MARCO A. HERNÁNDEZ, District Judge.
Plaintiff Masonry Industry Trust Administration, Inc., is the administrative agent for the Masonry Industry Funds, a group of multi-employer trust funds for unionized workers in the masonry and bricklaying industry. Plaintiff brought this action against Defendants Chris Less Masonry, Inc. and Chris H. Lee, individually, (collectively "Defendants") for failing to make mandatory contributions to the funds as required by a collective bargaining agreement. After Defendant failed to appear, Plaintiff moved for a clerk's entry of default, which the clerk granted in February of 2016.
Plaintiff now moves for entry of default judgment against Defendant. Plaintiff's motion is granted.
After entering an order of default, the district court has discretion to issue a default judgment.
The court may take the complaint's well-pleaded factual allegations as true, other than the amount of damages.
Based on the clerk's entry of default in this case, the Court accepts the well-pleaded allegations in Plaintiff's complaint as true, except those relating to damages.
Under 29 U.S.C. § 1145, an employer that is required to contribute to an employee benefit plan must comply with the governing collective bargaining agreement. Plaintiff submitted reports and affidavits showing that Defendants failed to make contributions as required by the agreements; therefore, Plaintiff states a valid ERISA claim. Horn Decl. Ex. 6, ECF 34-6; Ex. 7, ECF 34-7;
As for the other relevant
Plaintiffs must prove the amount of damages they seek in this action.
29 U.S.C. § 1145(g)(2). "Such an award is mandatory if: (1) the employer is delinquent at the time the action is filed; (2) the district court had entered a judgment against the employer; and (3) the plan . . . provide[s] for such an award."
Plaintiff submitted affidavits and reports showing that Defendants failed to pay $54,096.19 in contributions to the funds between September 2013 and May 2014. Horn Decl., Exs. 6-7, ECF 34-6, 34-7. Defendants were required under the agreements to file monthly reports showing the number of hours worked by all covered employees. Horn Decl. ¶ 17. Plaintiff submitted copies of Defendants' reports for the months of September 2013 through May 2014. Horn Decl. ¶ 18. Defendants submitted the reports but never paid the amounts due. Horn Decl. ¶ 18. Plaintiff's auditors examined the reports and prepared an additional report summarizing the amounts Defendants owe and how those amount are allocated between the various funds. Horn Decl. Ex. 7. After examining both sets of reports, the Court finds that the evidence shows Defendants owe $54,096.16 in unpaid contributions for the period of September 2013 to May 2014.
The statute here provides that "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 Title 26." 29 U.S.C. § 1132(g)(2). The agreements provide for interest at eighteen percent per year for most of the funds, except that the interest rate for the International Pension fund is fifteen percent per year. Hon Decl. ¶ 13, Ex. 1 at 5, 13, 23, 31.
Plaintiff claims that one group of funds (referred to in Plaintiff's briefing as the "Ancillary Funds") is subject to the Oregon statutory interest rate of nine percent. Pl. Memo at 11. Plaintiff did not cite to an included exhibit where the Court could examine the contract language, nor could the Court find a copy of the Ancillary Fund contract in the exhibits. Without any contract language for guidance, the Court turns to section 6621 to determine the appropriate rate. Section 6621 sets the rate that the Internal Revenue Service charges taxpayers who underpay taxes. 26 U.S.C. § 6621. The underpayment rate from September 2013 to May 2014 was three percent.
Accordingly, the Court awards Plaintiff interest on Defendants' unpaid contributions as follows:
Liquidated damages only apply "when (1) the fiduciary obtains a judgment in favor of the plan, (2) unpaid contributions exist at the time of suit, and (3) the plan provides for liquidated damages."
Plaintiff indicated that it will seek an award of attorney's fees and costs, but will submit an attorney fee application and cost bill pursuant to Federal Rule of Civil Procedure 54 at a later date. Pl. Mot. at 11. Accordingly, the Court does not award any attorney fees or costs at this time.
For the reasons stated, Plaintiff's motion for default judgment [32] is GRANTED. Plaintiff shall submit a proposed judgment consistent with this order within fourteen days of the date below.