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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
- being done in connection with this case, at the time the opinion is issued.
- The syllabus constitutes no part of the opinion of the Court but has been
- prepared by the Reporter of Decisions for the convenience of the reader.
- See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- LOCAL 144 NURSING HOME PENSION FUND
- et al. v. DEMISAY et al.
- certiorari to the united states court of appeals for
- the second circuit
- No. 91-610. Argued January 11, 1993-Decided June 14, 1993
-
- For several years, respondent employers had made contributions to two
- trust funds (collectively, Greater Funds) on behalf of their employees.
- In 1984, however, the employers ended their participation in the
- Greater Funds and agreed, in collective-bargaining agreements with
- the relevant union, to establish a new set of trust funds (collectively,
- Southern Funds). To help finance the change between the funds, the
- employers and other respondents brought an action to compel
- petitioners, the Greater Funds and their trustees, to transfer to the
- Southern Funds that portion of the Greater Funds' reserves
- attributable to the respondents' past contributions. Respondents
- asserted a right to relief under, inter alia, 302 of the Labor
- Management Relations Act, 1947, which prohibits payments from
- employers to union representatives, 302(a) and (b), but affords an
- exception under 302(c)(5) for payments to an employee trust fund if
- certain conditions are met, including that the trust fund be
- ``established . . . for the sole and exclusive benefit of the employees,''
- and that the payments be ``held in trust for the purpose of paying''
- employee benefits. Respondents' theory was that, unless the reserves
- attributable to the employers' past contributions were transferred,
- the Greater Funds would fail to meet 302(c)(5)'s conditions and
- would thus suffer from a ``structural defect'' which could be remedied
- by the federal courts pursuant to the power conferred by 302(e) to
- ``restrain violations of this section.'' The District Court granted
- petitioners' motion for summary judgment, finding no such
- ``structural defect'' in the Greater Funds, but the Court of Appeals
- reversed and remanded for the District Court to shape an
- appropriate remedy.
- Held: A federal court does not have authority under 302(e) to issue
- injunctions against a trust fund or its trustees requiring the trust
- funds to be administered in the manner described in 302(c)(5).
- Section 302(e) provides district courts with jurisdiction ``to restrain
- violations of this section,'' and a violation of 302 occurs when
- payments prohibited by 302(a) and (b) are made. The exception to
- violation set forth in 302(c)(5) describes the character of the trust to
- which payments are allowed, leaving it originally to state trust law,
- and now to federal trust law under the Employee Retirement Income
- Security Act of 1974, to determine when breaches of that trust have
- occurred and how they may be remedied. Language in Arroyo v.
- United States, 359 U. S. 419, 426-427, and NLRB v. Amax Coal Co.,
- 453 U. S. 322, 331, that is perhaps susceptible of a contrary reading
- is pure dicta. Pp. 6-11.
- 935 F. 2d 528, reversed and remanded.
- Scalia, J., delivered the opinion of the Court, in which Rehnquist,
- C. J., and O'Connor, Kennedy, Souter, and Thomas, JJ., joined.
- Stevens, J., filed an opinion concurring in the judgment, in which
- White and Blackmun, JJ., joined.
-