Amicus Curiae Brief — Bay Area Laundry and Dry Cleaning Pension Trust Fund v. Ferbar Corp. of Cal.
Supreme Court brief1997
Ask Donna
What actually matters in this document.
Text
——
. Court, U.S.
i} eT E E we"
No. 96-370 OCT 15 1996
wv ic CLERK
In THE —
Supreme Court of the United States
OCTOBER TERM, 1996
BOARD OF TRUSTEES, BAY AREA LAUNDRY AND
Dry CLEANING PENSION TRUST FUND,
- Petitioner,
FERBAR CORPORATION OF CALIFORNIA, INC.;
STEPHEN BARNES,
Respondents.
On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit
MOTION FOR LEAVE TO FILE BRIEF AMICUS CURIAE
AND BRIEF OF AMICUS CURIAE
CENTRAL STATES, SOUTHEAST AND
SOUTHWEST AREAS PENSION FUND
IN SUPPORT OF PETITIONER
THOMAS C. NYHAN *
General Counsel
TERENCE G. CRAIG
CENTRAL STATES, SOUTHEAST
AND SOUTHWEST AREAS
PENSION FUND
9377 West Higgins Road
Rosemont, Illinois 60018-4938
(847) 518-9800
Attorneys for Amicus Curiae
* Counsel of Record
WILSON - Eres Printinec Co., Inc. - 789-0096 - WasHINGTON, D.C. 20001
oe ~
In THE
Supreme Court of the United States
OCTOBER TERM, 1996
No. 96-370
BOARD OF TRUSTEES, BAY AREA LAUNDRY AND
Dry CLEANING PENSION TRUST FUND,
. Petitioner,
FERBAR CORPORATION OF CALIFORNIA, INC.;
STEPHEN BARNES,
Respondents.
On Petition for a Writ of Certiorari to the
United States Court of Appeals ©
for the Ninth Circuit
MOTION FOR LEAVE TO FILE BRIEF AMICUS CURIAE
OF CENTRAL STATES, SOUTHEAST AND
SOUTHWEST AREAS PENSION FUND
IN SUPPORT OF PETITIONER
Central States, Southeast and Southwest Areas Pension
Fund moves the Court for leave to file the attached brief
as amicus curiae in support of the petition for a writ of
certiorari of petitioner Board of Trustees, Bay Area
Laundry and Dry Cleaning Pension Trust Fund. Central
States urges that the United States Court of Appeals for
the Ninth Circuit be reversed. The reasons for ths motion
are as follows:
1. Central States Pension Fund is the largest mul-
tiemployer defined benefit pension plan in the coun-
try. The Pension Fund covers approximately 400,000
active participants and retirees.
2. Central States is governed by the Employee Re-
tirement Income Security Act of 1974, as amended,
including its statute of limitations for collection of
withdrawal liability found at 29 U.S.C. § 1451(f).
3. The Central States is located within the juris-
diction of the Seventh Circuit, but does business in
and is subject to litigation in each of the numbered
federal judicial circuits.
4. The decision of the court below interprets the
limitations period of § 1451(f) in a manner in con-
flict with the interpretation of the Seventh Circuit
(and other circuits in which Central States does
business ).
5. The nationwide scope of Central States’ opera-
tions makes it uniquely suited to address the effect of
the conflict among the circuits on the operations of
multiemployer pension plans like Central States and
Petitioner.
6. Petitioner consents to the filing of this brief.
Respondents refuse to consent.
Respectfully submitted,
THOMAS C. NYHAN *
General Counsel
TERENCE G. CRAIG
CENTRAL STATES, SOUTHEAST
AND SOUTHWEST AREAS
PENSION FUND
9377 West Higgins Road
Rosemont, Illinois 60018-4938
(847) 518-9800
Attorneys for Amicus Curiae
* Counsel of Record
TABLE OF CONTENTS
TABLE OF AUTHORITIES .0..0..........cccccccccesecececerees
TI ahinseciiichoctistttinnennihlitneeriatiiitishasonttsiembecestianiings
I. THE STATUTE OF LIMITATIONS FOR
Il.
