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Employee Trust Fund Allowed To Lien Project Liens

Monday, January 03, 2005 03:48 pm

Employee Trust Fund Allowed To Lien Project Liens

A Minnesota court has ruled that an employee benefit trust fund could maintain a mechanic's lien on a project for the unpaid contributions of a contractor.

Spectrum Investment Group, LLC awarded a contract to Peak Mechanical, Inc. for improvements to commercial property in Eagan. Peak had a collective bargaining agreement with the Twin City Pipe Trades Service Association, Inc. (TCPC) and hired pipefitters who belonged to that union to perform the work on Spectrum's property.

Under the terms of the collective bargaining agreement, employers such as Peak were required to make contributions to a pension trust and a welfare fund, [...]

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