Trustees of the Plumbers and Gasfitters Local 5 Retirement Savings Fund, et al. v. Magothy Mechanical LLC

CourtDistrict Court, D. Maryland
DecidedDecember 22, 2025
Docket8:25-cv-01249
StatusUnknown

This text of Trustees of the Plumbers and Gasfitters Local 5 Retirement Savings Fund, et al. v. Magothy Mechanical LLC (Trustees of the Plumbers and Gasfitters Local 5 Retirement Savings Fund, et al. v. Magothy Mechanical LLC) 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 Plumbers and Gasfitters Local 5 Retirement Savings Fund, et al. v. Magothy Mechanical LLC, (D. Md. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

TRUSTEES OF THE PLUMBERS AND * GASFITTERS LOCAL 5 RETIREMENT * SAVINGS FUND, et al., * * Plaintiffs, * * v. * Civil Action No. TDC-25-01249 * MAGOTHY MECHANICAL LLC, * * Defendant. * ******* REPORT AND RECOMMENDATIONS

This “Report and Recommendations” addresses the “Motion for Entry of Default Judgment” and memorandum of law in support thereto, (ECF Nos. 11, 12), filed by the Plaintiffs: (a) Trustees of the Plumbers and Gasfitters Local 5 Retirement Savings Fund; (b) Trustees of the Plumbers and Pipefitters Apprenticeship Fund; (c) Trustees of the Plumbers and Pipefitters Vacation Fund; (d) Trustees of the Communication and Productivity Fund; (e) Trustees of the Industry Promotion Fund; (f) Trustees of the Plumbers and Pipefitters Medical Fund; (g) Trustees of the United Association National Pension Fund; (h) Plumbers Local Union No. 5; (i) Trustees of the International Pension Fund; and (j) Trustees of the International Training Fund. Plaintiffs brought this action under the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1132 and 1145, (“ERISA”) to recover delinquent contributions and related relief from Defendant Magothy Mechanical LLC, formerly known as Bernward Mechanical & Construction Solutions (“the Defendant”). (ECF No. 1, “Complaint”). Pursuant to 28 U.S.C. § 636, and Local Rule 301 (D. Md., Dec. 1, 2025), the Honorable Theodore D. Chuang referred this matter to me to author a report and to make recommendations. (ECF No. 13). I do not believe that a hearing is necessary. See Local Rule 105.6 (D. Md., Dec. 1, 2025). For the reasons set forth below, I ultimately recommend that Plaintiffs’ “Motion for Entry of Default Judgment” be GRANTED, and that damages be awarded as set forth herein. I. FACTUAL AND PROCEDURAL BACKGROUND

A. Factual Background

1. Local 5 Benefit Funds

Plaintiffs are Trustees and the authorized collection fiduciaries and agents of the Plumbers and Gasfitters Local 5 Retirement Savings Fund; Plumbers and Pipefitters Apprenticeship Fund; Plumbers and Pipefitters Vacation Fund, and Plumbers and Pipefitters Medical Fund (collectively, “Local 5 Benefit Funds”), which were established pursuant to executed agreements binding the parties to terms of the Collective Bargaining Agreement and Restated Trust Agreements and amendments related thereto (collectively, “Trust Agreements”) and the “Employer Guidelines for the Benefit Trust Funds” (“Guidelines”). (See Complaint ¶¶ 1-4; ECF Nos. 12-1 ¶¶ 3-4; 12-1, Exhibits 1, 9). 2. National Benefit Funds Plaintiffs are Trustees and the authorized collection fiduciaries and agents of the United Association National Pension Fund (formerly known as the Plumbers and Pipefitters National Pension Fund) and International Training Fund (collectively, “National Benefit Funds”), which were established pursuant to executed agreements binding the parties to terms of the Trust Agreements and Guidelines. (See Complaint ¶¶ 7-8; ECF Nos. 12-1 ¶¶ 5, 27; 12-1, Exhibits 2, 9). 3. Industry Funds Plaintiffs are Trustees and the authorized collection fiduciaries and agents of the Communication and Productivity Fund and the Industry Promotion Fund (collectively, “Industry Funds”), which were established pursuant to executed agreements binding the parties to terms of the Trust Agreements and Guidelines. (See Complaint ¶¶ 5-6; ECF Nos. 12-1 ¶¶ 6-7; 12-1, Exhibits 3, 9). 4. Local Union No. 5 Plaintiff Plumbers Local Union No. 5 (“Local Union No. 5”) is “an unincorporated labor organization as defined in § 2(5) of the Labor-Management Relations Act (“LMRA”), 29 U.S.C.

