Opinion ID: 491025
Heading Depth: 1
Heading Rank: 4

Heading: Limitations of Actions for Collection Under ERISA

Text: 36 Where a federal statute does not provide a limitations period for bringing a cause of action, a court must select a period from a statute governing analogous causes of action. The district court ruled that a Hawaii statute of limitations was appropriate for actions seeking to recover delinquent contributions from an employer under ERISA. 29 U.S.C. Sec. 1132. 627 F.Supp. at 243. The statute selected, Haw.Rev.Stat. Sec. 657-11, provides that the period of limitations for a federal cause of action that imposes a new liability or enlarges any existing liability is one year. 16 37 We note that the Hawaii statute selected by the district court cannot apply by force of state law to federal causes of action filed in federal court. Cf. Reconstruction Finance Corp. v. Beaver Co., 328 U.S. 204, 66 S.Ct. 992, 90 L.Ed. 1172 (1946); Sola Elec. Co. v. Jefferson Elec. Co., 317 U.S. 173, 63 S.Ct. 172, 87 L.Ed. 165 (1942). Moreover, the statute selected by the district court on its face applies only to actions brought in a state court. Haw.Rev.Stat. Sec. 657-11. 38 Although there are strong reasons for creating a uniform federal rule governing the limitation of actions for collection of delinquent ERISA contributions--including the fact that multiemployer trust funds may cover employers operating in a number of states--our circuit is not free to adopt such a rule, except through the en banc process. We recently held that state statutes of limitations governing claims for breach of contract are to be borrowed for ERISA collection actions, Ferrell, 812 F.2d 512, and a panel of our court is not free to overrule that decision. Atonio v. Wards Cove Packing Co., 810 F.2d 1477 (9th Cir.1987) (en banc). 39 In Ferrell, we applied an Alaska statute, holding: 40 The Trustees' claim can only be characterized as a straightforward breach of contract claim. The Trustees allege that Ferrell, as a successor employer, is bound by the compliance agreement which he breached by failing to make the required contributions. Accordingly, ... we apply the Alaska limitations period governing contract actions. 41 Ferrell, 812 F.2d at 517 (footnote omitted). The Alaska statute provided a six year period within which to commence suit. Id. at n. 2. Similarly, the relevant Hawaii statute provides for a six year period. See Haw.Rev.Stat. Sec. 657-1(1). 17 42 Here the trustees' claim is similar to that of the trustees in Ferrell and the limitations period is identical. Accordingly, the Hawaii contract limitations period is applicable. We note especially that effectuation of federal policy is not impeded by application of a six year statute of limitations. Congress has expressed its clear desire to remove jurisdictional and procedural obstacles which ... appear to ... hamper[ ] effective ... recovery of benefits due. S.Rep. No. 127, 93d Cong., 1st Sess. reprinted in, 1974 U.S.Code Cong. & Admin.News 4838, 4871. Cf. Dice v. Akron, C. & Y. R.R., 342 U.S. 359, 72 S.Ct. 312, 96 L.Ed. 398 (1952). 43 Imposing too short a statute would interfere with the strong federal policy that underlies ERISA. The federal government, or more specifically the Pension Benefit Guaranty Corporation, will ultimately be liable for the payment of vested benefits if a pension plan is not adequately funded and terminates. In order to encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants, 29 U.S.C. Sec. 1302(a)(1), we believe that employee trust funds should be given ample opportunity to recover delinquent contributions. We need not decide here what period of time would be insufficient to protect federal interests since a six year period clearly is adequate. 44 The Funds' actions to collect delinquent contributions are timely under the Hawaii limitations period we borrow here.