3:24-cv-06403
N.D. Cal.Jun 27, 2025Background:
- Brambila & Kelley, Inc. (B&K), a California corporation, failed to pay required fringe benefit contributions to employee trust funds from June 1, 2020, through December 31, 2022.
- The Electrical Workers Health & Welfare Trust and associated plaintiff funds audited B&K and determined a shortfall of $115,888.69, inclusive of unpaid contributions, damages, interest, audit costs, attorney's fees, and legal costs.
- B&K was properly served through substitute service at the home of its president, who also goes by the name John Brambila, but never appeared or responded in this action.
- Plaintiffs moved for default judgment under ERISA and requested both monetary relief and an injunction requiring B&K to submit future reports and payments.
- The court accepted plaintiffs’ factual allegations as true, found their attorney's fees and costs reasonable, and considered the equities favoring judgment due to B&K's lack of response and plaintiffs’ inability to secure relief otherwise.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Unpaid fringe benefit contributions under ERISA | B&K failed to pay required amounts, violating ERISA and CBA | No appearance | Court grants default judgment for the full amount |
| Recoverability of specific damages and costs | Damages, interest, audit, attorney fees, and costs are recoverable under ERISA | No appearance | These amounts are recoverable under ERISA |
| Proper service and sufficiency for default | Service was properly made at the president’s residence | No appearance | Service was valid; default judgment appropriate |
| Injunctive relief for future reporting | Reporting required to calculate owed benefits; injunction is appropriate | No appearance | Injunction ordering timely future reporting granted |
Key Cases Cited
- Cripps v. Life Ins. Co. of N. Am., 980 F.2d 1261 (9th Cir. 1992) (allegations are taken as true on motion for default judgment)
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (factors for granting default judgment)
- Welch v. Metro. Life Ins. Co., 480 F.3d 942 (9th Cir. 2007) (standards for determining reasonable attorney’s fees)