§ 152(5).” (See Complaint ¶ 9; ECF Nos. 12-1 ¶ 9; 12-1, Exhibit 4). 5. Agreements Related to Contributions and Working Assessments/Dues to the Plaintiffs On June 28, 2021 and January 15, 2024, Defendant executed Letters of Assent (collectively, “the Agreement”), which bound it to the terms of Collective Bargaining Agreements related to the Local 5 Benefit Funds, National Benefit Funds, Industry Funds, and Local Union No. 5. (Complaint ¶¶ 14-17; ECF Nos. 12-1 ¶¶ 10-12, 14-17; 12-1, Exhibits 5-6, 9). By signing the Agreement, Defendant acknowledged that it is bound by the terms and conditions of the Trust Agreements and Guidelines. (Id.). Specifically, Defendant agreed to make monthly contributions to the Local 5 Benefit Funds, National Benefit Funds, and Industry Funds on behalf of its union member employees, as well as to keep records and submit monthly reports to the Local 5 Benefit Funds, National Benefit Funds, and Industry Funds of the hours worked by those covered employees. (Complaint ¶¶ 16-17; ECF Nos. 12-1 ¶¶ 10-12, 14-18; 12-1, Exhibits 5-9). The amounts of the monthly contributions to the Local 5 Benefit Funds, National Benefit Funds, and Industry Funds were based on the hours worked by the Defendant’s employees. (Id.). In order to help the Plaintiffs track the contribution amounts due to the Local 5 Benefit Funds,

National Benefit Funds, and Industry Funds, the Trust Agreements and Guidelines required the Defendant to provide monthly “remittance reports” or “contribution reports” alongside all payments due. (Id.). If the Defendant failed to timely submit contributions, forward working assessments/dues, and/or reports, the Trust Agreements, the Amendments thereto, and the Guidelines stipulated that various penalties may apply. In particular, the Plaintiffs may collect unpaid contributions, unpaid working assessments/dues, and the following based on the delinquent contributions and working

assessments/dues: (1) liquidated damages if the contributions are 60 days late or more; (2) varying rates of interest, compounded monthly; and (3) attorney’s fees and costs incurred in collecting the delinquent amounts. (Complaint ¶¶ 16-17, 25-29, 32, 33, 38; ECF Nos. 12-1 ¶¶ 22-23, 26-30, 33, 35, 39-40; 12-1, Exhibits 1-5, 9). B. Procedural Background

On April 14, 2025, Plaintiffs filed a Complaint against the Defendant alleging breach of the Trust Agreements and Guidelines established by the Local 5 Benefit Funds, National Benefit Funds, Industry Funds, and Local Union No. 5. Plaintiffs are seeking to collect unpaid contributions and working assessments/dues allegedly owed to the Local 5 Benefit Funds, National Benefit Funds, Industry Funds, and Local Union No. 5 for work performed. Plaintiffs also seek to collect “[c]ontributions, if any, that become due after the filing of this lawsuit and up to the date of judgment, plus interest and liquidated damages on any such [c]ontributions;” in addition to “costs and attorneys’ fees.” (Complaint, pp. 10-11). On April 22, 2025, an affidavit of service was filed reflecting that service of process had been effectuated upon the Defendant on April 21, 2025. (ECF No. 6). Defendant failed to file a responsive pleading within the 21-day period required by Federal Rules of Civil Procedure 4 and 12, namely by May 12, 2025. On May 21, 2025, Plaintiffs filed a “Request for Clerk’s Entry of Default,” against the Defendant. (ECF No. 7). On June 5, 2025, the Clerk of the Court entered default against the Defendant and issued a Notice of Default, notifying the Defendant that they had “(30) days from this date to file a motion to vacate the order of default.” (ECF Nos. 8, 9).

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Trustees of the Plumbers and Gasfitters Local 5 Retirement Savings Fund, et al. v. Magothy Mechanical LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-the-plumbers-and-gasfitters-local-5-retirement-savings-fund-et-mdd-2025.