Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi

Plain English (For Everyone)

A company called Pack Expo was found responsible for paying money owed to a pension fund, even though it claimed it was separate from another company. The court ruled they were essentially one "single employer" because they shared owners, operations, and control, making them jointly liable for the pension debt.

For Legal Practitioners

The Seventh Circuit affirmed summary judgment, holding Pack Expo Services, LLC jointly liable for ERISA withdrawal liability as a "single employer" with a related entity. The court emphasized that common ownership, integrated operations, and centralized control of labor relations, viewed holistically, established single-employer status, overriding Pack Expo's claims of fiscal independence.

For Law Students

This case illustrates the application of the "single employer" test under ERISA for withdrawal liability. The Seventh Circuit affirmed that Pack Expo and a related company were a single employer due to shared ownership, integrated operations, and centralized labor control, making Pack Expo liable for withdrawal obligations despite arguments of fiscal separation.

Newsroom Summary

A federal appeals court ruled that Pack Expo Services, LLC must pay pension fund debts, finding it was effectively the same employer as a related company. The court cited shared ownership and operations as key factors in holding Pack Expo jointly liable.

Standard of Review

De Novo review, as the appeal concerns the district court's grant of summary judgment, which involves legal questions about the application of ERISA and the single-employer test.

Procedural Posture

The case reached the Seventh Circuit on appeal from the district court's grant of summary judgment in favor of the pension fund. The district court found that Pack Expo Services, LLC was a "single employer" with a related company and thus jointly liable for withdrawal liability under ERISA.

Burden of Proof

The burden of proof was on the pension fund to establish that Pack Expo and its related company constituted a "single employer" under ERISA. The standard of proof for summary judgment is whether there are any genuine disputes of material fact and whether the moving party is entitled to judgment as a matter of law.

Legal Tests Applied

Statutory References

Key Legal Definitions

Rule Statements

"The critical question is whether the entities function as a single, integrated enterprise."

"The "single employer" status is not determined by the presence or absence of any single factor, but rather by considering the totality of the circumstances."

"Fiscal independence is not dispositive when the evidence demonstrates a high degree of operational integration and centralized control."

Remedies

Affirmed the district court's grant of summary judgment.Pack Expo Services, LLC is jointly liable for withdrawal liability to the Central States Southeast and Southwest Areas Pension Fund.

Judges

• Diane J. Humetewa
• Michael B. Brennan
• Amy J. St. Eve

Parties

• Central States Trucking, LLC (party)

Attorneys

• Candace Jackson-Avery
• Mark D. S. Johnson

Scenario: You own a small business and have a separate company that handles your HR and payroll. A pension fund claims your main business owes withdrawal liability, and they are trying to hold your HR company responsible too.

Your Rights: You have the right to argue that the two companies are truly separate entities if they lack common ownership, centralized labor control, and operational integration. However, if the court finds they function as a "single employer," both entities can be held liable for the pension obligations.

What To Do: Gather evidence demonstrating the distinct operational, financial, and labor relations of each company. Consult with an ERISA attorney to assess the strength of your "single employer" defense and prepare for potential litigation.

Is my company liable for another company's pension withdrawal if we share some employees?

Depends. If the companies share common ownership, centralized control of labor relations, and have highly integrated operations, a court might find they are a "single employer" under ERISA, making both liable for withdrawal obligations. Simply sharing employees may not be enough on its own.

This applies to federal law (ERISA) and interpretations by federal circuit courts like the Seventh Circuit.

For Businesses with complex ownership structures or multiple related entities.

These businesses must be aware that pension funds can aggregate entities under the "single employer" doctrine to collect withdrawal liability. The operational and labor relations realities, not just formal corporate structures, will be scrutinized.

For Multiemployer pension funds.

This ruling reinforces the fund's ability to pursue withdrawal liability against all entities that constitute a "single employer," providing a broader pool of assets to cover unfunded liabilities.

Q: What is Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi about?

Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi is a case decided by Seventh Circuit on April 28, 2025.

Q: What court decided Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi was decided by the Seventh Circuit, which is part of the federal judiciary. This is a federal appellate court.

Q: When was Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi decided?

Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi was decided on April 28, 2025.

