Sheet Metal Local 98 Pension Fund v. AirTab, Inc.
482 F. App'x 67
6th Cir.2012Background
- Plaintiffs are ERISA employee benefit plans seeking unpaid contributions under a CBA with AirTab and individuals Ileogben and Hairston-Ileogben.
- District court granted summary judgment for the individual defendants on fiduciary-duty and plan-asset issues.
- District court concluded unpaid contributions were not plan assets and the Ileogbens were not ERISA fiduciaries.
- Plaintiffs appealed arguing the Ileogbens were fiduciaries and/or the unpaid contributions were plan assets.
- Court reviews de novo summary judgment and applies ERISA fiduciary definitions to assess personal liability.
- Court affirms district court’s judgment, concluding Ileogbens are not fiduciaries and cannot be personally liable; appellate jurisdiction limits relief to contract terms.]
- The court notes, even if contributions were plan assets, the Ileogbens were not fiduciaries due to lack of status awareness and control over assets.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are Ileogbens ERISA fiduciaries? | Ileogbens acted as fiduciaries by controlling contributions. | Ileogbens are not fiduciaries under ERISA; trustees control assets. | No; Ileogbens are not fiduciaries. |
| Do unpaid contributions constitute plan assets under ERISA? | Unpaid contributions belong to the plan as assets. | Even if so, fiduciary status is lacking. | Question avoided; even if assets, fiduciary status lacking. |
| Is personal liability available against Ileogbens for unpaid contributions? | As fiduciaries, they owe personal liability for losses. | Not fiduciaries; no personal liability. | Not liable; no fiduciary status. |
Key Cases Cited
- ITPE Pension Fund v. Hall, 334 F.3d 1011 (11th Cir. 2003) (fiduciary status requires awareness of fiduciary role)
- Briscoe v. Fine, 444 F.3d 478 (6th Cir. 2006) (mere possession of assets does not establish fiduciary status)
- In re Luna, 406 F.3d 1192 (10th Cir. 2005) (breach of contract unrelated to fiduciary duties cannot create fiduciary status)
- Moore v. Lafayette Life Ins. Co., 458 F.3d 416 (6th Cir. 2006) (restatements of ERISA claims are disfavored)
- LoPresti v. Terwilliger, 126 F.3d 34 (2d Cir. 1997) (employer breach of contribution not automatically fiduciary act)