UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

UNITED FOOD AND COMMERCIAL 

WORKERS UNIONS AND EMPLOYERS 

MIDWEST PENSION FUND, and TRUSTEES 

ROBERT O’TOOLE, PAUL SCHAEFER, 

ROBERT WILSON, BRIAN JORDAN, 

WILLIAM R. SEEHAFER, MARK JACOBS,

 Plaintiffs,

 v.

GENES TIRE SERVICE, INC., 

 Defendant.

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

Case No.

Now Come Plaintiffs, United Food and Commercial Workers Unions and Employers 

Midwest Pension Fund (“Pension Fund”), and Trustees, Robert O’Toole, Paul Schaefer, Robert 

Wilson, Brian Jordan, William R. Seehafer, Mark Jacobs (“Trustees”) (collectively, “Plaintiffs”), 

and for a cause of action against Genes Tire Service, Inc. (“Defendant”) allege as follows:

INTRODUCTION

1. This action is brought under the Employee Retirement Income Security Act of 1974 

(“ERISA”) as amended, 29 U.S.C. §§ 1001 et seq., and the Labor Management Relations Act of 

1948 (“LMRA”), 29 U.S.C. § 185. The Pension Fund seeks a money judgment to collect 

withdrawal liability in the amount assessed against Defendant pursuant to Section 4201 of ERISA, 

29 U.S.C. § 1381, and other monetary relief pursuant to Sections 502(g)(2) and 4301(e) of ERISA, 

29 U.S.C. §§ 1132(g)(2) and 1451(e).

Case: 1:20-cv-03250 Document #: 1 Filed: 06/02/20 Page 1 of 5 PageID #:1
2

JURISDITION AND VENUE

2. Jurisdiction is conferred on this court by ERISA Sections 502(a)(3), (e)(1) and (f), 

and 4301(c), 29 U.S.C. §§ 1132(a)(3), (e)(1) and (f), and 1451(c), and by the provisions of 28 

U.S.C. § 1331, relating to any civil action or proceeding arising under the laws of the United States

3. Venue is proper in this court pursuant to Sections 502(e)(2) and 4301(d) of ERISA, 

29 U.S.C. §§ 1132(e)(2) and 1451(d), as the Pension Fund is administered in this judicial district 

at 18861 90th Ave, Suite A, Mokena, IL 60448.

PARTIES

4. The Pension Fund is a multiemployer pension plan within the meaning of Sections 

3(37) and 4001(a)(3) of ERISA, 29 U.S.C. §§ 1002(37) and 1301(a)(3), and an “employee pension 

benefit plan” within the meaning of Sections 3(2)(A) and (3) of ERISA, 29 U.S.C. §§ 1002(2)(A) 

and (3), established and maintained for the purpose of providing retirement and related benefits to 

eligible participants and beneficiaries, and subject to the withdrawal liability provisions of ERISA.

5. The Trustees of the Pension Fund are fiduciaries within the meaning of Section 

3(21)(A) of ERISA, 29 U.S.C. § 1002(21)(A), and are also the plan sponsor within the meaning 

of ERISA § 3(16) and have authorized this lawsuit.

6. Pursuant to Sections 502(a)(3) and 4301(a)(1) of ERISA, 29 U.S.C. § 1132(a)(3), 

and 29 U.S.C. § 1451, the Plaintiffs are authorized to bring this action on behalf of the Plan, its 

participants and its beneficiaries.

7. Defendant is an Illinois corporation that does business at 280 W. 63rd Street 

Westmont, IL 60559.

Case: 1:20-cv-03250 Document #: 1 Filed: 06/02/20 Page 2 of 5 PageID #:2
3

8. Defendant, at all times material, has been an employer within the meaning of 

Sections 3(5) of ERISA, 29 U.S.C. § 1002(5), and is engaged in an industry affecting commerce 

within the meanings of Section 3(11) and (12) of ERISA, 29 U.S.C. § 1002(11) and (12). 

