Trustees of the I.U.O.E. Local 478 Annuity Fund v. National Shoring, LLC

CourtDistrict Court, D. Connecticut
DecidedJune 13, 2024
Docket3:22-cv-01200
StatusUnknown

This text of Trustees of the I.U.O.E. Local 478 Annuity Fund v. National Shoring, LLC (Trustees of the I.U.O.E. Local 478 Annuity Fund v. National Shoring, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of the I.U.O.E. Local 478 Annuity Fund v. National Shoring, LLC, (D. Conn. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

TRUSTEES OF THE I.U.O.E. LOCAL 478 No. 3:22-cv-01200 (MPS) ANNUITY FUND ET AL,

Plaintiffs, v. NATIONAL SHORING, LLC, Defendant.

RULING ON MOTION FOR DEFAULT JUDGMENT

Plaintiffs, trustees of a multi-employer employee benefit plan and I.U.O.E. Local Union No. 478 (the “Union”), bring this action against Defendant National Shoring, LLC (“National Shoring”) for failing to make certain contributions to the benefits plan in breach of a collective bargaining agreement and in violation of the Employee Retirement Income Security Act (“ERISA”). Plaintiffs seeks damages including interest. They move for default judgment against National Shoring, which has failed to appear in this action. For the reasons set forth below, I grant the motion for default judgment. I. BACKGROUND The following facts, which I accept as true as a result of the entry of default, are taken from the Plaintiffs’ complaint, ECF No. 1, their motion for default judgment, ECF No. 11, and the attached exhibits. National Shoring entered into a collective bargaining agreement (the “Agreement”) with the Union. ECF No. 1 at ¶ 6. Under the Agreement, National Shoring is required to pay certain sums of money for each hour its employees work in employment covered under the Agreement. Id. at ¶ 7. These monies are to be paid to the following employee benefit funds: the I.U.O.E. Local 478 Annuity Fund, the Operating Engineers Local 478 Training and Skill Improvement Fund, the I.U.O.E. Local 478 Pension Fund, the I.U.O.E. Local 478 Supplemental Unemployment Benefits Fund, and the I.U.O.E. Local 478 Health Benefits Fund (collectively, the “Funds”). Id. at ¶¶ 1, 7. As is relevant here, National Shoring employed certain employees covered under the Agreement from January 2016 through the filing of the complaint. Id. at ¶ 8.

The Agreement authorizes the Funds to conduct routine payroll audits and binds National Shoring to the Funds’ Collection and Audit Policy,1 see ECF No. 11-3 at 14–15, 60–61, 106–07, which requires National Shoring to pay interest, liquidated damages, reasonable attorneys’ fees, and sheriff and court costs related to any contributions that are not timely paid into the Funds, see id.; ECF No. 11 at ¶ 9. To facilitate payroll audits, the Agreement and the Fund’s Collection and Audit Policy obligate National Shoring to submit payroll records and other relevant financial documents to the Funds’ auditors upon receipt of notice from the Funds. ECF No. 11 at ¶ 16; see ECF No. 11-4. During a routine payroll audit of National Shoring, the Funds discovered $63,730.25 in unpaid benefit contributions and $2,144.17 in unpaid union dues between November 2017 and December 2020.2 Id. at 3 ¶ 10.3 The Funds incurred $2,066.25 in performing this audit. Id. at 4

¶ 10. In addition, the Funds and their auditors provided notice seeking payroll documentation to

