ORDER ADOPTING RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE
This matter is before me on the following: (1) the Motion for Partial Default Judgment and an Order Compelling an Accounting [# 42]
The- plaintiffs assert claims under the Employee Retirement income Security Act of 1974 (ERISA). The defendant is a signatory to a collective bargaining agreement (CBA) with plaintiff Regional Local
The defendant is now delinquent in its obligation to report and pay contributions to the Trusts and has therefore violated its duties under the CBA. Demand was made on the defendant to resolve its delinquency, but it failed to do so. For the reasons detailed in the recommendation [# 44], entry of default judgment against the defendant is proper.
THEREFORE, IT IS ORDERED as follows:
1. That the Recommendation of United States Magistrate Judge [# 44] filed November 25, 2014, is APPROVED and ADOPTED as an order of this court;
2. That the underlying Motion for Partial Default Judgment and an Order Compelling an Accounting [#42] filed July 29, 2014, is GRANTED in part;
3. That under Fed. R. Civ. P. 55, DEFAULT JUDGMENT SHALL ENTER against the defendant, Mile High Rodbus-ters, Inc., in favor of the plaintiffs on the claim asserted in Count I of the Complaint [# 1];
4. That the default judgment SHALL INCLUDE a total monetary award in favor of the plaintiffs and against the defendant of 79,079.87 dollars for damages, interest, attorney fees, and costs allocated as follows:
a. unpaid contributions under the CBA for 2012 in the amount of 34,-845.89 dollars;
b. interest on unpaid contributions in the amount of 14,686.52 dollars;
c. additional interest under 29 U.S.C. § 1132(g)(2)(C)(i) in the amount of 14,686.52 dollars;
d.reasonable attorney fees in the amount of 14,378.43 dollars; and
e.costs in the amount of 482.51 dollars;
5. That otherwise the Motion for Partial Default Judgment and an Order Compelling an Accounting [# 42] filed July 29, 2014, is DENIED;
6. That Count II of the Complaint [# 1] is DISMISSED with prejudice; and
7. That this case is CLOSED.
RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE
This matter is before the Court on Plaintiffs’ Motion for Partial Default Judgment and an Order Compelling an Accounting [# 42]
I. BACKGROUND
Plaintiffs filed this lawsuit on January 28, 2013, alleging violations of the Employee Retirement Income Security Act of 1974 (“ERISA”).
II. ANALYSIS
Pursuant to Fed. R. Civ. P. 55, default may enter against parties who fail to appear or otherwise defend a lawsuit.
A. Jurisdiction
In determining whether a default judgment is warranted, the Court must first consider whether it has jurisdiction over the subject matter and the defendants. Dennis Garberg & Assocs., Inc., v. Pach-Tech Int’l Carp.,
1. Subject Matter Jurisdiction
Plaintiffs assert that the Court has federal question jurisdiction over this matter because the action arises out of alleged violations of ERISA. Compl. [# 1] ¶ 11. Federal question jurisdiction is governed by 28 U.S.C. § 1331, which provides in pertinent part that “[t]he district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” Because Plaintiffs’ ERISA cause of action arises under federal law, the Court has jurisdiction over the subject matter. Accordingly, based on federal question jurisdiction, the Court finds that it has subject matter jurisdiction over this dispute.
2. Personal Jurisdiction
In addition to subject matter jurisdiction, entry of a default judgment in a civil case requires personal jurisdiction over the defendant. Bixler v. Foster,
If an entity that is required to maintain a registered agent pursuant to this part 7 has no registered agent, or if the registered agent is not located under its registered agent name at its registered agent address, or if the registered agent cannot with reasonable diligence be served, the entity may be served by registered mail or by certified mail, return receipt requested, addressed to the entity at its principal address.
Plaintiffs have demonstrated that the registered agent for Defendant was not located at its registered agent address. Ajf. of Aaron Stephens [# 32-1] ¶ 2; Advice to Court Regarding Return of Service [# 35-1] at 1-2. They have also demonstrated that they served Defendant at its principal
Plaintiffs bear the burden of establishing personal jurisdiction. Intercon, Inc. v. Bell Atl. Internet Solutions, Inc.,
Thus, when entry of a default judgment is sought against a party who has failed to plead or otherwise defend, the district court has an affirmative duty to look into its jurisdiction both over the subject matter and the parties. In reviewing its personal jurisdiction, the court does not assert a personal defense of the parties; rather, the court exercises its responsibility to determine that it has the power to enter the default judgment.
