Automotive Industries Pension Trust Fund v. Tractor Equipment Sales, Inc.

ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT

Re: Dkt. Nos. 29,

INTRODUCTION

Defendants Steven and Rena Van Tuyl (“the Van Tuyls”) owned three residential properties that they leased to third parties. The Van Tuyls also owned a controlling interest in defendant Tractor Equipment Sales, Inc. (“TES”), which participated in plaintiff Automotive Industries Pension Trust Fund (collectively with the plaintiff trustees, the “.Fund”), a multiemployer pension plan as defined under 29 U.S.C. § 1002 (37)(A). The properties and TES were in all respects unrelated except for their common ownership by the Van Tuyls. TES withdrew from the Fund in 2010, triggering withdrawal liability 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 (“MPPAA”), 29 U.S.C. § 1381 et. seq., that remains unpaid. The question I must answer is whether the Fund may enforce the withdrawal liability against the three rental properties because they constitute a “trade or business” under the controlled group theory as defined by 29 U.S.C. § 1301 (b)(1). Because the Van *1177 Tuyls’ leasing activities do not rise to…