Pension Fund Wins 'Pay Now, Dispute Later' Appeal

Law360, New York (September 1, 2010, 5:14 PM EDT) -- A federal appeals court has ordered a troubled storage company to immediately turn over $2.2 million to the Central States Southeast and Southwest Areas Pension Fund, finding that the company cannot use arbitration to duck the “pay now, dispute later” rule that protects multiemployer pension funds from employer withdrawal.

The U.S. Court of Appeals for the Seventh Circuit upheld the lower court's ruling in the case, noting Tuesday that pension law allows multiemployer funds to demand immediate payment for fund liabilities if a company indicates it...
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