PLUMBERS LOCAL UNION NO. 24 PENSION FUND v. GRACE PLUMBING & HEATING, LLC
3:20-cv-15492
| D.N.J. | Apr 21, 2021Background:
- Plaintiffs are multi-employer benefit plans (pension, welfare, education), a labor organization, and their trustee; Defendant is Grace Plumbing & Heating, LLC, a signatory to a collective bargaining agreement (CBA) requiring employer contributions to the Funds.
- Plaintiffs allege Defendant failed to make required contributions for the period Jan. 1, 2017 through Sept. 30, 2020; an audit showed unpaid amounts of $19,774.08 (2017–2018) and $135,712.00 (Jan. 2019–Sept. 30, 2020).
- Plaintiffs sued under ERISA and for breach of the CBA; Defendant was properly served but failed to answer or otherwise respond; the clerk entered default on Dec. 14, 2020.
- Plaintiffs moved for default judgment on Jan. 5, 2021; Defendant did not oppose or respond to the motion.
- The trustee submitted an affidavit supporting a damages calculation (unpaid contributions, liquidated damages, interest, audit fee, attorneys’ fees and costs), and the Court entered default judgment for the total amount.
- The Court granted default judgment and entered judgment in favor of Plaintiffs for $255,829.88 (the opinion notes a scrivener discrepancy in the draft order but awards $255,829.88).
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate under Rule 55 | Default entered; denial would prejudice Plaintiffs; no meritorious defense shown; Defendant culpably failed to respond | No opposition or responsive pleadings | Court granted default judgment (factors weigh for entry) |
| Whether Plaintiffs stated actionable claims (breach of CBA / ERISA) | Complaint alleges CBA obligation, breach, audit showing unpaid contributions; Plaintiffs performed obligations | No response | Court accepted well‑pleaded facts as true and found claims adequately pled |
| Entitlement to remedies under ERISA (unpaid contributions, interest, liquidated damages, fees) | ERISA authorizes recovery of unpaid contributions, interest, liquidated damages (up to 20%), attorneys’ fees and costs | No response | Court awarded the statutorily authorized relief as calculated by Plaintiffs |
| Amount of judgment and evidentiary support for damages | Trustee affidavit and audit support sum-certain damages and fees totaling $255,829.88 (noting a drafting arithmetic discrepancy) | No response | Court awarded judgment for $255,829.88 based on submitted affidavit and calculations |
Key Cases Cited
- Allaham v. Naddaf, [citation="635 F. App'x 32"] (3d Cir. 2015) (discussing procedural steps for default judgment and citing the three-factor standard)
- Chamberlain v. Giampapa, 210 F.3d 154 (3d Cir. 2000) (articulating factors controlling entry of default judgment)
- Polidoro v. Saluti, [citation="675 F. App'x 189"] (3d Cir. 2017) (noting courts accept well-pleaded factual allegations but need not accept legal conclusions or damages allegations)
- Frederico v. Home Depot, 507 F.3d 188 (3d Cir. 2007) (setting out elements of a breach of contract claim under New Jersey law)