Id. at 1203. Plaintiffs assert in the Complaint that Defendant is incorporated in Colorado and has an address in Denver, Colorado. Compl. [# 1] ¶ 9; Aff. of Aaron Stephens [# 32-1] ¶¶ 2, 4. The Court therefore finds that it has personal jurisdiction over Defendant.
B. Default Judgment
1. Liability
Even after a proper Entry of Default [# 40], the Court must decide “ ‘whether the unchallenged facts constitute a legitimate cause of action’ ” such that a judgment should be entered. Bix-ler,
Upon review of a motion for default judgment, assuming default was properly entered, the moving party enjoys the benefit of deferential pleading interpretation. See Olcott v. Del. Flood Co.,
Accepting the well-pled allegations in the Complaint as true and for the reasons stated below, the Court finds that the allegations support entry of a default judgment on the ERISA claims against Defendant. Incorporating the allegations outlined in Section I. above, the Court finds that Defendant has failed to pay all contributions, plus accrued interest and liquidated damages, owed to Plaintiffs. See Compl. [# 1] ¶¶ 22-24, 31-34; Bd. of Trustees, Colo. Sheet Metal Workers’ Local 9 Family Health Plan v. J & C Fabricating Co., No. 07-cv-01970-REB-MEH,
Because the Court deems the well-pleaded facts of the Complaint to be true, the Court finds that Plaintiffs have established that Defendant failed to pay the required contributions and interest. Accordingly, default judgment should be entered against Defendant.
2. Relief
In addition to finding that Plaintiffs have a basis for relief, default judgment may not be entered until the amount of damages has been ascertained. See Herzfeld v. Parker,
Section 502(g)(2) of ERISA, 29 U.S.C. § 1132(g)(2), provides as follows:
In any action under this title by a fiduciary for or on behalf of a plan to enforce section 515 in which a judgment in favor of the plan is awarded, the court shall award the plan:
(A) the unpaid contributions,
(B) interest on the unpaid contributions,
(C) an amount equal to the greater of:
(i) interest on the unpaid contributions, or
(ii) liquidated damages provided for under the plan in an amount not in excess of 20 percent (or such higher percentage as may be permitted under Federal or State law) of the amount determined by the court under sub-paragraph (A),
(D) reasonable attorney’s fees and costs of the action, to be paid by the defendant, and
(E) Such other legal or equitable relief as the court deems appropriate.
For purposes of this paragraph, interest on unpaid contributions shall be determined by using the rate provided under the plan, or, if none, the rate prescribed under section 6621 of the Internal Revenue Code of 1954.
Plaintiffs seek relief under each provision (A)-(E) of the statute, of which the Court notes the first four are mandatory. Id. (stating that “the court shall award ...” (emphasis added)). The Court addresses each in turn.
1. Unpaid Contributions
The Court examines the monetary relief Plaintiffs sought in the Complaint, as “[a] default judgment must not ... exceed in amount[ ] what is demanded in the pleadings.” Fed. R. Civ. P. 54(c). With respect to unpaid contributions, see 29 U.S.C. § 1182(g)(2)(A), Plaintiffs state that as of January 28, 2013, Defendant owed the three Plaintiff Trusts approximately $38,951.28. Compl. [# 1] ¶ 6. Based on Plaintiffs’ assertion that Defendant was required “to file reports and make contributions by the fifteenth (15th) of each month for the prior month’s work,” Compl. [# 1] ¶ 17, the delinquency here alleged is Defendant’s total delinquency through the end of December 2012.