Q: Who were the judges in Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

The judge in Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi: Kirsch.

Q: What is the citation for Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

The citation for Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi is . Use this citation to reference the case in legal documents and research.

Q: What is withdrawal liability under ERISA?

Withdrawal liability is a financial obligation imposed on an employer when it ceases to contribute to a multiemployer pension plan, or significantly reduces its contributions. It represents the employer's share of the plan's unfunded vested benefits.

Q: What was the specific pension fund involved in this case?

The pension fund involved was the Central States Southeast and Southwest Areas Pension Fund. Pack Expo was found jointly liable for withdrawal liability to this fund.

Q: Does the size of the companies matter in a "single employer" determination?

While not a primary factor, the degree of integration and control is assessed. The "single employer" doctrine can apply to companies of various sizes if the functional integration and control elements are present.

Q: What is the Employee Retirement Income Security Act (ERISA)?

ERISA is a federal law that establishes minimum standards for most voluntarily established retirement and health plans in private industry. It aims to protect individuals enrolled in these plans.

Q: Is Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi published?

Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi is a published, precedential opinion. Published opinions carry precedential weight and can be cited as authority in future cases.

Q: What topics does Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi cover?

Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi covers the following legal topics: Multiemployer Pension Plan Amendments Act (MPPAA), Withdrawal Liability, Single Employer Doctrine, ERISA, Summary Judgment Standard.

Q: What was the ruling in Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

The court ruled in favor of the defendant in Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi. Key holdings: Pack Expo Services, LLC is liable for withdrawal liability to the Central States Southeast and Southwest Areas Pension Fund because it constituted a "single employer" with another entity, Central States Trucking, LLC, under the Employee Retirement Income Security Act (ERISA).; The court applied the four-factor test for determining "single employer" status: (1) interrelation of operations, (2) common management, (3) centralized control of labor relations, and (4) common ownership or financial control.; The evidence demonstrated sufficient interrelation of operations, including shared office space, equipment, and customer lists, and a unified business purpose.; Centralized control of labor relations was established through evidence of shared decision-making regarding hiring, firing, and employee benefits, despite separate payrolls.; Common ownership and financial control were evident through the ownership structure and the fund's ability to access financial information of both entities..

Q: What precedent does Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi set?

Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi established the following key holdings: (1) Pack Expo Services, LLC is liable for withdrawal liability to the Central States Southeast and Southwest Areas Pension Fund because it constituted a "single employer" with another entity, Central States Trucking, LLC, under the Employee Retirement Income Security Act (ERISA). (2) The court applied the four-factor test for determining "single employer" status: (1) interrelation of operations, (2) common management, (3) centralized control of labor relations, and (4) common ownership or financial control. (3) The evidence demonstrated sufficient interrelation of operations, including shared office space, equipment, and customer lists, and a unified business purpose. (4) Centralized control of labor relations was established through evidence of shared decision-making regarding hiring, firing, and employee benefits, despite separate payrolls. (5) Common ownership and financial control were evident through the ownership structure and the fund's ability to access financial information of both entities.

Q: What are the key holdings in Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

1. Pack Expo Services, LLC is liable for withdrawal liability to the Central States Southeast and Southwest Areas Pension Fund because it constituted a "single employer" with another entity, Central States Trucking, LLC, under the Employee Retirement Income Security Act (ERISA). 2. The court applied the four-factor test for determining "single employer" status: (1) interrelation of operations, (2) common management, (3) centralized control of labor relations, and (4) common ownership or financial control. 3. The evidence demonstrated sufficient interrelation of operations, including shared office space, equipment, and customer lists, and a unified business purpose. 4. Centralized control of labor relations was established through evidence of shared decision-making regarding hiring, firing, and employee benefits, despite separate payrolls. 5. Common ownership and financial control were evident through the ownership structure and the fund's ability to access financial information of both entities.

Q: What cases are related to Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

Precedent cases cited or related to Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi: Central States, Southeast and Southwest Areas Pension Fund v. GSF Trucking Co., 364 F.3d 865 (7th Cir. 2004); Central States, Southeast and Southwest Areas Pension Fund v. Personnel Servs., Inc., 974 F.2d 789 (7th Cir. 1992); Board of Trustees of the Chicago Painters and Decorators Pension Fund v. H.W. Givan, Inc., 772 F.3d 457 (7th Cir. 2014); Teamsters Pension Trust Fund of Philadelphia & Vicinity v. King, 988 F.2d 30 (3d Cir. 1993).

