IBEW v. Trig Elec. Const. Co.
13 P.3d 622 | Washington Supreme Court | 2000
What This Case Means for Subcontractors
A union tried to foreclose on a general contractor's bond to recover unpaid employee benefit contributions owed by a subcontractor. The Washington Supreme Court ruled that federal ERISA law preempts (overrides) Washington's state lien laws in this situation. This means unions cannot use state lien foreclosure procedures to collect unpaid fringe benefits—they must follow federal ERISA rules instead. Subcontractors need to understand that benefit contribution disputes follow different rules than regular payment disputes.
Key Takeaways
- •Union benefit claims are governed by federal ERISA law, not state lien statutes—state lien procedures won't work for collecting unpaid fringe benefits
- •General contractor bonds cannot be foreclosed under state law to satisfy unpaid employee benefit contributions owed by subcontractors
- •If you're a subcontractor owing union benefits, expect the union to pursue federal remedies rather than state lien claims against your GC's bond
ERISA preempts the union's lien foreclosure action against Lydig and Fidelity.
Frequently Asked Question
Can a union foreclose on my general contractor's bond to collect unpaid employee benefits I owe?
No. Federal ERISA law preempts Washington's state lien foreclosure procedures for unpaid union benefit contributions. The union must pursue remedies under federal ERISA rules instead of using state lien processes against the contractor's bond. This applies even if you're a subcontractor with unpaid fringe benefit obligations.
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