National Roofing Industry Pension Fund v. JIC Construction, LLC

CourtDistrict Court, D. Oregon
DecidedMay 16, 2025
Docket3:23-cv-00561
StatusUnknown

This text of National Roofing Industry Pension Fund v. JIC Construction, LLC (National Roofing Industry Pension Fund v. JIC Construction, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Roofing Industry Pension Fund v. JIC Construction, LLC, (D. Or. 2025).

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

NATIONAL ROOFING INDUSTRY Cas e No. 3:23-cv-00561-AR PENSION FUND, NATIONAL ROOFING INDUSTRY SUPPLEMENTAL PENSION OPINION AND ORDER FUND, and ROOFERS RESEARCH AND EDUCATION TRUST,

Plaintiffs,

v.

JIC CONSTRUCTION, LLC, assumed business name STERLING-PACIFIC,

Defendant.

_____________________________________

ARMISTEAD, United States Magistrate Judge

Plaintiffs are three Trust Funds: the National Roofing Industry Pension Fund (NRIPF), the National Roofing Industry Supplemental Pension Fund (NRISPF), and the Roofers Research and Education Trust (RRET). Defendant Sterling-Pacific is an employer and is obligated, through its Collective Bargaining Agreement (CBA) with the union Roofer Local 49, to contribute to the Trust Funds. (Compl. ¶¶ 2-4, 7, ECF 1; CBA Article XIX §§ 1, 2 & Article XXI §§ 1-2, ECF 40-5.) Under the CBA, if Sterling-Pacific does not contribute to the Trust Funds by the twentieth day of the month that they are due, those obligations to contribute are delinquent and subject to liquidated damages1 and interest at 12 percent per annum. (CBA Article XIX § 1 & Article XXI §§ 1-2; Compl. ¶ 9; Hutzenbiler Second Suppl. Decl. (Suppl. Decl.) ¶ 6, ECF 49.) The Trust Funds bring claims under 29 U.S.C. § 1132 of the Employee Retirement Income Security Act (ERISA) and 29 U.S.C. § 185 of the National Labor Relations Act (NLRA). (Compl. ¶ 1.) They allege that Sterling-Pacific failed to make required contributions to the Trust Funds, and seek to recover delinquent contributions, liquidated damages, and interest on the contributions owed, along with reasonable attorney fees and costs. (Id. ¶¶ 7, 9, 11.) Although Sterling-Pacific was initially represented by counsel in this action, it fired its attorney, who then withdrew representation in May 2024. (ECF 25, 26.) After that, Sterling-

Pacific stopped participating in this case, even after the court ordered Sterling-Pacific to provide a status report and notified it that it would be subject to an entry of default and default judgment if it did not retain counsel. (ECF 28, 30.) Sterling-Pacific did not obtain counsel and, on the Trust Funds’ motion, the court struck Sterling-Pacific’s answer and directed the clerk to enter default against it. (ECF Nos. 33, 35, 36.) The Trust Funds now move for default judgment. (Am. Mot.,

1 The CBA lists liquidated damages at 20 percent. (CBA Article XIX § 1 & Article XXI § 12.) Because the amended motion for default judgment seeks liquidated damages at 10 percent (Am. Mot. at 2, ECF 48), the court uses that percentage to calculate liquidated damages.

Page 2 – OPINION AND ORDER National Roofing v. JIC Construction, LLC, 3:23-cv-00561-AR ECF 48.) As explained below, the Trust Funds’ motion is GRANTED, except that the amount of damages is reduced, as explained below. DISCUSSION Federal Rule of Civil Procedure 55(b)(2) permits a court to enter a final judgment in a case following a defendant’s default. Whether to enter default judgment lies within the court’s discretion. Pepsico, Inc. v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1174 (C.D. Cal. 2002) (“A defendant’s default does not automatically entitle the plaintiff to a court-ordered judgment.” (citing Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986))). Although the court must accept as true all well-pleaded facts in the complaint, it does not accept as admitted facts that are not well-pleaded, conclusions of law, or facts relating to the amount of damages, DIRECTV, Inc. v. Hoa Huynh, 503 F.3d 847, 854 (9th Cir. 2007); Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977). Any default judgment awarded must not differ in kind or exceed in amount what is demanded in the pleadings. FED. R. CIV. P. 54(c).

A. Jurisdiction The district court has an affirmative duty to examine its jurisdiction when default judgment is sought. In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). A default judgment is void if the district court lacks subject-matter or personal jurisdiction. See Chambers v. Knight, 20- 56141, 2021 WL 4811360, at *1 (9th Cir. Oct. 15, 2021) (holding default judgment void for lack of subject matter jurisdiction). The Trust Funds allege claims under 29 U.S.C. § 1132 and 29 U.S.C. § 185. Section 1132(e)(1) provides federal district courts with jurisdiction over any claims brought under

Page 3 – OPINION AND ORDER National Roofing v. JIC Construction, LLC, 3:23-cv-00561-AR § 1132. Section 185 likewise provides district courts with subject matter jurisdiction over “[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce.” 29 U.S.C. § 185; see also Loc. 159, 342, 343 & 444 v. Nor- Cal Plumbing, Inc., 185 F.3d 978, 984 (9th Cir. 1999) (Section 185 provides for subject matter jurisdiction in claim by plans). This action was brought for a violation of the CBA—a contract between Sterling-Pacific as an employer and Local Roofer 49 as a union—and the fact that the Trust Funds were not actual signees to the CBA “is inconsequential, given the object of the lawsuit.” Loc. 159, 185 F.3d at 984. Accordingly, the court has jurisdiction under both § 1132(e)(1) and § 185. B. Service of Process If the party against whom default judgment is requested has not been properly served and has not waived service, the district court cannot render judgment. S.E.C. v. Ross, 504 F.3d 1130, 1138-39 (9th Cir. 2007). That means that, before the court enters a default judgment, it is

responsible for determining whether the service of process on the party against whom default judgment is sought was adequate. See I.Q. Credit Union v. Khaleesi, 3:22-CV-01226-YY, 2023 WL 5917715 at *2 (D. Or. Aug. 14, 2023) (so stating). Sterling-Pacific has been properly served. Federal Rule of Civil Procedure 4(c)(1) requires that the defendant be served with a summons and a copy of the complaint. The Trust Funds served Sterling-Pacific’s registered agent with a summons and complaint in April 2023, by leaving both with Barry P. Caplan, the “clerk on duty” at the office of Sussman Shank Registration Services, LLC, Sterling-Pacific’s registered agent. (ECF 6; see also ECF 4.)

Page 4 – OPINION AND ORDER National Roofing v. JIC Construction, LLC, 3:23-cv-00561-AR The Trust Funds have also complied with Rule 55 by previously requesting and receiving the clerk’s entry of default. (ECF 33, 35); FED. R. CIV. P. 55(a)(1). The Trust Funds served their motion to strike, motion for entry of default, motion for default judgment, and amended motion for default judgment on Sterling-Pacific by mail.2 C.

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