BRINGING AN ACTION TO COLLECT WITH-
DRAWAL LIABILITY HAS BEEN GIVEN
CONFLICTING INTERPRETATIONS BY THE
FIRST, THIRD, SEVENTH, AND DISTRICT
OF COLUMBIA CIRCUITS FROM THAT IN
ITD
THE CONFLICTING DECISIONS OF THE
COURTS OF.APPEALS PLACE AN UNAC-
CEPTABLE BURDEN ON PENSION PLANS,
CONTRIBUTING EMPLOYERS, AND THE
COURTS AND SUBVERT STATUTORY
RE a eo 7
EE Seccestmcsmtemetgnnenes
(i)
Page
ii
10
13
ii
TABLE OF AUTHORITIES
CASES Page
Bay Area Laundry & Dry Cleaning Pension Trust
Fund v. Ferbar Corporation, et al., 73 F.3d 971
(9th Cir. 1995), petition for cert. filed, 65
U.S.L.W. 3185 (U.S. Sept. 10, 1996) (No. 96-
eS SE i ae ee See 3,6
Board of Trustees of Constr. Laborers Pension
Trust v. Thibodo, 34 F.3d 914 (9th Cir. 1994). 7
Board of Trustees of Dist. 15 Machinists Pension
Fund v. Kahle Engineering Corp., 43 F.3d 852
Gs Ge HIE cisccacretecsecneenmntndiaieteniemmenseiesenes 3,8
Central States, Southeast and Southwest Areas
Pension Fund v. Naveo, 3 F.3d 167 (7th Cir.
ESE Sa Ee Ee rel ll 3,8
Giroux Bros. Transp. v. New England Teamsters
& Trucking Indus. Pension Fund, 73 F.3d 1 (ist
RR SE CE ee ee a 3,9
Joyce v. Clyde Sandoz Masonry, 871 F.2d 1119
9. ——- e S ee e 4,7,8
Schlitz v. Milwaukee Brewery Workers’ Pension
Plan, 3 F.3d 994 (7th Cir. 1998), petition for
cert. filed, 62 U.S.L.W. 3378 (U.S. Nov. 12,
FS RS 3
STATUTES
29 U.S.C. § 1881 (a) once eeeeeeeeeeeennnen ticeemcenit tal
AS I CETTE
ATE EE 6,
eS AG EERE
RR ee ES. 6,1
29 U.S.C. § 1891 nnn Gielen a tall
ARES ES eae 1
29 U.S.C. § 1899(b) (1) ooccceeecsceccevsvvveoeeeeeeeveessvsuemeeeeen 6,
I cs
ON LT LR 1
I
RR nc TB ri
AE REET TEES Be TA ae
I ox inne: scnnttctctinieiindinekednas 6,
~]
or rowowAOr NK 1-1 @
In THE
Supreme Court of the United States
OcTOBER TERM, 1996
No. 96-370
BOARD OF TRUSTEES, BAY AREA LAUNDRY AND
Dry CLEANING PENSION TRUST FUND,
~. Petitioner,
FERBAR CORPORATION OF CALIFORNIA, INC.;
STEPHEN BARNES,
Respondents.
Un Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit
BRIEF OF AMICUS CURIAE
CENTRAL STATES, SOUTHEAST AND
SOUTHWEST AREAS PENSION FUND
IN SUPPORT OF PETITIONER
INTRODUCTION
Central States, Southeast and Southwest Areas Pension
Fund (“Central States”) is a multiemployer defined bene-
fit pension trust fund established in 1955 by affiliates of
the International Brotherhood of Teamsters and various
employer associations pursuant to section 302(c)(5) of
the Labor Management Relations Act of 1947. Central
States is governed by a board of trustees consisting of an
equal number of union and management appointees (four
of each). Central States is administered for the exclusive
benefit of the participants to whom the trustees owe an
2
undivided duty of loyalty. The purpose of the Central
States pension plan is to pay retirement and certain other
benefits to participants and their beneficiaries who become
eligible under the terms of the plan.
Under the plan participating employers contribute to
Central States pursuant to their collective bargaining
agreements for work performed by their covered (bargain-
ing unit) employees. Employees earn credit (accrued
benefits) for covered work periods and after earning 10
years of credit, become vested in the benefits. The plan
covers 178,000 retirees currently drawing benefits, 217,000
active participants and 69,000 vested inactive participants.
Central States is the largest multiemployer pension plan
in the United States with assets of $14.473 billion and
vested benefit liabiliies of $16.524 billion. Central States’
unfunded vested benefits (“UVB”) are thus $2.051 bil-
lion. The UVB is not immediately due because the lia-
bilities represent the present value of benefits payable over
decades into the future. The expected time to amertize
the UVB at current funding rates is about 29 years. The
principal means for funding the UVB, as well as for fund-
ing current benefit accruals, is the contributions of em-
ployers made pursuant to their collective bargaining agree-
ments. Central States presently receives contributions
from over 5,000 employers through over 9,000 billing
accounts from 42 states and Canada.’
