Boland v. Fortis Construction Company, LLC
Civil Action No. 2010-1701
D.D.C.Jul 12, 2011Background
- IPF trustees sue Fortis for withdrawal liability under MPPAA/ERISA.
- Fortis moves to dismiss for lack of subject matter and personal jurisdiction and improper venue, or to transfer to Western District of Missouri.
- Court holds Diaz Construction allegedly alter ego of Fortis; Diaz entered Chapter 7 in Missouri in 2008; Armando Diaz becomes Fortis managing member.
- IPF notified withdrawal liability on April 6, 2010; Fortis allegedly failed to pay per schedule and did not initiate arbitration.
- Court determines ERISA nationwide service provides subject matter and personal jurisdiction; venue proper in DC; transfer denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court has subject matter jurisdiction over alter ego claims | Allegations are tied to ERISA withdrawal liability; supplemental jurisdiction. | Alter ego issue is not within federal question jurisdiction. | Yes, supplemental jurisdiction exists; subject matter jurisdiction denied to be limited. |
| Whether the court has personal jurisdiction over Fortis as alter ego | ERISA provides nationwide service; minimum contacts presumed. | No meaningful contacts with DC; no personal jurisdiction. | Yes, personal jurisdiction present under ERISA nationwide service. |
| Whether venue is proper in DC or transfer is warranted | ERISA venue appropriate where plan administered (DC). | Venue improper; transfer to Missouri appropriate. | Venue proper in DC; transfer denied. |
| Whether the case should be transferred under 28 U.S.C. § 1404(a) | Transfer unnecessary; ERISA special venue considerations apply. | Transfer would better serve convenience. | Transfer denied; ERISA venue policy weighed in favor of DC. |
Key Cases Cited
- Peacock v. Thomas, 516 U.S. 349 (U.S. Supreme Court 1996) (veil-piercing claims require underlying federal basis or supplemental jurisdiction)
- GTE New Media Servs. Inc. v. BellSouth Corp., 199 F.3d 1343 (D.C. Cir. 2000) (personal jurisdiction standards with nationwide service of process under ERISA)
- IUE AFL-CIO Pension Fund v. Herrmann, 9 F.3d 1049 (2d Cir. 1993) (ERISA withdrawal liability with nationwide service of process)
- Flynn v. Veazey Constr. Corp., 424 F. Supp. 2d 24 (D.D.C. 2006) (alter ego considerations; jurisdiction tied to ERISA claims)
- Flynn v. R.C. Tile, 353 F.3d 953 (D.C. Cir. 2004) (alter ego standards and ancillary jurisdiction)
- Bd. of Trustees, Nat’l Shopmen Pension Fund v. N. Steel Corp., 657 F. Supp. 2d 155 (D.D.C. 2009) (supplemental jurisdiction over related alter ego claims in ERISA)