297 F.R.D. 162
D.D.C.2013Background
- The Central Pension Fund (the Fund) sued C & L Services for failing to make employer contributions required by a collective bargaining agreement (CBA) and ERISA for Jan–Mar 2013.
- C & L allegedly submitted a dishonored check for January and made no payments for February and March; C & L provided internal contribution reports recognizing delinquent amounts.
- The Fund sought unpaid contributions ($14,728.78), interest (9% per Trust Agreement), liquidated damages (Trust allows up to 20%; Fund requested 15%), and costs and attorneys’ fees.
- C & L was properly served but never answered; the Clerk entered default and the Fund moved for default judgment.
- The Court adopted the complaint’s well-pleaded allegations, found liability, and independently calculated damages based on submitted declarations and documents.
- The Court awarded a judgment to the Fund of $20,010.53 (unpaid contributions, interest, 15% liquidated damages, and $2,500 in costs/fees).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability for unpaid contributions under CBA/ERISA | Fund: C & L failed to remit required monthly contributions for Jan–Mar 2013, per CBA and trust documents | C & L: no responsive pleading; no asserted defense | Court: default establishes liability; judgment for Fund on liability |
| Proper calculation of unpaid contributions | Fund: unpaid total $14,728.78 based on Fund records and C & L’s reports | C & L: no contest in record | Court: accepts submitted calculations and awards $14,728.78 |
| Interest and liquidated damages rates | Fund: interest at 9% (Trust); liquidated damages requested at 15% (Trust allows up to 20%) | C & L: no contest in record | Court: awards interest at 9% ($572.43) and liquidated damages at 15% ($2,209.32) |
| Entitlement to attorneys’ fees and costs | Fund: Trust and ERISA §1132(g) permit recovery of filing costs and attorneys’ fees; seeks $2,500 ($600 costs + $1,900 fees) | C & L: no contest in record | Court: awards $2,500 in costs and fees |
Key Cases Cited
- Boland v. Elite Terrazzo Flooring, Inc., 763 F. Supp. 2d 64 (D.D.C. 2011) (default-judgment standards and courts’ reluctance to enter default)
- Keegel v. Key W. & Caribbean Trading Co., 627 F.2d 372 (D.C. Cir. 1980) (court’s power to enter default judgment)
- Jackson v. Beech, 636 F.2d 831 (D.C. Cir. 1980) (preference for resolving cases on the merits; standards for default)
- 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 ERISA collection actions)
- Fanning v. Permanent Solution Indus., 257 F.R.D. 4 (D.D.C. 2009) (court must independently determine damages after entry of default)
- Int’l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc., 239 F. Supp. 2d 26 (D.D.C. 2002) (evidentiary support required for damages on default)
- Transatlantic Mar. Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105 (2d Cir. 1997) (court need not hold hearing if record supports damages)
- Adkins v. Teseo, 180 F. Supp. 2d 15 (D.D.C. 2001) (default establishes liability for well-pleaded allegations)