Fanning v. Seneca One Realty LLC
Civil Action No. 2017-0126
| D.D.C. | Jul 14, 2017Background
- Seneca One Realty, LLC entered a collective bargaining agreement with Local No. 17 requiring contributions to the Central Pension Fund at $2.15 per covered hour (effective Jan. 1, 2012).
- Michael R. Fanning, CEO of the Central Pension Fund, sued under ERISA for unpaid contributions for work from Jan. 2013 to Dec. 2015 after a payroll audit showed underpayments.
- The Fund is a multiemployer ERISA plan; the Declaration of Trust requires monthly self-reporting, contributions, allows audits, and permits recovery of unpaid contributions, interest, liquidated damages (up to 20%), audit costs, attorneys’ fees, and litigation costs.
- Seneca One was properly served on Jan. 24, 2017, failed to answer, the Clerk entered default, and the company did not respond to an Order to Show Cause.
- Plaintiff submitted a payroll audit showing $3,097.44 in unpaid contributions, audit fee $2,200, interest calculated at 9% (totaling $550.81 as of the court’s calculation date), and requested 15% liquidated damages ($464.62) plus attorney’s fees and costs.
- The Court found liability on the well-pleaded allegations, conducted an independent damages review based on declarations and documentary evidence, and granted default judgment for $8,343.87.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Seneca One is liable for unpaid contributions under ERISA and the CBA/Declaration | Fanning: Seneca One failed to pay required contributions for covered hours (audit shows $3,097.44 delinquent) | Seneca One: no response asserted | Court: Default; accepts well-pleaded allegations and finds Seneca One liable |
| Properness of damages proof after default | Fanning: audit, declarations, and detailed invoices establish unpaid contributions, interest, liquidated damages, and audit costs to a reasonable certainty | Seneca One: no response asserted | Court: documentary evidence sufficient; independent determination of damages warranted |
| Entitlement to interest and liquidated damages under the Declaration and ERISA | Fanning: Declaration and ERISA authorize 9% interest and up to 20% liquidated damages; requests 15% LD | Seneca One: no response asserted | Court: awards interest at 9% (updated to include daily accrual) and 15% liquidated damages as requested |
| Recovery of attorney’s fees and costs under 29 U.S.C. § 1132(g)(2) | Fanning: counsel’s declaration documents 5.2 hours at $280/hr plus filing/service costs | Seneca One: no response asserted | Court: awards $1,456 in attorney fees and $575 in costs (total $2,031) as reasonable |
Key Cases Cited
- Boland v. Cacper Constr. Corp., 130 F. Supp. 3d 379 (D.D.C. 2015) (discusses default judgment procedure and applicability when defendant fails to defend)
- Elite Terrazzo Flooring, Inc. v. Boland, 763 F. Supp. 2d 64 (D.D.C. 2011) (default establishes liability for well-pleaded allegations)
- Providence Constr. Corp., 304 F.R.D. 31 (D.D.C. 2014) (documentary evidence can support damages without a hearing)
- Fanning v. Permanent Sol. Indus., Inc., 257 F.R.D. 4 (D.D.C. 2009) (procedures for default judgment and hearings)
- Fanning v. Warner Center, 999 F. Supp. 2d 263 (D.D.C. 2013) (awarding audit fees, interest, and liquidated damages based on declarations)