Demopoulos v. Anchor Tank Lines, LLC
117 F. Supp. 3d 499
S.D.N.Y.2015Background
- Trustees of Teamsters Local 553 multi-employer benefit funds sued Anchor Tank Lines LLC (successor entities), Tank Acquisition Company LLC, and three individuals (Leonard Baldari, Robert Baldari, Michael Hiller) for unpaid contributions, withdrawal liability, unjust enrichment, an accounting, and enforcement of a personal guaranty arising from nonpayments between 2007–2009.
- Prior litigation: Trustees obtained settlements/judgments against Anchor Tank Lines Corp. (Anchor I) and Reliable/Anchor Transit (Reliable) in Demopoulos I–III (2007–2011); amounts remain unpaid.
- Baldari and Hiller were indicted in 2007; the government sought forfeiture of Anchor I and Reliable assets. Anchor I’s assets were later sold; Tank Defendants purchased those assets in 2010–2011 and operate from the same location.
- Trustees filed the present amended complaint in 2015 asserting ERISA fiduciary claims against the individuals and successor-liability / related claims against Tank Defendants and a claim to enforce Baldari’s personal guaranty from the prior settlement.
- Court considered judicially-noticeable filings (criminal indictment, prior judgments, bankruptcy pleadings) and disallowed tolling arguments where unsupported; motions to dismiss by defendants granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of ERISA fiduciary claim against Individual Defs | Trustees waited because discovery of full facts was incomplete; tolling or fraud exception applies | Trustees had actual knowledge by 2009–2010; claim filed in 2014 is time-barred under §1113 | Dismissed: three-year accrual (actual knowledge) governs; claim untimely; equitable tolling not warranted |
| Applicability of six-year fraud/concealment period under §1113 | Trustees claim concealment by defendants supports six-year or tolling | No material concealment of nonpayment; omission/fraud exception not met | Not applicable: no fraudulent concealment of the nonpayment; payments plainly missed |
| Successor liability claims against Tank Defendants (federal jurisdiction) | Trustees invoked ERISA/supplemental/ancillary jurisdiction to impose liability on successors | Peacock bars ancillary jurisdiction to impose liability for existing ERISA judgments on non-liable third parties | Dismissed for lack of subject-matter jurisdiction under Peacock; court declines supplemental jurisdiction after federal claims dismissed |
| Enforcement of Baldari’s personal guaranty (ancillary jurisdiction / preclusion) | Trustees seek to enforce guaranty in new action; argue deceit about ability to pay justifies new suit | Court lacks ancillary jurisdiction (different docket/ judge); claim barred by res judicata/merger | Dismissed: no ancillary jurisdiction in this court; alternatively barred by res judicata/merger |
Key Cases Cited
- Janese v. Fay, 692 F.3d 221 (2d Cir. 2012) (explains ERISA §1113 alternative limitations periods)
- Caputo v. Pfizer, 267 F.3d 181 (2d Cir. 2001) (defines fraud/ concealment trigger for six-year limitations in ERISA)
- Peacock v. Thomas, 516 U.S. 349 (1996) (limits ancillary jurisdiction to impose liability for an existing federal judgment on non-liable third parties)
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (1994) (requirements for federal courts to retain ancillary jurisdiction to enforce settlements)
- Keiler v. Harlequin Enters. Ltd., 751 F.3d 64 (2d Cir. 2014) (standard for Rule 12(b)(6) motion review)