Opinion ID: 2998088
Heading Depth: 2
Heading Rank: 2

Heading: Terms of the Participation Agreement

Text: Central States argues in the alternative that even if decertification does not give rise to a defense by operation of law, the terms of the Participation Agreement themselves condition Truck Transport’s duty to contribute upon Local 878’s status as the exclusive bargaining representative of the Batesville employees. It contends, therefore, that Truck Transport’s obligations terminated once Local 878 lost that status. As support for this argument, Central States relies on the following language: “the Union and the Employer have entered into a collective bargaining agreement which provides for participation in [Central States’ pension fund] in order to obtain . . . benefits for employees . . . represented by the Union and employed by the Employer.” Central States reads this to mean that the agreement is effective only as long as the employees are “represented by the Union,” i.e., Local 878. Central States’ reading cannot be squared with the notice clause of the Participation Agreement. That clause explicitly provides that Truck Transport’s contribution duties will continue until it gives the prescribed notice. While decertification terminated Local 878’s right to enforce the agreement notwithstanding this language, liability in a § 1145 action turns on “the terms of the plan or the terms of the 16 No. 04-4217 collectively bargained agreement.” Because Central States’ interpretation contradicts those terms, we reject this argument.