82 F. Supp. 3d 1235
D. Colo.2015Background
- Plaintiffs allege ERISA violations by Mile High Rodbusters, Inc. under a collective bargaining agreement.
- CBA requires reports of hours and fringe benefit contributions to multiple funds and unions, payable by the 15th of each month.
- Delinquency in reporting and paying contributions led to Plaintiffs’ demand and subsequent suit.
- Magistrate Judge recommended partial default judgment and an accounting; Defendant did not appear or object.
- Court adopts the recommendation, grants default on Count I, awards specific damages, and dismisses Count II; case is closed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction over subject matter | ERISA federal question jurisdiction exists. | Not raised; default judgment moot if lacking jurisdiction. | Court has subject-matter jurisdiction. |
| Personal jurisdiction over Defendant | Service valid under Colorado rules; defendant is Colorado-incorporated. | Not presented; default judgment presumed valid. | Court has personal jurisdiction over Mile High Rodbusters, Inc. |
| Whether default judgment is warranted | Defendant failed to respond; entry of default is proper. | Not raised; default acceptable only if damages can be established. | Default judgment appropriate on liability for Count I. |
| Scope of damages—unpaid contributions | Unpaid contributions through 2012 totaling $34,845.89 plus interest and fees. | Not raised; limited period in pleadings affects damages. | Damages limited to January 2012 through December 2012: $34,845.89 unpaid contributions. |
| Other elements of damages under ERISA | Award interest, additional interest, attorney’s fees and costs, and other relief per ERISA § 502(g)(2). | Not raised; these items are permissible if properly proved. | Awards: $14,686.52 interest, $14,686.52 additional interest, $14,378.43 attorney’s fees, $482.51 costs; injunctive relief denied; Count II dismissed. |
Key Cases Cited
- Dennis Garberg & Assocs., Inc. v. Pach-Tech Int’l Corp., 115 F.3d 767 (10th Cir.1997) (court must ensure jurisdiction and legitimate basis for default judgment)
- Williams v. Life Sav. & Loan, 802 F.2d 1200 (10th Cir.1986) (defects in personal jurisdiction are not waived by default)
- United States v. 51 Pieces of Real Prop., 17 F.3d 1306 (10th Cir.1994) (judgment void if court lacks jurisdiction over subject matter or parties)
- Drake v. City of Fort Collins, 927 F.2d 1156 (10th Cir.1991) (court need not interpret pleadings to construct arguments not raised)
- Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319 (7th Cir.1983) (damages in default must be supported by evidence; evidence-based approach to damages)