Richards v. C&C Sheet Metal
2:18-cv-00448
D. UtahMay 31, 2019Background
- Plaintiffs (trust funds) sued C&C Sheet Metal and Casey Jones Jr. for unpaid ERISA-covered contributions and sought audit and damages; defendants defaulted.
- Complaint filed June 6, 2018; alleged entitlement to contributions from Jan 1, 2017 through the present (date of filing).
- Defendants missed payments on Mar 10, Apr 10, and May 10, 2018 (totaling $7,364.51 at filing); later post-filing delinquencies increased asserted shortfall to $31,104.31.
- Defendants made extra payments later (overpayments of $4,887.21) and resumed some timely payments for Sept–Dec 2018; further underpayments occurred Jan–Apr 2019.
- Court limited recoverable unpaid contributions to amounts accruing before the complaint (due process/Rule 54(c)), applied the extra payments to oldest delinquencies, and found $2,477.30 still owed as unpaid contributions.
- Court also addressed prejudgment interest, liquidated damages, reasonable attorney fees and costs, contract-based administrative fees, and whether Jones could be individually liable for administrative fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Recoverable unpaid contributions (pre-complaint vs. post-complaint) | Entitled to full $31,104.31 unpaid contributions (Mar 2018–Apr 2019) | No opposition after default; due process limits recovery to amounts alleged in complaint | Recovery limited to amounts owing as of complaint date (June 6, 2018): $7,364.51, offset by later payments to $2,477.30 |
| Allocation/offset of subsequent payments | Extra payments should be credited toward delinquencies but sought full remaining balance | Default defendants not present to contest allocation | Court applied extra $4,887.21 to oldest delinquencies (Mar–May 2018), producing $2,477.30 net unpaid |
| Prejudgment interest and liquidated damages under ERISA | Interest at plan rate (1%/month) and liquidated damages up to 20% of unpaid contributions | Not argued separately | Awarded interest $297.28 and 20% liquidated damages $495.46 on $2,477.30 |
| Attorney fees reasonableness | Requested $16,785 for prosecuting suit and collecting fees, including time on administrative fees issue | No responsive advocacy (default) but court reviews for reasonableness | Reduced to $4,500 after excluding unnecessary, duplicative, and noncompensable time (e.g., work on administrative fees and premature motions); costs $525 awarded |
| Contractual administrative fees and individual liability of Jones | Contract/collections policy authorizes $15/day administrative fees; sought $25,935 then $4,845; seek Jones personally liable because name signed on agreement | Jones contested individual liability, testified signature belonged to his father | Court applied policy as single $15/day charge (no stacking), found 187 delinquent days pre-suit = $2,805 less $210 paid = $2,595 outstanding; only C&C liable, not Jones individually |
Key Cases Cited
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (attorney-fee awards must exclude hours not reasonably expended and reflect degree of success)
- Farrar v. Hobby, 506 U.S. 103 (1992) (fee awards must account for limited success; degree of success is critical)
Disposition: Judgment against C&C Sheet Metal and Casey Jones Jr., jointly and severally, for $8,295.04 (unpaid contributions $2,477.30; interest $297.28; liquidated damages $495.46; attorney fees $4,500; costs $525), plus separate judgment against C&C for administrative fees $2,595 (Jones not individually liable).