No. 19-170

The E Company, et al. v. Trustees of the Suburban Teamsters of Northern Illinois Pension Fund

Lower Court: Seventh Circuit
Docketed: 2019-08-05
Status: Denied
Type: Paid
Tags: administrative-notice control-group due-process erisa mullane-standard mullane-v-central-hanover mullane-v-central-hanover-bank notice pension-fund slotky-standard withdrawal-liability
Key Terms:
Arbitration ERISA DueProcess LaborRelations
Latest Conference: 2019-10-18
Question Presented (AI Summary)

Are Mullane's due process standards limited to notice in lawsuits and Petitioners' objections to the plan sponsor notice of withdrawal liability unfounded?

Question Presented (OCR Extract)

QUESTIONS PRESENTED The sponsor of a multiemployer pension fund issued a notice of withdrawal liability to contributing employers prior to a suit to collect the claim under the Employer Retirement Income Security Act (“ERISA”). Petitioners challenged the notice, claiming it violated their rights to due process under this Court’s decision in Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (1950). Specifically, Petitioners claimed (a) the notice misstated control group liability and failed to apprise them of mandatory arbitration under ERISA, and (b) no notice was given the employers’ co-owners from whom the plan sponsor sought recovery, even though the identities of the co-owners was known or easily ascertainable. The District Court found Mullane inapplicable and that the Seventh Circuit’s decision in Central States S.E. & S.W. Area Pension Fund v. Slotky, 956 F.2d 1369, 1373 (7 Cir. 1992), provided the applicable due process standard, allowing it to review the control group issue where a party “has absolutely no reason to believe they might be members of a control group.” It went on to find on the merits that the co-owners and other entities owned by them were liable. In affirming the District Court, the Seventh Circuit held that Mullane was limited to court cases, that Slotky provided an appropriate framework and standard and that Petitioners suffered no harm because they were found liable on the merits. Three questions are presented: (1) Are Mullane’s due process standards limited to notice in lawsuits and Petitioners’ objections to the plan sponsor notice of withdrawal liability unfounded? u (2) Is Slotky a reasonable substitute for the due process articulated by this Court in Mullane? (8) Does the District Court’s finding against the Petitioners on the merits obviate their right to due process?

Docket Entries

2019-10-21
Petition DENIED.
2019-10-02
DISTRIBUTED for Conference of 10/18/2019.
2019-09-30
Reply of petitioner THE E-COMPANY, A DISSOLVED ILLINOIS CORPORATION, et al. filed.
2019-09-12
Brief of respondent Trustees of the Suburban Teamsters of Northern Illinois Pension Fund in opposition filed.
2019-08-28
Motion to extend the time to file a response is granted and the time is extended to and including September 25, 2019.
2019-08-23
Motion to extend the time to file a response from September 4, 2019 to September 25, 2019, submitted to The Clerk.
2019-08-01
Petition for a writ of certiorari filed. (Response due September 4, 2019)
2019-05-28
Application (18A1221) granted by Justice Kavanaugh extending the time to file until August 1, 2019.
2019-05-23
Application (18A1221) to extend the time to file a petition for a writ of certiorari from June 2, 2019 to August 1, 2019, submitted to Justice Kavanaugh.

Attorneys

THE E-COMPANY, A DISSOLVED ILLINOIS CORPORATION, et al.
Merle Royce II — Petitioner
Merle Royce II — Petitioner
Trustees of the Suburban Teamsters of Northern Illinois Pension Fund
Steven Frederick McDowellArnold and Kadjan, LLP, Respondent
Steven Frederick McDowellArnold and Kadjan, LLP, Respondent