Laborers Hlt. Welfare v. Westlake Development

2 Analyses of this case by attorneys

  1. Surprise!: Decertification Does Not End Employer Contribution Obligations to the Multiemployer Funds

    Seyfarth Shaw LLPRonald KramerDecember 28, 2016

    The Ninth Circuit has recognized that when a bargaining unit ceases to exist, be it by decertification or contract repudiation given the existence of a one person bargaining unit, any existing contract becomes void, not voidable, ending the employer’s obligation to contribute to employee benefit plans. Laborers Health & Welfare Trust Fund v. Westlake Development, 53 F.3d 979 (9th Cir. 1995) (contract repudiation); Sheet Metal Workers’ Int’l Ass’n v. West Coast Sheet Metal Co., 954 F.2d 1506 (9th Cir. 1992) (decertification case were the court held “that the renewal contract became void prospectively as of the decertification of the Union”). Notably, the Seventh Circuit did not address the Circuit split.

  2. SURPRISE!: DECERTIFICATION DOES NOT END EMPLOYER CONTRIBUTION OBLIGATIONS TO MULTIEMPLOYER FUNDS

    Seyfarth Shaw LLPSamuel Schwartz-FenwickDecember 27, 2016

    The Ninth Circuit has recognized that when a bargaining unit ceases to exist, be it by decertification or contract repudiation given the existence of a one person bargaining unit, any existing contract becomes void, not voidable, ending the employer’s obligation to contribute to employee benefit plans. Laborers Health & Welfare Trust Fund v. Westlake Development, 53 F.3d 979 (9th Cir. 1995) (contract repudiation); Sheet Metal Workers’ Int’l Ass’n v. West Coast Sheet Metal Co., 954 F.2d 1506 (9th Cir. 1992) (decertification case were the court held “that the renewal contract became void prospectively as of the decertification of the Union”). Notably, the Seventh Circuit did not address the Circuit split.