IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

WESTERN DIVISION

NORTHERN ILLINOIS ELECTRICAL JOINT )

APPRENTICESHIP & TRAINING TRUST FUND,)

)

LABOR-MANAGEMENT COOPERATION )

COMMITTEE, )

)

NECA-IBEW NATIONAL LABOR-MANAGE- )

MENT COOPERATION COMMITTEE, )

)

JOINT SAFETY COMMITTEE, )

)

NATIONAL ELECTRICAL BENEFIT ) CIVIL ACTION

FUND (NEBF), )

) NO. 20-cv-50307

SUBSTANCE ABUSE TESTING FUND, )

) JUDGE

ADMINISTRATIVE MAINTENANCE )

FUND (AMF), )

)

LOCAL UNION 364, INTERNATIONAL )

BROTHERHOOD OF ELECTRICAL WORKERS,)

)

Plaintiffs, )

)

vs. )

)

NICHOLSON ELECTRIC, INC., an Illinois )

corporation, )

)

Defendant. )

COMPLAINT

The Plaintiffs, NORTHERN ILLINOIS ELECTRICAL JOINT APPRENTICESHIP &

TRAINING TRUST FUND, LABOR-MANAGEMENT COOPERATION COMMITTEE, NECAIBEWNATIONALLABOR-MANAGEMENT COOPERATIONCOMMITTEE, JOINT SAFETY

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COMMITTEE, NATIONAL ELECTRICAL BENEFIT FUND (NEBF), SUBSTANCE ABUSE

TESTING FUND, ADMINISTRATIVE MAINTENANCE FUND (AMF) (collectively “Funds”),

and LOCAL UNION 364, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

(“Local 364”), by their attorneys, complaining of the Defendant, NICHOLSON ELECTRIC, INC.

(“Nicholson”), an Illinois corporation, allege as follows:

COUNT I

(Claim under ERISA by Funds against Nicholson)

1. This action arises under the laws of the United States and is brought pursuant to the

Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§1132, 1145 (hereinafter referred to as “ERISA”). Jurisdiction is based upon the existence of questions arising

thereunder, as hereinafter more fully appears.

2. The Funds are pension, welfare and related joint, labor-management funds and bring

this action as “employee pension benefit plans,” “employee welfare benefit plans” and “plans,” under

ERISA. 

3. Nicholson is an Illinois corporation with its principal place of business located within

this District and Division, at 1225 Fulton Avenue, Rockford, Illinois. Nicholson is obligated to

report and pay fringe benefit contributions and/or wage deductions to Plaintiffs under the terms of

a collective bargaining agreement with Local 364, and pursuant to the Funds’ respective Agreements

and Declarations of Trust.

4. As an employer obligated to report and pay fringe benefit contributions and wage

deductions to the Funds, Nicholson is specifically required to do the following:

(a) To submit to Plaintiffs for each month, by the 15th day of the month following the

month for which the report is made, a report identifying stating the hours worked by

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or paid to each and every person on whose behalf contributions are required to be

made by Nicholson to Plaintiffs; or, if no such persons are employed for a given

month, to submit a report so stating;

(b) To have a duly authorized agent verify said reports by signature and to accompany

the reports with payment of contributions based upon an hourly rate as stated in the

applicable agreements;

(c) To make all of its payroll books and records available to Plaintiffs for the purpose of

auditing same, to determine whether Nicholson is making full payment as required

under the applicable agreements;

(d) To compensate Plaintiffsforthe additional administrative costs and burdens imposed

by Nicholson’s failure to pay, or untimely payment of, contributions, by way of the

payment of liquidated damages and interest as provided in ERISA, 29 U.S.C.

§1132(g);

(e) To pay any and all costs incurred by Plaintiffs in auditing Nicholson’s payroll

records, should it be determined that Nicholson was delinquent in the reporting or

submission of all contributions required of it to be made to Plaintiffs;

(f) To pay Plaintiffs’ reasonable attorneys’ fees and costs necessarily incurred in the

prosecution of any action to require Nicholson to submit its payroll books and

records for audit, or to recover delinquent contributions;

(g) To furnish to Plaintiffs a bond with good and sufficient surety thereon, in an amount

acceptable to Plaintiffs, to cover future contributions due the Plaintiffs.

