Legal Update: Statute of Limitations for Unpaid Contributions

Posting by Larry Beebe, CPA

In Colvin et al v. United Flooring Inc. et al, a participating employer in a multiemployer plan was audited for a three year period and was found to owe delinquent contributions. The employer refused to pay and contended the plan’s claim was barred under the applicable six-year statute of limitations. The dispute centered on whether the statue started when the employer failed to make contributions or when the failure was discovered by the audit.

The court ruled for the plan stating that the employer had not presented any evidence to show that the employer had put the plan on notice of the unpaid contributions. (No. 2:10-CV-00210-APR) (N.D. IN. Jan 15, 2014)

To read the full court opinion, click here (PDF).

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