Bricklayers & Trowel Trades International Pension Fund v. Kafka Construction, Inc.
273 F. Supp. 3d 177
| D.D.C. | 2017Background
- Plaintiffs are two multiemployer ERISA plans, the Bricklayers & Trowel Trades International Pension Fund (IPF) and the International Masonry Institute (IMI), administered in D.C.; Kafka Construction, a New York employer, was a signatory required to submit monthly remittance reports and contributions under collective bargaining agreements and plan Collection Procedures.
- Plaintiffs allege Kafka failed to submit reports and pay required contributions for various periods in 2016–2017; Kafka was properly served on August 1, 2016, but never responded.
- The Clerk entered default on June 1, 2017; the court issued an Order to Show Cause (deadline June 20, 2017) to which Kafka did not respond.
- Plaintiffs sought default judgment for unpaid contributions, interest, liquidated damages (or additional interest), court and process fees, attorney’s fees, and an injunction to require future compliance with reporting and payment obligations under ERISA and the agreements.
- Plaintiffs submitted declarations and an audit documenting unpaid contributions, interest, and liquidated damages totaling $23,266.67 (pre-fees) and requested $5,634.50 in attorney’s fees; some amounts had been paid post-filing but amounts remained owed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate after Kafka’s failure to respond | Plaintiffs: Kafka was properly served, default entered, and has not defended; default judgment warranted | Kafka: no response or defense presented | Court: Default judgment appropriate; liability accepted on well-pleaded allegations |
| Whether Kafka breached ERISA/contract obligations to remit reports and contributions | Plaintiffs: Collection Procedures and CBA require monthly reporting/payment; Kafka failed to comply for specified periods | Kafka: no response | Court: Kafka breached obligations; liable for delinquent contributions and statutory remedies under ERISA |
| Proper amount of monetary damages (delinquent contributions, interest, liquidated damages, fees) | Plaintiffs: Declarations, audit, and reasonable estimates support the amounts requested totaling specified sums | Kafka: no response | Court: Independent review of affidavits supports award of the requested monetary damages (as detailed) |
| Whether equitable relief (injunction) should issue to require future compliance | Plaintiffs: Injunction necessary because defendant shows no willingness to comply | Kafka: no response | Court: Injunction granted requiring timely remittance reports and payment going forward |
Key Cases Cited
- Boland v. Cacper Constr. Corp., 130 F. Supp. 3d 379 (D.D.C. 2015) (default-judgment standard and damages determination in ERISA collection cases)
- Elite Terrazzo Flooring, Inc. v. [unnamed in opinion], 763 F. Supp. 2d 64 (D.D.C. 2011) (default establishes liability for well-pleaded allegations)
- Providence Constr. Corp. v. [unnamed in opinion], 304 F.R.D. 31 (D.D.C. 2014) (use of affidavits/documentary evidence to calculate damages in default cases)
- Fanning v. Permanent Sol. Indus., Inc., 257 F.R.D. 4 (D.D.C. 2009) (procedural guidance on default-judgment practice)
- Nat’l Shopmen Pension Fund v. Builders Metal Supply Inc., 304 F.R.D. 47 (D.D.C. 2014) (permitting reasonable estimates of hours when employer fails to submit required reports)
- ZAK Architectural Metal & Glass, LLC, 635 F. Supp. 2d 21 (D.D.C. 2009) (injunctions to enforce ERISA and CBA obligations against nonresponsive defendants)
- Carpenters Labor–Mgmt. Pension Fund v. Freeman-Carder, LLC, 498 F. Supp. 2d 237 (D.D.C. 2007) (granting equitable relief to enforce contribution obligations)