Opinion ID: 758563
Heading Depth: 3
Heading Rank: 3

Heading: Statutory Presumptions

Text: 47 Finally, Sherwin-Williams argues that the arbitrator failed to use the appropriate standard in analyzing this case. We agree. As we explained above, the MPPAA requires an arbitrator to presume the correctness of a plan sponsor's determinations with regard to withdrawal liability, including the determination of whether a principal purpose for the withdrawal was to evade or avoid liability, made under § 1392(c). The employer bears the burden of rebutting this presumption and must prove, by a preponderance of the evidence, that the plan sponsor's determination was incorrect. 48 Thus, according to the MPPAA as interpreted by the Supreme Court in Concrete Pipe, 508 U.S. at 629, 113 S.Ct. 2264, the arbitrator in this case should have started with the presumption that the Teamsters Fund correctly determined that a principal purpose behind Sherwin-Williams's sale of Lyons to JRC was to evade or avoid liability under the MPPAA. The arbitrator should have examined all of the evidence to determine whether a preponderance of that evidence rebutted the presumption. This is not what the arbitrator did. 49 Instead, the arbitrator held, 50 From a careful review of the evidence, it is clear beyond any doubt that each party has introduced a significant volume of credible testimonial and documentary evidence to support its conclusion. While agreeing with the holdings in Concrete Pipe and the arguments derived therefrom by the Fund and Sherwin-Williams, this dispute can and will be resolved by the evidence presented at the hearing and without reliance on the statutory presumptions. To couch this conclusion in the language of the precedential opinions, the documentary and testimonial evidence introduced by [SherwinWilliams] was sufficient to disprove the Fund's factual determination by [sic] preponderance, i.e., the existence of a fact is more probable than its nonexistence, if accepted. The same, however, is true of the evidence actually introduced by the Fund. 51 Although we agree with Sherwin-Williams that the arbitrator failed to apply the statutory presumption in favor of the Teamsters Fund, we fail to see how this in any way harmed Sherwin-Williams. The arbitrator examined the evidence and made his legal determinations without giving the Teamsters Fund the benefit of a rebuttable presumption in its favor. The standard the arbitrator actually used was more favorable to Sherwin-Williams than the law allows, and the arbitrator still found against Sherwin-Williams. Sherwin-Williams cannot expect to find any more success under a less favorable standard. 52 The district court found that the arbitrator's findings of fact are not clearly erroneous. We have reviewed the record in this case and conclude that the district court is correct. Applying the statutory presumption of correctness in favor of the arbitrator's findings, as we must do in our de novo review of the arbitrator's legal conclusions, we hold that Sherwin-Williams failed to rebut that presumption by a preponderance of the evidence. For this reason, we conclude that the arbitrator's mistake of law with respect to the application of the presumption in favor of the Teamsters Fund was harmless error.