Opinion ID: 2279836
Heading Depth: 1
Heading Rank: 2

Heading: First Indemnity

Text: Local 825 had a collective bargaining agreement with L.B.S. Construction Co., Inc. (LBS) similar to that which it had with Gram. This collective bargaining agreement included various pension, benefit, and welfare funds established pursuant to ERISA, and required LBS to pay contributions to the various funds. Pursuant to the Bond Act, LBS obtained bonds for labor and materials from First Indemnity of America Insurance Co. An audit by Local 825 of LBS' books revealed a $73,624.94 underpayment of contributions to the trust funds. In August 1992, Local 825 filed a complaint in the Law Division against LBS for payment of the delinquency. LBS did not file an answer, apparently because it was involved in bankruptcy proceedings. Local 825 filed an amended complaint in May 1993, and named First Indemnity as a defendant. Local 825 alleged First Indemnity was responsible for contribution to the trust funds because of LBS' default. First Indemnity moved for summary judgment on the grounds that ERISA preempted Local 825's cause of action. In July 1994, the Law Division granted First Indemnity's motion. Local 825 appealed. The Appellate Division reversed the Law Division and reinstated Local 825's complaint on the same basis as in the International Fidelity matter. 287 N.J. Super. 498, 671 A. 2d 596 (App.Div. 1996). We granted First Indemnity's petition for certification. 146 N.J. 68, 679 A. 2d 654 (1996).