Common use of Collection and Enforcement Clause in Contracts

Collection and Enforcement. Each Employer shall be responsible only for making the contributions and payments that it is obligated to make, as established by the 2002 Agreements. Nonpayment by an Employer of any contributions and payments when due shall not relieve any other Employer of his obligation to make payments. Neither shall nonpayment by one Employer of any contributions and payments when due impose upon any other Employer any obligation with respect to such payments. The Trustees shall have the power to demand and collect the contributions of the Employer to the Fund. In addition to any other remedies to which the parties may be entitled, any Employer in default for five (5) days will be required to pay interest on the monies due to the Trustees at the rate charged by the Internal Revenue Service at the time of delinquency up to the date when payment is made, together with all reasonable expenses of collection incurred by the Trustees, including but not limited to attorney’s fees. The foregoing five (5) day “grace period” shall not apply to any Employer with an outstanding obligation to the Trustees. The Trustees are further authorized and empowered to require a bond either in cash or by recognized security to be posted in accordance with a formula determined by the Trustees in order to insure prompt payment of contributions to the Fund. The Trustees shall have sole discretion in establishing rules to determine when bonds shall be posted. All employers who become party to this Agreement and Declaration of Trust agree to be bound by the decisions of the Trustees on delinquencies. The Trustees may take all actions necessary to collect any amounts due the Trust Fund. If the Trustees file suit to collect any amounts due the Trust Fund, the Trustees shall also seek liquidated damages in the amount of twenty percent (20%) of the contributions due at the time the lawsuit is filed. In addition to the liquidated damages authorized under the Employee Retirement Income Security Act (ERISA), (29 USC § 1132 (g)), the Trustees shall also seek all interest, costs and attorney’s fees associated with collection of the delinquent contributions. The Employer agrees that the Trustee may seek all contributions, interest, liquidated damages, costs and attorney’s fees that come due the Trust Fund between the date the lawsuit is filed, and the date Judgment is entered by the Court.