Trustees of the Painters Union Deposit Fund v. Eugenio Painting Company
2:22-cv-12416
E.D. Mich.Aug 30, 2024Background
- Plaintiffs (Trustees of the Painters Union Deposit Fund) sued Eugenio Painting Company under ERISA to compel an audit and recover unpaid employee benefit contributions, citing violations of collective bargaining agreements (CBAs).
- The 2016 CBA between the parties authorized plaintiffs to audit defendant’s records and prohibited subcontracting to non-signatories; the defendant argued a subsequent 2018 CBA superseded earlier obligations.
- The court previously ordered the defendant to comply with the audit request; the audit revealed over $2 million in unpaid contributions and significant liquidated damages.
- Plaintiffs moved to amend their complaint to add the company’s president, Michael Eugenio, and a related company, Eugenio Painting Co., Inc. – South (“Eugenio South”), as co-defendants, seeking joint and several liability.
- Defendant opposed, contending the proposed amendments were futile, unduly delayed, or would cause prejudice.
- The court evaluated the request after briefing, with the discovery period extended to August 2024.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether adding Eugenio South is futile | Eugenio South is an alter-ego; discovery merits claim | South can't be sued (dissolved); settlement bars claim; jurisdictional issues | Amending to add South is not futile |
| Whether adding Michael Eugenio is unduly delayed | Audit evidence only recently revealed basis for claim | Plaintiffs always knew of claims; undue delay/prejudice | No undue delay or prejudice |
| Whether claim against Michael Eugenio is futile | Fiduciary breach claim arose within ERISA periods | ERISA statute of limitations bars claims | Not futile; accrual plausible |
| Whether extra-jurisdictional work bars recovery | Court's prior order compels disclosure of all work | CBAs limit recovery to Michigan; Florida work excluded | Insufficient basis to bar claim now |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standard for plausibility of claims)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility requirement for complaints)
- McPherson v. Kelsey, 125 F.3d 989 (6th Cir. 1997) (perfunctory arguments are waived)