Gregory R. "Greg" Meeder is a Partner and James Chivilo an Associate in our Chicago office
The Second District Appellate Court in Illinois recently confirmed that union pension funds and unions may proceed with mechanics lien claims in state court even though the pension fund or union may have already filed a claim under the Federal Employee Retirement Income Security Act (ERISA) in federal court. Central Laborers' Pension Fund v. Nicholas and Associates, Inc. 2011 WL 4035772 (2d Dist., September 2, 2011) recently aligned the state of Illinois with the majority of states which allow union pension funds alternate and convenient theories of recovery under both ERISA and the Illinois' Mechanic Lien Act 770 ILCS 60/1 et.seq. (the "Act"). Owners now have expanded liability under the Central Laborers' Pension Fund decision and contractors must realize that they may now have to defend the same claim in two different forums.
Owners and Contractors: Be Aware of Your Subcontractors' Contribution Requirements
Prior to Central Laborers' Pension Fund it was generally understood that pension funds and unions could be barred from recovery under the Act after initiating claims under state prevailing wage...
