Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

READY METAL MFG. CO. v. INTERNATIONAL UNION

June 26, 1989

READY METAL MANUFACTURING COMPANY, Plaintiff,
v.
INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, UAW and its AMALGAMATED LOCAL 477 and AMALGAMATED TRUST AND SAVINGS BANK, Defendants



The opinion of the court was delivered by: SHADUR

 MILTON I. SHADUR, UNITED STATES DISTRICT JUDGE

 Ready Metal Manufacturing Company ("Ready Metal") initially sued International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW and its Amalgamated Local 477 (collectively "UAW") and Amalgamated Trust and Savings Bank ("Bank") in the Circuit Court of Cook County, seeking:

 
1. a declaration that the Supplemental Unemployment Benefits Trust (the "Trust") established pursuant to a now-expired collective bargaining agreement between Ready Metal and UAW had terminated and
 
2. an order distributing the remaining trust corpus to Ready Metal.

 UAW, with Bank's consent, filed a timely notice of removal to this District Court, asserting grounds for removal identified later in this opinion.

 Each of Ready Metal and UAW has now moved for summary judgment under Fed. R. Civ. P. ("Rule") 56. However, this Court's in-depth review occasioned by the cross-motions has disclosed a lack of subject matter jurisdiction here. *fn1" In accordance with 28 U.S.C. § 1447(c), then, this action will promptly be remanded to the state court unless this Court is persuaded to the contrary by a timely submission from any of the litigants.

 Background2

 In 1969 Ready Metal and UAW negotiated a collective bargaining agreement ("CBA") that established a Supplemental Unemployment Benefits Plan ("Plan"). In August 1971 Ready Metal, UAW and Bank entered into a Supplemental Unemployment Benefits Trust Agreement (the "Trust Agreement"), under which Ready Metal was to make contributions on behalf of the "eligible employees" and Bank was to serve as Trustee and implement the Plan's terms.

 That arrangement continued through July 1985, when the last CBA between Ready Metal and UAW expired. Despite two months of negotiations the parties were unable to reach agreement, and a strike ensued. Ready Metal responded by hiring permanent replacements. In June 1986 UAW was decertified as the collective bargaining agent for Ready Metal's employees.

 Ready Metal has ceased contributing to the Trust and has discontinued the Plan. Because the Plan is unquestionably an "employee welfare benefit plan" within the meaning of ERISA, 29 U.S.C. § 1002(1), *fn3" Bank (as Trustee) and the Trust are subject to extensive regulation under ERISA. All parties agree the Trust should be terminated, bringing into play Section 1103(d)(2):

 
The assets of a welfare plan which terminates shall be distributed in accordance with the terms of the plan, except as otherwise provided in regulations of the Secretary. *fn4"

 As for "the terms of the plan," however, Trust Agreement para. 14 says only this:

 
In the event of termination of the Trust, all assets then constituting the Trust Fund, less any amounts constituting charges and expenses payable from the Trust Fund, shall be used until exhausted to pay benefits to ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.