Additional funding is required by statute when an em-
ployer withdraws (ceases to have an obligation to con-
tribute) from Central States. 29 U.S.C. § 1381(a). This
withdrawal liability is an employer’s pro-rata share of the
UVB. 29 U.S.C. § 1391. Withdrawal liability is payable
in installments with interest. 29 U.S.C. § 1399(c)(1).
See generally Subtitle E of Title [TV of the Employee Re-
tirement Income Security Act of 1974 (“ERISA”), 29
1A billing account is generally assigned to each collective bar-
gaining agreement. Some employers are subject to more than one
agreement.
3
U.S.C. § 1381, et seq; Milwaukee Brewery Workers v.
Jos. Schlitz Brewing Co., —— US. ——, 115 S.Ct.
994 (1995). As of September 30, 1996, Central States
had 305 outstanding assessments of withdrawal liability
totalling approximately $267 million. Of these 80 oc-
curred in 1996 in the total amount of $35 million. Since
September 26, 1980,° Central States has collected about
$440 million in withdrawal liability.
Central States’ withdrawal liability program, other than
its size, is similar to Petitioner's Bay Area Laundry and
Dry Cleaning Pension Trust Fund. Due to its size, how-
ever, Central States brings a somewhat broader perspec-
tive to consideration of certain issues such as that pre-
sented in the Petition. Central States files this vrief amicus
curiae in support of Petitioner.
INTERESTS OF CENTRAL STATES
In the decision below the United States Court of Ap-
peals for the Ninth Circuit ruled that the six-year statute
of limitations for bringing an action to collect withdrawal
liability begins to run on the date that an employer with-
draws from a multiemployer pension plan. Bay Area
Laundry & Dry Cleaning Pension Trust Fund v. Ferbar
Corporation, et al., 73 F.3d 971 (9th Cir. 1995), peti-
tion for cert. filed, 65 U.S.L.W. 3185 (U.S. Sept 10,
1996) (No. 96-370). This decision is directly in conflict
with four earlier decisions of the United States Courts of
Appeals for the First, Third, Seventh, and District of
Columbia Circuits in Giroux Bros. Transp. v. New
England Teamsters & Trucking Indus. Pension Fund, 73
F.3d 1 (1st Cir. 1996); Board of Trustees of Dist. 15
Machinists Pension Fund v. Kahle Engineering Corp., 43
F.3d 852 (3d Cir. 1994); Central States, Southeast and
Southwest Areas Pension Fund v. Navco, 3 F.3d 167
2 This is the effective date of the Multiemployer Pension Plan
Amendments Act of 1980 (“MPPAA”), which added the withdrawal
liability provisions of ERISA.
4
(7th Cir. 1993); Joyce v. Clyde Sandoz Masonry, 871
F.2d 1119 (D.C. Cir. 1989). These other circuits have
each ruled that the statute of limitations does not com-
mence running until the latest date on which the cause
of action accrues—not when the employer withdraws, but
when the employer fails to make a payment pursuant to
the pension plan’s demand.
This conflict among the circuits creates a problem of
immense proportions for multiemployer plans like Central
States that cover operations in more than one federal
judicial circuit. Which law applies to a withdrawal from
Central States? Because of ERISA’s broad venue provi-
sions it might be the law of the circuit where the plan is
administered or where the employer resides or does busi-
ness. 29 U.S.C. § 1451(d). While Central States is ad-
ministered in Rosemont, Illinois, within the Seventh Cir-
cuit, only 30% of its billing accounts are in the Seventh
Circuit. Central States has actual or potential withdrawal
liability claims in 42 states and in each of the eleven
numbered judicial circuits. The following table illustrates
the breadth of Central States’ contributing employer base.
Billing Percent
Circuit Accounts of Total
1 12 0.1
2 63 0.7
3 170 1.9
4 293 8.2
5 116 1.3
6 2.944 32.1
7 2,781 30.3
8 1,961 21.4
9 228 2.5
10 409 4.5
11 180 2.0
9,157 100.0%
5
Nor does the location of the billing account resolve the
dilemma on a case by case basis. Many contributing em-
ployers conduct operations across state and judicial boun-
daries. Each of the five largest contributors to Central
States does business in virtually every judicial circuit as
their number of billing accounts suggest:
Billing
Company Accounts
ABF Freight System, Inc. 132
Consolidated Freightways 173
Roadway Express 182
United Parcel Service (UPS) 101
Yellow Freight Systems, Inc. 150
UPS, for example, does business in every state and has
billing accounts in 22 states located in seven federal judi-
cial circuits. Thus, whether an action for collection of
withdrawal liability is timely often cannot be known until
after commencement of litigation in a particular jurisdic-
tion. Until that time, there will generally be at least two
different limitations periods that might be applied.
