Arkansas Pipe Trades Health and Welfare Fund v. Stiles Consulting Firm, LLC

CourtDistrict Court, C.D. California
DecidedSeptember 2, 2025
Docket8:24-cv-01894
StatusUnknown

This text of Arkansas Pipe Trades Health and Welfare Fund v. Stiles Consulting Firm, LLC (Arkansas Pipe Trades Health and Welfare Fund v. Stiles Consulting Firm, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Arkansas Pipe Trades Health and Welfare Fund v. Stiles Consulting Firm, LLC, (C.D. Cal. 2025).

Opinion

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8 United States District Court 9 Central District of California

11 ARKANSAS PIPE TRADES HEALTH Case № 8:24-cv-01894-ODW (KESx) AND WELFARE FUND et al., 12 Plaintiffs, ORDER GRANTING PLAINTIFFS’ 13 MOTION FOR DEFAULT v. 14 JUDGMENT [21] STILES CONSULTING FIRM, LLC et 15 al.,

16 Defendants.

17 18 I. INTRODUCTION 19 Plaintiffs bring this action against Defendants for breach of a written collective 20 bargaining agreement and violation of the Employee Retirement Income Security Act 21 (“ERISA”) § 515, 29 U.S.C. § 1145. (Compl. ¶¶ 27–42, ECF No. 1.) Plaintiffs seek to 22 recover delinquent benefit contributions, interest, liquidated damages, and attorneys’ 23 fees and costs. (Id., Prayer.) Defendants failed to appear and defend, and Plaintiffs now 24 move for entry of default judgment. (Mot. Default J. (“Motion” or “Mot.”), ECF 25 No. 21.) For the reasons that follow, the Court GRANTS Plaintiffs’ Motion.1 26 27

