Boland v. Hetrick
277 F. Supp. 3d 112
| D.D.C. | 2017Background
- Plaintiffs are the trustees/fiduciaries of multiemployer plans (Bricklayers & Trowel Trades International Pension Fund and International Masonry Institute) who brought this ERISA action to collect unpaid fringe-benefit contributions, interest, liquidated damages, audit costs, and attorneys’ fees from defendant John E. Hetrick d/b/a Hetrick Masonry under collective-bargaining agreements and the plans’ Collection Procedures Agreement.
- Audits revealed delinquencies: Audit 1 (Jan 2012–Mar 2015) and Audit 2 (Apr 2015–Dec 2015). Plaintiffs originally sued in Feb 2016 and a default was entered when Hetrick Masonry did not appear or defend.
- Plaintiffs sought unpaid contributions (as updated after Audit 2), interest, liquidated damages (per plan), audit costs, late fees, filing costs, and attorneys’ fees; defendant made two payments totaling $3,200 but otherwise did not respond.
- The Court treated the motion for default judgment under Rule 55, reviewed detailed affidavits (Stupar, Mehler, Hopp) and documentation supporting the amount owed, and addressed entitlement to both legal and equitable relief under 29 U.S.C. § 1132(g)(2).
- The Court awarded a default judgment for $192,654.70 composed of unpaid contributions ($117,910.48), interest ($18,518.11), liquidated damages ($23,582.10), audit costs ($13,773.81), and attorneys’ fees and costs ($18,870.20), and ordered Hetrick Masonry to produce records and comply with reporting/contribution obligations going forward.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate | Hetrick Masonry failed to appear or defend despite notice; was unresponsive | No response/argument presented | Default judgment appropriate where defendant is willfully unresponsive |
| Entitlement to unpaid contributions discovered post-complaint | Plaintiffs may recover contributions uncovered by audits conducted after filing because complaint sought amounts accruing through judgment | No opposition presented | Court exercised discretion to award ERISA damages accruing during pendency where complaint put defendant on notice |
| Calculation of interest and liquidated damages under §1132(g)(2) | Interest at plan rate (15%); liquidated damages per Collection Procedures (up to 20%) | No opposition presented | Awarded interest ($18,518.11) and liquidated damages equal to 20% of unpaid contributions ($23,582.10); late fees not awarded for lack of proof |
| Recovery of audit costs and attorneys’ fees | Collection Procedures require employer to pay audit costs; attorneys’ fees supported by detailed time records and below-market rates | No opposition presented | Awarded audit costs ($13,773.81) and attorneys’ fees/costs ($18,870.20) as reasonable |
| Equitable relief (injunction/records production) | Plaintiffs sought mandatory relief to obtain delinquent reports and payroll records and to compel future compliance | No opposition presented | Granted mandatory injunctive relief requiring production of records and ongoing compliance with reporting/contribution obligations |
Key Cases Cited
- Jackson v. Beech, 636 F.2d 831 (D.C. Cir. 1980) (default-judgment discretion and policy favoring merits resolution)
- H. F. Livermore Corp. v. Aktiengesellschaft Gebruder Loepfe, 432 F.2d 689 (D.C. Cir. 1970) (default available when adversary process halted by unresponsive party)
- Bd. of Trs. of Hotel & Rest. Emps. Local 25 v. JPR, Inc., 136 F.3d 794 (D.C. Cir. 1998) (trustees may enforce plan provision requiring employers to pay audit fees)
- Adkins v. Teseo, 180 F. Supp. 2d 15 (D.D.C. 2001) (default admits well-pleaded allegations and court must independently determine damages)
- Teamsters Local 639–Emp’rs Health Tr. v. Boiler & Furnace Cleaners, Inc., 571 F. Supp. 2d 101 (D.D.C. 2008) (default judgment standards in ERISA collection context)