In sum, the administrative and legal problems created
by the conflict among the circuits has, no doubt, an even
greater impact on Central States than on Petitioner. Many
of the other 2,000 multiemployer pension plans (particu-
larly those located outside the Ninth Circuit) will also
experience these problems to one degree or another. Cen-
tral States, thus, serves as an apt example of why this
conflict must be resolved immediately by granting the
petition for a writ of certiorari.
6
ARGUMENT
I. THE STATUTE OF LIMITATIONS FOR BRING-
ING AN ACTION TO COLLECT WITHDRAWAL
LIABILITY HAS BEEN GIVEN CONFLICTING
INTERPRETATIONS BY THE FIRST, THIRD,
SEVENTH, AND DISTRICT OF COLUMBIA CIR-
CUITS FROM THAT IN THE COURT BELOW.
Under ERISA a complete withdrawal occurs when a
contributing employer permanently ceases to have an ob-
ligation to contribute under the plan, or permanently
ceases all covered operations under the plan. 29 U.S.C.
§ 1383(a). The date of a complete withdrawal is the date
of the cessation of the obligation to contribute or the ces-
sation of covered operations. 29 U.S.C. § 1383(e). Upon
the withdrawal of an employer, the plan must notify the
employer of the amount of any withdrawal, provide the
schedule of payments required of the employer, and col-
lect the withdrawal liability. 29 U.S.C. §$§ 1382 and
1399(b)(1). The statute of limitations for bringing an
action to collect withdrawal liability is found in 29 U.S.C.
§ 1451(f):
(f) An action under this section may not be brought
after the later of—
(1) 6 years after the date on which the cause of
action arose, or
(2) 3 years after the earliest date on which the
plaintiff acquired or should have acquired actual
knowledge of the existence of such cause of action;
The court below ruled that “for actions to recover with-
drawal liability incurred as a result of a complete with-
drawal, . . . the limitations period begins to run from the
date that the conditions for withdrawal are met. ... In
other words, the limitations period begins to run from the
date of complete withdrawal. .. .” Bay Area Laundry v.
Ferbar Corp., 73 F.3d 971, 973 (9th Cir. 1995). The
«7
7
court’s ruling was compelled by its earlier ruling in Board
of Trustees of Constr. Laborers Pension Trust v. Thibodo,
34 F.3d 914 (9th Cir. 1994), and was acknowledged to be
in conflict with Joyce v. Clyde Sandoz Masonry, 871 F.2d
1119 (D.C. Cir. 1989). See 73 F.3d at 973 (Trott, J.
concurring). While the withdrawal at issue in Thibodo
arose under a different provision of the statute (29 U.S.C.
§ 1383(b)), the court saw no ground to distinguish it
from the instant withdrawal under 29 U.S.C. § 1383(a).
Id. The question presented is when does the cause of
action arise—the date of withdrawal, as held by the court
below, or some later date, as held by the other courts of
appeals?
The first of the other courts of appeals to face this ques-
tion was the District of Columbia Circuit in Clyde Sandoz
Magpnry, 871 F.2d 1119 (D.C. Cir. 1989). In that case,
the district court had ruled, as did the court below, that
the six year limitations period ran from the date of the
employer’s complete withdrawal. 87! F.2d at 1121. The
District of Columbia Circuit reversed. That court looked
to 29 U.S.C. § 1451(a), which defines a cause of action
in terms of whether a party is “adversely affected by the
act or omission of any party . . . with respect to a multi-
employer plan.” The court held that a plan is adversely
affected (and thus, a cause of action arises) when the
plan has not received payments which are due and owing.
