Buckhorn v. Hettinger

CourtDistrict Court, N.D. California
DecidedAugust 30, 2021
Docket3:15-cv-04352
StatusUnknown

This text of Buckhorn v. Hettinger (Buckhorn v. Hettinger) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckhorn v. Hettinger, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 JACK BUCKHORN, et al., Case No. 15-cv-04352-TSH

8 Plaintiffs, ORDER GRANTING MOTION TO 9 v. ENFORCE SETTLEMENT

10 MARLON EUGENE HETTINGER, Re: Dkt. No. 218 11 Defendant.

12 13 I. INTRODUCTION 14 After successful settlement negotiations with Magistrate Judge Alex Tse, the parties 15 reached a settlement on February 9, 2021. However, Plaintiffs have now filed a motion to enforce 16 the settlement and for sanctions. ECF No. 153. Defendant Marlon Eugene Hettinger opposes the 17 motion, arguing the parties never agreed upon a written settlement agreement. ECF No. 228. The 18 Court finds this matter suitable for disposition without oral argument and VACATES the 19 September 2, 2021 hearing. See Civ. L.R. 7-1(b). For the reasons stated below, the Court finds 20 that a settlement agreement was reached and therefore GRANTS Plaintiffs’ motion to enforce the 21 settlement and DENIES the sanctions request for the following reasons.1 22 II. BACKGROUND 23 A. Parties 24 Plaintiffs Redwood Empire Electrical Workers Health and Welfare Trust Fund, Redwood 25 Empire Electrical Workers Pension Trust, Joint Electrical Industry Training Program, National 26 Employees Benefit Fund, Redwood Empire Electrical Workers Work Recovery Fund, and 27 1 Redwood Empire Vacation Fund are employee benefit plans as defined ERISA § 3(3), 29 U.S.C. § 2 1002(3), and are multi-employer plans as defined by ERISA §3(37)(A), 29 U.S.C. § 1002(37)(A). 3 Third Am. Compl. ¶ 1, ECF No. 181. The Boards of Trustees of each named employee benefit 4 plan are fiduciaries under ERISA §402(a), 29 U.S.C. § 1002(a). Id. Plaintiff Anisa M. Thomsen 5 is a Trustees of the Plaintiff ERISA Trust Funds with authority to act on behalf of all Trustees. Id. 6 Plaintiff Jack Buckhorn is no longer a Trustee of the Plaintiff ERISA Trust Funds; therefore, John 7 P. McEntagart is acting on his behalf as Trustee of the Plaintiff ERISA Trust Funds. Id. As 8 Trustee of the Redwood Empire Electrical Workers Health and Welfare Trust Fund, Thomsen is 9 authorized to bring suit and collect monies for all Plaintiff ERISA Trust Funds. Id. 10 Defendant Hettinger, individually and doing business as Hettinger Electric, is an employer 11 within the meaning of section 3(5) of ERISA, 29 U.S.C. § 1002(5), and section 2(2) of the 12 National Labor Relations Act (“NLRA”), 29 U.S.C. § 152(2). Id. ¶ 2. 13 Plaintiff Fregoso Builders, Inc. is a general contractor who entered into a written contract 14 with Hettinger for him to work as an electrical subcontractor of Fregoso. Id. ¶ 3. 15 B. Relevant Agreements 16 1. Bargaining Agreements 17 On February 3, 2011, Hettinger signed a document known as the Letter of Assent, through 18 which Hettinger authorized the Redwood Empire Chapter of the National Electrical Contractors 19 Association (“NECA”) to be its collective bargaining representative. Id. ¶ 12. The Letter of 20 Assent binds Hettinger to all the provisions of the ongoing Inside Labor Agreements between 21 I.B.E.W. Local 551 and the Redwood Empire Chapter of NECA, effective as of February 3, 2011. 