Employment – MPPAA — common control

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U.S. Court of Appeals for the 7th Circuit

Civil

Employment – MPPAA — common control

Where the defendant paid $250,000 in one year to other businesses, they were under common control and are jointly and severally liable for withdrawal liability under the MPPAA.

“In 2005, the defendants paid a combined total of over $250,000 to companies who managed and operated the various business entities. Thus, the argument that Cibula was not involved in these entities is a red herring, since these significant management fees obviated the need for Cibula’s personal involvement. In fact, the management fees indicate that the activities undertaken by the defendants were continuous and regular. See, e.g., SCOFPB, 668 F.3d at 879. In addition to the management fees paid, the defendants also claimed business-related income deductions on their federal income tax returns; they applied for and were issued Federal Employer Identification Numbers; and they contracted with professionals to provide legal, managerial, and accounting services. All factors indicate that the defendants were properly characterized as businesses or trades. Id. at 878.”

Affirmed.

13-3010 & 13-3776 Central States, Southeast and Southwest Areas Pension Fund v. CLP Venture, LLC

Appeal from the United States District Court for the Northern District of Illinois, Guzmán, J., Cudahy, J.