Resilient Floor Covering Pension Fund v. M & M Installation, Inc.

ORDER GRANTING SUMMARY JUDGMENT

On December 12, 2008, plaintiffs Resilient Floor Covering Pension Fund and Board of Trustees of the Resilient Floor Covering Pension Fund (“plaintiffs”) filed suit against defendants M & M Installation, Inc. (“M & M”) and Simas Floor Co., Inc. (“Simas Floor”) (collectively “defendants”) to collect withdrawal liability in the amount of $2,414,228.00, pursuant to the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. §§ 1001 et seq., as amended by the Multiemployer Pension Plan Amendments Act of 1980 (“MPPAA”). Before the Court are the parties’ cross motions for summary judgment.

Plaintiffs seek summary judgment on three grounds, asserting that Simas Floor is liable for M & M’s withdrawal liability because Simas Floor and M & M were “alter ego” employers; because M & M wound up its operations and transferred its business to Simas Floor with a principal purpose of avoiding paying its withdrawal liability in violation of 29 U.S.C. § 1392 (c); and because Simas Floor is the successor employer to M & M. Defendants seek summary judgment, arguing that Simas Floor is not liable for M & M’s withdrawal liability because Simas Floor is not an…