800 F.3d 289
6th Cir.2015Background
- In 2006, the Iron Workers negotiated a contract with JD Steel requiring wage and benefit contributions to Local 17’s pension fund at $10/hour.
- In 2013, the Iron Workers negotiated a contract with Davis Rebar requiring contributions to Local 17’s defined-contribution plans at the same $10/hour rate.
- Davis Rebar has made all required contributions to the Local 17 defined-contribution plan.
- Summer 2013 work at Fairview Hospital (JD Steel) and University Hospital (Davis Rebar) occurred in Local 17 territory; Davis Rebar used JD Steel’s name/logo and shared a foreman and supervisors who directed Davis Rebar employees.
- The Trustees filed suit under ERISA § 1132(a)(3) seeking to treat Davis Rebar as JD Steel’s alter ego to bind it to JD Steel’s pension-fund contributions.
- The district court dismissed the case; the Sixth Circuit affirmed, declining to apply the alter-ego doctrine because the Iron Workers Association negotiated both contracts and represents its members’ interests.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Alter-ego binding to JD Steel’s contract | Trustees: Davis Rebar is alter ego of JD Steel to evade obligations. | Iron Workers negotiated both contracts; no inequity shown by treating them separately. | Alter-ego not applied; district court affirmed. |
| Davis Rebar as plan sponsor under §1085 | Trustees: Davis Rebar is a plan sponsor under §1085 and bound to Fund. | Davis Rebar is not a sponsor under its contract with the Iron Workers. | Not a plan sponsor; argument meritless. |
Key Cases Cited
- Trustees of Detroit Carpenters Fringe Benefit Funds v. Industrial Contractors, LLC, 581 F.3d 313 (6th Cir. 2009) (alter-ego doctrine governs when to ignore corporate form to protect labor obligations)
- Industrial Contractors, LLC v. Trustees of Detroit Carpenters Fringe Benefit Funds, 581 F.3d 313 (6th Cir. 2009) (part of alter-ego doctrine framework (cited as controlling context))
- Resilient Floor Decorators Ins. Fund v. A & M Installations, Inc., 395 F.3d 244 (6th Cir. 2005) (alter-ego doctrine requires showing the employer manipulated form to harm the union)
- Mass. Carpenters Central Collection Agency v. A.A. Building Erectors, Inc., 343 F.3d 18 (1st Cir. 2003) (supports analysis of when corporate form manipulation is inequitable)
- NLRB v. Allcoast Transfer, Inc., 780 F.2d 576 (6th Cir. 1986) (no prerequisite intent to evade obligations for alter ego)