The Motion seeks an award of $55,543.29 in unpaid contributions for the period of January 2012 through June 2014. [# 42-1] at 6. The problem with this request, however, is that the Complaint [# 1] does not provide any indication that Plaintiffs seek any unpaid contributions for any period after December 2012. Careful review of the Complaint reveals no allegation or request for continuous and ongoing relief through the date of any judgment entered in this case. See Drake v. City of Fort Collins,
Plaintiffs have provided sufficient evidence regarding unpaid contributions for the period January 2012 through December 2012 by submitting the Affidavit of Hannah E. Sutton (“Sutton”) [# 42-7]. Ms. Sutton is the President and CEO of William C. Earhart Company (“Earhart”), which is the Third Party Administrator (“TPA”) for the Regional District Council fringe benefit funds, i.e., for Plaintiffs in this matter. [# 42-7] ¶¶ 1, 3-4.
As the TPA for the Plaintiffs, Earhart is responsible in part for receiving and processing Monthly Contribution Reports (“Reports”) submitted by contributing employers for the Welfare Fund, Vacation Fund and Training Fund [i.e., the Plaintiff Trusts]. The Reports show the names of the Funds, the applicable .contribution rate for each fund (somebased in wages paid, others in hours worked) and have spaces for the employer to fill in the total hours worked and total wages paid.
Id. ¶ 5. Based on Earhart’s calculations, Defendant owes a total of $34,845.89 in unpaid contributions for 2012. Id. ¶ 9; Ex. 2A to Ajf. of Sutton [# 42-4] (providing a breakdown of outstanding contributions for each month in 2012). Plaintiff has thus provided the Court with undisputed proof of the damages amount. The Court finds that this amount does not exceed the $38,951.28 requested in the Complaint. See Fed. R. Civ. P. 54(c). Therefore, the Court recommends that judgment be entered against Defendant for $34,845.89 in unpaid contributions for 2012. See J & C Fabricating Co.,
2.Interest on Unpaid Contributions
With respect to interest on unpaid contributions, see 29 U.S.C. § 1132(g)(2)(B), Plaintiffs provide evidence through Ms. Sutton’s Affidavit demonstrating that Defendant owes $14,686.52 in interest on unpaid contributions through July 18, 2014. Ajf. of Sutton [# 42-7] ¶ 11; Ex. 2B to Ajf. of Sutton [# 42-4] (providing a breakdown of interest calculations for the 2012 unpaid contributions). Plaintiff has thus provided the Court with undisputed proof of the amount of interest owed. Therefore, the Court recommends that judgment be entered against Defendant for $14,686.52 for interest on the 2012 unpaid contributions. J & C Fabricating Co.,
3.Additional Interest
With respect to additional interest or liquidated damages, see 29 U.S.C. § 1132(g)(2)(C), the Court first notes that the Agreement does not provide for liquidated damages. 29 U.S.C. § 1132(g)(2)(C)(ii); Motion [# 42-1] at 7; Ajf. of Sutton [# 42-7] ¶ 12. Thus, the Court must award as additional interest an amount equal to the interest on the unpaid contributions. 29 U.S.C. § 1132(g)(2)(C)(i). Therefore, the Court recommends that judgment be entered against Defendant for $14,686.52 for additional interest on the 2012 unpaid contributions. See Carriers Container Council, Inc. v. Mobile S.S. Ass’n, Int’l Longshoreman’s Assoc., AFL-CIO Pension Plan & Trust,
4.Attorneys’ Fees and Costs
Under Sections 515 and 502(g) of ERISA, 29 U.-S.C. §§ 1145, 1132(g)(2)(D), Defendant is obligated to pay Plaintiffs’ reasonable attorneys’ fees and costs in this action. J & C Fabricating Co.,
“Billing judgment consists of winnowing the hours actually expended
As an initial matter, the records submitted by Plaintiffs demonstrate that three attorneys worked on this matter: Michael A. Evans (“Evans”), Jamie L. Reyes-Jones (“Reyes-Jones”), and James R. Kimmey (“Kimmey”). Ajf. of Evans [# 42-3] at 3-13. However, Plaintiffs did not submit “a summary of relevant qualifications and experience” for either Ms. Reyes-Jones or Mr. Kimmey, as mandated by the Local Rules “for each person for whom fees are claimed.” D.C.COLO. LCivR 54.3(b)(1). Accordingly, the Court may not entertain a request for attorneys’ fees for these two individuals.
