Opinion ID: 523272
Heading Depth: 3
Heading Rank: 2

Heading: ERISA Liquidated Damages Remedy

Text: 13 The trust funds argue that we should enforce the damages provision because other courts have enforced similar pension plan provisions. Their argument ignores the unique facts of this case. The cases cited by the funds involve 29 U.S.C. Sec. 1132(g)(2)(C)(ii), which is not applicable here. 14 In 1980 Congress amended the Employment Retirement Income Security Act of 1974 (ERISA) with the Multi-employer Pension Plan Amendments Act (MPPAA). The amendments, which include 29 U.S.C. Sec. 1132(g)(2) [after codification], provide a statutory remedy for a trust fund fiduciary suing to collect unpaid plan contributions. 1 15 Subsection 1132(g)(2)(C)(ii) is the liquidated damages provision. It applies when (1) the fiduciary obtains a judgment in favor of the plan, (2) unpaid contributions exist at the time of suit, and (3) the plan provides for liquidated damages. See Carpenters & Joiners Welfare Fund v. Gittleman Corp., 857 F.2d 476, 478 (8th Cir.1988) (requiring unpaid contributions at the time suit is filed); Teamsters Local No. 429 Health and Welfare Fund v. Chain Bike Corp., 643 F.Supp. 1337, 1343-44 (E.D.Pa.1986) (requiring liquidated damages provision in the plan); Trustees of the Glaziers Local 963 Pension, Welfare & Apprentice Funds v. Walker & Laberge Co., 619 F.Supp. 1402, 1405 (D.Md.1985); Bennett v. Machined Metals Co., 591 F.Supp. 600, 605-06 (E.D.Pa.1984) (requiring award of unpaid contributions). Once the provision applies, liquidated damages are mandatory. E.g., Operating Engineers Pension Trust v. A-C Co., 859 F.2d 1336, 1342 (9th Cir.1988); see Operating Engineers Pension Trust v. Reed, 726 F.2d 513, 514 (9th Cir.1984). 16 Because no contributions were unpaid at the time of this suit, Sec. 1132(g)(2) does not apply. In contrast, the provision at issue provides for liquidated damages when contributions are late rather than unpaid. 2 17 The trust funds cite only inapplicable cases where unpaid contributions existed at the time of suit or even after judgment. See, e.g., Operating Engineers Pension Trust v. A-C Co., 859 F.2d at 1342; Central States, Southeast and Southwest Areas Pension Fund v. Gerber Truck Serv., Inc., 854 F.2d 1074, 1080 (7th Cir.1988), vacated on other grounds, 864 F.2d 561 (7th Cir.1989), rehearing en banc, 870 F.2d 1148 (7th Cir.1989); Vernau v. Bowen Enter., Inc., 648 F.Supp. 721, 724-25 (W.D.Pa.1986); LaJiness v. Reactor Controls, Inc., 642 F.Supp. 27, 32 (E.D.Mich.1985); Thelin v. Mitchell, 576 F.Supp. 1404, 1408-09 (N.D.Ill.1983). Here, UMC paid the contributions before suit was filed.