Board of Directors of the Motion Picture Industry Pension Plan v. March On Productions, Inc.

CourtDistrict Court, C.D. California
DecidedOctober 29, 2019
Docket2:19-cv-05885
StatusUnknown

This text of Board of Directors of the Motion Picture Industry Pension Plan v. March On Productions, Inc. (Board of Directors of the Motion Picture Industry Pension Plan v. March On Productions, Inc.) 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.

Bluebook
Board of Directors of the Motion Picture Industry Pension Plan v. March On Productions, Inc., (C.D. Cal. 2019).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:19-cv-05885-CAS-JC Date October 29, 2019 Title BOARD OF DIRECTORS OF THE MOTION PICTURE INDUSTRY PENSION PLAN ET AL. v. MARCH ON PRODUCTIONS, INC.

Present: The Honorable J CHRISTINAA.SNYDER Catherine Jeang Not Present N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Not Present Not Present Proceedings: (IN CHAMBERS) - PLAINTIFFS’ MOTION FOR DEFAULT JUDGMENT (Dkt. | 12 |], filed September 13, 2019)

I. INTRODUCTION AND BACKGROUND On July 9, 2019, plaintiffs Board of Directors of the Motion Picture Industry Pension Plan, Board of Directors of the Motion Picture Industry Individual Account Plan, and Board of Directors of the Motion Picture Industry Health Plan (collectively, “plaintiffs”) filed this action against defendant March On Productions, Inc. (“March On”). Dkt. 1 (“Compl.”). The complaint asserts claims for: (1) breach of contract; and (2) violation of the Employee Retirement Income Security Act (“ERISA”). Id. March On has not appeared in this action to date. On August 9, 2019, plaintiffs requested that the Clerk enter default against March On, and the Clerk did so on August 12,2019. Dkt. 9, 10. On September 13, 2019, plaintiffs filed the present motion for default judgment against March On. Dkt. 12-1 (“Mot.”). Plaintiffs are the governing bodies and fiduciaries of employee pension and welfare benefit plans (the “Plans”) covering employees that perform work in the motion picture and television industry. Compl. 3—5. The Plans were established pursuant to collective bargaining agreements between various employers and the International Alliance of Theatrical Stage Employees and Moving Picture Machine Operators of the United States and Canada, AFL-CIO (“IATSE”). Id. 4 4. Plaintiffs’ claims arise out of the alleged failure of one such employer, March On, to honor the terms of these agreements. Id. 4 9. According to plaintiffs, these agreements required March On to, among other things, “forward a single, combined weekly remittance report, together with contributions owed to [plaintiffs] for the total hours worked by or guaranteed to all covered employees, by the

CV-8991 (05/18) CIVIL MINUTES - GENERAL Page 1 of 11

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:19-cv-05885-CAS-JC Date October 29, 2019 Title BOARD OF DIRECTORS OF THE MOTION PICTURE INDUSTRY PENSION PLAN ET AL. v. MARCH ON PRODUCTIONS, INC.

last day of the payroll week.” Compl. § 11. Plaintiffs allege, however, that March On instead “employed persons who performed work covered under the [collective bargaining agreements] but failed to report and pay contributions to [plaintiffs] for these covered employees.” Compl. § 15. Plaintiffs allege that “in the event of a delinquency in contributions, | March On] shall be liable to [plaintiffs] for the contributions owed as well as: (1) interest on the delinquent contributions at the rate of one percent (1%) per month, accruing from the date the payment is due until the day payment is made; (11) liquidated damages in an amount equal to the greater of either twenty percent (20%) of the amount of the contributions due or the amount of interest due, and; (111) all expenses of collection, including but not limited to, reasonable accountants’ fees, auditors’ fees, attorneys’ fees, and costs incurred in connection therewith.” Id. § 12. Accordingly, plaintiffs now seek payment for “the unpaid contributions, liquidated damages, interest, and audit costs, for a total of $8,766.70.” Id. { 19. The Court held a hearing on October 21, 2019. Having carefully considered the plaintiffs’ motion and supporting exhibits, the Court finds and concludes as follows. II. LEGAL STANDARD Pursuant to Federal Rule of Civil Procedure 55, when a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and the plaintiff does not seek a sum certain, the plaintiff may apply to the court for a default judgment. Fed. R. Civ. P. 55. Granting or denying a motion for default judgment is a matter within the court’s discretion. Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 388, 392 (C.D. Cal. 2005). The Ninth Circuit has directed that courts consider the following factors in deciding whether to enter default judgment: (1) the possibility of prejudice to plaintiff; (2) the merits of plaintiffs substantive claims; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action; (5) the possibility of a dispute concerning the material facts; (6) whether defendant’s default was the product of excusable neglect; and (7) the strong policy favoring decisions on the merits. See Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986); see also Elektra, 226 F.R.D. at 392. “Before a court can enter a default judgment against a defendant, the plaintiff must satisfy the procedural requirements set forth in Federal Rules of Civil Procedure 54(c) and 55, as well as Local Rule 55—1 and 55-2.” Harman Int’] Indus., Inc. v. Pro Sound Gear,

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UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:19-cv-05885-CAS-JC Date October 29, 2019 Title BOARD OF DIRECTORS OF THE MOTION PICTURE INDUSTRY PENSION PLAN ET AL. v. MARCH ON PRODUCTIONS, INC.

Inc., No. 2:17-cv-06650-ODW-FFM, 2018 WL 1989518, at *1 (C.D. Cal. Apr. 24, 2018). Accordingly, when an applicant seeks a default judgment from the Court, the movant must submit a declaration specifying: “(a) When and against what party the default was entered: (b) The identification of the pleading to which default was entered; (c) Whether the defaulting party is an infant or incompetent person, and if so, whether that person is represented by a general guardian, committee, conservator or other representative; (d) That the Servicemembers Civil Relief Act (50 U.S.C. App. § 521) does not apply: and (e) That notice has been served on the defaulting party, if required by [Federal Rule of Civil Procedure] 55(b)(2).”. See C.D. Cal. L.R. 55-1. Under Local Rule 55-2, “where an application for default judgment seeks unliquidated damages, the party seeking entry of the default judgment is obligated to serve notice of the application on the defaulting party regardless of whether the latter has appeared in the action.” Halicki v. Monfort, No. 2:08- cv-00351-PSG-JTL, 2009 WL 10672966, at *2 (C.D. Cal. Nov. 19, 2009) (citing C.D. Cal. L.R. 55-2). Il. DISCUSSION A. Procedural Requirements In connection with their request for entry of default judgment against March On, plaintiffs submit a declaration attesting that: (a) on August 12, 2019, the Clerk entered default against March On following its failure to respond to either the summons or complaint; (b) March On is neither an infant nor an incompetent person; and (c) the Servicemembers Civil Relief Act does not apply. Dkt. 12-9, Declaration of Lauren Schmidt (“Schmidt Decl.”) 4] 2-6. Additionally, plaintiffs served notice of their motion on March On, including the requested amount, on September 13, 2019, and have since filed proof of service with the Court. See Dkt. 13. Accordingly, the plaintiffs have satisfied the procedural requirements required for entry of default judgment. See C.D. Cal. L-.R.

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Board of Directors of the Motion Picture Industry Pension Plan v. March On Productions, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-directors-of-the-motion-picture-industry-pension-plan-v-march-on-cacd-2019.