Asbestos Workers Local 24 Medical Fund et al. v. East Coast Insulation, Inc.

CourtDistrict Court, D. Maryland
DecidedApril 13, 2026
Docket1:25-cv-00016
StatusUnknown

This text of Asbestos Workers Local 24 Medical Fund et al. v. East Coast Insulation, Inc. (Asbestos Workers Local 24 Medical Fund et al. v. East Coast Insulation, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Asbestos Workers Local 24 Medical Fund et al. v. East Coast Insulation, Inc., (D. Md. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

- ASBESTOS WORKERS LOCAL 24 MEDICAL FUND ET AL., * □ Plaintiffs, . *

Civil No. 25-16-BAH EAST COAST INSULATION, INC.,_ * Defendant. *. * * * * * * * * * : * * * * * _MEMORANDUM OPINION Plaintiffs Asbestos Workers Local 24 Medical Fund (the “Medical Fund”), Asbestos Workers Local 24 Pension Fund (the “Pension Fund”), Asbestos Workers Local 24 Apprenticeship Fund (the “Apprenticeship Fund”) (together, the “Funds”), and the Funds’ trustees! (collectively, Plaintiffs”) brought suit against East Coast Insulation, Inc. (“Defendant’ ’) for unpaid contributions pursuant to the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001 et seq., and the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185. ECF 1. Pending before the Court is Plaintiffs’ motion for default judgment (the “Motion”). ECF 8. The Motion includes a memorandum of law and exhibits.2 The Court has reviewed all relevant filings and finds that no hearing is necessary. See Loc. R. 105.6 (D. Md. 2025), Accordingly, for the reasons stated below, the Motion is GRANTED in part.

1 The named trustees include Andrew Tomlinson, Scott Grant, Brian 8. Cavey, Julio Caicedo, Robert Ciancaglini, Jason Brown, John Hastings, Sean McLaughlin, John Adkins, Benjamin Grant, and Steve Lane. ECF 1, at 1-2. * The Court references all filings by their respective ECF numbers and page numbers by the ECF- generated page numbers at the top of the page. .

I. BACKGROUND This action arises from Defendant’s alleged failure to contribute to the Funds pursuant to a collective bargaining agreement. ECF 1, at 6. The Funds were established under section 302 of the LMRA. Id. at 3-5 ff 5, 7, 9; see also 29 U.S.C. §§ 186(c)(S}{6). Defendant is party to a collective bargaining agreement negotiated by the International Association of Heat and Frost Insulators and Allied Workers, Local 24 and the Insulation Contractors’ Association of Washington, D.C. (the “2006 Joint Trade Agreement”). ECF 1, at 5 12. Plaintiffs also allege that “[ulpon information and belief, Defendant was also bound to a series of successor J oint Trade Agreements with the most recent being effective for the period April 1, 2022 through September 30, 2025 (‘2022 Joint Trade Agreement’).” Jd at 6 4 13. Additionally, Defendant “executed a participation agreement ... on June 14, 2023” (the “Participation Agreement”), “agreeing to contribute to the Pension Fund and Medical Fund in accordance with the 2022 Joint Trade Agreement.” Jd. The 2006 Joint Trade Agreement, 2022 Joint Trade Agreement, and Participation Agreement are hereinafter referred to as the “Agreements.” According to Plaintiffs, the Agreements establish Defendant’s obligation to contribute to the Funds “in a specified amount for each hour that the Defendant is obligated to pay compensation to employees” and “remit contribution reports reflecting hours worked and wages paid.”? Id q 14, at 9 24. Specifically, ‘Defendant is required to “contribute $6.63 through September 30, 2023° and $7.13 thereafter to the Medical Fund and $11.47 to the Pension Fund” and “to forward to the Apprenticeship Fund Trustees $0.65 for each hour worked by Journeymen ($0.30 as an employer

