Hawaii Carpenters Trust Funds v. TNT Plastering & Stucco, Inc.
1:10-cv-00352
D. Haw.Feb 11, 2011Background
- Plaintiffs are the Hawaii Carpenters Trust Funds lawsuits seeking to collect employee benefit contributions and related amounts from TNT Plastering & Stucco, Inc. under the master collective bargaining agreement and trust agreements (the CBA).
- Defendant TNT Plastering & Stucco, Inc. is a Hawaii corporation alleged to have breached the CBA by failing to timely contribute to multiple trust funds.
- The court has LMRA and ERISA jurisdiction to hear civil actions by fiduciaries to enforce the terms of the CBA and trust agreements.
- Plaintiffs obtained default against TNT on August 13, 2010, and moved for default judgment seeking delinquent contributions, liquidated damages, interest, lost earnings, attorneys’ fees, and costs.
- The magistrate judge recommended default judgment with specific dollar amounts; the district court later reconciled inconsistencies and granted final judgment.
- Final judgment awards delinquent contributions, liquidated damages, interest, 401(k) lost earnings, attorneys’ fees, costs, and post-judgment interest, without prejudice to further damages on unaudited hours.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is warranted | Plaintiffs seek judgment based on admitted breach and entry of default | Defendant did not respond or appear to contest the claim | Default judgment warranted |
| Delinquent contributions amount | Evidence supports $134,155.91 in delinquent contributions | No specific challenge beyond disputed totals | entitlement to $134,155.91 in delinquent contributions |
| Liquidated damages calculation | Master Agreement provides either 20% or $20 per month, whichever greater; partial payments do not reduce original assessment | Liquidated damages should align with 20% of total delinquent contributions | Plaintiffs entitled to $29,551.10 in liquidated damages |
| Interest on unpaid contributions | 12% per annum interest applies to unpaid contributions as provided in the Master Agreement and ERISA | Interest should be limited or calculated differently | Entitled to 12% per annum interest totaling $4,043.15 (pre-judgment) and post-judgment interest ongoing until paid |
| Attorneys’ fees and costs | Master Agreement mandates fees and costs; lodestar reasonable | No opposition presented | $1,241.00 in attorneys’ fees and $508.26 in costs awarded |
Key Cases Cited
- TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915 (9th Cir. 1987) (default judgment standard; take allegations as true except damages)
- Geddes v. United Fin. Group, 559 F.2d 557 (9th Cir. 1977) (standard for default judgments; merits modulated by Rule 55 standards)
- Warner Bros. Entm’t Inc. v. Caridi, 346 F. Supp. 2d 1068 (C.D. Cal. 2004) (default judgments disfavored; consider merits and other factors)
- In re Roxford Foods, Inc., 12 F.3d 875 (9th Cir. 1993) (default judgments should be resolved on merits when possible)
- VonGrabe v. Sprint PCS, 312 F. Supp. 2d 1313 (S.D. Cal. 2004) (presence/defense can defeat default judgment; consider factors)