Service Employees International Union National Industry Pension Fund v. Liberty House Nursing Home of Jersey City, Inc.
232 F. Supp. 3d 69
| D.D.C. | 2017Background
- Plaintiff: SEIU National Industry Pension Fund (multiemployer ERISA plan). Defendant: Liberty House Nursing Home of Jersey City, a contributing employer that ceased operating the facility in 2015.
- Collective bargaining agreements (2008 Agreement; 2012 Agreement) required employer contributions (escalating to 2.75% of gross earnings) and bound employers to the Fund’s Trust Agreement and Collections Policy.
- Fund was in “critical status” (2009–2016); a Rehabilitation Plan required supplemental surcharges under Preferred/Default schedules; Liberty House agreed to the Preferred schedule effective July 1, 2010.
- An audit for 2012–2013 found Liberty House underreported employee wages; Fund notified Liberty House of unpaid contributions, testing fees, PPA surcharges, interest and liquidated damages.
- Fund assessed provisional withdrawal liability after Liberty House ceased operations (Fund concluded Liberty House permanently ceased covered operations and GRE took over the facility); final withdrawal liability was computed at $802,014.04 (principal) and $1,187,325.97 including interest and liquidated damages.
- Procedural posture: Liberty House was properly served but did not respond; Clerk entered default; plaintiffs moved for default judgment and the court granted it in full as to liabilities but reserved decision on attorneys’ fees pending detailed billing records.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability for delinquent/underreported contributions (2012–2015) | Fund: Liberty House failed to remit contributions and underreported wages; audit and plan documents show amounts owed plus interest, liquidated damages, testing fees | (No responsive defense; argued in administrative review only re: withdrawal) | Court awarded $91,694.24 for audit-based unpaid contributions, surcharges, interest, liquidated damages, testing fees, and $4,341.04 for prior late/underpayments. |
| Whether Liberty House completely withdrew from the plan (triggering withdrawal liability) | Fund: Liberty House ceased covered operations as GRE assumed the facility; withdrawal occurred Feb 28, 2015; withdrawal liability assessed | Liberty House argued it was exempt under 29 U.S.C. § 1398 as a mere change in business form causing no interruption | Court adopted Fund’s determination (relying on state-court adjudicated facts and news reporting) and found a complete withdrawal; Section 1398 inapplicable. |
| Amount of withdrawal liability, interest, and liquidated damages | Fund submitted calculation of unamortized prorated shares (2002–2014) and plan formula for interest and 20% liquidated damages | No contest in litigation | Court found plaintiffs established $802,014.04 principal; awarded total of $1,187,325.97 (including $224,909.12 interest and $160,402.81 liquidated damages). |
| Attorney’s fees and costs | Plaintiffs requested $10,141 based on counsel declaration and summary hours | N/A (no opposing submission) | Court held plaintiffs entitled to reasonable fees but required a detailed, contemporaneous time summary and monthly invoices within 14 days before awarding fees. |
Key Cases Cited
- Carpenters Labor-Mgmt. Pension Fund v. Freeman-Carder LLC, 498 F. Supp. 2d 237 (D.D.C.) (default judgment not automatic; court should be cautious)
- Jackson v. Beech, 636 F.2d 831 (D.C. Cir.) (default judgment appropriate only where adversary process halted)
- Mazzarino v. Prudential Ins. Co. of Am., 955 F. Supp. 2d 24 (D.D.C.) (statutory nationwide service of process under ERISA supports personal jurisdiction)
- Nat’l Ass’n of Concerned Veterans v. Sec’y of Def., 675 F.2d 1319 (D.C. Cir.) (fee applications require detailed contemporaneous time records)
- Rimkus v. Islamic Republic of Iran, 750 F. Supp. 2d 163 (D.D.C.) (courts may take judicial notice of adjudicative facts from related proceedings)