July 26, 2026  ·  Complaint filed July 1, 2026  ·  ilnd, No. 1:26-cv-07723

Newman News, By David Brunk

Read the filing

Teamsters Funds Sue 209 East Lakeshore Drive Corp. for Unpaid Contributions

The Teamsters Local Union No. 727 Benefit Funds allege in a complaint filed June 30, 2026, that 209 East Lakeshore Drive Corp. failed to remit $10,612.41 in required contributions under a collective bargaining agreement covering the period from March 1, 2023, to February 28, 2025. The complaint states, "Defendant knowingly violated ERISA and breached collective bargaining agreements by failing and refusing to pay required contributions." (Compl. ¶1). The discrepancies identified included $20.11 in interest for March 2024 alone.

The audit identified discrepancies for both full-time and part-time employees, including misclassification of employees. For example, the complaint alleges that an employee identified as Aaron Aguilar, Social Security number ending in 6010, was reported as part-time instead of full-time, resulting in underpayments of $3,546.50 to the Welfare Fund, $1,269.40 to the Pension Fund, and $363.85 to the Legal and Educational Assistance Fund. The complaint further notes, "The deficiency... is the result of the employer not reporting sufficient hours to staff the garage during the hours of operations." (Compl. ¶Page 203). Additionally, part-time commercial employees were underreported by $404.26 for the Welfare Fund in 2025, $153.75 for the Pension Fund in 2025, and $43.05 for the Legal and Educational Assistance Fund in 2025 (Compl. ¶Accounting Tables).

Trustees' Authority to Enforce Payment

The complaint highlights the broad authority granted to the Trustees of the funds to enforce payment obligations. Specifically, the Trust Agreements provide that "The Trustees may compel and enforce the payment of Contributions in any manner which they deem proper..." (Compl. ¶31(a)). This authority includes the assessment of interest, liquidated damages, and audit fees, as well as the initiation of legal action to recover delinquent payments. The complaint also cites the liquidated damages provision, stating, "An Employer in default... shall be liable for an additional amount of twenty percent (20%) of the delinquent payment or $50.00, whichever is greater..." (Compl. ¶32(a)).

Contribution Rates and Deficiencies by Fund

The complaint details the monthly contribution rates under the collective bargaining agreement, which was in effect from November 1, 2021, to October 31, 2026. For full-time employees, the rates were $1,648.08 to $1,708.74 per month for the Welfare Fund, $571.89 to $649.88 per month for the Pension Fund, and $181.97 per month for the Legal and Educational Assistance Fund. For part-time employees, the rates were $9.51 to $9.86 per hour for the Welfare Fund, $3.30 to $3.75 per hour for the Pension Fund, and $1.05 per hour for the Legal and Educational Assistance Fund.

The audit found the following unpaid contributions for each fund:

• Welfare Fund: $7,265.94
• Pension Fund: $2,573.53
• Legal and Educational Assistance Fund: $772.94, with a beginning balance of $855.57 as of February 29, 2026 (Compl. ¶Accounting Tables). The fund also recorded $43.05 in deficiencies for part-time commercial employees in 2025.

The complaint further breaks down the deficiencies, showing that full-time employees accounted for a total of $9,983.63 in unpaid contributions, including $6,842.66 for the Welfare Fund, $2,413.18 for the Pension Fund, and $727.79 for the Legal and Educational Assistance Fund. Part-time employees accounted for $628.78 in unpaid contributions, including $423.28 for the Welfare Fund (with $19.02 in 2024 and $404.26 in 2025), $160.35 for the Pension Fund (with $6.60 in 2024 and $153.75 in 2025), and $45.15 for the Legal and Educational Assistance Fund (with $2.10 in 2024 and $43.05 in 2025).

The audit also revealed discrepancies in the defendant's records for 209 East Lake Shore Drive Corp., totaling $366.04 in 2024 and $406.90 in 2025, with corresponding interest charges of $25.18 in 2024 and $57.45 in 2025 (Compl. ¶Accounting Tables).

Interest, Liquidated Damages, and Audit Fees

The complaint alleges that 209 East Lakeshore Drive Corp. is liable for interest, liquidated damages, and audit fees in addition to the unpaid contributions. As of April 30, 2026, the complaint states that the defendant owes $2,281.08 in interest, broken down as follows:

• Welfare Fund: $1,564.36 (Compl. ¶50)
• Pension Fund: $548.62 (Compl. ¶58)
• Legal and Educational Assistance Fund: $168.10 (Compl. ¶66), including $68.31 in 2026 alone

The complaint also specifies that the minimum monthly interest charge per fund is $25.00 (Compl. ¶Collection Procedures). The interest rates applied to delinquent contributions varied by month and fund, ranging from 7.75% to 9.50%. The defendant's records for 209 East Lake Shore Drive Corp. showed $25.18 in total interest for 2024 and $57.45 in total interest for 2025 (Compl. ¶Accounting Tables).

The complaint alleges that the defendant owes $2,122.48 in liquidated damages, calculated as 20% of the delinquent payments or $50, whichever is greater. The liquidated damages are broken down as follows:

• Welfare Fund: $1,453.19 (Compl. ¶51)
• Pension Fund: $514.71 (Compl. ¶59)
• Legal and Educational Assistance Fund: $154.59 (Compl. ¶67)

Additionally, the complaint alleges that the defendant is liable for $1,460.00 in total audit fees, broken down as follows:

• Welfare Fund: $1,007.40
• Pension Fund: $350.40 (Compl. ¶60)
• Legal and Educational Assistance Fund: $87.60 (Compl. ¶68)
• Parking Industry Labor Management Committee Trust: $14.60

The complaint notes that the Trustees may waive the audit fee if the delinquency does not exceed $5,000 and is paid in full prior to referral to Fund Counsel. Specifically, the Collection Procedures state, "If the delinquency does not exceed $5,000, the Trustees will waive the audit fee as long as the delinquency is paid in full prior to referral to Fund Counsel." (Compl. ¶VI.A, p. 189). However, the complaint alleges that the total delinquency exceeded this threshold, and the defendant failed to remit payment prior to the referral.