28 1 Having carefully considered the papers filed in connection with the Motion, the Court deemed the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. 1 II. BACKGROUND 2 As defined under ERISA, Arkansas Pipe Trades Health and Welfare Fund 3 (“Welfare Fund”) is an employee benefit welfare plan, Oklahoma State Pipe Trades 4 Annuity Fund (“Annuity Fund”) and United Association National Pension Fund 5 (“Pension Fund”) are pension benefit plans, and Plumbers and Pipefitters International 6 Training Fund (“Training Fund”) is a welfare benefit fund (collectively, the “Trust 7 Funds”). (Compl. ¶¶ 1–4.) The Trust Funds have the purposes of providing health and 8 welfare benefits, retirement income, pension benefits, and training and education 9 benefits to employees, respectively. (Id.) United Association of Plumbers and 10 Pipefitters Local Union 155 (“Union”) is a labor organization within the meaning of the 11 National Labor Relations Act, 29 U.S.C. § 152(5), and an employee organization within 12 the meaning of ERISA. (Id. ¶ 5.) 13 Stiles Consulting Firm, LLC dba Stiles Foodservice and Stainless Installation 14 (“Stiles Consulting”) is an employer within the meaning of ERISA, engaged as a 15 contractor or subcontractor in the plumbing and pipefitting industry. (Id. ¶ 6.) Corey 16 Stiles is the sole managing member of Stiles Consulting. (Id. ¶ 7.) 17 The Union negotiated a Project Labor Agreement (“PLA”) with Stiles Consulting 18 for a specific project located in Arkansas (“Project”). (Id. ¶¶ 5, 14.) On February 17, 19 2023, Stiles entered into the PLA, thereby binding Stiles Consulting to the Construction 20 Collective Bargaining Agreement (“CBA”). (Id. ¶¶ 11–12,2 Exs. 1–2, ECF No. 1-1.) 21 The PLA and CBA required Stiles Consulting to submit monthly reports and pay fringe 22 benefit contributions to the Trust Funds for all Union employees. (Id. ¶¶ 12–13.) Stiles 23 Consulting received and employed Union members for the Project. (Id. ¶ 14.) 24 However, although Stiles Consulting initially complied with the obligations of the PLA 25 and CBA, beginning in September 2023, it stopped filing the reports and paying the 26 monthly contributions and assessments. (Id. ¶¶ 17–18.) On December 4, 2023, Stiles 27 informed the Union that Stiles Consulting could not pay the contributions and 28 2 The Complaint includes two paragraphs numbered eleven. The Court cites the second. 1 assessments it owed for the months of September through December 2023. (Id. ¶ 20.) 2 Consequently, the Union terminated the PLA with Stiles Consulting in January 2024. 3 (Id. ¶ 21.) The Trust Funds’ subsequent attempts to recover the delinquent contributions 4 and assessments were unsuccessful. (Id. ¶ 22.) 5 Accordingly, on August 30, 2024, the Trust Funds and Union (“Plaintiffs”) 6 brought this legal action against Stiles and Stiles Consulting (“Defendants”) to recover 7 delinquent contributions, accruing interest, liquidated damages, and working 8 assessments owed (the “Obligations”), as well as attorneys’ fees and costs incurred in 9 collecting the Obligations. (Id. ¶¶ 21–26.) Plaintiffs assert two causes of action, the 10 first against both Defendants for payment of the Obligations pursuant to the CBA and 11 ERISA, and the second against Stiles only, for payment of the Obligations based on 12 breach of fiduciary duty and alter ego liability. (Id. ¶¶ 27–42.) 13 On December 4 and 6, 2024, Plaintiffs served Defendants. (Proof Service, ECF 14 No. 13.) However, Defendants did not appear or defend the case. Accordingly, upon 15 Plaintiffs’ request, on January 21, 2025, the Clerk of Court entered Defendants’ default. 16 (Default, ECF No. 15.) In response to the Court’s orders, on March 25, 2025, Plaintiffs 17 filed this motion for default judgment against Defendants. (Mot. 1.) 18 III. LEGAL STANDARD 19 Federal Rule of Civil Procedure (“Rule”) 55(b) authorizes a district court to grant 20 a default judgment after the Clerk enters default under Rule 55(a). However, before a 21 court can enter a default judgment against a defendant, the plaintiff must satisfy the 22 procedural requirements in Rules 54(c) and 55, and Central District Civil Local 23 Rules 55-1 and 55-2. Even if these procedural requirements are satisfied, “[a] 24 defendant’s default does not automatically entitle the plaintiff to a court-ordered 25 judgment.” PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1174 (C.D. Cal. 26 2002) (citing Draper v. Coombs, 792 F.2d 915, 924–25 (9th Cir. 1986)). Instead, “[t]he 27 district court’s decision whether to enter a default judgment is a discretionary one.” 28 Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980) (collecting cases). 1 Generally, after the Clerk enters a default, the defendant’s liability is conclusively 2 established, and the well-pleaded factual allegations in the plaintiff’s complaint “will 3 be taken as true,” except those pertaining to the amount of damages. TeleVideo Sys., 4 Inc. v. Heidenthal, 826 F.2d 915, 917–18 (9th Cir. 1987) (per curiam) (quoting Geddes 5 v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). The court need not make 6 detailed findings of fact when entering default judgment, except as to damages. See 7 Adriana Int’l Corp. v. Thoeren, 913 F.2d 1406, 1414 (9th Cir. 1990). 8 IV. DISCUSSION 9 Plaintiffs satisfy the procedural requirements for default judgment, establish that 10 entry of default judgment against Defendants is substantively appropriate, and 11 demonstrate that the requested relief is warranted. 12 A. PROCEDURAL REQUIREMENTS 13 Local Rule 55-1 requires that the movant establish: (1) when and against which 14 party default was entered; (2) the pleading on which default was entered; (3) whether 15 the defaulting party is a minor or incompetent person; (4) that the Servicemembers Civil 16 Relief Act does not apply; and (5) that the defaulting party was properly served with 17 notice, if required under Rule 55(b)(2).

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Arkansas Pipe Trades Health and Welfare Fund v. Stiles Consulting Firm, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkansas-pipe-trades-health-and-welfare-fund-v-stiles-consulting-firm-llc-cacd-2025.