National Shopmen Pension Fund v. Builders Metal Supply, Inc.
2014 U.S. Dist. LEXIS 75076
| D.D.C. | 2014Background
- Plaintiffs, National Shopmen Pension Fund and Trustees, sue Builders Metal Supply, Inc. under ERISA for unpaid contributions and missing remittance reports from June 2012 to August 2013.
- Defendant had a CBA requiring monthly contributions and remittance reports for hours worked by covered employees.
- Plaintiffs seek unpaid contributions, interest, liquidated damages, and attorneys’ fees and costs under ERISA § 1132(g)(2) and the CBA/Trust Agreement.
- Defendant was properly served but failed to respond; clerk entered default against Defendant on November 1, 2013.
- Court approves damages for unpaid contributions and related relief but rejects attorneys’ fees request for lack of adequate documentation; final judgment amount stated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment on liability is appropriate | Defaults establish liability for nonresponse. | Yes; default judgment warranted on liability. | |
| Amount of unpaid contributions | Unpaid contributions totaling $9,529.07 based on periods June 2012–Mar 2013 and April–Sept 2013 estimates. | Approved: $9,529.07 unpaid contributions. | |
| Award of interest on unpaid contributions | Interest calculated at 3% per year via Trust Agreement and Collection Policy through Oct 31, 2013. | Awarded: $211.49 interest. | |
| Liquidated damages under ERISA and policy | Liquidated damages equal to 20% of unpaid contributions as permitted by ERISA and policy. | Awarded: $2,105.81 (20%). | |
| Attorneys’ fees and costs | ERISA permits reasonable attorneys’ fees and costs; documentation provided but insufficiently itemized. | Denied without prejudice due to lack of itemized hours and costs; may be reconsidered with proper documentation. |
Key Cases Cited
- Int'l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., 239 F. Supp. 2d 26 (D.D.C. 2002) (court may rely on default for liability and determine damages)
- Adkins v. Teseo, 180 F. Supp. 2d 15 (D.D.C. 2001) (ERISA default-judgment framework and damages calculation)
- Flynn v. Extreme Granite, Inc., 671 F. Supp. 2d 157 (D.D.C. 2009) (reasonableness of damage estimates when records are unavailable)
- Int'l Painters & Allied Trades Indus. Pension Fund v. Davanc Contracting, Inc., 808 F. Supp. 2d 89 (D.D.C. 2011) (accepting estimated damages basis where reports not provided)
- SEIU v. Artharee, 942 F. Supp. 2d 27 (D.D.C. 2013) (attorneys’ fees require adequate documentation; reasonableness inquiry)