Gusler v. Commercial Spray Installations
1:11-cv-02039
| M.D. Penn. | Jan 23, 2012Background
- Plaintiffs sue under ERISA §§ 502(a)(3) and 515 for unpaid contributions to the Funds under a multi-employer agreement.
- Defendant Commercial Spray Installations allegedly failed to timely remit $4,700.59 for Sept.–Oct. 2011.
- Relief sought includes unpaid contributions, interest, liquidated damages, and costs, totaling $6,101.94.
- Defendant was properly served but did not appear or defend; plaintiffs moved for default judgment.
- Court granted default judgment after determining defendant’s failure to appear was culpable and the plaintiffs evidenced damages under ERISA §1132(g)(2).
- Attorney’s fees were calculated as $420 based on a two‑hour lodestar at $210/hour and supporting testimony.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate despite no response by defendant | Gusler (Plaintiffs) | Commercial Spray Installations | Yes, default judgment appropriate |
| What damages are recoverable under ERISA §1132(g)(2) | Plaintiffs entitled to unpaid contributions, interest, liquidated damages, fees/costs | N/A | Award of $6,101.94 including unpaid contributions, interest, liquidated damages, and costs/fees |
| Reasonableness of attorney’s fees | Fees reasonable under lodestar, hourly rate supported by survey | N/A | Attorney’s fees approved at $420 based on $210/hr for 2 hours |
Key Cases Cited
- Anchorage Assocs. v. V.I. Bd. of Tax Review, 922 F.2d 168 (3d Cir. 1990) (courts may consider Poulis-type factors when lifting defaults and defaults can justify entry of judgment on the record)
- Comdyne I, Inc. v. Corbin, 908 F.2d 1142 (3d Cir. 1990) (default judgments treat factual allegations as true except damages)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method for reasonable attorney’s fees)
- Rode v. Dellaciprete, 892 F.2d 1177 (3d Cir. 1990) (lodestar calculation framework for fees)
- Maldonado v. Houstoun, 256 F.3d 181 (3d Cir. 2001) (approval of using community rate surveys to determine reasonable hourly rates)