Count I

(Default on Withdrawal Liability)

9. Defendant, at all times material, participated in and contributed to, the Pension 

Fund pursuant to the terms of a Collective Bargaining Agreement (“CBA”) between itself and 

United Food and Commercial Workers Union Local 1546 (“Union”). (A true and correct copy of 

the most recent Collective Bargaining Agreement is attached hereto as Exhibit A).

10. Defendant, at all times material, was a party to the Agreement and Declaration of 

Trust (“Trust Agreement”). (A true and correct copy of the Trust Agreement is attached hereto as 

Exhibit B).

11. On April 10, 2019, Defendant completely withdrew from the Pension Fund 

triggering an assessment of withdrawal liability pursuant to Section 4201 of ERISA, 29 U.S.C. § 

1381.

12. By letter dated May 31, 2019, the Pension Fund assessed Defendant withdrawal 

liability for the 2019 plan year. (A true and correct copy of the May 31, 2019 Assessment Letter 

is attached hereto as Exhibit C). 

13. The Assessment Letter demanded payment of Defendant’s withdrawal liability, 

which was calculated as $2,006,910.00, payable in 240 monthly installments of $1,770.47 

commencing on July 1, 2019. Defendant’s total assessed withdrawal liability is subject to the 20-

year statutory-cap on payments which reduces the liability principal to $237,464.28, plus interest

in an amount of $187,448.52, totaling $424,912.80. 

Case: 1:20-cv-03250 Document #: 1 Filed: 06/02/20 Page 3 of 5 PageID #:3
4

14. Defendant did not exercise its right of review pursuant to 29 U.S.C. § 1399 and has 

therefore waived its right to challenge the assessed withdrawal liability. 

15. The May 31, 2019 assessment letter also provided Defendant notice that, pursuant 

to ERISA Section 4219(C)(5), the Pension Fund reserved the right to declare Defendant in default 

and demand immediate payment of the entire assessed withdrawal liability, including interest, if 

Defendant failed to timely pay its monthly withdrawal liability payments and did not cure the 

delinquency within 60 days from written notice that of the delinquency. 

16. By letter dated September 25, 2019, the Pension Fund notified Defendant that it 

was delinquent in its monthly withdrawal liability payments, and it had 60 days from the date of 

the letter to cure its delinquency. (A true and correct copy of the September 25, 2019 delinquency 

letter is attached hereto as Exhibit D). 

17. To date, Defendant has failed or refused to pay its withdrawal liability payments 

and is in default to the Pension Fund for the entire amount of its withdrawal liability, plus interest.

18. Pursuant to ERISA Section 4219, because Defendant defaulted on its withdrawal 

liability payments, the Pension Fund is entitled to accelerate payment for the entire amount of 

assessed withdrawal liability. Accordingly, Defendant owes the Pension Fund $237,464.28 and 

$187,448.52 in withdrawal liability principal and interest, respectively, in addition to the Pension 

Fund’s reasonable attorneys’ fees and costs. 

PRAYER FOR RELIEF

WHEREFORE, Plaintiffs respectfully request that this Honorable Court:

A. Enter an order declaring Defendant liable for the assessed withdrawal liability; 

B. Order Defendant to pay the Pension Fund $424,912.80 for the outstanding assessed 

withdrawal liability principal and interest; 

Case: 1:20-cv-03250 Document #: 1 Filed: 06/02/20 Page 4 of 5 PageID #:4
5

C. Order Defendant to pay the Pension Fund’s reasonable attorneys’ fees and costs 

incurred in the prosecution of this action; and,

H. Award Plaintiffs such other and further relief as this Court may deem just and 

proper. 

Date: June 1, 2020

Respectfully submitted,

/s/ Joseph C. Torres 

Joseph C. Torres 

Attorney for Plaintiffs

THE KARMEL LAW FIRM

221 North LaSalle Street

Suite 1550

Chicago, IL 60601

(312) 641-2910

joe@karmellawfirm.com

Case: 1:20-cv-03250 Document #: 1 Filed: 06/02/20 Page 5 of 5 PageID #:5