Tuesday, March 10th, 2009...8:56 am
9th Cir: Rejects “Reverse Alter Ego” Theory
The 9th Circuit has affirmed dismissal of union claims of double-breasting, after rexamining both alter ego and single employer theories. The alter ego theory was a novel one.
Whereas a traditional alter ego claim consists of a union employer opening a non-union company to avoid existing collective bargaining obligations, the Union’s novel “reverse” alter ego claim consists of a nonunion employer allegedly opening a union company to avoid future collective bargaining obligations.
We know of no court that has recognized a reverse alter ego doctrine, and at least one court that has explicitly rejected it. See Chicago Dist. Council of Carpenters Pension Fund v. Vacala Masonry, Inc., 946 F. Supp. 612, 618 (N.D. Ill. 1996).
So. Cal. Painters & Allied Trades Dist. Council No. 36 v. Rodin & Company, 2009 WL _______ (9th Cir. Mar. 10, 2009)
Leave a Reply
You must be logged in to post a comment.