1:14-cv-00013
D. Haw.Jun 6, 2014Background
- Plaintiffs are the Trustees of the Hawaii Carpenters Trust Funds (multiemployer ERISA/trust funds) who administer benefit plans for covered carpentry employees.
- Defendant B & A Builders, Inc. entered a collective bargaining agreement (CBA) and related trust agreements obligating it to submit timely payroll reports and to remit benefit contributions based on hours worked.
- Plaintiffs allege Defendant failed to remit required contributions and allow auditing; Plaintiffs audited Defendant's payroll and identified unpaid contributions.
- Defendant was served with the complaint on January 29, 2014, failed to answer, and the clerk entered default on March 27, 2014.
- Plaintiffs moved for default judgment seeking unpaid contributions, liquidated damages or statutory interest, additional interest, audit fees, 401(k) lost-earnings interest, and attorneys' fees and costs.
- The magistrate judge reviewed the record, found the Trust Funds entitled to relief under the CBA and ERISA (29 U.S.C. §§ 1132, 1145), and recommended default judgment and the award of damages and fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment should be entered | Default for failure to respond; entry of default judgment appropriate to enforce CBA/ERISA claims | Did not appear or respond | Default judgment recommended in favor of Plaintiffs (Defendant defaulted) |
| Liability for unpaid contributions | CBA and audits show unpaid contributions due to the Trust Funds | No opposition presented | Defendant liable for delinquent contributions identified by audit |
| Measure of damages: liquidated damages vs. 12% interest | CBA provides 20% liquidated damages per delinquency; 29 U.S.C. § 1132(g)(2) permits award of 12% interest if greater | No opposition presented | Award includes liquidated damages and/or 12% interest (court awarded amounts reflecting liquidated damages, 12% interest where applicable) |
| Entitlement to attorneys' fees, costs, and audit fees | CBA and 29 U.S.C. § 1132(g)(2)(D) require prevailing plans recover reasonable fees and costs | No opposition presented | Attorneys' fees and costs of $2,113.90 and audit fees awarded as reasonable |
| Continuing liability & ability to seek additional amounts | Unpaid contribution obligation continues; additional delinquencies may be discovered by further audit | No opposition presented | Judgment without prejudice to Plaintiffs to seek additional amounts arising from unaudited periods |
Key Cases Cited
- None (no authorities with official reporter citations were cited in the opinion).