Regional District Council v. Mile High Rodbusters, Inc.

82 F. Supp. 3d 1235, 2015 U.S. Dist. LEXIS 28361, 2015 WL 1087048
CourtDistrict Court, D. Colorado
DecidedMarch 9, 2015
DocketCivil Action No. 13-cv-00214-REB-KLM
StatusPublished
Cited by36 cases

This text of 82 F. Supp. 3d 1235 (Regional District Council v. Mile High Rodbusters, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regional District Council v. Mile High Rodbusters, Inc., 82 F. Supp. 3d 1235, 2015 U.S. Dist. LEXIS 28361, 2015 WL 1087048 (D. Colo. 2015).

Opinion

ORDER ADOPTING RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE

Blackburn, United States District Judge

This matter is before me on the following: (1) the Motion for Partial Default Judgment and an Order Compelling an Accounting [# 42]1 filed July 29, 2014; and (2) the Recommendation of United States Magistrate Judge [# 44] filed November 25, 2014. No objection to the recommendation has been filed. Therefore, I review it for plain error only. See Morales-Fernandez v. Immigration & Naturalization Service, 418 F.3d 1116, 1122 (10th Cir.2005). Finding no error, much less plain error, in the recommendation of the magistrate judge, I approve and adopt the recommendation [# 44].

The- plaintiffs assert claims under the Employee Retirement income Security Act of 1974 (ERISA). The defendant is a signatory to a collective bargaining agreement (CBA) with plaintiff Regional Local [1239]*1239Union No. 847, International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, AFL-CIO (Regional Local Union) and plaintiff Regional District Council. The CBA requires the defendant to file reports of hours worked by its employees and to pay contributions to plaintiffs Regional District Council Welfare Trust Fund, Regional District Council Vacation Trust Fund, Regional District Council Training Trust (the Trusts), Regional District Council, and Regional Local Union. The amounts contributed depend on specified rates for hours worked by the employees of the defendant during employment covered by the CBA. The CBA requires the defendant to file reports and make contributions on the fifteenth day of each month for work done in the prior month. The CBA provides also that if the defendant does not timely pay fringe benefit contributions, then (1) the defendant is liable for interest on the unpaid amounts at a rate of 1.5% per month, and (2) the defendant is liable for accounting fees, attorney fees, auditing fees, and expert fees in the event that litigation is required to collect unpaid contributions.

The defendant is now delinquent in its obligation to report and pay contributions to the Trusts and has therefore violated its duties under the CBA. Demand was made on the defendant to resolve its delinquency, but it failed to do so. For the reasons detailed in the recommendation [# 44], entry of default judgment against the defendant is proper.

THEREFORE, IT IS ORDERED as follows:

1. That the Recommendation of United States Magistrate Judge [# 44] filed November 25, 2014, is APPROVED and ADOPTED as an order of this court;

2. That the underlying Motion for Partial Default Judgment and an Order Compelling an Accounting [#42] filed July 29, 2014, is GRANTED in part;

3. That under Fed. R. Civ. P. 55, DEFAULT JUDGMENT SHALL ENTER against the defendant, Mile High Rodbus-ters, Inc., in favor of the plaintiffs on the claim asserted in Count I of the Complaint [# 1];

4. That the default judgment SHALL INCLUDE a total monetary award in favor of the plaintiffs and against the defendant of 79,079.87 dollars for damages, interest, attorney fees, and costs allocated as follows:

a. unpaid contributions under the CBA for 2012 in the amount of 34,-845.89 dollars;
b. interest on unpaid contributions in the amount of 14,686.52 dollars;
c. additional interest under 29 U.S.C. § 1132(g)(2)(C)(i) in the amount of 14,686.52 dollars;
d.reasonable attorney fees in the amount of 14,378.43 dollars; and
e.costs in the amount of 482.51 dollars;

5. That otherwise the Motion for Partial Default Judgment and an Order Compelling an Accounting [# 42] filed July 29, 2014, is DENIED;

6. That Count II of the Complaint [# 1] is DISMISSED with prejudice; and

7. That this case is CLOSED.

RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE

ENTERED BY MAGISTRATE JUDGE KRISTEN L. MIX

This matter is before the Court on Plaintiffs’ Motion for Partial Default Judgment and an Order Compelling an Accounting [# 42]1 (the “Motion”). Pur[1240]*1240suant to 28 U.S.C. § 636(b)(1) and D.C.COLO.LCivR 72.1(c), the Motion is referred to the undersigned for recommendation [# 43]. Plaintiffs seek partial default judgment against Defendant, which has not entered an appearance in this action. For the reasons set forth below, the Court RECOMMENDS that the Motion [# 42] be GRANTED in part and DENIED in part.

I. BACKGROUND

Plaintiffs filed this lawsuit on January 28, 2013, alleging violations of the Employee Retirement Income Security Act of 1974 (“ERISA”).2 Compl. [# 1], Defendant is a signatory to a Collective Bargaining Agreement (the “Agreement”) with Plaintiff Regional Local Union No. 847, International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, AFL-CIO (the “Regional Local Union”) and Plaintiff Regional District Council. Id. ¶ 13. According to the Agreement, these Plaintiffs are collectively the exclusive representative of Defendant’s bargaining unit employees. Id. ¶ 14. The Agreement requires Defendant to file reports of hours worked by its employees and to pay contributions to Plaintiffs Regional District Council Welfare Trust Fund, Regional District Council Vacation Trust Fund, Regional District Council Training Trust (collectively, the “Trusts”), Regional District Council, and Regional Local Union. Id. ¶ 16. These contributions include fringe benefit contributions and dues and wage deductions. Id. The amounts contributed depend on specified rates for hours worked by Defendant’s employees during employment covered by the Agreement. Id. The Agreement requires Defendant to file reports and make contributions on the fifteenth day of each month for the prior month’s work. Id. ¶ 17. The Agreement also provides that if Defendant does not timely pay fringe benefit contributions, then (1) Defendant is hable for interest on the unpaid amounts at a rate of 1.5% per month, and (2) Defendant is liable for accounting fees, attorneys’ fees, auditing fees, and expert fees in the event that litigation is required to collect unpaid contributions. Id. ¶¶ 18-19. Defendant is now delinquent in its obligation to report and pay contributions to the Plaintiff Trusts and has therefore violated its duties under the Agreement. Id. ¶¶ 22-23. Demand was made on Defendant to resolve its delinquency, but it failed to do so. As a result Plaintiffs instigated the present lawsuit, primarily seeking damages. Id. ¶ 25.

II. ANALYSIS

Pursuant to Fed. R. Civ. P. 55, default may enter against parties who fail to appear or otherwise defend a lawsuit.

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82 F. Supp. 3d 1235, 2015 U.S. Dist. LEXIS 28361, 2015 WL 1087048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regional-district-council-v-mile-high-rodbusters-inc-cod-2015.