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CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND v. KODER

No. 91-2441.

969 F.2d 451 (1992)

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, a pension trust, Marion M. Winstead, Robert C. Sansone, et al., Plaintiffs-Appellees, v. Robert KODER, a sole proprietorship, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided July 28, 1992.

Attorney(s) appearing for the Case

Terence G. Craig, Francis J. Carey, Melissa Reardon Henry, Margaret M. Fahrenbach, Bruce L. Perlin, Central States, Southeast & Southwest Area Pension Fund, Law Dept., Rosemont, Ill., for plaintiffs-appellees.

Charles W. Siegel, Markham, Ill., Martin J. Holmes, Scott A. Winckowski, Brown, Baker, Schlageter & Craig, Toledo, Ohio, for defendant-appellant.

Before BAUER, Chief Judge, CUDAHY and COFFEY, Circuit Judges.

COFFEY, Circuit Judge.

In its original form, the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq., did not impose withdrawal liability on contributors to a multiemployer pension plan unless the plan terminated within five years of the employer's withdrawal, and any liability was limited to 30-percent of the employer's net worth. This situation gave employers an incentive to cease participation in financially weak plans to...

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