Plaintiffs did, however, submit the relevant information with respect to Mr. Evans. Ajf. of Evans [# 42-3] ¶ 2. According to the billing records, he charged $255.00 per hour in this matter. See id. ¶ 4. The Court finds that the hourly rate of $255.00 is reasonable. See, e.g., Mrs. Condies Salad Co., Inc. v. Colo. Blue Ribbon Foods, LLC, No. 11-cv-02118-KLM,
A party seeking an award of attorney’s fees must demonstrate that the amount it seeks is reasonable. See Dewey v. Hewlett Packard Co., No. 05-cv-01482-REB-MJW,
The Court exercises its “discretion in making this equitable judgment” and does not “apportion the fee award mechanically” by considering each claimed expense and determining its reasonableness overall. Id. at 437-40,
5. Injunctive Relief
Finally, with respect to “[s]uch other legal or equitable relief as the court deems appropriate,” see 29 U.S.C. § 1132(g)(2)(E), Plaintiffs ask in the Motion for an “order compelling [Defendant to submit to an audit for the period of January 1, 2013 to the present.” Motion [# 42-1] at 7-8. However, the Complaint contains no demand for an audit and, as previously noted, “[a] default judgment must not differ in kind from ... what is demanded in the pleadings.”
III. CONCLUSION
Based on the foregoing, the Court RECOMMENDS that the Motion [# 42] be GRANTED in part and DENIED in part. The Court recommends that the Motion be granted to the extent that default judgment enter against Defendant on Count I of the Complaint in the amount of $79,079.87, consisting of (1) unpaid contributions for 2012 in the amount of $34,845.89, (2) interest on unpaid contributions in the amount of $14,686.52, (3) additional interest in the amount of $14,686.52, (4) reasonable attorney fees in the amount of $14,378.43, and (5) costs in the amount of $482.51. The Court recommends that the Motion be denied as to all other requested relief.
Finally, the Court ordered Plaintiffs to request default judgment on their claims no later than July 29, 2014. Minute Order [# 41], Plaintiffs were warned that failure to do so could result in dismissal. Plaintiffs failed to timely file a motion requesting default judgment as to Count II of the Complaint. Accordingly,
The Court further RECOMMENDS that Plaintiffs’ Count II of the Complaint be DISMISSED.
IT IS ORDERED that pursuant to Fed. R. Civ. P. 72, the parties shall have fourteen (14) days after service of this Recommendation to serve and file any written objections in order to obtain reconsideration by the District Judge to whom this case is assigned. A party’s failure to serve and file specific, written objections waives de novo review of the Recommendation by the District Judge, Fed. R. Civ. P. 72(b); Thomas v. Arn,
Dated: November '25, 2014
Notes
. “[# 42]” is an example of the convention the Court uses to identify the docket number
. Plaintiffs also assert a claim pursuant to the Labor-Management Relations Act of 1947 ("LMRA”). Compl. [# 1] ¶¶ 1, 3, 11, 15, 27-34; Motion [# 42-1] at 2. Although the Complaint [# 1] is unclear, Plaintiffs state in the Motion [# 42-1] that "Count II is brought ... pursuant to LMRA ... to enforce the [Collective Bargaining] Agreement, which requires Defendant to check-off dues and to deduct and contribute working assessments and IMPACT contributions.” The Motion does not explicitly state that Plaintiffs are not seeking default judgment on Count II. However, the title of the Motion indicates that Plaintiffs are seeking partial default judgment and, further, Plaintiffs’ discussion of damages only refers to ERISA. Accordingly, the Court construes the Motion as only seeking default judgment on Count I of the Complaint for violation of ERISA. See Motion [# 42-1] at 1-2 ("Count I, brought ... pursuant to ERISA, seeks to enforce ... a Collective Bargaining Agreement ... [under which] Defendant is required to make fringe benefit contributions on behalf of certain employees....”).
. In the Complaint, Plaintiffs merely seek "an order awarding [Plaintiffs] their attorneys’ fees, auditing fees, accounting fees, expert fees and other costs” and for "an interlocutory Order that Defendant ... submit all remittance reports or forms, and pay all contributions in a timely manner going forward _” [# 1] at 7-8. This is not the same type of relief that is requested in the Motion.
