By: Daily Record Staff//August 25, 2014
By: Daily Record Staff//August 25, 2014//
U.S. Court of Appeals for the Second Circuit
State Breach-of-contract — Subject Matter Jurisdiction
Silverman v. Teamsters Local 210 Affiliated Health and Insurance Fund
Judges Jacobs, Calabresi and Pooler
Background: The defendants appealed from a judgment awarding $2.5 million to the Union Mutual Medical Fund for unpaid ERISA plan contributions. Multiple collective bargaining agreements promised to contribute to the 210 Fund and, in return, the 210 Fund would unconditionally and irrevocably transfer 14 percent of the payments to another fund, the UMM, which provided medical benefits to retired union members.
Ruling: The Second Circuit vacated and remanded. The court held that the 210 Fund was not obligated to contribute funds to the UMM under the terms of an ERISA plan, the district court lacked subject matter jurisdiction under ERISA. However, because the claims can be construed as state law breach-of-contract claims, the Second Circuit remanded for the district court to decide whether to exercise supplemental jurisdiction and decide the claims under the alternative theory.
Thomas A. Thompson for the defendants-appellants-cross-appellees; Robert J. Kipness of Lownestein Sandler for the plaintiffs-counter-defendants-appellees-cross-appellants