1 In addition to the Agreement and the Fund’s Collection and Audit Policy, the documents filed by Plaintiffs (including the Agreement itself) reference the “Trust Agreements” or the “Trust Agreements of the Funds.” See ECF No. 1 at 3 ¶¶ 10, 18; ECF No. 11-1 at 3; ECF No. 11-3 at 14, 60, 107; ECF No. 11-7 at ¶ 8. But Plaintiffs have not attached these agreements to any of their filings or provided a description of them, so I do not comment or rely on those agreements. 2 Plaintiffs’ complaint states that the payroll audit covered the period from November 2017 to December 2021. ECF No. 1 at 3 ¶ 10. However, in their motion for default judgment, Plaintiffs indicate that the audit covered the period from November 2017 to December 2020, ECF No. 11-1 at 3 (“The Complaint alleges that National Shoring has failed to pay its outstanding audit balance for the time period of November 2017 through December 2020.”), and the exhibits to the motion for default judgment support the December 2020 date, see, e.g., ECF No. 11-5 at 12–22; ECF No. 11-6 at 2. Thus, I conclude that the payroll audit covered the period from November 2017 to December 2020, rather than December 2021. 3 Plaintiffs’ complaint contains two paragraphs numbered ten, one beginning on page three of the complaint and the other on page four. For clarity, when citing these paragraphs, I have included the page numbers on which each of the paragraphs begin. conduct a payroll audit for the period from January 2021 to present. Id. at ¶ 17. National Shoring failed to provide these documents. Id. at ¶ 18. Plaintiffs initiated this action with a complaint filed September 23, 2022. ECF No. 1. On October 26, 2022, Plaintiffs served the summons and a copy of the complaint on Susan Bove,

Office Manager and Benefits and Payroll Specialist of National Shoring. ECF No. 13; ECF No. 14 at ¶ 5. On January 4, 2023, Plaintiffs moved for default entry, ECF No. 9, which the Clerk granted on January 11, 2023. ECF No. 10. Plaintiffs filed a motion for default judgment on February 10, 2023. ECF No. 11. Because Plaintiffs did not file adequate proof demonstrating that Susan Bove was authorized to accept service of process, I denied the motion without prejudice and notified Plaintiffs that to renew the motion, they must file proper proof of service. ECF No. 12. On August 14, 2023, Plaintiffs submitted a supplemental affidavit of service, ECF No. 13, an affidavit of the Funds Contribution Supervisor, ECF No. 14, and several exhibits regarding service. II. LEGAL STANDARD

Courts may grant default judgment only if the defendant was properly served and the court has personal jurisdiction. See Nature’s First Inc. v. Nature’s First Law, Inc., 436 F. Supp. 2d 368, 372 (D. Conn. 2006) (“A plaintiff must effectuate valid service of process before the district court can assert personal jurisdiction over a defendant.”). Although “a default constitutes an admission of all the facts ‘well pleaded’ in the complaint, it does not admit any conclusions of law alleged therein, nor establish the legal sufficiency of any cause of action.” In re Indus. Diamonds Antitrust Litig., 119 F. Supp. 2d 418, 420 (S.D.N.Y. 2000). It therefore “remains for the court to consider whether the unchallenged facts constitute a legitimate cause of action.” Leider v. Ralfe, No. 01- CV-03137, 2004 WL 1773330 at *7 (S.D.N.Y. July 30, 2004); Bricklayers & Allied Craftworkers Local 2, Albany, N.Y. Pension Fund v. Moulton Masonry & Const., LLC, 779 F.3d 182, 187 (2d Cir. 2015) (“[T]he court may, on plaintiffs’ motion, enter a default judgment if liability is established as a matter of law when the factual allegations of the complaint are taken as true.”). III. DISCUSSION

A. Service Under the Federal Rules, a corporation, partnership, or association may be served in one of two ways: either (1) by “following state law for serving a summons in an action brought in courts of general jurisdiction in the state where the district court is located or where service is made,” Fed. R. Civ. P. 4(e)(1), or (2) “by delivering a copy of the summons and of the complaint to an officer, a managing or general agent, or any other agent authorized by appointment or by law to receive service of process and—if the agent is one authorized by statute and the statute so requires—by also mailing a copy of each to the defendant,” Fed. R. Civ. P. 4(h)(1)(B). Connecticut law provides that [a] limited liability company . . .

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
Trustees of the I.U.O.E. Local 478 Annuity Fund v. National Shoring, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-the-iuoe-local-478-annuity-fund-v-national-shoring-llc-ctd-2024.