Trustees of the National Electrical Benefit Fund v. Wire to Water Electric of New York, Inc.

CourtDistrict Court, D. Maryland
DecidedApril 21, 2020
Docket8:19-cv-03003
StatusUnknown

This text of Trustees of the National Electrical Benefit Fund v. Wire to Water Electric of New York, Inc. (Trustees of the National Electrical Benefit Fund v. Wire to Water Electric of New York, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of the National Electrical Benefit Fund v. Wire to Water Electric of New York, Inc., (D. Md. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND Southern Division

NATIONAL ELECTRICAL BENEFIT * FUND, * * Plaintiff * * Civil Action No.: TDC-19-3003 v. * * WIRE TO WATER ELECTRIC OF * NEW YORK, INC., dba WIRE TO * WATER, INC. * * Defendant. * *****

REPORT AND RECOMMENDATION This Report and Recommendation addresses Plaintiff’s Motion for Default Judgment (“Plaintiff’s Motion”). ECF No. 13. Plaintiff National Electrical Benefit Fund (“NEBF”) filed a complaint against Defendant Wire to Water Electric of New York, Inc., dba Wire to Water, Inc. (“Wire to Water”) alleging Defendant violated the Employee Retirement Income Security Program (“ERISA”), 29 U.S.C. § 1145. Pl.’s Compl. ¶ 16, ECF No. 1. Plaintiff seeks damages under 29 U.S.C. § 1132(g)(2)(A)–(E),1 which includes: unpaid contributions, interest on unpaid contributions, liquidated damages, attorneys’ fees, costs, and other legal or equitable relief the Court deems appropriate. Id. at ¶ 18; 29 U.S.C. 1132(g)(2)(A)–(E). Pursuant to 28 U.S.C. § 636 and Local Rules 301, the Honorable Theodore D. Chuang referred this matter to the undersigned for the making of a Report and Recommendation concerning default judgment and/or damages. ECF No. 16. For the reasons stated herein, I recommend the Court GRANT Plaintiff’s Motion.

1 Throughout the Complaint and other filings, Plaintiff often abbreviated citations to the ERISA. The Court has reformatted each citation to the ERISA to reflect the full statutory citation. I. Factual Background On October 25, 2019, Plaintiff commenced this action against Defendant alleging that Defendant violated 29 U.S.C. § 1145 of the ERISA. Pl.’s Compl. ¶ 16. According to the Complaint, Plaintiff is a multiemployer pension benefit plan within the meaning of 29 U.S.C. § 1002(37)(A), that has been established pursuant to an agreement2 entered into between the IBEW

and NECA. Id. at ¶ 4. Plaintiff alleges that Defendant is a signatory to the CBA between IBEW Local Union 25 and NECA. Id. at ¶¶ 4–6; See also Aff. of Total Amount Due NEBF (Brian Killian) (“Killian Aff.”) ¶ 3, ECF No. 13–2. Defendant became a signatory when it signed the Letter of Assent which bound Defendant to the CBA between NECA and IBEW Local Union 25. Killian Aff. ¶ 3; Letter of Assent—A, ECF No. 13–2, Ex. 1. Under the CBA, Plaintiff alleges that Defendant is obligated to submit contributions to the NEBF on behalf of Defendant’s employees covered by the CBA. Pl.’s Compl. ¶ 6. Plaintiff further alleges that under the CBA, Defendant was also bound to the terms of the NEBF’s Restated Agreement and Trust (“NEBF Trust Agreement”) which provides for the administration

of the NEBF. Id. at ¶ 7; NEBF Trust Agreement, 13–2, Ex. 5. Plaintiff alleges that Defendant “has been delinquent in making contributions to the NEBF on behalf of its employees covered by the Collective Bargaining Agreement.” Pl.’s Compl. at ¶ 8. According to Plaintiff, Defendant failed to pay the NEBF at least $2,460.83 in delinquent contributions for work performed during the period of January 1, 2014 through December 31, 2015 and $18,188.24 in contributions for work performed during the period of July 2018 and August 2019. Id. at ¶¶ 9–10. Plaintiff and

2 Throughout the pleadings and exhibits, the words: “Labor Agreement,” “Construction Agreement,” “Inside Wiring Agreement,” and “Collective Bargaining Agreement” are used interchangeably. All of these are used to describe the agreements signed by the National Electrical Contractors Association (“NECA”) and the International Brotherhood of Electrical Workers Local Union 25 (“IBEW”) on October 31, 2013 and July 18, 2016 respectively. See CBA, ECF No. 13–2, Exs. 2 and 3. Hereinafter, the Court refers to these agreements as the Collective Bargaining Agreements (“CBA”). its counsel made several demands for payment of the amounts due, however, Defendant failed to respond. Id. at ¶ 11. On November 4, 2019, Plaintiff served Defendant with process. ECF No. 8. On February 7, 2020, Plaintiff filed a Motion for Clerk’s Entry of Default, and a Motion for Default Judgment. ECF Nos. 12 and 13. On March 10, 2020, an Entry of Default was made by the

Clerk against Defendant. ECF No. 15. Plaintiff seeks: (1) unpaid delinquent contributions in the amount of $20,649.07; (2) interest calculated at the rate of 10% annum compounded monthly, in the amount of $2,445.45;3 (3) liquidated damages in the amount of $4,129.82, which represents 20% of the contributions owed; (4) the cost of the audit of Defendant’s payroll records in the amount of $225.00; and (5) an award of reasonable attorneys’ fees and the costs of this action. Pl.’s Compl. 5. II. Legal Background Rule 55 of the Federal Rules of Civil Procedure governs entries of default and default judgments. Fed. R. Civ. P. 55. Rule 55(a) provides that “[w]hen a party . . . has failed to plead

or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” Fed. R. Civ. P. 55(a). A party may request a default judgment in two ways: (1) if a plaintiff’s claim is for a sum certain or a sum that can be made certain with computation, a plaintiff may file a request with the Clerk attaching an affidavit showing the amount due; or (2) in all other cases, the party seeking default judgment must apply to the Court. Fed. R. Civ. P. 55(b)(1)–(2). In considering a motion for default judgment, the Court accepts as true the well- pleaded factual allegations in the complaint as to liability. See Ryan v. Homecomings Fin. Network, 253 F.3d 778, 780 (4th Cir. 2001) (citation omitted); TeleVideo Sys., Inc. v. Heidenthal,

3 As of February 20, 2020, interest on the delinquent contributions totaled $3,027.41. Killian Aff. ¶ 12. 826 F.2d 915, 917–18 (9th Cir. 1987) (“The general rule of law is that upon default the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.”); see also Fed. R. Civ. P. 8(b)(6) (“An allegation – other than one relating to the amount of damages – is admitted if a responsive pleading is required and the allegation is not denied.”). However, the entry of “default is not treated as an absolute confession by the defendant of his

liability and of the plaintiff’s right to recover.” Ryan, 253 F.3d at 780 (citations omitted). The Court “must, therefore, determine whether the well-pleaded allegations in [the] complaint support the relief sought.” Id.; 10A Charles Alan Wright, Arthur R. Miller & Mary K.

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