On Tuesday a case was filed in the District of New Jersey by Tri Health Solutions against Nu Era Benefits Agency Inc. The case is regarding breach of a contract to provide marketing services to members of a union to encourage members to participate in the union health plan.
Per the complaint, Local Union 713 has an optional health plan through Employers Network Association (ENA). ENA uses Nu Era Benefits Agency as an administrator to process premium payments and to administer billing and commission payments.
The plaintiff argues that Nu Era is simply an alter ego of ENA, as it has a large overlap in ownership, leadership, and personnel. The two entities also share the same address and offices. ENA contracted with the plaintiff, Tri Health, to market the health plan to union members. Under the terms of the contract, monthly commission were due, however the full commission were not paid.
The parties participated in an arbitration on this issue and in November 16, 2021, the arbitrator found in favor of the plaintiff. The defendant has not made any payments and the plaintiffs argue that as an alter ego of ENA, the defendants are assisting ENA in avoiding payment of the arbitration award.
Plaintiffs are suing to declare Nu Era an alter ego of ENA, as well as for conversion, fraudulent conveyance, civil conspiracy, and aiding and abetting. The plaintiff is represented by Lindabury, McCormick, Estabrook, & Cooper PC.
