Trustees
of the Michigan Laborers' Health Care Fund v. Gibbons,
209 F.3d 587 (6th Cir. 2000); 2000 FED App. 0128P (6th Cir.)-This
court reversed the district court's holding that that the Gibbons, doing
business as contractor Gibbons Brothers Masonry, were relieved of the obligation
to pay several years' worth of unpaid contributions to several employee pension
and welfare benefit funds pursuant to collective bargaining agreements with
Michigan unions.
The district court had found that the doctrines of laches and equitable
estoppel prevented the Funds from collecting the contributions.
This court reversed, strongly criticizing the district court's
application of the common law of equitable estoppel.
Gibbons had argued that he believed that a 1991 judgment against him (for
non-payment of contributions, no less) terminated the collective bargaining
agreements. The
court cannot consider Plaintiff's silence concerning the unpaid contributions as
grounds for equitable estoppel and statements by an auditor merely expressing
uncertainty as to whether Gibbons owed continuing obligations did not come close
to the grossly negligent representation required for equitable estoppel.
Additionally, Gibbons failed to show detrimental and justifiable reliance
on the misrepresentation.
The undisputed facts showed that the defendants failed to make contributions to the trust funds as the valid collective bargaining agreements required, and in so doing violated § 515 of ERISA. As an aside, this court stated that as a policy matter, "equitable estoppel of third party enforcement of collective bargaining agreements governed by ERISA may well conflict with Congress's objectives in enacting ERISA, i.e., that establishment of employee benefits funds by such plans be in writing and that the funds' fiscal health remain secure."