DAVID S. DOTY, District Judge.
This matter is before the court upon the motion for summary judgment by plaintiffs Twin City Pipe Trades Service Association, Inc. and the Trustees of the Plumbers and Pipefitters National Pension Fund. Based on a review of the file, record, and proceedings herein, and for the following reasons, the court grants in part the motion.
This matter arises out of the nonpayment of employee benefits under the Employee Retirement Income Security Act (ERISA) by defendant MSES, LLC d/b/a ATR Service (ATR). On September 17, 2013, plaintiffs filed suit alleging that ATR failed to submit fringe benefit contributions as required by the parties' collective bargaining agreement (CBA). Plaintiffs filed the instant motion on August 15, 2014, seeking judgment in the amount of unpaid contributions, a bond for future contributions, and attorney's fees. ATR concedes that it owes past unpaid contributions and does not dispute the amount of those contributions or associated liquidated damages and interest. ATR contests, however, plaintiffs' bond request as well as the amount of attorney's fees requested.
Plaintiffs request permanent injunctive relief in the form of two bonds totaling $88,200.00 under Section 515 of ERISA, 29 U.S.C. § 1132(a)(3) and the CBA. Plaintiffs argue that the bonds are necessary to ensure future benefit contributions.
ERISA generally permits fiduciaries to request "appropriate equitable relief" to redress ERISA violations or to enforce the terms of the CBA. 29 U.S.C. § 1132(a)(3). When assessing the propriety of injunctive relief under this provision, the court considers four factors: (1) the likelihood of the movant's ultimate success on the merits, (2) the threat of irreparable harm to the movant in the absence of relief, (3) the balance between the harm alleged and the harm that the relief may cause the non-moving party and (4) the public interest.
Plaintiffs argue that they have established the merits of their claim in the motion. The court agrees, as does ATR, that past due contributions are owed to plaintiffs. The proposed injunction, however, requests a bond for potential future benefit contributions "in the event [ATR] commences work again." ECF No. 44, at 12. There is no present indication that ATR intends to engage in relevant future work, nor is there any indication that it would not make required future payments to plaintiffs. Indeed, plaintiffs acknowledge that ATR is not currently performing work under the CBA and has not done so since November 2013.
Plaintiffs also fail to establish irreparable harm. This factor cannot be met when the harm will be compensable by monetary damages.
Based on the above discussion, the harm to ATR would outweigh the theoretical harm to plaintiffs. ATR should not be required to pay prospective damages based on the mere possibility of non-payment.
The court acknowledges the public interest in enforcing collective bargaining agreements. That interest is not implicated, however, when the issue at hand involves a potential future breach of such an agreement. In short, none of the
Plaintiffs' reliance on the CBA to establish the propriety of a bond is similarly unavailing. The CBA provides that in the event of default, ATR shall post a bond "sufficient to pay all of the payments due ... for a period of at least three (3) months in advance." Hynes Aff. Ex. A, at 15-16. This provision is unenforceable under the circumstances presented. The CBA plainly contemplates ongoing work by the defaulting party. Here, ATR has not incurred any contribution payments since November 2013. As such, there is no reliable basis to determine an appropriate bond amount.
The parties agree that plaintiffs are entitled to attorney's fees and costs under 29 U.S.C. § 1132(g)(2), but disagree as to the amount. The point of contention is whether ATR should pay fees and costs incurred as a result of ATR's allegedly improper defenses. Plaintiffs argue that they should receive all of their fees and costs because they were forced to expend resources on ATR's defenses despite requests that ATR withdraw them. ATR responds that fees and costs relating to its defenses should be excluded because it made every effort to minimize litigation costs and did not press its defenses. The court agrees with plaintiffs. ATR's refusal to withdraw its defenses required plaintiffs to assess and respond to them. As such, plaintiffs are entitled to the total amount of attorney's fees and costs requested.
Accordingly, based on the above,
1. The motion for summary judgment [ECF No. 43] is granted in part;
2. Judgment shall be entered against ATR in favor of plaintiff Twin City Pipe Trades Service Association, Inc. in the sum of $198,826.57, representing:
3. Judgment shall be entered against ATR in favor of plaintiff Trustees of the Plumbers and Pipefitters National Pension Fund in the sum of $34,344.08, representing:
4. Judgment shall also be entered against ATR in fabor of plaintiffs, jointly, in the amount of $14,288.00, in attorney's fees and costs in this matter.