Id. at 1122. That can only happen after the date of
withdrawal when, having received a demand for payment
from the plan, the employer fails to make a scheduled
payment when due. Indeed, the court noted that the “lan-
guage of the statute . . . points firmly in the direction of
the conclusion that Sandoz’s uncured failure to pay the
sum demanded adversely affected the plan, thus giving rise
to a cause of action.” /d.*
8In other words, a simple missed payment under § 1399(c) (1)
may not be the latest date on which the statute of limitations begins
to run. Under § 1399(c) (5) an employer has 60 days to cure a
The Seventh Circuit next addressed the question in
Central States Pension Fund v. Navco, 3 F.3d 167 (7th
Cir. 1993). There the court held that “the claim accrues
as soon as payment becomes overdue.” /d. at 172. More-
over, the court concluded that “the whole sum becomes
due, and the whole claim accrues, when the first payment’s
missed.” /d. Thus, where the employer misses a series
of payments, the six year statute of limitations runs from
the first missed payment, rather than there being a sepa-
rate limitations period commencing with each missed pay-
ment. Since the first missed payment will always be later
than the date of withdrawal, the Seventh Circuit decision
conflicts with the decision below.*
The Third Circuit has also adopted a rule that the
statute of limitations runs from the employer’s missed pay-
ment, not the date of withdrawal. Machinists Pension
Fund v. Kahle Engineering Corp., 43 F.3d 852 (3rd Cir.
1994). Unlike the Navco court, however, the Third Cir-
cuit held that absent an acceleration of the withdrawal
liability payment schedule by the plan, the six year statute
of limitations runs separately against each missed pay-
ment. /d. at 861. The Third Circuit is thus in conflict
with both the court below and the Seventh Circuit. The
Third Circuit would apparently agree with the District of
Columbia Circuit in Clyde Sandoz. Id. at 860.°
missed payment following a notice from the plan. A cause of
action for a statutory “default” arises on that latter day from
which, we presume, a new limitations period begins to run.
4The Seventh Circuit conflicts with the District of Columbia
Circuit, as well. The District of Columbia Circuit would count
six years from the end of the 60-day cure period of § 1399(c) (5)
while the Seventh Circuit would count from the first missed pay-
ment notwithstanding the cure period.
5 It is not clear, however, whether the Third Circuit would agree
that if the plan accelerates the amount due, the statute runs from
the end of the 60-day cure period of 29 U.S.C. § 1399(c) (5)), as
suggested by the District of Columbia Circuit. And no court has
addressed whether upon acceleration a new 6-year statute of limita-
9
The First Circuit's decision in Giroux Bros. Transp. v.
New England Teamsters & Trucking Indus. Pension
Fund, 73 F.3d 1 (ist Cir. 1996) also conflicts with the
decision below. The First Circuit held that the timeliness
of a plan sponsor’s demand is governed exclusively by
§ 1399(b)(1). That provision requires that a plan’s
demand for withdrawal be made “as soon as practicable”
after the employer’s withdrawal. In Giroux, twelve years
had passed after the date of withdrawal before the plan
demanded payment. The employer had been making con-
tributions, however, even though its collective bargaining
agreement had expired and it was not entitled to con-
tribute. When this error was discovered by the plan, it
demanded withdrawal liability. While the court did not
have occasion to rule whether this demand was made as
soon as practicable, it did make clear that six years from
the date of withdrawal would not be an appropriate limi-
tations period. The court below, by contrast, would have
ruled the plan’s claim barred by the six year statute of
limitations of § 1451(f).
In sum, at lease five courts of appeals are in complete
disarray on the question presented. There is a clear con-
flict between the decision below and each of the decisions
of the First, Third, Seventh, and District of Columbia
Circuits. There is also a clear conflict between the deci-
sions of the Third and Seventh Circuit. Finally, there may
be a conflict between the decisions of the District of Co-
lumbia Circuit and the Seventh Circuit. This Court
should grant the writ of certiorari to resolve these conflicts.
tions commences for the entire withdrawal liability amount or
whether the amounts due prior to the acceleration have separate
limitations periods commencing on their individual due dates with
only the balance of the payment schedule subject to the new
limitations period. ;
10
Il. THE CONFLICTING DECISIONS OF THE COURTS
OF APPEALS PLACE AN UNACCEPTABLE BUR-
DEN ON PENSION PLANS, CONTRIBUTING EM-
PLOYERS, AND THE COURTS AND SUBVERT
STATUTORY PURPOSE.
The conflict in the Circuits places multiemployer plans
like Petitioner and Central States in an untenable position.
The following example will illustrate:
Assume that an employer withdraws on June 1,
1986; the plan demands payment in monthly install-
ments over a 20-year payment schedule with the first
payment due on September 1, 1986; the employer
misses the first payment, but thereafter makes timely
monthly payments through September 1, 1992, when
it ceases all further payments; the plan sends a notice
of default and acceleration on October 1, 1992; the
plan sues for collection on December 1, 1992.
