Rozay's Transfer v. Local Freight Drivers, Local 208, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America

Rozay’s Transfer, an employer, brought this action against Teamsters Local 208 (union) for fraudulently inducing Rozay’s Transfer to execute a collective bargaining agreement. Following a bench trial, the district court found for Rozay’s Transfer and granted its prayer for rescission of the collective bargaining agreement (agreement) and for indemnification for retroactive pension fund contributions under the agreement for which Rozay’s Transfer was adjudged liable in a previous collection action brought by the pension trust fund. On appeal, the union contests not only the merits of the district court’s finding of fraud, but also the district court’s jurisdiction over this action and its authority simultaneously to award rescission and indemnification as a remedy. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

I

The circumstances giving rise to this lawsuit were previously detailed in our decision in Southwest Administrators, Inc. v. Rozay’s Transfer, Inc., 791 F.2d 769 (9th Cir.1986) (Southwest Administrators), cert. denied, 107 S.Ct. 951 , 93 L.Ed.2d 999 (1987), an action brought by the trust fund to collect retroactive pension fund contributions that…