Unpaid Obligations

Description: Unpaid obligations: bankrupt contractors.

HOH client: Union Benefit Fund

Key issues:  Demonstrate obligation, identify funding source, obtain and enforce court judgment.

Employers in the building trades are generally required to pay into a multi-employer benefit plan for each union employee they hire, according to an established hourly formula. If the job is issued by a public agency, the main contractor must take out a bond to guarantee this payment. Occasionally, a subcontractor will attempt to discharge its obligations – including those to pay employee benefits – through bankruptcy proceedings.   Holm & O’Hara LLP has successfully litigated to recover such contributions in numerous actions. In some instances, we have been able to secure funds from the main contractor’s bond when a subcontractor has declared bankruptcy.

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