IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION
September 4, 2012
CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND; AND ARTHUR H. BUNTE, JR., AS TRUSTEE, PLAINTIFFS,
RINSP, LLC, A NEVADA LIMITED LIABILITY COMPANY, DEFENDANT.
The opinion of the court was delivered by: Judge Ruben Castillo
Magistrate Judge Arlander Keys
WHEREAS, Plaintiffs, Central States, Southeast and Southwest Areas Pension Fund (the "Pension Fund") and Arthur H. Bunte, Jr. (together with the Fund collectively referred to as "Central States"), filed this action under the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, 29 U.S.C. §1001 et seq., and under Illinois' Uniform Fraudulent Transfer Act, 740 ILCS 160/1 et seq., to request relief against a transfer of certain real property from MCRI/Illinois, LLC ("MCRI") to Defendant RINSP, LLC ("RINSP");
WHEREAS, in 2007, the Pension Fund filed suit against MCRI, and various other entities, in the Northern District of Illinois, Eastern Division, to collect a $167,265.16 withdrawal liability assessment. The case was styled Central States, Southeast and Southwest Areas Pension Fund, et al. v. SCOF Holding Company, Inc., et al., Case No. 07 CV 5941 (N.D.Ill.)(Pallmeyer, J.)(the "Suit");
WHEREAS, on October 12, 2010, the Pension Fund obtained a judgment in the Suit against MCRI (amongst others) in the amount of $377,190.76;
WHEREAS, MCRI owned real property located at 1136 2nd Street, Rock Island, Illinois (the "Rock Island Property");
WHEREAS, after the Pension Fund obtained its judgment against MCRI, it was recorded against the Rock Island Property on October 25, 2010;
WHEREAS, during the pendency of the Suit, MCRI transferred the Rock Island Property to RINSP via a Quit Claim Deed dated September 19, 2008 (the "Transfer"); and
WHEREAS, Central States alleges that the Transfer was fraudulent and/or improper.
NOW THEREFORE, the Court hereby FINDS, ORDERS, and ADJUDGES as follows:
A. That a judgment is entered in favor of Central States and against RINSP;
B. That the Transfer to RINSP is deemed to be void and shall be disregarded for all purposes as to Central States;
C. That the Pension Fund's judgment lien on the Rock Island Property is deemed valid and perfected as of October 25, 2010;
D. That RINSP is ordered to turnover to Central States all the rental income that RINSP has received or will receive in connection with the rental of the Rock Island Property;
E. That Central States is allowed to levy execution on the Rock Island Property; and
F. That Central States is awarded attorneys' fees in the amount of $10,982.50 and costs in the amount of $495.63.
Honorable Ruben Castillo United States District Judge
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