UA Local 343 of the United Ass'n v. Nor-Cal Plumbing, Inc.

Appellant Elmar Lee Pettit is a plumbing contractor who, with appellant Audrey Pettit, his wife, owns both Nor-Cal Plumbing, Inc. and North Bay Plumbing, Inc. Nor-Cal is union, and North Bay is non-union. Appel-lees, Local 343 and the employee trust funds in which it participates, brought this action under Section 301 of the Labor Management Relations Act (“LMRA”) and 'Section 502 of the Employee Retirement Income Security Act (“ERISA”), seeking damages for breach of the Nor-Cal collective bargaining agreement. The action is premised on the theory that the collective bargaining agreement between Local 343 and Nor-Cal covered North Bay as well because North Bay was the alter ego of Nor-Cal.

On the basis of “an undisputed record of fraud, deception and obstruction,” the district court ruled on summary judgment that North Bay was the alter ego of Nor-Cal. Order Granting Summary Judgment at 10 (quoting Order of May 24, 1988). Consequently, the court held that appellants breached the collective bargaining agreement by failing to extend its terms and conditions of employment to North Bay employees. The district court awarded appellees $2.5 million in fringe benefit contributions,…