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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.L-C.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.

GLOBAL CONCRETE CORP., an Illinois corporation,

and CARMEN GRATACE, an individual, 

Defendants. 

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CASE NO.: 20-cv-4213

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 MASONS’ LOCAL UNIONS 502, 803 AND 11 

AREAS 161, 362 AND 638 LABOR MANAGEMENT COOPERATION TRUST FUND and the 

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CEMENT MASONS’ UNION LOCAL NO. 502 PLASTERERS AREA 5, complaining of 

Defendants GLOBAL CONCRETE CORP. and CARMEN GRATACE, 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 (hereinafter referred to as “ERISA”) (29 U.S.C. §§ 1104, 1132 and 1145) and Section 301 

of the Labor-Management Relations Act. (29 U.S.C. § 185). The Court has jurisdiction over 

the subject matter of this action pursuant to 29 U.S.C. § 1132 and 28 U.S.C. § 1331. 

2. Venue is proper in this Court pursuant to 29 U.S.C. §§ 1132(e)(2) and 1451(d) 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. 

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 

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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 GLOBAL CONCRETE CORP. 

(“GLOBAL CONCRETE)’s bargaining-unit employees.

7. The Defendant GLOBAL CONCRETE is an Illinois corporation with its principal place of 

business in Oak Brook, Illinois. 

8. The Defendant CARMEN GRATACE (“GRATACE”) is the President of Defendant

GRATACE.

COUNT I

BREACH OF CONTRACT – GLOBAL CONCRETE CORP.

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

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

10. GLOBAL CONCRETE is an employer engaged in an industry affecting commerce, which 

agreed to be bound by the terms of the CBA through a Memorandum of Agreement. (A copy 

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

as Exhibit 2). 

11. Through the CBA and Memorandum of Agreement, GLOBAL CONCRETE 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”).

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

GLOBAL CONCRETE 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). 

13. Pursuant to the CBA, GLOBAL CONCRETE 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 (“SAVINGS FUND”). (Exhibit 2). 

14. Pursuant to the CBA and properly executed check-off cards, GLOBAL CONCRETE is 

required to deduct four percent (4%) from its bargaining-unit employees’ wages for each hour 

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

15. 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%) 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. 

16. GLOBAL CONCRETE failed to submit payment of contributions and union dues for the 

months of November 2019 and December 2019 in the aggregate amount of $27,105.11.

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17. As a result of GLOBAL CONCRETE ’s failure to remit timely payment for contributions and 

union dues for the months of November 2019 and December 2019, GLOBAL CONCRETE 

owes the TRUST FUNDS liquidated damages in the aggregate amount of $4,065.77.

18. GLOBAL CONCRETE has a continuing obligation to remit monthly contribution reports, 

contributions and wage deductions on a monthly basis to Plaintiffs, and to comply with the 

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

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

due and owing from GLOBAL CONCRETE. 

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

21. GLOBAL CONCRETE 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). 

WHEREFORE, Plaintiffs respectfully request:

A. That Judgment be entered in favor of Plaintiffs and against Defendant GLOBAL CONCRETE 

in the amount of $27,105.11 for the unpaid contributions and union dues for the months of 

November 2019 and December 2019;

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

in the amount of $4,065.77 for liquidated damages resulting from unpaid contributions and 

union dues for the months of November 2019 and December 2019;

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

for any and all other contributions and union dues, liquidated damages, and interest found to 

be due and owing in addition to those referenced in Paragraphs A and B above; 

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D. That Defendant GLOBAL CONCRETE 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 

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

at the Defendant GLOBAL CONCRETE ’s cost pursuant to 29 U.S.C. § 1132(g)(2)(E).

COUNT II

BREACH OF FIDUCIARY DUTY – CARMEN GRATACE

22. Plaintiffs re-allege and incorporate the allegations contained in paragraphs 1-21 of this 

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

23. Pursuant to the CBA, Defendant GLOBAL CONCRETE is required to deduct $5.00 from its 

bargaining-unit employees’ wages for each hour worked and remit it to the SAVINGS FUND. 

(Exhibit 2).

24. Section 2510.3-102(a)(1) of the Department of Labor’s Regulations defines a plan asset as 

“amounts that a participant has withheld from his wages by an employer, for contribution or 

repayment of a participant loan to the plan, as of the earliest date on which such contributions 

or repayments can reasonably be segregated from the employer’s general assets.” (29 C.F.R. 

§ 2510.3-102(a)(1)). 

25. Section 3 of ERISA provides that “a person is a fiduciary with respect to a plan to the extent 

he exercises any discretionary authority or discretionary control respecting management of 

such plan or exercises any authority or control respecting management or disposition of plan 

assets . . .” 29 U.S.C. § 1002(21)(A)). 

26. Section 404(a)(1) of ERISA requires that a fiduciary act “for the exclusive purpose of 

providing benefits to the participants and beneficiaries” and act “with the care, skill, prudence 

and diligence under the circumstances then prevailing that a prudent man acting in a like 

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capacity and familiar with such matters would use in the conduct of an enterprise of a like 

character and with like aims.” (29 U.S.C. § 1104(a)(1)). 

27. GRATACE, in his capacity as a President of GLOBAL CONCRETE, withheld $5.00 from 

his bargaining unit employees’ paychecks for the months of November 2019 and December

2019 in the aggregate amount of $3,067.50.

28. The withheld SAVINGS FUND deductions became plan assets on the day they became due 

and owing to Plaintiffs, the 15th day of the calendar month following the calendar month 

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

29. Consequently, GRATACE became a plan fiduciary when he failed to remit timely payment 

of the SAVINGS FUND deductions, as he exercised discretionary authority and control over 

plan assets. 

30. As a result of his failure to remit timely payment of the SAVINGS FUND deductions,

GRATACE breached his fiduciary duty to the SAVINGS FUND, as he failed to act for the 

exclusive purpose of providing benefits to the participants when he failed to remit timely 

payment of the SAVINGS FUND deductions.

31. GRATACE also failed to act with the requisite care, skill, prudence and diligence imposed 

upon him by ERISA when he failed to remit timely payment of the SAVINGS FUND 

deductions to the SAVINGS FUND. 

32. Plaintiffs have been required to employ the undersigned attorneys to collect the monies that 

are due and owing from GRATACE.

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

34. GRATACE is obligated to pay the reasonable attorneys’ fees and court costs incurred by the 

Plaintiffs pursuant to the Collective Bargaining Agreement, Trust Agreements and 29 U.S.C. 

§ 1132(g).

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WHEREFORE, Plaintiffs respectfully request:

A. That Judgment be entered in favor of the SAVINGS FUND and against Defendant 

GRATACE in the aggregate amount of $3,067.50 for the unpaid SAVINGS FUND deductions 

for the months of November 2019 and December 2019;

B. That Judgment be entered in favor of the SAVINGS FUND and against Defendant 

GRATACE in an unknown amount for liquidated damages and interest calculated at a rate of 

ten percent (10%) per annum from the due date through the date of a Judgment;

C. That Judgment be entered in favor of Plaintiffs and against Defendant GRATACE for all 

unpaid SAVINGS FUND deductions, along with the resulting liquidated damages and 

interest, that are found to be due and owing in addition to the amounts referenced in paragraphs 

A and B above;

D. That Defendant GRATACE be ordered to pay reasonable attorneys’ fees and costs incurred 

by the Plaintiffs pursuant to the Collective Bargaining Agreement, Trust Agreements and 29 

U.S.C. §1132(g); and

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

equitable all at Defendant GRATACE’s cost, pursuant to 29 U.S.C. § 1132(g)(2)(E).

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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