The court of appeals affirmed in part and reversed in part a judgment of the district court and remanded. The court held that the district court incorrectly applied the appropriate alter-ego test in determining whether a non-union company was liable for statutory withdrawal liability that was incurred by a union company.
Simas Floor Co., Inc., a non-union employer, set up a union employer, M&M Installation, Inc., to allow it to bid on union jobs by subcontracting such work to M&M. M&M’s union contracts required it to make contributions to the Resilient Floor Covering Pension Fund for its flooring installers. A contract dispute arose and a strike followed. M&M repudiated the union contracts and stopped making contributions to the Pension Fund. The Pension Fund assessed M&M a withdrawal liability. M&M made payments on that assessed liability for several years, but then shut down operations and went out of business.
