National Roofing Industry Pension Plan, et al. v. Beltran Contractors, LLC.

District Court, S.D. Illinois·Decided August 16, 2026·No. 3:24-cv-01530·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS

NATIONAL ROOFING INDUSTRY ) PENSION PLAN, et. al. ) ) PlaintiffS, ) ) Case No. 24-cv-1530-DWD vs. ) ) BELTRAN CONTRACTORS, LLC. ) ) Defendant. ) )

MEMORANDUM AND ORDER

DUGAN, District Judge: Before the Court is the Plaintiffs’ Motion for Summary Judgment. (Doc. 41). The parties have fully briefed the issues, and the Motion is ripe for consideration. For the reasons stated below, the Court will GRANT the Motion and enter judgment accordingly. BACKGROUND Defendant, Beltran Contractors, LLC, was a party to a collective bargaining agreement executed on April 17, 2019, with United Union of Roofers, Waterproofers, and Allied Workers, Local Union No. 2, A.F.L.-C.I.O., (“Union”) effective through February 28, 2022. (“CBA” or “Agreement”). The Agreement required Beltran to pay contributions to the National Roofing Industry Pension Plan (“NRIPP”), the Roofers and Waterproofers Research and Education Joint Trust Fund (“Education Fund”) and the Roofers Local #2 Supplemental Pension Plan (“Local #2 Fund”), the Indiana State Council of Roofers Health and Welfare fund (“Health Fund”), and the United Union of Roofers and Allied Workers, Apprentice Fund (“Roofer’s Fund”).1 Contributions to these funds are based on all hours worked by employees covered by the CBA in its employment. (Doc. 39, Exh. 15;

Hamilton Aff. ¶ 9). The CBA also requires Beltran to submit monthly contribution report forms to the Funds showing the number hours worked for all employees covered by the CBA and calculations as to the contributions due to the Funds. To verify the contributions owed to the Funds, the CBA also provides that the Funds may conduct audits of any records of the employer. (Doc. 39, Exh. 15; Hamilton Aff. ¶ 13).

Certain provisions of the CBA are helpful in describing the responsibilities of the Employers to make contributions to each of the Plaintiff Funds. Article 13 of the CBA provides in pertinent part: In all cases where Employees are sent or are dispatched by Employer to supervise or perform work outside the territorial jurisdiction of the Union (as defined by its charter and the International), and said job site is within the territorial jurisdiction of any other sister local union of the Union herein, then, and in such event, the minimum hourly wage scale to be paid by the Employer to Employees dispatched outside of this jurisdiction for such work shall be either the regular working hourly wage scale for similar work in such geographical area, or the regular hourly wage scale provided for in this Agreement, whichever is greater.

Relevant for the Motion is Article 45 of the CBA which provides in relevant part:

The contributions required by this Article shall accrue with respect to all hours worked by any Employee represented by the Union, or by any person doing work within the jurisdiction of the Union. Said contributions shall accrue with respect to all hours worked by Employees, covered by the terms of this Agreement within or outside the geographical jurisdiction of the Union, except that

1 These parties will be referred to collectively as “Plaintiffs” unless otherwise indicated. when work is performed outside the Union’s jurisdiction where another fringe benefit fund of a similar kind exists and the Employer makes contributions to that fund, then said Employer shall not be required to make a contribution to this fund.

Emphasis added. Article 48 of the CBA provides for actual damages, liquidated damages, costs, attorneys fees and interest penalty relative to any unpaid and owing contributions to the funds. Article 48 also provides for regular and special audits and examinations of an employer’s records to verify that proper contributions are being made. It does not appear to be in dispute that Beltran signed the CBA with Roofers Local #2 on April 17th, 2019, to be effective through February 28, 2022. (Doc. 38-6, Jesus Beltran

dep. p. 11; Doc. 41, ¶1). Rather the central dispute is Beltran’s contention that the “most favored nation”2 provision found in Article 7 of the CBA compels incorporation of the “more favorable” terms found in the Kehrer Brothers West (“KBW”) CBA regarding the agreed upon territorial boundaries of the agreement. (Doc. 41, p. 23). Article 7 of the Beltran CBA provides, in pertinent part:

All Employers, prior to performing work covered by this Agreement within the jurisdiction of Local No. 2, as set forth in Article 3, must be signatory to this Agreement. Roofers Local Union No. 2 agrees that if, during the term of this Agreement, it enters into any collective bargaining agreement with any other Employer involving any of the work covered by this Agreement, . . . results in a collective bargaining agreement providing for the lower wages, longer hours, or for

2 The concept of “most favored nation” is one borrowed from those seen in the World Trade Organization’s policy that required members to grant one another multilateral reciprocal privileges. Relevantly, an MFN “enables the employer to adopt more favorable terms, such as lower-cost wages or benefits, if the union subsequently grants those terms to another employer.” At the same time “it ensures that the employer can remain competitive and is not disadvantaged by its labor costs relative to local industry competitors.” Collective Bargaining Agreement: Most Favored Nation Clause, Practical Law Standard Clauses 5-527- 1786. any terms and conditions more favorable to a Signatory Employer than those described in this Agreement, any Employer who is party to this Agreement shall immediately have the benefit of such provision, . . . and the more favorable terms of such provision . . .shall automatically and immediately become part of this Agreement and be in full force and effect, as if set forth in full in this Agreement, superseding any less favorable provisions of this Agreement.

Emphasis added. Defendant argues that Article 3 of the KBW CBA contains more favorable conditions in that it limits the effective territory to the City of St. louis and several Counties in Missouri and Illinois. (Doc. 38-19, Art. 3). In pertinent part Article 3 provides: The territory covered by this Agreement shall consist of the following cities and counties in the State of Missouri, to-wit: City of St. Louis, County of St. Louis, Crawford County, Franklin County, Gasconade County, Jefferson County, Lincoln County, Marion County, Monroe County, Montgomery County, Pike County, Ralls County, St. Charles County, St. Francois County, Ste. Genevieve County, Shelby County, Warren County, and Washington County. In addition, the territory covered by this Agreement shall consist of the following counties in the State of Illinois, to-wit: Bond County, Calhoun County, Clinton County, Greene County, Jersey County, Southern Half of Macoupin County, Madison County, Monroe County, Southern Half of Pike County, Randolph County, St. Clair County, and Washington County.

Beltran contends that the most favored nation clause in Article 7 of the Beltran CBA would effectively require it make contributions only for work done within the City of St. Louis and the Missouri and Illinois Counties identified in Article 3 of the KBW CBA. (Doc. 41, p. 23). Beltran points to the several Articles contained in the KBW CBA that provide contributions are to be made only for employees covered by the agreement and for which it is “obligated to pay an employee covered by this collective agreement.” (Doc. 41, p.23-25). More specifically, Beltran compares the corresponding operative terms within the Beltran and KBW CBAs. That comparison reveals nearly identical language in

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National Roofing Industry Pension Plan, et al. v. Beltran Contractors, LLC., (S.D. Ill. 2026).

National Roofing Industry Pension Plan, et al. v. Beltran Contractors, LLC. (National Roofing Industry Pension Plan, et al. v. Beltran Contractors, LLC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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