Pension Plan for Pension Trust Fund for Operating Engineers v. Weldway Construction, Inc.
920 F. Supp. 2d 1034
N.D. Cal.2013Background
- Plaintiffs filed an ERISA/MPPAA withdrawal liability action against Weldway Construction, Inc. and Weldway, Inc.
- Plaintiffs seek withdrawal liability, interest, liquidated damages, costs, and fees, plus injunctive relief.
- Plaintiffs moved for a preliminary injunction to enjoin arbitration or stay arbitration; Defendants moved to compel arbitration.
- WCI withdrew from the Fund in 2009; Weldway never signed or participated in union agreements but is linked as part of a common control group.
- Defendants allegedly failed to timely initiate arbitration; disputes over timeliness, tolling, and waiver are central to the motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of initiating arbitration under ERISA/MPPAA | Plaintiffs argue no timely initiation under 1401(a)(1); 90/60/120-day deadlines not met. | Weldway contends its request for review and subsequent arbitration were timely; deadlines should be considered with possible tolling. | Plaintiffs likely to prevail on timeliness challenge. |
| Equitable tolling of arbitration deadlines | Defendants bore burden; no extraordinary circumstances shown. | Defendants seek tolling due to review process or record ambiguities. | Equitable tolling not established. |
| Waiver or voluntary participation in arbitration | Nagrampa controls; Plaintiffs did not waive rights by limited procedural participation. | Plaintiffs’ participation and communications show intent to arbitrate. | No waiver; objections preserved. |
| Whether a preliminary injunction is appropriate to stay arbitration | Public policy favors prompt resolution of withdrawal liability; irreparable harm if forced to arbitrate. | Arbitration promotes ERISA policy and preserves forum choice. | Granting preliminary injunction appropriate. |
| Whether Defendants’ Motion to Compel Arbitration should be denied | Timeliness and waiver issues bar arbitration; court should adjudicate arbitrability first. | Arbitration should proceed; timeliness and waiver questions belong to arbitrator. | Denied; arbitration not compelled. |
Key Cases Cited
- Allyn v. Board of Trustees, 832 F.2d 501 (D.C. Cir. 1987) (arbitration required for disputes arising under ERISA sections 1381-1399; timeliness for arbitration matters falls under 1401(a)(1))
- Robbins v. Teamsters Pension Trust Fund, 866 F.2d 901 (7th Cir. 1987) (court may decide whether arbitration was timely initiated; timeliness is a court issue under 1401(a)(1))
- Doherty v. Teamsters Pension Trust Fund, 16 F.3d 1386 (3d Cir. 1994) (equitable tolling may apply to arbitration deadlines in some circuits)
- Ficek v. Southern Pacific Co., 338 F.2d 655 (9th Cir. 1964) (waiver principles in arbitration; participation can affect rights to challenge arbitrator's authority)
- Nagrampa v. MailCoups, Inc., 469 F.3d 1257 (9th Cir. 2006) (mere argument of arbitrability does not show waiver; intentional relinquishment required)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995) (consideration of arbitration consent and gateway issues; standard for evaluating arbitrability)