Boland v. ELITE TERRAZZO FLOORING, INC.
2011 U.S. Dist. LEXIS 7954
| D.D.C. | 2011Background
- IPF and IMI trustees sued Elite Terrazzo Flooring for delinquent contributions under CBAs and ERISA.
- Defendant’s CBAs with Bricklayers and Allied Craftworkers Local 7 required monthly reports and contributions to IPF and IMI.
- May 2009 through January 2010 contributions were allegedly unpaid despite reports being submitted.
- Plaintiffs filed suit in April 2010 and served defendant on May 5, 2010; defendant did not answer.
- Default was entered on August 25, 2010, after which plaintiffs moved for default judgment under Rule 55(b)(2).
- Court grants default judgment for $19,705.95 plus injunctive relief requiring future compliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is proper where defendant failed to respond | Defendant failed to plead or defend; defaults appropriately entered. | No argument presented due to nonresponse; no meritorious defense alleged. | Yes; default judgment proper against unresponsive defendant. |
| Whether defendant is liable for unpaid contributions under CBAs and ERISA | Delinquent contributions May 2009–Jan 2010 constitute breach under CBAs/ERISA. | No responsive defense; no briefing offered. | Liability established for unpaid contributions. |
| Whether damages, including interest, liquidated damages, and costs, are warranted | Damages computed from defendant's remittance reports; sought interest, liquidated damages, and costs. | No response; no opposing calculation provided. | Damages awarded as calculated: $13,326.66 plus interest, up to 20% liquidated damages ($4,505.42) and costs. |
| Whether injunctive relief to ensure future compliance is appropriate | ERISA and CBAs authorize equitable relief to enforce ongoing obligations. | No participation or defense; no contrary evidence. | Injunctive relief granted directing future timely contributions and reporting. |
Key Cases Cited
- Keegel v. Key W. & Caribbean Trading Co., 627 F.2d 372 (D.C.Cir.1980) (default judgment a remedy when defendant is unresponsive)
- H.F. Livermore Corp. v. Aktiengesellschaft Gebruder Loepfe, 432 F.2d 689 (D.C.Cir.1970) (default judgment appropriate to protect diligent party)
- Adkins v. Teseo, 180 F. Supp. 2d 15 (D.D.C.2001) (liability established by default; damages require independent calculation)
- Trans World Airlines, Inc. v. Hughes, 449 F.2d 51 (2d Cir.1971) (default concludes liability phase of action)
- Credit Lyonnais Secs. (USA), Inc. v. Alcantara, 183 F.3d 151 (2d Cir.1999) (court must conduct damages inquiry with reasonable certainty)
- Int'l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., 239 F. Supp. 2d 26 (D.D.C.2002) (affidavits may establish damages; default judgment appropriate)