Operating Engineers Health and Welfare Trust Fund, et al. v. Eagle Environmental & Construction, et al.

CourtDistrict Court, N.D. California
DecidedOctober 16, 2025
Docket3:25-cv-02524
StatusUnknown

This text of Operating Engineers Health and Welfare Trust Fund, et al. v. Eagle Environmental & Construction, et al. (Operating Engineers Health and Welfare Trust Fund, et al. v. Eagle Environmental & Construction, et al.) 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
Operating Engineers Health and Welfare Trust Fund, et al. v. Eagle Environmental & Construction, et al., (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 OPERATING ENGINEERS HEALTH Case No. 25-cv-02524-KAW AND WELFARE TRUST FUND, et al., 8 Plaintiffs, ORDER REASSIGNING CASE TO A 9 DISTRICT JUDGE; REPORT AND v. RECOMMENDATION TO GRANT IN 10 PART AND DENY IN PART MOTION EAGLE ENVIRONMENTAL & FOR DEFAULT JUDGMENT 11 CONSTRUCTION, et al., Re: Dkt. No. 14 12 Defendants.

13 On March 13, 2025, Plaintiffs filed the instant case against Defendants Eagle 14 Environmental & Construction and Ronald Batiste, asserting violations of the Employee 15 Retirement Income Security Act of 1974 (“ERISA”). (Compl., Dkt. No. 1.) 16 Pending before the Court is Plaintiffs’ motion for default judgment. (Mot. for Default J., 17 Dkt. No. 14.) Plaintiffs seek an order requiring Defendants to submit contribution reports or 18 payments for hours worked from May 2016 to the present, and to comply with an audit of payroll 19 records for the purposes of determining whether they made full payment of sums owed for the 20 period of January 1, 2017 through December 31, 2021. (Id. at 1.) Defendants are in default and 21 have not filed an opposition. (See Dkt. No. 10.) 22 On September 18, 2025, the Court held a hearing, at which Defendants did not attend. 23 (See Dkt. No. 23.) Since Defendant, by virtue of being in default, has not consented to magistrate 24 judge jurisdiction, the Court REASSIGNS this action to a district judge with the 25 RECOMMENDATION that Plaintiffs’ motion for default judgment be GRANTED IN PART and 26 DENIED IN PART. 27 I. BACKGROUND 1 Operating Engineers Local 3 Heavy and Highway Trust is a Trust established under the Labor 2 Management and Relations Act (“LMRA”). (Compl. ¶ 2.) The principal offices of Plaintiff Trust 3 Funds are in Alameda, California. (Compl. ¶ 7.) 4 On November 1, 2002, Defendant Batiste, acting on behalf of Defendant Eagle 5 Environmental Construction, entered into the Independent Northern California Construction 6 Agreement (the “Independent Agreement”) with Operating Engineers Local Union No. 3 of the 7 International Union of Operating Engineers, AFL-CIO (“Union”). (Compl. ¶ 10; Brown Decl. ¶ 3, 8 Exh. A (“Independent Agreement”), Dkt. No. 14-2.) The Independent Agreement provides that 9 when the individual employer is a corporation, its principal shareholder(s) personally guarantee all 10 payment of wages, fringe benefit contributions, liquidated damages, interest, and collections costs, 11 including but not limited to attorney’s fees and audit fees. (Brown Decl. ¶ 3; Independent 12 Agreement ¶ 12.) 13 The Independent Agreement incorporates the Master Agreement between the Union and the 14 Signatory Associations (“Master Agreement”). (Compl. ¶ 10; Brown Decl. ¶¶ 4-5; Independent 15 Agreement § 2.) The Master Agreement, in turn, incorporates the terms of the Trust Agreements 16 establishing Plaintiff Trust Funds. (Compl. ¶ 12; Brown Decl. ¶ 7, Exh. D (“2023 Master 17 Agreement”) § 12.01.03).) The Master Agreement requires that employers make contributions to 18 Plaintiff Trust Funds based on the hours worked by their employees. (Compl. ¶¶ 12-14; Brown Decl. 19 ¶¶ 6; 2023 Master Agreement § 12.01.00.) Contributions are due by the fifteenth day of the month 20 following the month in which hours were worked and are considered delinquent if not received by 21 the twenty-fifth day of that month. (Comp. ¶ 14; Brown Decl. ¶ 8, 2023 Master Agreement § 22 12.01.02; Brown Decl., Exh. E (“Trust Agreement”) § 10(A).) If contributions are delinquent, the 