Local 144 Nursing Home Pension Fund v. Demisay, 508 U. S. 581 (1993)

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Cite as: 508 U. S. 581 (1993)

Stevens, J., concurring in judgment

In my view, if a trust fund is not complying with the standards of § 302(c)(5)—if, for instance, it is making annual contributions to the Red Cross—then a federal court is authorized by § 302(e) to enjoin the improper diversion of funds. There is no sensible reason why the court should instead be restricted to enjoining future payments to the fund, or receipt of those payments, as violations of §§ 302(a) and (b). Congress intended § 302(c)(5) to operate as a guarantee against diversion of trust funds, and this purpose is effectuated by the reading we have always before given § 302. Today's departure from this understanding seriously undermines the functioning of the statute. The Court's action is not only uninvited and unnecessary; it is a radical departure from the doctrine of judicial restraint.

601

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