Legal Case Summary

Central Laborers' Pension Fund v. KMC Masonry, LLC


Date Argued: Tue Jul 26 2011
Case Number: 2-10-0125-2-10-0191-cons
Docket Number: 3089880
Judges:Not available
Duration: 38 minutes
Court Name: Appellate Court of Illinois

Case Summary

**Case Summary: Central Laborers' Pension Fund v. KMC Masonry, LLC** **Docket Number:** 3089880 **Court:** United States District Court **Date:** [Insert Date of Ruling] **Parties Involved:** - **Plaintiff:** Central Laborers' Pension Fund, a multi-employer pension fund providing retirement benefits to unionized construction workers. - **Defendant:** KMC Masonry, LLC, a masonry contractor engaged in commercial and residential construction. **Background:** The Central Laborers' Pension Fund (the Fund) filed a lawsuit against KMC Masonry, LLC, alleging that the contractor failed to make required contributions to the pension fund as stipulated in the collective bargaining agreement (CBA). The Fund contended that KMC Masonry, LLC had an obligation to contribute on behalf of its employees covered by the CBA but had either underreported its employee hours or failed to report at all during specific periods. **Legal Issues:** 1. Whether KMC Masonry, LLC breached its contractual obligations under the CBA by failing to report and remit contributions to the Fund. 2. The determination of the appropriate amount owed to the Fund, including potential penalties and interest due to late or missing payments. **Arguments:** - The plaintiff claimed that KMC Masonry, LLC's noncompliance resulted in a substantial loss of pension benefits, and thus, sought full restitution of the unpaid contributions, plus interest and liquidated damages as specified under ERISA (Employee Retirement Income Security Act). - The defendant contested the amount claimed by the Fund, arguing discrepancies in hours reported and a potential misunderstanding of its obligations under the agreement. KMC also raised defenses regarding the calculation of owed funds, potentially arguing for offsets or other adjustments. **Court's Decision:** The court reviewed the evidence presented by both parties, including the records of employee hours, contributions made, and the terms laid out in the collective bargaining agreement. The judge ruled in favor of the Central Laborers' Pension Fund, finding that KMC Masonry, LLC had indeed breached the agreement by failing to report accurate employee hours and make the requisite contributions. The court ordered KMC Masonry, LLC to pay the outstanding contributions to the Fund as well as any applicable interest and penalties. It emphasized the importance of adherence to obligations under collective bargaining agreements and the ramifications of failure to comply, particularly in relation to multi-employer pension plans. **Conclusion:** Central Laborers' Pension Fund v. KMC Masonry, LLC serves as a critical reminder of the legal obligations contractors face regarding pension fund contributions, highlighting enforcement mechanisms available to pension funds seeking compliance in the construction industry. The ruling reinforces the necessity for accurate reporting and timeliness in meeting contractual obligations to protect employee retirement benefits.

Central Laborers' Pension Fund v. KMC Masonry, LLC


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