Boards of Trustees of the Northwest Ironworkers Health and Security Fund v. Peterson Rebar Placement LLC

CourtDistrict Court, W.D. Washington
DecidedJuly 12, 2023
Docket2:22-cv-01541
StatusUnknown

This text of Boards of Trustees of the Northwest Ironworkers Health and Security Fund v. Peterson Rebar Placement LLC (Boards of Trustees of the Northwest Ironworkers Health and Security Fund v. Peterson Rebar Placement LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boards of Trustees of the Northwest Ironworkers Health and Security Fund v. Peterson Rebar Placement LLC, (W.D. Wash. 2023).

Opinion

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3 4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 10 BOARDS OF TRUSTEES OF THE CASE NO. 2:22-cv-01541-TL NORTHWEST IRONWORKERS 11 HEALTH AND SECURITY FUND, ORDER ON MOTION FOR DEFAULT JUDGMENT et al., 12 Plaintiffs, 13 v.

14 PETERSON REBAR PLACEMENT, 15 LLC, 16 Defendant.

18 This matter is before the Court on Plaintiffs Boards of Trustees of the Northwest 19 Ironworkers Health and Security Fund, Northwest Ironworkers Retirement Trust, 20 Northwest Field Ironworkers Annuity Trust Fund, and Northwest Ironworkers & 21 Employers Apprenticeship & Training Trust Fund’s (collectively, the “Trusts”) motion 22 for default judgment against Defendant Peterson Rebar Placement, LLC (“PRP”). Dkt. 1 No. 8. PRP, which has not appeared in this action, did not file a response to the motion. 2 Having considered the motion and the relevant record, the Court GRANTS the motion.1

3 I. BACKGROUND 4 The Trusts are joint labor-management employee-benefit Trusts, created and 5 operated pursuant to Section 302 of the Labor Management Relations Act (“LMRA”), 29 6 U.S.C. § 186(c), and the Employee Retirement Income Security Act (“ERISA”), 29 7 U.S.C. § 1001, et seq. Dkt. No. 1 ¶ 2. The Trusts provide certain benefits to covered 8 employees and their dependents. Dkt. No. 21 ¶ 11.

9 The Trusts are funded by employer contributions made on behalf of employees 10 who are covered by a collective bargaining agreement, entitled the Master Labor 11 Agreement (the “MLA”), between Ironworkers District Council of the Pacific Northwest 12 and its affiliated Iron Workers Local Unions (collectively, the “Unions”) and the 13 employers of its members, including PRP. See id. ¶¶ 4–6, 9, Ex. B2 (2020–21 MLA)3;

14 Dkt. No. 26 ¶ 3, Ex. A (2021–24 MLA); Dkt. No. 1 ¶¶ 3, 9–11. PRP executed an 15 Ironworker Independent Agreement (“IIA”) binding it to the terms of the MLA on 16 September 24, 2018. Dkt. No. 21 ¶¶ 5–7, 9, Ex. A (IIA). PRP employs some members of 17 the Unions and, under the terms of the MLA, is responsible for paying and reporting 18 monthly contributions to the Trust. See id. ¶¶ 5–7; Dkt. No. 1 ¶¶ 9–11.

19 20

1 The Trusts did not request oral argument (see Dkt. No. 8 at 1), and the Court concludes that oral argument would 21 not be helpful to its disposition of this motion. See LCR 7(b)(4). 2 When referring to the Trusts’ exhibits, the Court cites to the page numbers in the bottom right-hand corner of the 22 exhibits. 3 The 2020–21 MLA appears on pages 47–84 of Exhibit B. 1 The MLA details the “basis for the contributions to the Trusts,” stating that “for 2 the Health and Security, Pension, Vacation/Paid Time Off, Annuity, and Apprenticeship,

3 employers must contribute to the Trusts for all compensable hours.” Dkt. No. 21 ¶ 7; Dkt. 4 No. 21, Ex. B at 67–70 (describing the required fringe benefit contributions); Dkt. No. 5 26, Ex. A at 24–27 (same). The MLA also sets forth the contribution rate, which must be 6 paid by PRP on an employee’s behalf on a dollars-per-hour-worked basis. See Dkt. No. 7 21, Ex. B at 62–63 (listing employer contribution rates); Dkt. No. 26, Ex. A at 19–20 8 (same). The specific terms of the Trusts are set forth in the Parties’ Trust Agreements,

9 including the numerous amendments thereto, and are incorporated by reference in the 10 MLA. See Dkt. No. 21, Ex. B at 67–70; Dkt. No. 26, Ex. A at 24–27; Dkt. No. 21 ¶¶ 19– 11 24, Exs. D–G. Employers who fail to make their monthly contributions by the 25th day of 12 the month in which the contributions are due must pay liquidated damages at 16% of the 13 outstanding amount of contributions due and interest at 18% per annum until the