3 Plaintiffs allege that “[p]ayments due to the Funds are calculated separately for each Fund on remittance reports required to be prepared monthly by each contributing employer. This is a self- reporting system and the Funds rely on the honesty and accuracy of the employers in reporting - hours worked and paid, and in reporting the contributions owed for work by employees.” ECF 1, at 9 22. . :

contribution and $0.35 as a deduction from the employee’s pay), and $0.81 for each hour worked by Apprentices ($0.55 as an employer contribution and $0.26 as a deduction from the employee’s pay).” Jd 9 15-16. Pursuant to the trustees’ collection policy, Defendant also agreed to pay interest at the rate of 18% per annum and liquidated damages “assessed in the amount that is the

. greater of the amount of interest charged or 20% of the delinquent amount” “on all untimely contributions or failures to contribute.” Jd. at 8-9 Jf 21,25. The collection policy also provides for attorney’s fees and costs. Id. at 9 4 26. Plaintiffs allege that Defendant “underpaid and late paid contributions to the Funds for certain months during the period of July 2023 through November 2023.” Id. at 10928. Defendant also allegedly “failed to submit remittance reports and contributions for the period of December ‘2023 through October 2024” such that “the funds cannot determine the entire amount of the monthly contributions due” for that period. Jd at9 3, at 10 § 30. In sum, Plaintiffs claim “Defendant owes $4,476.37 in unpaid contributions, interest, and liquidated damages to the Funds ‘for the period of July 2023 through November 2023,” and “remittance reports and contributions for the months of December 2023 through October 2024.” Jd. {] 33-34. Plaintiffs brought the instant complaint on January 2,-2025, and properly served Defendant ‘on January 11, 2025. ECF 1; ECF 3, at 2 (summons returned executed). After Defendant failed to file a responsive pleading, Plaintiffs moved for the Clerk to enter default on February 19, 2025.

. ECF 4, Default was entered accordingly. ECF 5 (entry of default); ECF 6 (notice of default). Plaintiffs filed a motion for default judgment on January 16, 2026, after the Court ordered Plaintiffs to show cause why the action should not be dismissed for dormancy, ECF 7 (order to show cause); ECF 8 (motion for default judgment); ECF 9 (responsé to order to show cause). Defendant never responded to the Motion, which is now ripe for review.

II. LEGAL STANDARD Pursuant to Federal Rule of Civil Procedure 55(a), “[w]hen a party against whom a. ‘judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” The Court may conduct hearings or make referrals when necessary to determine the damages, establish the truth of any, allegation by evidence, or investigate any other matter. Fed. R. Civ, P. 55(b)(2). Thereafter, the court may enter default judgment at the plaintiff's request and with notice to the defaulting party. Id.

Although the United States Court of Appeals for the Fourth Circuit has announced a “strong policy” in favor of deciding cases on their merits, United States v. Schaffer Equip. Co., 11 F.3d 450, 453 (4th Cir. 1993), default judgment may be'appropriate when a party is unresponsive. SL. C. v. Lawbaugh, 359 F. Supp. 2d 418, 421 (D. Md. 2005) (citing Jackson v. Beech, 636 F.2d 836 (D.C. Cir. 1980)). Plaintiff, however, is not automatically entitled to default judgment

simply because the defendant has not responded. Rather, entry of default judgment is left to the sound discretion of the court. See, e.g., Choice Hotels Int'l, Inc. y. Jai Shree Navdurga, LLC, Civ. No. DKC-11-2893, 2012 WL 5995248, at *1 (D. Md. Nov. 29, 2012); see also Choice Hotels Int’l, Inc, y. Austin Area Hospitality, Inc., Civ. No. TDC-15-0516, 2015 WL 6123523, at *1 (D. Md.’ Oct, 14, 2015). . With respect to liability, the Court takes as true all well-pleaded facts in the complaint. Ryan v. Homecomings Fin. Network, 253 F.3d 778

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Asbestos Workers Local 24 Medical Fund et al. v. East Coast Insulation, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/asbestos-workers-local-24-medical-fund-et-al-v-east-coast-insulation-mdd-2026.