5. Nicholson is delinquent and has breached its obligations to Plaintiffs and its

obligations under the plans in the following respect:

Defendant has failed to make payment of contributions, liquidated damages, and

audit fees based upon an audit of the Defendant's payroll records showing Defendant

to have been delinquent in the payment of contributions and to have reported hours

worked by its Employees incorrectly to Plaintiffs.

6. That upon careful review of all records maintained byPlaintiffs, and after application

of any and all partial payments made by Nicholson, there is a total of $22,203.17, known to be due

Plaintiffs from Nicholson based on a review of its payroll books and records for the period July 2016

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through September 2018, subject to the possibility that additional amounts will come due during the

pendency of this lawsuit.

7. Plaintiffs have requested that Nicholson perform its obligations as aforesaid, but

Nicholson has failed and refused to so perform.

8. Nicholson’s continuing refusal and failure to perform its obligations to Plaintiffs is

causing and will continue to cause irreparable injuries to Plaintiffs for which Plaintiffs have no

adequate remedy at law.

WHEREFORE, Plaintiffs pray:

(A) That judgment be entered in favor of Plaintiffs and against Nicholson for all unpaid

contributions, liquidated damages, anycosts of auditingNicholson’s records, accrued

interest, and Plaintiffs’reasonable attorneys’ fees and court costs necessarilyincurred

in this action as specified herein, or as subsequently determined, all as provided for

in the collective bargaining agreement, Trust Agreements and ERISA;

(B) That Plaintiffs have such further relief as may be deemed just and equitable by the

Court, all at Nicholson’s cost.

COUNT II

(Claim under LMRA by Local 364 against Nicholson)

9. Plaintiffs reallege and incorporate by reference Paragraphs 3 through 6 into this

Count.

10. This action arises under the laws of the United States and is brought pursuant to the

terms of the Labor-Management Relations Act of 1947, as amended, 29 U.S.C. §185. Jurisdiction

is based on the existence of questions arising thereunder as hereinafter more fully appears. The

rights asserted herein arise from the same series of transactions as Count I and there are common

questions of law and facts to both Counts.

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11. Plaintiff, Local 364, is a labor organization representing certain of Nicholson’s

employees as the duly authorized collective bargaining representative, and is party to a collective

bargaining with Nicholson.

12. Underthe aforesaid collective bargaining agreement, Nicholson agreed to deductfrom

the wages of those of its employees represented by Local 364, and who execute proper written

authorization, sums of money as and for union dues, which monies are to be remitted to Local 364

on a monthly basis along with Nicholson’s regular fringe benefit reports and contributions as

described in Count I of this Complaint.

13. Nicholson has deducted or has been required to deduct dues from the wages of its

employees as required by the collective bargaining agreement, but has failed and refused to remit all

or part of such monies so deducted to Local 364, but has instead converted such monies to its own

use.

14. The total amount of money that Nicholson failed to remit to Local 364 in violation

of the collective bargaining agreement totals $442.07, based on a review of Nicholson’s payroll

books and records covering the period July 2016 through September 2018.

15. Nicholson’s acts and omissions as described herein constitute a breach of the

collective bargaining agreement and entitle Local 364 to recover from Nicholson all monies which

Nicholson was required to remit, whether deducted from wages or not and whether traceable or

untraceable commingled with Nicholson’s assets, and further entitle Local 364 to recover from

Nicholson its damages for breach of Nicholson’s obligations.

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WHEREFORE, Local 364 prays:

(A) That judgment be entered in its favor and against Nicholson for all sums determined

to be due from Nicholson to Local 364;

(B) That Local 364 recover from Nicholson its damages and all costs of collection and

recovery including its reasonable attorneys’ fees and costs;

(C) That Local 364 have such further relief as may be considered just and equitable by

the Court, all at Nicholson’s cost.

/s/ Patrick N. Ryan 

Catherine M. Chapman

Patrick N. Ryan

Attorneys for the Plaintiffs

BAUM SIGMAN AUERBACH & NEUMAN, LTD.

200 West Adams Street, Suite 2200

Chicago, IL 60606-5231

Bar No.: 6278364

Telephone: (312) 216-2573

Facsimile: (312) 236-0241

E-Mail: pryan@baumsigman.com

I:\364J\Nicholson Electric\#29042\complaint.pnr.df.wpd

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