McCleskey v. CWG Plastering, LLC

Gianino Plastering operated in St. Louis for over 30 years but abruptly closed in 2012. Gianino’s son, Curt, who had worked at Gianino Plastering for over a decade, founded his own company, CWG, taking on some of Gianino’s customers and employees. CWG completed jobs that Gianino had begun. Curt went into business on the same day that a $196,940.73 judgment was entered against Gianino, arising out of Gianino’s 2009 collective bargaining agreement, which obligated the company to make regular contributions to the Welfare and Pension Funds. The Funds were blocked from collecting on their judgment because Gianino filed for bankruptcy. The Funds then sued CWG, asserting that CWG is Gianino’s successor and alter ego, liable for the judgment and for other ongoing violations of the collective bargaining agreement. After discovery, the district court ruled that the Funds had not produced enough evidence to proceed to trial. The Seventh Circuit reversed. The Funds proffered considerable evidence that a trier of fact could use to support its case against CWG. A reasonable factfinder could find both common ownership and control between the two entities; CWG’s capitalization, common equipment, and shared clients remain disputed matters for trial. The Funds have strong evidence of intent and undisputed evidence of knowledge. View "McCleskey v. CWG Plastering, LLC" on Justia Law