Trustees on Behalf of General Employees Trust Fund v. Aleph Maintenance, Inc.

District Court, N.D. California·Decided November 28, 2025·No. 3:24-cv-04500·Unknown

Opinion

TRUSTEES ON BEHALF OF GENERAL Case No. 24-cv-04500-KAW EMPLOYEES TRUST FUND, Plaintiff, REPORT AND RECOMMENDATION v. JUDGMENT; ORDER ASSIGNING CASE TO DISTRICT JUDGE ALEPH MAINTENANCE, INC., Re: Dkt. No. 63 Defendant. On July 25, 2024, Plaintiff Trustees on Behalf of General Employees Trust Fund filed the instant case against Defendant Aleph Maintenance, Inc., alleging violations of the Employee Retirement Income Security Act (“ERISA”). (Compl., Dkt. No. 1.) Pending before the Court is Plaintiff’s motion for default judgment, in which Plaintiff seeks unpaid contributions and associated interest, liquidated damages, audit fees, and attorney’s fees and costs. (Mot. for Default J. at 1, Dkt. No. 63-1.) Defendant has not formally appeared in this case, and default was entered on August 8, 2025. (Dkt. No. 60.) On November 20, 2025, the Court held a hearing, but Defendant did not appear. (Dkt. No. 69.) Since Defendant, by virtue of being in default, has not consented to magistrate judge jurisdiction, the Court REASSIGNS this action to a district judge with the RECOMMENDATION that Plaintiff’s motion for default judgment be GRANTED IN PART AND DENIED IN PART. Plaintiff is the fiduciary of General Employees Trust Fund (“Trust Fund”), an employee benefit plan within the meaning of 29 U.S.C. §§ 1002, 1132(a)(3), and 1132(d). (First Amended Compl. (“FAC”) ¶ 4, Dkt. No. 48.) From May 1, 2016 to April 30, 2024, Defendant was a collective bargaining agreement (“CBA”) with the Service Employees International Union, United Service Workers West (the “Union”), located in Alameda and Los Angeles, California. (FAC ¶ 9; Schechter Decl., Exhs. 5-B (“2016-2020 CBA”) & 5-C (“2020-2024 CBA”), Dkt. No. 63-2.) The CBAs require an employer to make health and welfare contributions to the Trust Fund on behalf of its covered employees. (FAC ¶ 9; 2016-2020 CBA at Art. XIII; 2020-2024 CBA at Art. XIII.) The CBAs further require an employer to comply with the Trust Agreement. (2016- 2020 CBA ¶ 13.2; 2020-2024 CBA ¶ 13.2.) The Trust Agreement, in turn, provides that unpaid contributions are subject to simple interest of 7% per annum, as well as liquidated damages of 20% if the contributions are still unpaid as of the initiation of litigation. (Schechter Decl., Exh. 5- A (“Trust Agreement”) §§ 8.05, 8.06(b).) The Trust Agreement also permits audits of employer records, and requires that the employer pay for the audit if they fail to provide the required documents. (Trust Agreement § 8.13(c).) Finally, the Trust Agreement provides for the payment of attorney’s fees, costs, and audit fees should litigation be required to enforce collection. (Trust Agreement § 8.07.) On October 9, 2023, the Trust Fund’s auditor requested in writing that Defendant provide payroll records for the period of January 1, 2020 through December 31, 2023, as well as complete a pre-audit questionnaire. (FAC ¶ 19.) Defendant did not respond. (FAC ¶ 19.) Thereafter, Plaintiff’s counsel made multiple written demands that Defendant provide the requested records to the Trust Fund’s auditor, to which Defendant failed to respond. (FAC ¶ 20.) On July 25, 2024, Plaintiff originally filed this case to compel Defendant to comply with an audit for the period of January 1, 2020 through December 31, 2023. (Compl. ¶¶ 13, 24.) On August 7, 2024, Plaintiff served Defendant by personally serving Defendant’s registered agent for service. (Dkt. No. 7.) After Defendant failed to respond, Plaintiff requested entry of default on August 28, 2024. (Dkt. No. 8.) On September 5, 2024, the Clerk entered default as to Defendant. (Dkt. No. 9.) On September 20, 2024, Plaintiff filed a motion for default judgment. (Dkt. No. 11.) On November 7, 2024, the Court held a hearing on Plaintiff’s motion for default judgment, at which included Defendant providing the requested records to Plaintiff’s auditor. (See FAC ¶ 22; Dkt. Nos. 23, 26, 30.) On February 26, 2025, Plaintiff’s auditor sent a copy of the preliminary audit report to Defendant, which identified $14,344.34 in underpaid contributions. (FAC ¶ 23.) Defendant did not dispute the findings. (FAC ¶ 24.) On March 14, 2025, Plaintiff’s counsel sent a copy of the final audit report to Defendant, and requested payment of $14,344.34 in underpaid contributions, $1,434.43 in liquidated damages, $2,303.10 in interest, and $1,290 in audit testing fees, as well as attorney’s fees and costs. (FAC ¶ 25.) Although the parties attempted to negotiate the matter, Defendant ultimately failed to make any of the payments owed. (FAC ¶ 26.) On June 5, 2025, Plaintiff filed the operative complaint, seeking the underpaid contributions, liquidated damages, interest, audit fees, and attorney’s fees and costs. On June 10, 2025, Plaintiff personally served Defendant’s agent for service with the complaint. (Dkt. No. 53.) On June 26, 2025, Plaintiff sought entry of default; default was declined, however, because 21 days had not elapsed since service and no summons had been returned as executed. (Dkt. Nos. 54, 55.) After Plaintiff obtained new summons, Plaintiff again personally served Defendant’s agent for service with the complaint on July 11, 2025. (Dkt. No. 58.) On August 5, 2025, Plaintiff sought entry of default. (Dkt. No. 59.) On August 8, 2025, default was entered as to Defendant. (Dkt. No. 60.) On September 18, 2025, Plaintiff filed the instant motion for default judgment. Plaintiff served the motion on Defendant. (Dkt. No. 63-5.) On October 9, 2025, Plaintiff served its proposed order on Defendant. (Dkt. No. 66 at 11.) To date, Defendant has neither appeared nor filed an opposition to Plaintiff’s motion for default judgment. Federal Rule of Civil Procedure 55(b)(2) permits a court to enter a final judgment in a case following a defendant’s default. Shanghai Automation Instrument Co. v. Kuei, 194 F. Supp. 2d 995, 999 (N.D. Cal. 2001). Whether to enter a judgment lies within the court’s discretion. Id. at 999 (citing Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986)). matter jurisdiction over the case and personal jurisdiction over the parties, as well as ensure the adequacy of service on the defendant. See In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). If the court finds these elements satisfied, it turns to the following factors (“the Eitel factors”) to determine whether it should grant a default judgment:

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Trustees on Behalf of General Employees Trust Fund v. Aleph Maintenance, Inc., (N.D. Cal. 2025).

Trustees on Behalf of General Employees Trust Fund v. Aleph Maintenance, Inc. (Trustees on Behalf of General Employees Trust Fund v. Aleph Maintenance, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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