Opinion ID: 723931
Heading Depth: 2
Heading Rank: 2

Heading: The Fund's Cross-Appeal.

Text: 47 The Fund appeals from the district court's refusal to award attorney fees and costs pursuant to 29 U.S.C. § 1132(g). Section 1132(g) provides in pertinent part: 48 (1) In any action under this subchapter (other than an action described in paragraph (2)) by a participant, beneficiary, or fiduciary, the court in its discretion may allow a reasonable attorney's fee and costs of action to either party. 49 (2) In any action under this subchapter by a fiduciary for or on behalf of a plan to enforce section 1145 of this title in which a judgment in favor of the plan is awarded, the court shall award the plan-- 50 (A) the unpaid contributions, 51 (B) interest on the unpaid contributions, 52 (C) an amount equal to the greater of-- 53 (i) interest on the unpaid contributions, or 54 (ii) liquidated damages provided for under the plan in an amount not in excess of 20 percent (or such higher percentage as may be permitted under Federal or State law) of the amount determined by the court under subparagraph (A), 55 (D) reasonable attorney's fees and costs of the action, to be paid by the defendant, and 56 (E) such other legal or equitable relief as the court deems appropriate. 57 As is apparent from the statutory text, an award of attorney fees and costs is discretionary under subsection (1), and mandatory under subsection (2), of section 1132(g). The Fund contends that this is a section 1132(g)(2) action to enforce section 1145, which provides: 58 Every employer who is obligated to make contributions to a multiemployer plan under the terms of the plan or under the terms of a collectively bargained agreement shall, to the extent not inconsistent with law, make such contributions in accordance with the terms and conditions of such plan or such agreement. 59 In our view, this is not an action to enforce section 1145 ... in which a judgment in favor of the plan [has been] awarded within the meaning of section 1132(g)(2). Such a judgment would normally include unpaid contributions, § 1132(g)(2)(A), and there has been no determination that either Boening or Snyder owe unpaid contributions to the Fund. See Iron Workers Dist. Council Welfare & Pension Funds v. Hudson Steel Fabricators & Erectors, Inc., 68 F.3d 1502, 1507 (2d Cir.1995) ([A section 1132(g)(2) ] action must be one to enforce the obligation to pay contributions under § 1145, and therefore no such suit can be commenced in the absence of unpaid contributions....). In both Vertex, 932 F.2d at 1452-53, and Miramar, 920 F.2d at 1495-96, the trust fund's application for attorney fees and costs was deemed to be governed by subsection (1), rather than (2), of section 1132(g), and the applications were denied even though the plaintiff trust fund prevailed in both cases on the merits. The only circuit court case cited to us by the Fund on this issue is Carpenters Amended & Restated Health Benefit Fund v. John W. Ryan Construction Co., 767 F.2d 1170 (5th Cir.1985). That case addressed the wholly inapposite issue whether an employer, sued by employee benefit plans for delinquent contributions, may avoid liability for statutory interest and attorney's fees by paying the delinquent contributions after suit is brought but before judgment. Id. at 1171. 60 Thus, the district court correctly focused upon whether attorney fees and costs were appropriate under section 1132(g)(1), which provides that the court in its discretion may allow a reasonable attorney's fee and costs of action to either party. We conclude that the district court did not abuse its discretion in declining to award fees and costs in this case. See Mendez v. Teachers Ins. & Annuity Ass'n & College Retirement Equities Fund, 982 F.2d 783, 788-89 (2d Cir.1992) (applying abuse of discretion standard to district court's decision to award attorney fees pursuant to section 1132(g)(1)); Vertex, 932 F.2d at 1453 (denying attorney fees and costs for reasons similar to those articulated by district court in this case); Miramar, 920 F.2d at 1496 (same).