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

District Court, C.D. California·Decided September 2, 2025·No. 8:24-cv-01894·Unknown

Opinion

O

United States District Court Central District of California

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

Defendants.

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

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. As defined under ERISA, Arkansas Pipe Trades Health and Welfare Fund (“Welfare Fund”) is an employee benefit welfare plan, Oklahoma State Pipe Trades Annuity Fund (“Annuity Fund”) and United Association National Pension Fund (“Pension Fund”) are pension benefit plans, and Plumbers and Pipefitters International Training Fund (“Training Fund”) is a welfare benefit fund (collectively, the “Trust Funds”). (Compl. ¶¶ 1–4.) The Trust Funds have the purposes of providing health and welfare benefits, retirement income, pension benefits, and training and education benefits to employees, respectively. (Id.) United Association of Plumbers and Pipefitters Local Union 155 (“Union”) is a labor organization within the meaning of the National Labor Relations Act, 29 U.S.C. § 152(5), and an employee organization within the meaning of ERISA. (Id. ¶ 5.) Stiles Consulting Firm, LLC dba Stiles Foodservice and Stainless Installation (“Stiles Consulting”) is an employer within the meaning of ERISA, engaged as a contractor or subcontractor in the plumbing and pipefitting industry. (Id. ¶ 6.) Corey Stiles is the sole managing member of Stiles Consulting. (Id. ¶ 7.) The Union negotiated a Project Labor Agreement (“PLA”) with Stiles Consulting for a specific project located in Arkansas (“Project”). (Id. ¶¶ 5, 14.) On February 17, 2023, Stiles entered into the PLA, thereby binding Stiles Consulting to the Construction Collective Bargaining Agreement (“CBA”). (Id. ¶¶ 11–12,2 Exs. 1–2, ECF No. 1-1.) The PLA and CBA required Stiles Consulting to submit monthly reports and pay fringe benefit contributions to the Trust Funds for all Union employees. (Id. ¶¶ 12–13.) Stiles Consulting received and employed Union members for the Project. (Id. ¶ 14.) However, although Stiles Consulting initially complied with the obligations of the PLA and CBA, beginning in September 2023, it stopped filing the reports and paying the monthly contributions and assessments. (Id. ¶¶ 17–18.) On December 4, 2023, Stiles informed the Union that Stiles Consulting could not pay the contributions and 2 The Complaint includes two paragraphs numbered eleven. The Court cites the second. assessments it owed for the months of September through December 2023. (Id. ¶ 20.) Consequently, the Union terminated the PLA with Stiles Consulting in January 2024. (Id. ¶ 21.) The Trust Funds’ subsequent attempts to recover the delinquent contributions and assessments were unsuccessful. (Id. ¶ 22.) Accordingly, on August 30, 2024, the Trust Funds and Union (“Plaintiffs”) brought this legal action against Stiles and Stiles Consulting (“Defendants”) to recover delinquent contributions, accruing interest, liquidated damages, and working assessments owed (the “Obligations”), as well as attorneys’ fees and costs incurred in collecting the Obligations. (Id. ¶¶ 21–26.) Plaintiffs assert two causes of action, the first against both Defendants for payment of the Obligations pursuant to the CBA and ERISA, and the second against Stiles only, for payment of the Obligations based on breach of fiduciary duty and alter ego liability. (Id. ¶¶ 27–42.) On December 4 and 6, 2024, Plaintiffs served Defendants. (Proof Service, ECF No. 13.) However, Defendants did not appear or defend the case. Accordingly, upon Plaintiffs’ request, on January 21, 2025, the Clerk of Court entered Defendants’ default. (Default, ECF No. 15.) In response to the Court’s orders, on March 25, 2025, Plaintiffs filed this motion for default judgment against Defendants. (Mot. 1.) Federal Rule of Civil Procedure (“Rule”) 55(b) authorizes a district court to grant a default judgment after the Clerk enters default under Rule 55(a). However, before a court can enter a default judgment against a defendant, the plaintiff must satisfy the procedural requirements in Rules 54(c) and 55, and Central District Civil Local Rules 55-1 and 55-2. Even if these procedural requirements are satisfied, “[a] defendant’s default does not automatically entitle the plaintiff to a court-ordered judgment.” PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1174 (C.D. Cal. 2002) (citing Draper v. Coombs, 792 F.2d 915, 924–25 (9th Cir. 1986)). Instead, “[t]he district court’s decision whether to enter a default judgment is a discretionary one.” Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980) (collecting cases). Generally, after the Clerk enters a default, the defendant’s liability is conclusively established, and the well-pleaded factual allegations in the plaintiff’s complaint “will be taken as true,” except those pertaining to the amount of damages. TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917–18 (9th Cir. 1987) (per curiam) (quoting Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). The court need not make detailed findings of fact when entering default judgment, except as to damages. See Adriana Int’l Corp. v. Thoeren, 913 F.2d 1406, 1414 (9th Cir. 1990). Plaintiffs satisfy the procedural requirements for default judgment, establish that entry of default judgment against Defendants is substantively appropriate, and demonstrate that the requested relief is warranted. Local Rule 55-1 requires that the movant establish: (1) when and against which party default was entered; (2) the pleading on which default was entered; (3) whether the defaulting party is a minor or incompetent person; (4) that the Servicemembers Civil Relief Act does not apply; and (5) that the defaulting party was properly served with notice, if required under Rule 55(b)(2). In turn, Rule 55(b)(2) requires written notice on the defaulting party if that party “has appeared personally or by a representative.” Plaintiffs meet these requirements. On January 21, 2025, the Clerk entered default against Defendants as to Plaintiffs’ Complaint. (See Default.) Counsel for Plaintiffs submits declaration testimony that Defendants are not minors or incompetent persons and that the Servicemembers Civil Relief Act does not apply. (Decl. Michele R. Stafford ISO Mot. (“Stafford Decl.”) ¶ 11, EC

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