Operating Engineers Pension Trust v. Insurance Co. of the West

Plaintiffs and appellants Operating Engineers Pension Trust, Operating Engineers Health and Welfare Fund, Operating Engineers Vacation-Holiday Savings Trust and Operating Engineers Training Trust (the Trusts) appeal a judgment following a grant of summary judgment in favor of defendant and respondent Insurance Company of the West (West).

The Trusts seek to collect on certain payment and performance bonds to recover unpaid fringe benefit contributions, based on the theory they are third party beneficiaries of the bonds. The issue presented is whether this state law claim by the Trusts is barred by the Employee Retirement Income Security Act of 1974 (ERISA). ( 29 U.S.C. § 1001 et seq.)

We conclude the Trusts’ third party beneficiary claim (Civ. Code, § 1559) is preempted because it supplements the remedy provided by ERISA. (Carpenters Health & Welfare Tr. F. v. Tri Capital (hereafter Tri Capital) (9th Cir. 1994) 25 F.3d 849 , 853-854, cert. den. _ U.S. _ [ 130 L.Ed.2d 495 , 115 S.Ct. 580 ].) The judgment therefore is affirmed.

Factual and Procedural Background

The Trusts are express trusts created to receive employer contributions under written collective bargaining…