Boards of Trustees of Ohio Laborers' Fringe Benefit Programs v. LA Williams Construction, LLC
2:16-cv-00304
| S.D. Ohio | Jul 5, 2017Background
- Plaintiffs are trustees of multiemployer ERISA benefit plans (Ohio Laborers’ Fringe Benefit Programs) and sued LA Williams Construction, LLC and Louis Williams under ERISA §§ 502(a)(3) and 515 for unpaid and late contributions under a collective bargaining agreement.
- Complaint alleged failure to file contribution reports, refusal to permit an audit, missed contributions for Nov. 2015–Jun. 2016, and untimely payments for Jan. and May 2016.
- Defendants answered improperly; the Court struck the answer, clerk entered default, and Plaintiffs moved for default judgment.
- Magistrate Judge recommended granting default judgment; LA Williams filed a summary objection contesting damages.
- District Court conducted de novo review, found liability established by default, and awarded statutory unpaid contributions, interest, liquidated damages, attorney’s fees and costs; Louis Williams was dismissed without prejudice under Rule 41(a)(1)(A)(i).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability under ERISA § 515 for missed contributions | LA Williams bound by CBA and failed to pay Nov 2015–Jun 2016 contributions and omitted audits | Defaulted; did not meaningfully contest liability | Default establishes liability; judgment for Plaintiffs granted |
| Amount of statutory damages (unpaid contributions + interest) | Plaintiffs provided contribution reports, memorandum, and affidavit calculating $9,022.78 unpaid + interest | Objected to Magistrate R&R summarily, disputing amount | Court found evidence sufficient and awarded $10,454.84 total (unpaid contributions + liquidated damages/interest) |
| Attorney’s fees reasonableness | Fees supported by billing entries: 18 hours at $255/$280 rates; lodestar appropriate | Objected only to amount generally | Court applied lodestar, found hours and rates reasonable, awarded $4,733.75 |
| Liquidated damages for untimely payments under CBA | CBA provides 10% liquidated damages + 1% monthly interest for late contributions; seeks $786.06 in delinquent-payment damages | Argued (generally) about amounts | Court enforced CBA provision as non-penal and reasonable; awarded 10% + 1% monthly on untimely payments |
| Post-judgment interest rate | Plaintiffs sought 1% per month as specified in CBA | No substantive opposition | Court ordered post-judgment interest at 1% per month as stipulated in CBA |
Key Cases Cited
- Antoine v. Atlas Turner, Inc., 66 F.3d 105 (6th Cir. 1995) (defaulted defendant deemed to admit well-pleaded liability allegations)
- Vesligaj v. Peterson, [citation="331 F. App'x 351"] (6th Cir. 2009) (district court must ascertain damages with reasonable certainty after default)
- Credit Lyonnais Sec. (USA) Inc. v. Alcantara, 183 F.3d 151 (2d Cir. 1999) (damages allegations not deemed true on default; court must determine amount)
- Mich. Carpenters Council Health & Welfare Fund v. C.J. Rogers, Inc., 933 F.2d 376 (6th Cir. 1991) (§ 1132(g) mandates award of liquidated damages when provision applies)
- Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (lodestar method: reasonable hours × reasonable rate for attorney’s fees)
- Imwalle v. Reliance Med. Prods., 515 F.3d 531 (6th Cir. 2008) (lodestar presumed reasonable when hours and rate are reasonable)