International Painters & Allied Trades Industry Pension Fund v. Davanc Contracting, Inc.
2011 U.S. Dist. LEXIS 97580
| D.D.C. | 2011Background
- Pension Fund and related ancillary funds sue Davanc Contracting and related entities for unpaid multiemployer contributions under ERISA and a collective bargaining agreement.
- Defendants Davanc and related entities allegedly operate as alter egos with shared management, premises, and employees to evade obligations.
- Audits revealed Cumplido Painting and Cumplido Industries performing covered work under Davanc’s agreement; ownership and control are centralized with William M. Cumplido and Martha Cumplido.
- Defendants failed to respond to Amended Complaint; Clerk entered default on February 11, 2011.
- Plaintiffs seek damages, audit relief, injunctive relief, fiduciary breach remedies, and related fees under ERISA and §185; court grants default judgment.
- Judgment by default granted for $634,297.39 and various equitable reliefs; case dismissed with finality of order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment appropriate | Plaintiffs seek relief due to failure to respond; standards satisfied. | N/A (no defense filed). | Yes; default judgment appropriate. |
| Damages under ERISA §1145 and §1132(g)(2) | Unpaid contributions, interest, liquidated damages, audit costs, and fees supported by audits. | N/A (no opposition). | Damages awarded as pleaded, totaling $634,297.39. |
| Alter ego and joint liability | Davanc, Cumplido Painting, and Cumplido Industries share control; alter ego applies. | N/A (no defense). | Davanc, Cumplido Painting, and Cumplido Industries found alter egos with joint and several liability. |
| Fiduciary breach relief and accounting | Cumplidos breached fiduciary duties; relief includes accounting and restoration of losses. | N/A (no defense). | Judgment includes equitable relief and possible accounting against fiduciaries. |
Key Cases Cited
- Laborers Fringe Ben. Funds v. Nw. Concrete & Constr., 640 F.2d 1350 (6th Cir. 1981) (injunctions to enforce benefit payment provisions under ERISA and CBA remain appropriate)
- Flynn v. Veazey Constr. Corp., 424 F. Supp. 2d 24 (D.D.C. 2006) (alter ego and fiduciary liability concepts in ERISA context)
- Flynn v. R.C. Tile, 353 F.3d 953 (D.C. Cir. 2004) (alter ego/ piercing corporate veil considerations in ERISA actions)
- Galgay v. Gangloff, 677 F. Supp. 295 (M.D. Pa. 1987) (ERISA plan assets concept and fiduciary duties)
- Adkins v. Teseo, 180 F. Supp. 2d 15 (D.D.C. 2001) (court may determine damages beyond liability when appropriate)