14 contributions are paid. See Dkt. No. 21, Exs. D–G; see also Dkt. No. 21, Ex. B at 70 15 (stating the same); Dkt. No. 26, Ex. A at 27 (same). The Trust Agreements further 16 provide that the employer shall be liable for reasonable attorney fees, litigation costs, and 17 other reasonable expenses, including auditor fees, incurred in recovering delinquent 18 payments. See Dkt. No. 21, Exs. D–G; see also Dkt. No. 21, Ex. B at 70 (stating the

19 same); Dkt. No. 26, Ex. A at 27 (same). 20 The Trusts allege that PRP failed to timely report and pay its contributions to the 21 Trusts for work performed by employees covered by the MLA/IIA and the Trust 22 Agreements. Dkt. No. 1 ¶¶ 12–17; Dkt. No. 21 ¶¶ 13–14, 25–27; Dkt. No. 23 ¶¶ 3–6, 8. 1 For work performed between October 2021 and June 2022, PRP reported and paid its 2 contributions after the monthly due date. Dkt. No. 21 ¶ 13, Ex I (late fee notices and

3 remittance reports for this period); Dkt. No. 1 ¶¶ 12–13. Although PRP ultimately made 4 the required reports and contributions for the October 2021 through June 2022 delinquent 5 period, it has not paid the $18,076.66 in liquidated damages and the $5,321.90 in accrued 6 interest for this delinquent period. Dkt. No. 21 ¶¶ 25, 27, Ex. H (Oct. 2021 to June 2022 7 damages report); Dkt. No. 1 ¶ 15. Additionally, for work performed between July and 8 December 2022, PRP has not reported or paid its contributions. (Dkt. No. 21 ¶¶ 14, 27;

9 Dkt. No. 1 ¶¶ 12, 16. Based on the Trusts’ audit,4 PRP owes $190,412.26 in unpaid 10 contributions, $31,214.32 in liquidated damages, $16,846.63 in accrued interest, and 11 $1,902.00 in audit accounting fees for the July through December 2022 delinquent 12 period. Dkt. No. 21 ¶¶ 15–17, 26–27; Dkt. No. 22 ¶¶ 4–9, Ex. A (July to Dec. 2022 13 damages report); Dkt. No. 1 ¶¶ 16–17. Finally, the Trusts assert that they have incurred

14 $1,994.50 in attorney fees and $572.00 in litigation costs in their attempt to recover these 15 delinquent payments and seek to recover both from PRP. Dkt. No. 23 ¶¶ 9–12, Exs. A 16 (billing records), B (total damages summary). 17 The Trusts filed this lawsuit against PRP on October 28, 2022. See generally Dkt. 18 No. 1. Based on the above-mentioned allegations, the Trusts bring a claim for violations

19 of the MLA/IIA, Trust Agreements, and ERISA, 29 U.S.C. §§ 1132, 1145. See generally 20 id.; Dkt. No. 20. The Trusts served a summons and copy of the complaint on PRP on 21

22 4 PRP was provided with a copy of the audit and did not contest the findings. See Dkt. No. 23 ¶ 5; Dkt. No. 20 at 7. 1 November 6, 2022. See Dkt. No. 6. PRP has not appeared in this action or responded to 2 the Trusts’ complaint. On January 9, 2023, the Trusts moved for entry of default against

3 PRP (Dkt. No. 7), and the Clerk entered default on January 13, 2023 (Dkt. No. 9). The 4 Trusts now ask the Court to enter a default judgment against PRP in the amount of 5 $266,340.27. See Dkt. Nos. 20, 20-1. 6 II. LEGAL STANDARD 7 If a defendant fails to plead or otherwise defend, the clerk enters the party’s 8 default. Fed. R. Civ. P. 55(a). Then, upon a plaintiff’s request or motion, the court may

9 grant default judgment for the plaintiff. Fed. R. Civ. P. 55(b)(2). Entry of default 10 judgment is left to the court’s sound discretion. Aldabe v. Aldabe, 616 F.2d 1089, 1092 11 (9th Cir. 1980). Because granting or denying relief is within the court’s discretion, a 12 defendant’s default does not automatically entitle a plaintiff to a court-ordered judgment. 13 Id.

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Boards of Trustees of the Northwest Ironworkers Health and Security Fund v. Peterson Rebar Placement LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boards-of-trustees-of-the-northwest-ironworkers-health-and-security-fund-v-wawd-2023.