The Third Circuit upheld a lower court’s decision to vacate an arbitration award exceeding $427,000 against Allied Painting & Decorating Inc. over a union pension fund’s withdrawal liability claims. The ruling, made on Thursday, determined that the International Painters and Allied Trades Industry Pension Fund waited too long to request payment under federal benefits law.
$427K Painting Company Arbitration : District Court’s Decision
A three-judge panel for the Third Circuit supported the district court’s decision to vacate the arbitration award, albeit on different grounds. The arbitration dispute centered on Allied Painting’s alleged withdrawal liability to the pension fund. Notably, the company had not contested the fund’s calculation for the liability amount.
U.S. Circuit Judge Paul B. Matey, writing for the panel, highlighted that the pension fund delayed 12 years before seeking withdrawal liability from Allied Painting. He emphasized the importance of timeliness under the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA), which requires funds to request payment “as soon as practicable” after a company’s withdrawal.
$427K Painting Company Arbitration :The Complaint and Delay
In 2021, Allied Painting filed a complaint to overturn the arbitration award that held the company liable for about $427,000 in withdrawal liability. Court filings revealed that during litigation, Allied had been making monthly payments of approximately $17,900. The union fund initially demanded payment in 2017, alleging Allied’s withdrawal occurred in 2005.