Q: What does it mean for two companies to be a "single employer" under ERISA?

It means that even if legally separate, the companies are treated as one entity for purposes of ERISA obligations, such as withdrawal liability. This typically occurs when they share common ownership, management, centralized labor relations, and operational integration.

Q: How did the court determine Pack Expo was a "single employer"?

The Seventh Circuit found Pack Expo and its related company met the "single employer" test by considering common ownership, integrated operations (like shared staff and resources), and centralized control over labor relations, despite Pack Expo's claims of being fiscally independent.

Q: Can a company avoid withdrawal liability by claiming it's fiscally independent?

No, fiscal independence alone is not enough to avoid liability if other factors, such as integrated operations and centralized control of labor relations, demonstrate that the entities function as a single employer under ERISA.

Q: What are the key factors in the "single employer" test?

The primary factors are common ownership, common management, centralized control of labor relations, and interdependence of operations. The court looks at the totality of these circumstances.

Q: What was Pack Expo's main argument against liability?

Pack Expo argued that it was a "fiscally independent" entity and therefore should not be held liable for the withdrawal obligations of a related company. However, the court found this argument unavailing.

Q: Are there any exceptions to single employer liability?

Generally, the "single employer" doctrine is applied broadly to protect pension plans. Exceptions are rare and usually involve clear, demonstrable separation of operations and control, which was not found in Pack Expo's case.

Q: What is the legal basis for aggregating employers under ERISA?

The legal basis is ERISA Section 302(b)(1) (29 U.S.C. § 1301(b)(1)), which allows for the aggregation of trades or businesses under common control to be treated as a single employer for purposes of withdrawal liability.

Q: Did the court consider the specific date of withdrawal?

While the specific date of withdrawal is crucial for calculating the liability amount, the Seventh Circuit's decision focused on the "single employer" status, affirming that Pack Expo was liable regardless of the exact withdrawal date due to its integrated relationship with the withdrawing entity.

Q: What is the "totality of the circumstances" standard?

This standard means that no single factor is determinative. Courts examine all relevant factors – ownership, management, labor relations, and operations – to decide if entities function as a single integrated enterprise.

Q: What happens if my company is found to be a "single employer" with another that withdrew from a pension plan?

If found to be a "single employer," your company can be held jointly and severally liable for the entire withdrawal liability amount, even if your company was not the one that directly ceased contributions.

Q: How can a business owner prevent being deemed a "single employer"?

Maintain clear separation in ownership, management, labor relations, and day-to-day operations between affiliated entities. Document these distinctions thoroughly and avoid operational integration.

Q: What evidence might a pension fund use to argue companies are a "single employer"?

Funds look for evidence like shared officers or directors, common employees performing similar functions, shared office space or equipment, unified marketing, and centralized decision-making regarding employees or business strategy.

Q: How long can withdrawal liability payments last?

Withdrawal liability payments are typically made over a period of up to 20 years, in equal annual installments, with interest.

Q: What was the docket number in Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi?

The docket number for Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi is 24-1741. This identifier is used to track the case through the court system.

Q: Can Pack Expo Services, LLC v. Central States Southeast and Southwest Areas Pensi be appealed?

Potentially — decisions from federal appellate courts can be appealed to the Supreme Court of the United States via a petition for certiorari, though the Court accepts very few cases.

Q: What is the standard of review for summary judgment appeals?

Appeals from a grant of summary judgment are typically reviewed de novo, meaning the appellate court examines the case anew without giving deference to the lower court's legal conclusions.

Q: What does "de novo" review mean for this case?

De novo review means the Seventh Circuit looked at all the legal issues, including whether Pack Expo and the other company were a "single employer," as if it were hearing the case for the first time, without being bound by the district court's legal reasoning.

Q: What is the role of the district court in these cases?

The district court initially hears the case, often deciding motions like summary judgment. In this case, the district court granted summary judgment to the pension fund, finding Pack Expo liable as a single employer, which the Seventh Circuit then reviewed.