THE BOARD OF TRUSTEES OF THE CWA/ITU NEGOTIATED PENSION PLAN v. AMERICAN PLUS PRINTERS, INC.

District Court, D. New Jersey·Decided May 29, 2020·No. 3:19-cv-12794·Unknown

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

THE BOARD OF TRUSTEES OF THE CWA/ITU NEGOTIATED PENSION PLAN, Civil Action No. 19-12794 (MAS) (DEA) Plaintiff, v. MEMORANDUM OPINION AMERICAN PLUS PRINTERS, INC., Defendant.

SHIPP, District Judge This matter comes before the Court upon Plaintiff The Board of Trustees of the CWA/ITU Negotiated Pension Plan’s (‘Plaintiff’) Motion for Default Judgment against Defendant American Plus Printers, Inc. (“Defendant”). (ECF No. 6.) The Court has carefully considered Plaintiff's submissions and decides this matter without oral argument pursuant to Local Civil Rule 78.1. For the reasons set forth below, Plaintiff's Motion for Default Judgment is granted. I. BACKGROUND! Plaintiff, as fiduciary for the CWA/ITU Negotiated Pension Plan (the “Plan’), brings this action “to collect unpaid withdrawal liability owed to the Plan by [D]efendant” under the Employee Retirement Income Security Act of 1974 (“ERISA”). (Compl. 4 1, ECF No. 1.) “The

' When considering a motion for default judgment. “the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.” DIRECTV, Ine. v. Pepe. 431 F.3d 162, 165 n.6 (3d Cir. 2005) (quoting Comdyne 1, Inc. v, Corbin, 908 F.2d 1142. 1149 (3d Cir. 1990)).

Plan is a ‘multi-employer [pension] benefit plan’ within the meaning of ERISA[,|” 29 U.S.C. §§ 1002(37)(A), 1301(a)(3). (/d. 4 6.) Plaintiff is a fiduciary and “the sponsor of the Plan within the meaning of ERISAJ.]” 29 U.S.C. § 1301(a)(10). (ad. 99 2, 7.) Plaintiff administers the Plan in Colorado Springs, Colorado. (/d. ¥ 8.) The Communication Workers of America, AFL-CIO (the “Union”) and Defendant “entered into a collective bargaining agreement for the period January 1, 2003 through December 31, 2005, and continuing from year to year thereafter unless terminated by written notice at least 60 days prior to the expiration [of the agreement]” (the “CBA”). (/d. J 10.) Under the CBA, Defendant was required “to make contributions to the Plan for work performed by covered employees.” (id. 9 11.) On or about September 17, 2015, the parties executed a Memorandum of Agreement that extended the term of the CBA through June 30, 2019. (4d. | 12.) “The Plan was established and is governed by an Agreement and Declaration of Trust adopted as of September 8. 1966, and as amended from time to time since then™ (the ~Trust Agreement”).” (/d. © 13.) Under the Trust Agreement, employers who are delinquent in making required contributions to the Plan “shall be liable to the Plan for interest on the amount of delinquent contributions due and owing at a rate equal to the prime rate of interest plus two [] percentage points” and shall be further liable “for liquidated damages in an amount equal to twenty percent [] of the unpaid contributions, as well as the Plan's attorneys’ fees and costs.” (/d. { 14.) On or about June 10, 2016, the Plan sent correspondence (the “June 10, 2016 Correspondence”) to Defendant stating that “the Plan had terminated [Defendant] as a contributing employer to the Plan due to its failure to cure its delinquency to the Plan.” (fd. J 16; see also June 10. 2016 Correspondence, Ex. C to Castle Decl.. ECF No. 6-10.) On or about

(See Trust Agreement. Ex. G to Declaration of Lori Castle (“Castle Decl.”). ECF No. 6-14.)

February 8, 2017, the Plan sent correspondence (the “February 8. 2017 Correspondence”) to Defendant noting that it had assessed Defendant's liability for withdrawal from the Plan to be “$138,240, payable in 80 quarterly payments of $1.728[,] with the first payment due and payable ... on or before April 1, 2017.” (Compl. 4 17; see also Feb. 8. 2017 Correspondence, Ex. D to Castle Decl., ECF No. 6-11.} On or about April 12, 2017. the Plan sent Defendant correspondence (the “April 12, 2017 Correspondence’) stating that Defendant “had failed to make the first installment of its withdrawal liability payment obligation” and “further notified [Defendant] that if this delinquency was not cured within 60 days, the full withdrawal liability [would] be accelerated.” (Compl. 18; see also Apr. 12, 2017 Correspondence, Ex. E to Castle Decl., ECF No. 6-12.) To date, Defendant “has not made any of its required installment payments or sought to timely arbitrate the withdrawal liability assessment. . . (Compl. { 19.) Plaintiff contends that because Defendant failed to arbitrate the issue of liability it has “waived its right to challenge the assessed withdrawal liability.” (/d. J 20.) On May 22, 2019, Plaintiff filed a Complaint against Defendant, seeking an award of “the entire unpaid balance of the assessed withdrawal liability in the amount of $138,240[;}” in addition to “interest at a rate equal to the prime interest rate plus two [] percentage points from April 1, 2017, through the date judgment is entered: liquidated damages equal to $27.648[]; and the Plans reasonable attorneys’ fees and costs[.]” pursuant to ERISA, as amended, the Multi-Employer Pension Plan Amendments Act of 1980 (*MPPAA”). (/d. [4] 2. 22.) Defendant failed to respond or otherwise plead. On June 19, 2019, Plaintiff e-filed an affidavit of service for the Complaint and summons, dated June 14, 2019. (ECF No. 4.) On August 19, 2019, Plaintiff requested the Clerk of the Court

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