Central States, Southeast & Southwest Areas Pension Fund v. Hartlage Truck Service, Inc.

991 F.2d 1357, 1993 WL 135822
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 30, 1993
DocketNo. 92-1756
StatusPublished
Cited by4 cases

This text of 991 F.2d 1357 (Central States, Southeast & Southwest Areas Pension Fund v. Hartlage Truck Service, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central States, Southeast & Southwest Areas Pension Fund v. Hartlage Truck Service, Inc., 991 F.2d 1357, 1993 WL 135822 (7th Cir. 1993).

Opinion

BAUER, Chief Judge.

The Central States, Southeast and Southwest Areas Pension Fund, the Central States, Southeast and Southwest Areas Health and Welfare Fund, and Howard McDougall (collectively “the Funds”) sued Hartlage Truck Service, Incorporated (“Hartlage”) pursuant to Section 515 of the Employee Retirement Income Security Act, 29 U.S.C. § 1145 (“ERISA”). The Funds are multiemployer funds that provide pension, health, and welfare benefits to employees covered by various collective bargaining agreements. The Funds sought to compel Hartlage to pay them contributions on behalf of three Hartlage employees. The district court granted Hartlage’s motion for summary judgment and the Funds appeal. Because we conclude that Hart-lage was not required to make contributions on behalf of the three employees, we affirm.

I.

From 1985 to 1991, Hartlage and Local Union Number 600 of the International Brotherhood of Teamsters (“the Union”) were bound by two collective bargaining agreements (“the CBAs”) that divided employees into three categories: casual, probationary, and regular seniority employees.1 Hartlage was also bound by trust agreements with the Funds. Among other [1359]*1359things, the trust agreements provided that Hartlage make payments to the Funds as required by the CBAs and applicable law. Appellants’ Index at 117. The CBAs indicated that Hartlage would pay contributions for regular seniority employees, but not for casual or probationary employees. Id. at 48, 76. The CBAs defined a casual employee as a person “hired to replace a regular seniority employee who is absent, on vacation, sick, or injured.” Id. at 37, 55. The CBAs further provided that casual employees “may be used indefinitely as long as they are replacing regular seniority employees who are absent, sick, injured, or on vacation_” Id. Also, those persons employed as casual employees were to be notified at the time Hartlage hired them of their status as casual employees. Id. In addition, casual employees were not to accrue seniority. Id. The CBAs defined probationary employees as employees hired on a trial basis that Hartlage intended to become members of the regular work force after they met certain qualifying standards. Id. at 36, 56. Although the agreements do not explicitly define the phrase “regular seniority employee,” the agreements did state that a probationary employee becomes a regular seniority employee after successfully completing thirty consecutive calendar days as a probationary employee. Id. at 36, 56-57.

On April 26, 1985, Robert Brand, a Hart-lage regular seniority employee, was in an automobile wreck that left him permanently and totally disabled. He has not worked for Hartlage since his accident and will never be able to return to work. Id. at 124. In June 1987, Donald Trice, another of Hartlage’s regular seniority employees, also became permanently and totally disabled after he suffered a heart attack. Like Brand, Trice has not worked for Hart-lage since he became disabled. Id. at 26.

Jerry Taylor, Robert Vorwold, and John Vail replaced Brand and Trice. Taylor was hired by Hartlage in June 1987 to replace Brand. Id. at 29. From June 1987 through November 1989, Taylor often worked for Hartlage only one or two days per week and rarely worked a full forty-hour week. Id. Taylor worked a total of 24 days for Hartlage during 1990 and did not work at all during 1991. Id. In his employment application, Taylor acknowledged his status as a casual employee for whom Hartlage would make no payments to the Funds. Exh. H to R. Doc. 19.

Hartlage hired Vorwold in July 1987 to replace Trice. Aff. of Kenneth Hartlage at 5. Vorwold worked for Hartlage until August 1988 and has not worked for Hartlage since that date. Id. At the time of his hiring, Hartlage notified Vorwold of his status as a casual employee. Id. at 6.

John Vail worked for Hartlage sporadically from 1964 through December 1988. Id. at 7. During most of this time, the St. Louis City Fire Department employed Vail full-time as a fireman. Id. at 7-8. Vail worked for Hartlage only when his schedule with the Fire Department permitted him to do so. Id. at 7-8. Often, he would work only one or two days a week and, at times, several years would pass without Vail working for Hartlage at all. Id. Vail replaced Brand from April 1985 until June 1987, when Hartlage hired Taylor. Id. After June 1987, Vail worked as a replacement for other regular seniority employees who were unavailable. Id. Vail died in 1989. Id. at 7-8.

Hartlage maintained a seniority list of employees represented by the Union. Taylor, Vorwold, and Vail were never placed on that list. Id. at 6-8. Also Hartlage hired all three with the intent that they would not become members of the regular work force. Id.

The Funds sued Hartlage because Hart-lage did not make contributions to the Funds on behalf of Taylor, Vorwold, and Vail. The district court granted Hartlage’s motion for summary judgment because it found that Taylor, Vorwold, and Vail were casual employees and, as such, were not entitled to have Hartlage make contributions to the Funds on their behalf. On appeal, the Funds claim that Taylor, Vor-wold, and Vail were regular seniority employees because they replaced Brand and Trice who were permanently and totally [1360]*1360disabled and, as a result, will never return to work.

We must decide if Taylor, Vail, and Vor-wold were casual employees or regular seniority employees. If they were casual employees, Hartlage is not obligated to make payments to the Funds on their behalf. If they were regular seniority employees, however, Hartlage is obligated to make the payments.

II.

A. Standard of Review

We review the district court's decision to grant Hartlage’s motion for summary judgment de novo. Vukadinovich v. Board of Sch. Trustees, 978 F.2d 403, 408 (7th Cir.1992).

B. ERISA Section 515

Section 515 section requires that when parties agree to contribute to pension plans, they do so to the extent not inconsistent with law, Kaiser Steel Corp. v. Mullins, 455 U.S. 72, 87-88, 102 S.Ct. 851, 861-862, 70 L.Ed.2d 833 (1982); Central States v. Gerber Truck Serv., 870 F.2d 1148, 1153 (7th Cir.1989), and to the extent promised.2 Laborers Health v. Advanced Lightweight Concrete Co., Inc., 484 U.S. 539, 549, 108 S.Ct. 830, 836, 98 L.Ed.2d 936 (1988). Employers are required to make contributions only on behalf of those employees indicated by the agreements. Agathos v. Starlite Motel, 977 F.2d 1500, 1506 (3d Cir.1992).

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991 F.2d 1357, 1993 WL 135822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-states-southeast-southwest-areas-pension-fund-v-hartlage-truck-ca7-1993.