909 F.3d 1214
9th Cir.2018Background
- Quad/Graphics acquired Quebecor World (2010) and inherited obligations to contribute to the GCIU-Employer Retirement Fund under collective bargaining agreements.
- After staggered union decertifications (2009 Memphis, later others), Quad first incurred a partial-withdrawal liability and then, in 2011, a complete withdrawal from the Fund.
- The Fund calculated Quad’s 2011 complete-withdrawal liability by first applying a prior partial-withdrawal credit under 29 U.S.C. § 1386(b), then applying the § 1399(c)(1)(B) twenty-year limitation on annual payments.
- Quad disputed the sequencing: it argued the twenty-year limitation should be applied first and then the partial-withdrawal credit deducted.
- The dispute went to mandatory arbitration; the arbitrator ruled for the Fund. The district court reviewed de novo on the legal question and affirmed; the Ninth Circuit likewise affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the prior partial-withdrawal credit under § 1386(b) must be applied before calculating the § 1399(c)(1)(B) 20-year payment limitation | Quad: apply § 1399(c)(1)(B) first (limit annual payments), then reduce remaining obligation by § 1386(b) credit | Fund: follow statutory sequencing in § 1381(b)(1): apply § 1386 adjustments next, then § 1399(c)(1)(B) limitation | Court: Affirmed Fund — § 1381(b)(1) unambiguously requires applying § 1386(b) credit before § 1399(c)(1)(B) calculation |
| Standard of review for arbitrator’s legal conclusions | Quad: sought to overturn arbitrator’s legal conclusion | Fund: defended arbitrator’s legal conclusion | Court: De novo review of arbitrator’s conclusions of law; district court and Ninth Circuit affirmed arbitrator’s legal conclusion |
Key Cases Cited
- Milwaukee Brewery Workers’ Pension Plan v. Joseph Schlitz Brewing Co., 513 U.S. 414 (discusses MPPAA’s installment method and debt forgiveness after 20 years)
- Carpenters Pension Tr. Fund for N. Cal. v. Moxley, 734 F.3d 864 (explains MPPAA withdrawal-liability principles)
- Bay Area Laundry & Dry Cleaning Pension Tr. Fund v. Ferbar Corp. of Cal., 522 U.S. 192 (describes lump-sum option vs. installment method under § 1399)
- Hooks v. Kitsap Tenant Support Servs., Inc., 816 F.3d 550 (plain-language statutory interpretation ends inquiry)
- Christensen v. Harris Cty., 529 U.S. 576 (agency opinion letters not entitled to Chevron deference)
- Skidmore v. Swift & Co., 323 U.S. 134 (provides standards for persuasive weight of agency interpretations)
- CMSH Co. v. Carpenters Tr. Fund for N. Cal., 963 F.2d 238 (Ninth Circuit on de novo review of arbitrator legal conclusions)