Bricklayers & Trowel Trades Int'l Pension Fund v. Kel-Tech Constr., Inc.

319 F. Supp. 3d 330
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 3, 2018
DocketCivil Action No. 17-1349 (TJK)
StatusPublished
Cited by7 cases

This text of 319 F. Supp. 3d 330 (Bricklayers & Trowel Trades Int'l Pension Fund v. Kel-Tech Constr., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bricklayers & Trowel Trades Int'l Pension Fund v. Kel-Tech Constr., Inc., 319 F. Supp. 3d 330 (D.C. Cir. 2018).

Opinion

TIMOTHY J. KELLY, United States District Judge

Plaintiffs Bricklayers & Trowel Trades International Pension Fund and International Masonry Institute (together, the "Plans") are multiemployer employee benefit plans within the meaning of the Employee Retirement Income Security Act of 1974 ("ERISA"), Pub. L. No. 93-406, 88 Stat. 829. They have filed suit against Defendant Kel-Tech Construction, Inc. ("Kel-Tech") for failure to pay contributions to the Plans in violation of certain agreements and ERISA. ECF No. 1 ("Compl."). To date, Kel-Tech has failed to answer or otherwise defend this action. The Plans filed a Motion for Entry of Judgment by Default (the "First Motion"), ECF No. 9, asking the Court to enter judgment in the amount of $59,600.821 against Kel-Tech and to order certain equitable relief. See ECF No. 9; see also ECF No. 9-1 ("Pls.' Br."); ECF No. 9-2 ("Pls.' First Summary"); ECF No. 9-3 ("Pls.' App'x"). Seven months later, the Plans filed a Supplemental Motion for Entry of Judgment by Default (the "Second Motion"), ECF No. 10, increasing the amount of the requested judgment to $77,179.10. ECF No. 10; see also ECF No. 10-1 ("Pls.' Second Decl."); ECF No. 10-2 ("Pls.' Second Summary").

The Court will deny the First Motion as moot, given that it has been effectively superseded by the Second Motion.2 As explained below, the Court concludes that the record supports granting the Second Motion only in part. The Court will give *336the Plans an opportunity to address the deficiencies identified in this Opinion by August 31, 2018. If the Plans choose not to do so, the Court will enter a judgment consistent with this Opinion.

I. Factual and Procedural Background

The Plans filed their complaint on July 7, 2017, Compl., and served Kel-Tech on July 24, 2017, see ECF No. 3. When Kel-Tech failed to respond within 21 days as required by Federal Rule of Civil Procedure 12(a)(1)(A)(i), the Clerk entered default against Kel-Tech at the Plans' request. ECF No. 5. The Plans then filed the instant motions for default judgment.

The Plans provide benefits to employees pursuant to agreements negotiated between local unions and employers. Pls.' App'x at 3. As described in the Plans' complaint, Kel-Tech has entered into collective bargaining agreements ("CBAs") with a local union, International Union of Bricklayers and Allied Craftworkers Local Union No. 1, New York ("Local 1"). Compl. ¶ 7. The Plans' declarations, but not their complaint, also reference a CBA between Kel-Tech and another local union, International Union of Bricklayers and Allied Craftworkers Local Union No. 84, New York ("Local 84"). Pls.' App'x at 3. The CBAs obligate Kel-Tech to make monthly reports to the Plans of the hours worked by covered employees, and to pay monthly contributions to the Plans. Id.

The Plans are governed by trust agreements. Compl. ¶¶ 1-2. Although they never allege as much, the Plans appear to assume that, by virtue of the CBAs, Kel-Tech became bound by the terms of the trust agreements as well. See id. ¶¶ 10-11. The trust agreements provide that, if Kel-Tech fails to make the required contributions, the Plans may require Kel-Tech to pay: (i) the amount of unpaid contributions; (ii) 15% interest on delinquent contributions; (iii) an additional award equal to the greater of 15% interest on delinquent contributions or liquidated damages of 20% of the amount of the delinquent contributions; and (iv) attorney's fees and costs incurred in pursuing the delinquency. Pl.'s App'x at 3, 16-17. The Plans' "General Collection Procedures" contain similar provisions, although the Plans never explain how the Procedures are binding on Kel-Tech. See Compl. ¶¶ 12-13; Pls.' App'x at 9-12. The Procedures explain that the contributions and reports required by the CBAs become due on the 15th day of each month. See Pls.' App'x at 9.

The Plans' complaint and motion papers refer to different "cover groups" within each local union. See, e.g. , Compl. ¶¶ 16-17. While the Plans do not explain exactly what these groups are, the Court infers that each consists of a sub-group of local union employees. The Plans have identified four cover groups for which Kel-Tech allegedly owes contributions: three within Local 1 (cover group 1 ("1-NY-1"), cover group 64 ("1-NY-64"), and cover group 66 ("1-NY-66") ) and one within Local 84 (cover group 19 ("84-NY-19") ). See Pls.' Second Summary. Cover group 1-NY-64 was not mentioned in the Plans' complaint or the First Motion; rather, the Plans first sought damages associated with group 1-NY-64 in the Second Motion.

In their complaint, the Plans bring three counts against Kel-Tech. Count I seeks to recover required contributions to the Plans that Kel-Tech had not made as of the filing of the complaint, allegedly in violation of ERISA, the CBAs, the trust agreements, and the General Collection Procedures. Compl. ¶¶ 15-21. Count II seeks to recover interest, liquidated damages and attorney's fees on contributions that Kel-Tech made late, but before the filing of the complaint, under the trust agreements and the General *337Collection Procedures. Id. ¶¶ 22-26. Count III seeks injunctive relief requiring Kel-Tech to make reports and pay contributions in a timely manner going forward. Id. ¶¶ 27-31. The Plans also seek "contributions, interest, liquidated damages, and reasonable attorneys' fees and costs that may accrue and/or are found to be due and owing to the Plaintiffs subsequent to the filing of this Complaint, during the pendency of this action, and up to the date of judgment." Id. at 10.

In support of the First Motion, the Plans submitted a declaration detailing their damages for each cover group (excluding 1-NY-64), as well as a document summarizing the amounts set forth in the declaration. See Pls.' App'x at 2-7; Pls.' First Summary. With their Second Motion, the Plans submitted a revised declaration and summary with new damages amounts. See Pls.' Second Decl.; Pls.' Second Summary. The revisions reflect damages for contributions due to cover group 1-NY-64, additional accrued interest, as well as the Plans' allegation that Kel-Tech has, since the filing of the First Motion, paid some contributions it owed but failed to make other contributions as they came due. Table 1, below, summarizes the damages requested in the First Motion by cover group and category; Table 2 summarizes the damages requested in the Second Motion in the same format.

In both the First and Second Motions, the Plans also request an award of $3,599.00 in attorney's fees and $590.00 in costs. Pls.' First Summary; Pls.' Second Summary. Their counsel has provided an affidavit supporting this award, along with a spreadsheet detailing the legal work underlying the fee request. See Pls.' App'x at 18-26.

Table 1: Summary of Damages Requested in First Motion

Local 1 Local 84 1-NY-1 1-NY-64 1-NY-66 84-NY-19

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Bluebook (online)
319 F. Supp. 3d 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bricklayers-trowel-trades-intl-pension-fund-v-kel-tech-constr-inc-cadc-2018.