dues to the UNION, on a timely 

basis are responsible for the payment of liquidated damages equal to fifteen percent (15%)

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of the amount unpaid, plus interest at a rate of ten percent (10%) per annum, and any 

reasonable attorneys’ fees and costs of maintaining suit, as well as any auditor fees 

incurred. 

15. Pursuant to the CBA and Trust Agreements, a payroll compliance audit was conducted on 

the books and records of AREATHA CONSTRUCTION for the period of January 1, 2017 

through December 31, 2019.

16. The payroll compliance audit revealed that AREATHA CONSTRUCTION owes the 

Plaintiffs the aggregate amount of $6,158.53, itemized as follows:

Type: Amount:

Contributions and Dues $4,442.20

Liquidated Damages $666.33

Audit Costs $1,050.00

Total Amount Due: $6,158.53

17. AREATHA CONSTRUCTION has a continuing obligation to remit monthly contribution 

reports, contributions and dues on a monthly basis to Plaintiffs, and to comply with the 

terms of the CBA, Memorandum of Agreement, and Trust Agreements.

18. Plaintiffs have been required to employ the undersigned counsel to collect the monies that 

are due and owing from AREATHA CONSTRUCTION. 

19. Plaintiffs have complied with all conditions precedent in bringing this suit. 

20. AREATHA CONSTRUCTION is obligated to pay the reasonable attorneys’ fees and court 

costs incurred by the Plaintiffs pursuant to the CBA, Memorandum of Agreement, Trust 

Agreements, and 29 U.S.C. § 1132(g)(2)(D). 

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WHEREFORE, Plaintiffs respectfully request:

A. That Judgement be entered in favor of Plaintiffs and against Defendant AREATHA 

CONSTRUCTION in the amount of $4,442.20 for contributions and dues owed for the

period of January 1, 2017 through December 31, 2019 as revealed by the payroll 

compliance audit;

B. That Judgment be entered in favor of Plaintiffs and against Defendant AREATHA 

CONSTRUCTION in the amount of $666.33 for liquidated damages resulting from its late 

payment of contributions and dues for the period of January 1, 2017 through December 31, 

2019 as revealed by the payroll compliance audit;

C. That Judgment be entered in favor of Plaintiffs and against Defendant AREATHA 

CONSTRUCTION in the amount of $1,050.00 for the audit costs pursuant to the CBA, 

Memorandum of Agreement and Trust Agreements;

D. That Judgment be entered in favor of Plaintiffs and against Defendant AREATHA 

CONSTRUCTION for any and all other contributions, dues, liquidated damages, and 

interest found to be due and owing in addition to those referenced in Paragraphs A and B

above; 

E. That Defendant AREATHA CONSTRUCTION be ordered to pay the reasonable 

attorneys’ fees and costs incurred by the Plaintiffs pursuant to the CBA, Memorandum of 

Agreement, Trust Agreements, and 29 U.S.C. § 1132(g)(2)(D); and 

F. That Plaintiffs have such other and further relief as the Court may deem just and equitable 

all at the Defendant AREATHA CONSTRUCTION cost pursuant to 29 U.S.C. § 

1132(g)(2)(E).

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Respectfully Submitted,

PENSION FUND OF CEMENT 

MASONS’ UNION LOCAL UNION NO. 

502 et al.

/s/ Lucas J. Habeeb - 6329755

One of Plaintiffs’ Attorneys

Johnson & Krol, LLC

311 S. Wacker Dr., Suite 1050

Chicago, IL 60606 

(312) 757-5472

habeeb@johnsonkrol.com

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