ILNews

Judges affirm construction company had to pay into union funds

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals agreed with an Indiana federal court that a construction company that entered into a working agreement with a cement masons union had to contribute to two funds for all hours worked, not just bargaining unit work.

DLF Construction’s agreement with Local 692 of the Cement Masons Union bound DLF to all collective bargaining agreements between the union and various employer associations. Under the CBAs, DLF is required to make fringe benefit contributions to a pension fund and a health and welfare fund established by the union.

An audit of the funds revealed that DLF didn’t make contributions to the funds on behalf of a journeyman cement mason and member of the local union over the course of two years. DLF only contributed to the funds for cement-related work, not other work the union member performed for DLF, including painting and demolition. The audit report indicted DLF owed nearly $12,000 in fringe benefit contributions.

The District Court granted summary judgment in favor of the union funds.

DLF argued that under the Memorandum of Joint Working Agreement, it’s not contractually bound to make contributions for non-bargaining unit work, but DLF has misinterpreted the working agreement. It cited Section 2 in support, but that section binds DLF to the CBAs and establishes what type of employee is covered under the CBA. That section does not limit the CBAs coverage to employees only doing bargaining unit work, the appellate court held in Mark McCleskey, trustee, et al. v. DLF Construction Inc., an Indiana corporation, 11-1826.

There is no language in either the working agreement or CBAs that limits DLF’s obligations to make fringe benefit contributions, so the District Court was correct in finding DLF must pay into the funds for each hour worked by the union journeyman.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Well, maybe it's because they are unelected, and, they have a tendency to strike down laws by elected officials from all over the country. When you have been taught that "Democracy" is something almost sacred, then, you will have a tendency to frown on such imperious conduct. Lawyers get acculturated in law school into thinking that this is the very essence of high minded government, but to people who are more heavily than King George ever did, they may not like it. Thanks for the information.

  2. I pd for a bankruptcy years ago with Mr Stiles and just this week received a garnishment from my pay! He never filed it even though he told me he would! Don't let this guy practice law ever again!!!

  3. Excellent initiative on the part of the AG. Thankfully someone takes action against predators taking advantage of people who have already been through the wringer. Well done!

  4. Conour will never turn these funds over to his defrauded clients. He tearfully told the court, and his daughters dutifully pledged in interviews, that his first priority is to repay every dime of the money he stole from his clients. Judge Young bought it, much to the chagrin of Conour’s victims. Why would Conour need the $2,262 anyway? Taxpayers are now supporting him, paying for his housing, utilities, food, healthcare, and clothing. If Conour puts the money anywhere but in the restitution fund, he’s proved, once again, what a con artist he continues to be and that he has never had any intention of repaying his clients. Judge Young will be proven wrong... again; Conour has no remorse and the Judge is one of the many conned.

  5. Pass Legislation to require guilty defendants to pay for the costs of lab work, etc as part of court costs...

ADVERTISEMENT