Building Trades United Pension Trust Fund v. DS Property Maintenance and Management LLC
2:21-cv-00178
E.D. Wis.Oct 7, 2021Background:
- Plaintiffs Building Trades United Pension Fund and trustee Doug Edwards sued DS Property Maintenance and Management, LLC under ERISA for failing to pay required contributions and for denying auditors access to records.
- Complaint sought unpaid contributions, interest, liquidated damages, attorney’s fees, and equitable relief including an audit and list of receivables for Jan. 1, 2018–Sept. 30, 2019 (later the court-ordered period was Jan. 1, 2018 through the date of the Order).
- Defendant was served but never appeared or responded; the Clerk entered default under Rule 55(a).
- Plaintiffs moved under Rule 55(b)(2) for an order compelling an audit and for entry of default judgment awarding amounts revealed by the audit plus fees and costs.
- The Court treated the motion as unopposed, found liability established by the complaint, granted equitable relief (an audit), but denied default judgment without prejudice because damages must be proved with reasonable certainty.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether equitable relief under ERISA §1132(a)(3) permits an injunction compelling an audit and production of records | Fund sought an injunction compelling DS Property to submit books/records and undergo an audit (Jan. 1, 2018–present) | No response/appearance from DS Property | Granted: Court ordered DS Property to submit to audit from Jan. 1, 2018 through date of Order within 30 days, audit by Plaintiffs’ representative |
| Whether the court may enter default judgment for unpaid contributions, interest, liquidated damages, and fees now or whether an audit and proof of amounts are required | Fund asked court to enter judgment for amounts revealed by audit and allow them to move for default judgment after audit | No response/appearance from DS Property | Denied without prejudice: Plaintiffs must complete the audit and then file a motion for default judgment within 30 days of audit completion; damages must be proved with reasonable certainty under Rule 55(b)(2) |
Key Cases Cited
- Graham v. Satkoski, 51 F.3d 710 (7th Cir. 1995) (defaulted defendant: court accepts well-pleaded facts as true for liability)
- e360Insight v. The Spamhaus Project, 500 F.3d 594 (7th Cir. 2007) (even after default, plaintiff must prove damages with reasonable certainty)
- Health Cost Controls v. Skinner, 44 F.3d 535 (7th Cir. 1995) (equitable relief under §1132(a)(3) encompasses injunction/mandamus but not compensatory damages)
- Mertens v. Hewitt Assocs., 508 U.S. 248 (1993) (defining the scope of equitable relief under ERISA)