Service Employees International Union National Industry Pension Fund v. Metro Man I, Inc.

CourtDistrict Court, District of Columbia
DecidedJuly 19, 2023
DocketCivil Action No. 2022-0748
StatusPublished

This text of Service Employees International Union National Industry Pension Fund v. Metro Man I, Inc. (Service Employees International Union National Industry Pension Fund v. Metro Man I, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Service Employees International Union National Industry Pension Fund v. Metro Man I, Inc., (D.D.C. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SERVICE EMPLOYEES INTERNA- TIONAL UNION NATIONAL INDUSTRY PENSION FUND et al.,

Plaintiffs, Civil Action No. 22-748 (TJK) v.

METRO MAN I, INC. d/b/a WESTWOOD NURSING CENTER,

Defendant.

MEMORANDUM OPINION

Plaintiffs, a pension fund and its board of trustees, sued Defendant, a nursing center, for its

failure to make certain contributions into the pension fund and to provide it certain remittance

reports under the governing collective bargaining agreements, the fund’s collection policy and

trust agreement, and the Employee Retirement Income Security Act of 1974. To date, Defendant

has failed to answer or otherwise defend this action. Thus, Plaintiffs move for default judgment

and ask the Court to award damages for Defendant’s delinquent contributions plus interest, liqui-

dated damages, attorney’s fees and costs, and injunctive relief. For the below reasons, the Court

will grant the motion for default judgment and award most of the relief requested.

Background

Plaintiff Service Employees International Union (“SEIU”) National Industry Pension Fund

is a multiemployer employee benefit plan within the meaning of the Employee Retirement Income

Security Act (“ERISA”). ECF No. 1 (“Compl.”) ¶ 4 (citing 29 U.S.C. § 1002(37)(A)). The pen-

sion fund is administered by its board of trustees—the other named plaintiff—a designated fiduci- ary of the pension fund as defined under ERISA. Id. ¶ 6 (citing 29 U.S.C. § 1002(21)(A)). De-

fendant Metro Man I, Inc., which does business as Westwood Nursing Center (“Westwood”), is a

participating employer in the pension fund and an “employer” as defined under ERISA. Id. ¶¶ 7–8

(citing 29 U.S.C. § 1002(5), (9), (11), (12)); ECF No. 10-2 at 2.

In 2016 and 2019, Westwood (and SEIU Healthcare Michigan) entered into collective bar-

gaining agreements (“CBAs”), obligating Westwood to contribute $.40 per hour to the pension

fund on behalf of covered employees. See ECF No. 10-2 at 2, 21, 53; Compl. ¶ 8. Through the

CBAs, Westwood was bound by the pension fund’s Amended and Restated Agreement and Dec-

laration of Trust (the “trust agreement”). Compl. ¶ 10. The trust agreement gave the board of

trustees the power to establish procedures, rules, and regulations necessary to carry out the opera-

tion of the pension fund. ECF No. 10-2 at 3. With that power, the board of trustees adopted the

Statement of Policy for Collection of Delinquent Contributions (the “collection policy”). Id. at 3,

85–94; Compl. ¶ 9. The collection policy mandates that participating employers must pay contri-

butions and submit supporting remittance reports to the pension fund by the 15th day of the month

after the month in which the work was performed. ECF No. 10-2 at 3, 86–87; Compl. ¶ 9. The

collection policy further provides that unpaid or untimely contribution payments are subject to

interest calculated at a rate of 10% per year and compounded monthly from the date the payment

is due until it is paid. ECF No. 10-2 at 92. And if the pension fund pursues litigation to collect

delinquent amounts, the participating employer must also pay liquidated damages in the greater of

the amount of the interest due or 20% of the principal amount due. Id.

Beyond paying base contributions and submitting supporting remittance reports, partici-

pating employers like Westwood must also pay supplemental contributions under Plaintiffs’ reha-

bilitation plan. Since 2009, the pension fund’s actuary has certified the pension fund as in “critical

2 status.” Compl. ¶ 16; ECF No. 10-2 at 2, 67. Under the Pension Protection Act of 2006, this status

entitled the board of trustees to adopt its rehabilitation plan to “enable the plan to cease to be in

critical status by the end of the plan’s rehabilitation period.” ECF No. 10-2 at 2, 67; Compl.

