Operating Engineers Local 139 Health Benefit Fund v. PJS Development LLC
2:22-cv-00710-PP
E.D. Wis.Dec 30, 2022Background
- Plaintiffs (several Operating Engineers union benefit funds and trustees) sued PJS Development, LLC, alleging breaches of a collective bargaining agreement by failing to remit fringe benefit contributions, dues deductions, and contributions to a joint labor-management fund.
- Defendant’s registered agent, David Earhart, was personally served on June 30, 2022; defendant did not answer by the July 21, 2022 deadline and filed nothing thereafter.
- Clerk entered default on September 6, 2022; plaintiffs moved for default judgment seeking $74,505.44 plus post-judgment interest.
- Plaintiffs supported damages with an audit and affidavits from the funds’ administrator (Rita Becker) and two attorneys; affidavit-backed totals included $57,245.94 (contributions), $10,915.25 (delinquent assessments), $4,628.75 (interest), and $1,715.50 (attorneys’ fees and costs).
- The court recognized that, on default, well-pleaded allegations establish liability but damages require a separate inquiry unless liquidated or ascertainable from documentary evidence or affidavits.
- The court granted default judgment for $74,505.44, awarded post-judgment interest under 28 U.S.C. §1961, ordered the case dismissed with prejudice, and directed the clerk to enter judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper service and entry of default | Service to the registered agent on June 30, 2022 was valid; clerk entry of default is proper after nonresponse | No response | Service was valid; clerk properly entered default after deadline passed |
| Liability under ERISA/LMRA for unpaid contributions | CBA required contributions; audit shows unpaid amounts for audited periods and ongoing nonpayment | No response | Default establishes liability on the pleaded claims under federal law |
| Damages calculation and need for hearing | Damages are liquidated/ascertainable via audit, administrator affidavit, and fee affidavits totaling $74,505.44; no hearing necessary | No response | Affidavits and documentary summaries provided a sufficiently certain basis; no hearing required |
| Attorneys’ fees and costs | Fees of $1,715.50 are reasonable and supported by attorney affidavits | No response | Court awarded the requested attorneys’ fees and costs as supported by affidavits |
Key Cases Cited
- e360 Insight v. The Spamhaus Project, 500 F.3d 594 (7th Cir. 2007) (on default, court accepts well-pleaded allegations as true but must independently determine damages)
- In re Catt, 38 F.3d 789 (7th Cir. 1994) (damages are not automatically established by default and require reasonable-certainty inquiry)
- Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319 (7th Cir. 1983) (no hearing required when damages are liquidated or ascertainable from documentary evidence)