22 Id. ¶ 13. The letter provides that it shall remain in effect until Hettinger terminates it by giving 23 written notice to Local 551 at least 150 days prior to the then-current anniversary date of the 24 applicable labor agreement. Id. 25 By virtue of the Letter of Assent, Hettinger was bound to the terms of a collective 26 bargaining agreement known as the Inside Agreement between Local Union 551 International 27 Brotherhood of Electrical Workers and Redwood Empire Chapter NECA. Id. ¶ 14. The 1 fringe benefit contributions to the Plaintiff Trust Funds. Id. It also requires fringe benefit 2 contributions to the National Electrical Benefit Fund, Labor Management Fund, and the National 3 Electrical Industry Fund. Id. 4 Pursuant to the Bargaining Agreement, fringe benefit contributions are due 15 calendar 5 days following the month in which the hours were worked. Id., Art. VI. It requires an employer 6 to pay liquidated damages and interest on delinquent contributions. Id. ¶ 15. It also requires that 7 an employer who fails to make the required contributions to the Plaintiff Trust Funds also pay all 8 costs of collection, including attorneys’ fees. Id. 9 Pursuant to the Trust Agreements for the Plaintiff ERISA Trust Funds, the Trustees of the 10 Trust Funds may require an employer to submit its records to an accountant selected by the Board 11 of Trustees for audit and must pay all amounts found due pursuant to the audit. Id. ¶ 16. The 12 Board of Trustees may also file a lawsuit against a delinquent employer and may recover the 13 principal delinquent amount due, attorneys’ fees and costs, applicable audit costs, and 10% per 14 annum interest on any delinquent contributions, as well as 20% liquidated damages. Id. ¶ 17. The 15 Board is also authorized to formulate and implement rules and regulations to facilitate the proper 16 functioning of the Plaintiff Trust Funds, through which they have adopted Collection Procedures 17 detailing the procedures for collecting employer contributions. Id. ¶ 18. 18 2. Agreements Between Fregoso and Hettinger 19 In response to an advertisement soliciting bids, Fregoso elected to bid on a public work of 20 improvement known as the Cabernet Village Student Housing Project, located on the campus of 21 California State University Sonoma (the “Sonoma State Project”). Id. ¶ 19. Fregoso solicited bids 22 from trade subcontractors, including the electrical scope of work. Id. 23 In June 2015, Hettinger entered into a written subcontract with Fregoso to work as an 24 electrical subcontractor for Fregoso on the Sonoma State Project. Id. ¶ 20 & Ex. 1 (Sonoma State 25 subcontract). The contract provides that Hettinger will be in default of its terms in the event that 26 he becomes delinquent with respect to contributions or payments required to be made to any 27 health and welfare, pension, vacation, apprenticeship or other employee benefit program or trust. 1 to no further payment until the balance of the work has been completed. Id. 2 The Sonoma State subcontract further provides that Fregoso is authorized to use whatever 3 means in its discretion it may deem appropriate to cause any liens or suits on the project to be 4 removed and that Hettinger shall be responsible for all attorneys’ fees and costs required to 5 remove said lien. Id. ¶ 21. It additionally provides that the full performance of Hettinger’s 6 obligation to remove any liens or suits on the Sonoma State Project, including the payment of any 7 amounts due from Hettinger to Fregoso, is a condition precedent to Hettinger’s right to receive 8 payment for work performed. Id. ¶ 22. 9 C. Amounts Owed to Fregoso 10 In October 2015, Fregoso was served with a lien on the Sonoma State project in the form 11 of an Amended Public Works Stop Notice. Id. ¶ 27. The notice, issued by the Plaintiff Trust 12 Funds, stated that unpaid fringe benefit contributions were due for work performed on the Sonoma 13 State project. Id. On December 21, 2015, counsel for the Plaintiff Trust Funds filed suit on the 14 stop notice in Sonoma County Superior Court, Case No. SCV-258178. Id. ¶ 28. The lawsuit 15 named Fregoso Builders, Sonoma State University, and the Board of Trustees of the California 16 State University as defendants and demanded amounts due pursuant to the stop notice. Id.

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Buckhorn v. Hettinger, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckhorn-v-hettinger-cand-2021.