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Resilient Floor Covering Pension Fund v. M&M Installation, Inc., No. 09-17047

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By FindLaw Staff on December 22, 2010 10:14 PM

ERISA Withdrawal Liability Action

In Resilient Floor Covering Pension Fund v. M&M Installation, Inc., No. 09-17047, an action on a theory of ERISA withdrawal liability, the court reversed summary judgment for plaintiff where, assuming it is possible to be responsible on an alter ego theory, a non-union company may be liable when there is commonality between the union and nonunion firms and an abuse of the double-breasted structure to avoid payment of withdrawal liability.

As the court wrote:  "This appeal involves a "double-breasted" operation where a non-union employer, Simas Floor Co., Inc., set up a union employer, M&M Installation, Inc. to handle union flooring work."

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