Service Employees International National Industry Pension Fund v. Tandem Development Corporation
274 F. Supp. 3d 1
| D.D.C. | 2017Background
- Plaintiffs (SEIU National Industry Pension Fund and Trustees) allege Tandem Development Group, LLC breached a 2011 collective bargaining agreement and Trust Agreement by failing to submit required remittance/payroll reports and by refusing two mandatory payroll audits covering 2011–2013.
- The Trust Agreement and CBA required monthly remittance reports showing employees and compensable hours and authorized the Fund to examine payroll and other records and to audit employers at least once every six years.
- Plaintiffs sent multiple audit notice letters requesting payroll documentation; Tandem did not respond or produce records.
- Plaintiffs filed suit under ERISA § 502(a) to compel production of records and audits and to recover contributions; Tandem was served but did not answer and the Clerk entered default.
- Plaintiffs moved for default judgment seeking injunctive relief (production of reports and cooperation with audits) and an award of $6,925.50 in attorneys’ fees and $566 in costs.
- The court granted default judgment on liability and ordered Tandem to produce the payroll reports and cooperate with audits, reserved determination of monetary contributions pending audit results, and deferred awarding fees until plaintiffs supply additional proof supporting requested hourly rates.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate for Tandem's failure to respond | Entry of default is proper; factual allegations should be taken as true and liability established | No response or defense asserted | Granted — default judgment appropriate; liability established because Tandem failed to defend |
| Whether court should order production of payroll reports and compel audits | ERISA and the parties' agreements authorize injunctive relief compelling audits and production of records to determine owed contributions | Tandem did not contest production or audits | Granted — court ordered Tandem to provide reports and cooperate with audits |
| Whether court can calculate and enter monetary damages now | Plaintiffs seek contributions but cannot compute damages without audit and remittance reports | N/A (no defense presented) | Denied for now — damages calculation deferred until audits and remittance reports are produced |
| Whether plaintiffs are entitled to attorneys' fees and costs as requested | ERISA mandates reasonable fees and costs to prevailing multiemployer plans; plaintiffs provided contemporaneous time records and request specified amounts | N/A (no response from defendant) | Deferred — court requires additional evidence to justify requested hourly rates (e.g., billers’ experience or prevailing-rate matrices) before awarding fees |
Key Cases Cited
- Keegel v. Key West & Caribbean Trading Co., 627 F.2d 372 (D.C. Cir. 1980) (default judgment within district court's discretion)
- Jackson v. Beech, 636 F.2d 831 (D.C. Cir. 1980) (district court discretion in entering default judgment)
- Trans World Airlines, Inc. v. Hughes, 449 F.2d 51 (2d Cir. 1971) (defaulting defendant deemed to admit well-pleaded allegations)
- Int'l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc., 239 F. Supp. 2d 26 (D.D.C. 2002) (default establishes liability but court must determine damages)
- Blum v. Stenson, 465 U.S. 886 (1984) (lodestar method: hours reasonably expended times reasonable hourly rate)
- Role Models Am., Inc. v. Brownlee, 353 F.3d 962 (D.C. Cir. 2004) (district courts may rely on prevailing-rate matrices when awarding fees)
- Boland v. Smith & Rogers Constr. Co., 201 F. Supp. 3d 144 (D.D.C. 2016) (injunction compelling books and records for audit under ERISA)
- Serv. Emps. Int’l Union Nat. Indus. Pension Fund v. Artharee, 942 F. Supp. 2d 27 (D.D.C. 2013) (employer must submit remittance reports before court can calculate damages)
- Fanning v. Warner Ctr., L.P., 999 F. Supp. 2d 263 (D.D.C. 2013) (equitable relief appropriate where employer refuses contractual/statutory obligations)