23 Master Agreement and Trust Agreements mandate that the employer pay interest (10% per annum) 24 and liquidated damages (10% prior to litigation and 20% after litigation has been initiated) on the 25 delinquent contributions. (Compl. ¶ 14; Brown Decl. ¶ 8; 2023 Master Agreement §§ 12.13.01-02; 26 Trust Agreement §§ 10(A)(3)-(4).) The Master Agreement further provides for reimbursement of 27 attorney’s fees and costs, audit fees, and all other expenses incurred in collection of delinquent 1 Additionally, the Master Agreement provides for an audit of the books and records of 2 signatory employers. (Compl. ¶ 15; Brown Decl. ¶ 13; 2023 Master Agreement § 12.01.04.) The 3 Trust Agreements also provide for an audit of the books and records of signatory employers. 4 (Compl. ¶ 15; Brown Decl. ¶ 14; Trust Agreement § 1.) 5 On November 29, 2022, Plaintiff Trust Funds’ Collection Office sent a letter to Defendants 6 advising that its account had been selected by the Trust Funds for a payroll record audit for the 7 period of January 1, 2017 through December 31, 2021. (Brown Decl. ¶ 15, Exh. F.) Defendants did 8 not respond. (Brown Decl. ¶ 16.) On November 27, 2024, Plaintiffs’ counsel sent a demand letter to 9 Defendant Eagle Environmental Construction with attention to Defendant Batiste. (Do Decl. ¶ 7, 10 Dkt. No. 14-4.) Defendants again failed to respond. (Do Decl. ¶ 8.) To date, the requested 11 contribution reports and payroll documents have not been provided and remain outstanding. (Brown 12 Decl. ¶ 19; Quackenbush Decl. ¶ 5, Dkt. No. 14-1.) 13 On March 13, 2025, the instant case was filed based on the failure to comply with the audit 14 for the period of January 1, 2017 through December 31, 2021, as well as the failure to report and pay 15 contributions for hours worked during the months of May 2016 through January 2025. (Compl. ¶¶ 16 16-17.) Plaintiffs sought compliance with an audit and the payment of any unpaid contributions 17 (including those found on an audit), interest and liquidated damages on the unpaid contributions, and 18 attorney’s fees and costs. (Compl. at 7.) 19 On April 10, 2025, Defendants were personally served with the complaint and summons. 20 (Dkt. No. 8.) After Defendants failed to respond, Plaintiffs requested entry of default on May 2, 21 2025. (Dkt. No. 9.) On May 6, 2025, the Clerk entered default as to Defendants. (Dkt. No. 10.) On 22 August 5, 2025, Plaintiffs filed the instant motion for default judgment. The motion for default 23 judgment was mailed to Defendants on August 5, 2025. (Dkt. No. 17.) To date, Defendants have 24 neither appeared nor filed an opposition to Plaintiffs’ motion for default judgment. 25 II. LEGAL STANDARD 26 Federal Rule of Civil Procedure 55(b)(2) permits a court to enter a final judgment in a case 27 following a defendant’s default. Shanghai Automation Instrument Co. v. Kuei, 194 F. Supp. 2d 1 999 (citing Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986)). 2 Before assessing the merits of a default judgment, a court must confirm that it has subject 3 matter jurisdiction over the case and personal jurisdiction over the parties, as well as ensure the 4 adequacy of service on the defendant. See In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). If the 5 court finds these elements satisfied, it turns to the following factors (“the Eitel factors”) to 6 determine whether it should grant a default judgment:

7 (1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff’s substantive claim, (3) the sufficiency of the complaint, (4) 8 the sum of money at stake in the action[,] (5) the possibility of a dispute concerning material facts[,] (6) whether the default was due 9 to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decision on the merits. 10 11 Eitel v. McCool, 782 F.2d 1470

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Operating Engineers Health and Welfare Trust Fund, et al. v. Eagle Environmental & Construction, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/operating-engineers-health-and-welfare-trust-fund-et-al-v-eagle-cand-2025.