¶¶ 15–18 (citing 29 U.S.C. § 1085(e)(3)). Under the rehabilitation plan, which was in effect during

the times relevant to this litigation, participating employers could choose from two supplemental-

contribution options, the default or preferred schedule. Compl. ¶ 18; ECF No. 10-2 at 68, 72–75.

In 2012, Westwood elected the preferred schedule and agreed that its provisions would be “auto-

matically” adopted in all future contracts. ECF No. 10-2 at 2, 83; Compl. ¶ 20. Under that sched-

ule, Westwood was required to pay supplemental contributions of 132% of the base contributions

for May 2020 through April 2021, 150% for May 2021 through April 2022, and 169% for May

2022 and afterward. ECF No. 10-2 at 2; Compl. ¶ 20.

In March 2022, Plaintiffs sued Westwood for delinquent contribution payments and un-

submitted remittance reports in violation of the CBAs, the rehabilitation plan, the collection policy,

and ERISA. See Compl. As for contributions, the complaint alleged, Westwood entirely failed to

pay contributions owed to the pension fund for April, June, October, and December 2020, and

April 2021 through August 2022. Id. ¶¶ 24, 26; ECF No, 10-2 at 3, 96. And although Westwood

ultimately paid contributions owed for May, July through September, and November 2020, and

January through March 2021, it failed to make those payments on time. Compl. ¶ 25; ECF

No. 10-2 at 3, 96. As for remittance reports, Westwood allegedly failed to provide such reports

for June and October 2020 and April 2021 through August 2022. Compl. ¶ 26; ECF No. 10-2 at

3.

Westwood did not respond to Plaintiffs’ complaint, so Plaintiffs requested an entry of de-

fault, which the Clerk of Court entered. See ECF Nos. 6, 8. In September 2022, Plaintiffs moved

3 for a default judgment seeking an order for: (1) monetary damages of $72,408.84 in unpaid con-

tributions, $8,192.59 in interest through September 15, 2022, $14,481.77 in liquidated damages,

$11,440.80 in attorney’s fees and costs, and an additional $20.39 in interest per day from Septem-

ber 15, 2022, through the date of judgment; (2) an injunction requiring Westwood to provide all

remittance reports not previously submitted; and (3) an injunction requiring Westwood to comply

with its obligation to pay contributions to the pension fund for hours worked by covered employees

for months after August 2022. ECF No. 10 at 1; ECF No. 10-1 at 9; ECF No. 10-4.

Legal Standard

“A court has the power to enter default judgment when a defendant fails to defend its case

appropriately or otherwise engages in dilatory tactics.” Boland v. Elite Terrazzo Flooring, Inc.,

763 F. Supp. 2d 64, 66–67 (D.D.C. 2011) (citing Keegel v. Key W. & Caribbean Trading Co., 627

F.2d 372, 375 n.5 (D.C. Cir. 1980)). But “[b]ecause courts strongly favor resolution of disputes

on their merits,” a default judgment “usually is available ‘only when the adversary process has

been halted because of an essentially unresponsive party.’” Id. at 67 (quoting Jackson v. Beech,

636 F.2d 831

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Securities & Exchange Commission v. Bilzerian
378 F.3d 1100 (D.C. Circuit, 2004)
Boland v. ELITE TERRAZZO FLOORING, INC.
763 F. Supp. 2d 64 (District of Columbia, 2011)
Mazzarino v. Prudential Insurance Co. of America
955 F. Supp. 2d 24 (District of Columbia, 2013)
Carazani v. Zegarra
972 F. Supp. 2d 1 (District of Columbia, 2013)
Ventura v. L. A. Howard Construction Company
134 F. Supp. 3d 99 (District of Columbia, 2015)
Boland v. Smith & Rogers Construction L.T.D.
201 F. Supp. 3d 144 (District of Columbia, 2016)
Pescatore v. Pineda
345 F. Supp. 3d 68 (D.C. Circuit, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Service Employees International Union National Industry Pension Fund v. Metro Man I, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/service-employees-international-union-national-industry-pension-fund-v-dcd-2023.