Winton Kemmis v. James P. McGoldrick Individually and Doing Business as James P. McGoldrick Consulting Engineers

The trustees of four employee benefit funds appeal the district court’s judgment for the employer in their action under the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1132 (1976 & Supp.' V 1981), to enforce payment of trust fund contributions. We reverse.

FACTS AND PROCEEDINGS BELOW

McGoldrick, the owner of a consulting engineering firm, signed a short form collective bargaining agreement with Local Union No. 12 of the International Union of Operating Engineers (“Local 12”). The short form agreement incorporates by reference the Master Survey Agreement, which obligates the employer to make contributions to the several trusts at specified rates for “hours worked by (or paid) each employee under this Agreement....”

McGoldrick had one full-time salaried union employee who split his work time between surveying, which is covered under the Master Survey Agreement, and office work, which is not. At the time of contracting, a Local 12 representative and McGoldrick discussed the required contributions. The district court found that the parties agreed orally that McGoldrick would contribute to the trust funds based only on the minimum hours necessary for his employee…