Service Employees International Union Health and Welfare Fund v. North American Cleaning Services Co. Inc., 264 F. Supp. 3d 1

NACS (doing business as Turtle Bay Building Services) and SEIU entered a collective bargaining agreement (CBA) that required NACS to make contributions to the Service Employees International Union Health and Welfare Fund (the Fund) and to comply with the Fund’s Trust Agreement reporting and audit obligations.
The Trust Agreement requires employers to submit remittance reports listing covered employees and hours, and to make payroll books available for audit.
The Fund selected NACS for an audit covering 2014–2015 and requested payroll and related records multiple times in 2016; NACS did not respond to the requests or a final demand letter.
Plaintiffs sued under ERISA and LMRA to compel production of records for audit, seek a declaratory finding of noncompliance, and recover attorney’s fees and costs; NACS did not answer and default was entered by the Clerk.
The Court issued show-cause orders addressing personal jurisdiction and attorneys’ fees; Plaintiffs supplemented fee evidence. The Court found personal jurisdiction proper under ERISA’s venue/nationwide-service provisions and granted default judgment requiring NACS to produce records and awarding fees and costs.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the Court has personal jurisdiction over NACS	ERISA permits suit where the plan is administered (D.C.) and authorizes nationwide service of process; NACS has sufficient U.S. contacts (headquartered in Minnesota).	No response; NACS did not contest jurisdiction.	Court found prima facie personal jurisdiction under ERISA nationwide-service principles.
Whether NACS breached the CBA/Trust Agreement by refusing audit access	Fund alleged CBA/Trust required production of remittance reports and payroll books; NACS failed to provide them after repeated requests.	No response; default deemed allegations admitted.	Court held NACS breached obligations and equitable relief (compelled audit production) is warranted.
Whether default judgment appropriate	Plaintiffs argued Clerk’s default and admitted allegations establish liability and equitable relief is proper.	NACS did not appear or defend.	Court exercised discretion to enter default judgment after confirming jurisdiction.
Whether requested attorney’s fees and costs are reasonable under ERISA	Plaintiffs submitted detailed billing records, declarations, and market-rate evidence showing requested fees below prevailing Laffey rates and supported by comparable awards.	No opposition; Court scrutinized rates against market guides and supplemental affidavits.	Court awarded $2,764 in attorney’s fees plus $400 filing fee, finding rates reasonable.

Mwani v. bin Laden, 417 F.3d 1 (D.C. Cir. 2005) (federal statute with nationwide service requires court to assure personal jurisdiction exists)
Covington v. District of Columbia, 57 F.3d 1101 (D.C. Cir. 1995) (factors for establishing reasonable hourly rate for fee awards)
Eley v. District of Columbia, 793 F.3d 97 (D.C. Cir. 2015) (court must evaluate evidence that requested rates align with prevailing community rates)
Jackson v. Beech, 636 F.2d 831 (D.C. Cir. 1980) (district court discretion in granting default judgment)
Edmond v. United States Postal Serv. Gen. Counsel, 949 F.2d 415 (D.C. Cir. 1991) (personal jurisdiction principles)
Int'l Painters & Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC, 531 F. Supp. 2d 56 (D.D.C. 2008) (default judgment practice and admission of complaint allegations)
SEC v. Bilzerian, 378 F.3d 1100 (D.C. Cir. 2004) (minimum contacts with the United States as a whole for nationwide service)
Fanning v. Warner Ctr., L.P., 999 F. Supp. 2d 263 (D.D.C. 2013) (equitable relief appropriate where defendant refuses contractual and statutory obligations)
Swanson v. Martins, 232 F. Supp. 3d 23 (D.D.C. 2017) (fee awards and comparison to prevailing rates)