Boland v. Providence Construction Corp.
2014 U.S. Dist. LEXIS 73121
| D.D.C. | 2014Background
- Providence Construction, a New York construction employer, executed collective bargaining agreements (CBAs) requiring monthly contribution reports and payments to multi-employer pension and benefit funds (IPF and IMI) governed by ERISA.
- Plaintiffs allege Providence reported hours but failed to remit contributions for work from Feb. 2012–Apr. 2013, generating $10,544.23 in unpaid contributions.
- Plaintiffs followed their Collection Procedures and ERISA, demanding interest (15% per annum) and either additional interest or liquidated damages (20%), plus attorneys’ fees and costs.
- Providence was properly served but did not answer; the Clerk entered default and Plaintiffs moved for default judgment under Fed. R. Civ. P. 55(b)(2).
- The Court treated well-pleaded allegations as admitted, reviewed declarations supporting damages and fees, and independently calculated damages.
- The Court granted default judgment and awarded $19,926.87 (unpaid contributions, interest, additional interest in lieu of liquidated damages, court costs, and attorneys’ fees).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate after Providence's failure to respond | Default entry and unresponsiveness warrant default judgment | No response or defense asserted | Court granted default judgment; liability established by admission of well-pleaded allegations |
| Amount of recoverable monetary relief (unpaid contributions and interest) | Plaintiffs provided monthly reports, calculation of $10,544.23 owed, and 15% interest through Mar. 13, 2014 totaling additional $2,160.32 | No contest presented | Court independently determined and awarded unpaid contributions plus 15% interest ($10,544.23 + $2,160.32) |
| Whether Plaintiffs may elect additional interest instead of 20% liquidated damages per Collection Procedures | Collection Procedures permit recovery of the higher of additional 15% interest or 20% liquidated damages; Plaintiffs now opt for additional interest | No contest presented | Court allowed Plaintiffs' election of additional 15% interest in lieu of liquidated damages and awarded corresponding amount |
| Entitlement to attorneys' fees and appropriate hourly rate | ERISA §502(g)(2) mandates fees and costs; counsel demonstrated market-rate fees though they discounted billed rates | No contest presented | Court awarded attorneys' fees at market rate as reasonable and reimbursed costs (total fees and costs included in judgment) |
Key Cases Cited
- Boland v. Elite Terrazzo Flooring, Inc., 763 F. Supp. 2d 64 (D.D.C. 2011) (discussing standards for default judgment)
- Keegel v. Key W. & Caribbean Trading Co., 627 F.2d 372 (D.C. Cir. 1980) (noting court discretion to enter default judgment)
- Int’l Painters & Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC, 531 F. Supp. 2d 56 (D.D.C. 2008) (default-judgment discretion and liability treatment)
- Jackson v. Beech, 636 F.2d 831 (D.C. Cir. 1980) (policy favoring resolution on merits but permitting default when party unresponsive)
- Fanning v. Permanent Solution Indus., 257 F.R.D. 4 (D.D.C. 2009) (default establishes liability on well-pleaded allegations; court must determine damages)
- Int’l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc., 239 F. Supp. 2d 26 (D.D.C. 2002) (need for detailed affidavits/documentary evidence to support damages on default)
- Bd. of Trs., Hotel & Rest. Emps. Local 25 v. JPR, Inc., 136 F.3d 794 (D.C. Cir. 1998) (awarding market-rate attorneys’ fees despite discounted billing in ERISA collection cases)