Legal Claims Under ERISA and Federal Common Law

The complaint brings six counts against 209 East Lakeshore Drive Corp., all related to the alleged failure to remit required contributions. The first three counts allege unpaid contributions under the Employee Retirement Income Security Act (ERISA) for each of the three funds. Count I alleges unpaid contributions to the Health and Welfare Fund under ERISA, 29 U.S.C. §§ 1132 and 1145, and the Labor Management Relations Act, 29 U.S.C. § 185. Counts II and III allege unpaid contributions to the Pension Fund and Legal and Educational Assistance Fund, respectively, under 29 U.S.C. § 1145.

The complaint references a provision of ERISA, stating, "Every employer who is obligated to make contributions to a multiemployer plan shall make such contributions in accordance with the terms and conditions of such plan or such agreement." (Compl. ¶44). It further notes that in any action to enforce this provision, the court shall award the plan the unpaid contributions, interest on the unpaid contributions, and an amount equal to the greater of liquidated damages or other specified amounts (Compl. ¶45).

Counts IV through VI allege contribution shortages, interest, and liquidated damages under federal common law for each of the three funds. The complaint states that the Trust Agreements provide for liquidated damages of 20% of the delinquent payment or $50, whichever is greater, and interest on delinquent contributions. The complaint also alleges that the defendant's failure to pay required contributions violates ERISA § 515, 29 U.S.C. § 1145 (Compl. ¶55).

Demand for Payment and Failure to Respond

The complaint alleges that the funds sent an Audit Report to 209 East Lakeshore Drive Corp. on April 30, 2026, demanding payment of the unpaid contributions, interest, liquidated damages, and audit fees. According to the filing, the defendant failed to remit payment or respond to the demand. The complaint states that the Welfare Fund demanded payment of the delinquent contributions, but the defendant failed or refused to pay (Compl. ¶53). The complaint notes that the audit was conducted to determine what moneys, if any, are owed to the Funds, as stated in the audit procedures: "Audits are performed to determine what moneys, if any are owed to the Funds." (Compl. ¶Objective, p. 185).

The complaint quotes from the funds' Collection Procedures, which state that contributions and signed remittance reports are due by the 10th day of the month following the month in which the work was performed and that interest at a rate of 0.75% per month of the delinquent contribution will be assessed. The procedures further provide that liquidated damages in the amount of 5% of the contribution owed will be added to the delinquency if payment is not received by the 20th of the first month following the due date, and an additional 5% (for a total of 10%) if payment is not received by the 20th of the second month following the due date. The procedures also state that "All payments by the employer on account of the delinquency shall also include all attorney's fees and costs associated with the collection of the delinquency." (Compl. ¶182).

The complaint notes that when an employer’s account is turned over to Fund Counsel, all past and future reports may be combined for collection purposes, including attorney’s fees and costs (Compl. ¶4, p. 183). It further states that "the payment due to each Fund will be considered a separate delinquency." (Compl. ¶183). Fund Counsel is required to report monthly to the Trustees on the status of collection matters. The defendant's records for 209 East Lake Shore Drive Corp. showed total discrepancies of $366.04 in 2024 and $406.90 in 2025, with corresponding interest charges of $25.18 and $57.45 (Compl. ¶Accounting Tables).

Breakdown of Total Amounts Owed

The complaint provides a detailed breakdown of the total amounts owed to each fund as of April 30, 2026:

• Welfare Fund: $11,290.89, which includes $7,265.94 in unpaid contributions, $1,564.36 in interest, $1,453.19 in liquidated damages, and $1,007.40 in audit fees (Compl. ¶74).
• Pension Fund: $3,987.26, which includes $2,573.53 in unpaid contributions, $548.62 in interest, $514.71 in liquidated damages, and $350.40 in audit fees (Compl. ¶80).
• Legal and Educational Assistance Fund: $1,183.23, which includes $772.94 in unpaid contributions, $168.10 in interest, $154.59 in liquidated damages, and $87.60 in audit fees (Compl. ¶86).
• Parking Industry Labor Management Committee Trust: $14.60 in audit fees

The complaint states that the grand total due as of April 30, 2026, is $16,475.97. The defendant's records for 209 East Lake Shore Drive Corp. showed total discrepancies of $366.04 in 2024 and $406.90 in 2025, with corresponding interest charges of $25.18 and $57.45 (Compl. ¶Accounting Tables).

The complaint seeks judgment against 209 East Lakeshore Drive Corp. for the following amounts:

• $10,612.41 in unpaid contributions
• $2,281.08 in interest on unpaid contributions as of April 30, 2026
• $2,122.48 in liquidated damages
• $1,460.00 in total audit fees
• Additional amounts found due during litigation, including further interest and liquidated damages

The complaint also seeks reimbursement for reasonable attorneys’ fees and costs, prejudgment and postjudgment interest at the maximum rate allowed by law, and any other relief the court deems just and proper. The allegations include specific deficiencies for part-time commercial employees, such as $404.26 for the Welfare Fund, $153.75 for the Pension Fund, and $43.05 for the Legal and Educational Assistance Fund in 2025.

The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.

David Brunk is a civil litigation attorney. He can be reached at david@newmanbrunk.com.