Under the Ninth Circuit’s interpretation, the statute of
limitations would begin to run on June 1, 1986, when
the employer withdrew. Thus, the limitations period
would expire on June 1, 1992, six years later, and the
plan’s December 1, 1992 action would be untimely. Of
course, the plan could have sued immediately on the first
missed payment and under our example, that action would
be timely. But, then, what if the employer made every
payment when due through the sixth anniversary date of
the withdrawal, and then ceased paying?® Or what if a
labor dispute continued for six years after contributions
6 The court suggests at note 4 that an employer might form a
contract for installment payments resulting in a different limita-
tions period. Actually installment payments are required by the
statute and entail no contract. The only choice by the employer is
whether to pre-pay the installment as it is entitled to do under
29 U.S.C. § 1899(c) (4). The court was on the right track, however,
and if it had stayed there, it would have reached the Third Circuit’s
view that the statutory payment schedule be treated like an install-
ment contract with a separate limitations period for each missed
payment. :
11
ceased?" In either case the plan may not sue (and in
the latter case it is barred from even issuing an assess-
ment) until after the sixth anniversary of the withdrawal,
and thus the plan would be out of time to sue.
Under the Seventh Circuit's interpretation, the statute
of limitations would begin to run on September 1, 1986,
when the employer first missed a payment. Thus, the
limitations period would expire on September 1, 1992,
six years later, and the plan’s action would be untimely.
Under the Seventh Circuit’s view, the plan forgives a
missed payment at its peril. If the plan does not sue on
that first missed payment, the employer would be entitled
to cease further payments on the sixth anniversary of its
first missed payment. |
Under the Third Circuit’s interpretation, the statute of
limitations would begin to run on September 1, 1986, only
for that missed payment, and would expire on September
1, 1992, only as to that payment. A separate limitations
period would begin to run when the liability is accelerated
—either October 1, 1992, when the notice is issued, or
maybe on November 30, 1992, which is the last day of
the 60-day period allowed the employer to cure the de-
fault. The plan’s action would be untimely as to the first
missed payment since the limitation period for that one
expired on September 1, 1992. The action would be
timely for the balance of the withdrawal liability since
pe limitation period would not expire until October 1,
1998.
7™Under § 1398(2) a withdrawal does not occur while contribu-
tions are suspended during a labor dispute. If, as is often the case,
a suspension is later deemed permanent, the withdrawal date
relates back to the cessation of contributions (§ 1383(e)), which
may be more than six years ago.
8 The Third Circuit’s decision is susceptible to other interpreta-
tions. When the plan accelerates the claim, does that new date
supplant the original date entirely thus reviving the plan’s claim
for the first missed payment? (This would conform to the District
of Columbia Circuit’s view.) Or does it collapse the limitations
12
Under the District of Columbia Circuit’s interpretation,
the statute of limitations would begin to run on November
30, 1992, which is the last day of the 60-day cure period
following the plan’s default notice. The plan’s action the
next day would be timely for the entire withdrawal assess-
ment because the limitations period on the entire claim
would not expire until November 30, 1998.
As this example shows, a plan cannot be sure when its
claim for withdrawal liability against a withdrawn em-
ployer will become barred by the statute of limitations—
at least until litigation is initiated in a court with a particu-
lar rule. Nor is it enough for a plan to simply count time
from the earliest possible date, the date of withdrawal,
as required by the court below. As we have shown, that
solution will not work in many cases and would be sus-
ceptible to manipulation by withdrawn employers. The
decision below is clearly wrong but that does not fully
resolve the question. Does the statute run from the first
missed payment (Seventh Circuit), the end of the 60-day
cure period following a notice of default (District of
Columbia Circuit), or from each missed payment when
the plan does not exercise its default option (Third Cir-
cuit). Uniform (and effective) administration of the
statute requires resolution of these conflicts as early as
possible. This Court should grant the petition for a writ
of certiorari.
periods on all installments to the original missed payment making
the entire claim untimely under this example? (This would con-
form to the Seventh Circuit’s view.)
13
CONCLUSION
For these reasons the petition for a writ of certiorari
to the United States Court of Appeals for the Ninth Cir-
cuit should be granted.
Respectfully submitted,
THOMAS C. NYHAN *
Genera! Counsel
TERENCE G. CRAIG
CENTRAL STATES, SOUTHEAST
AND SOUTHWEST AREAS
PENSION FUND
9377 West Higgins Road
Rosemont, Illinois 60018-4938
(847) 518-9800
Attorneys for Amicus Curiae
* Counsel of Record
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.