Jacobson v. Decora Electric Co., Inc.

Full title: LARRY JACOBSON, as Chairman of the Joint Industry Board of the Electrical…

Court: United States District Court, E.D. New York

Date published: May 19, 2006

Case No. 05 CV 4812 (FB) (SMG) (E.D.N.Y. May. 19, 2006)

Opinion

Case No. 05 CV 4812 (FB) (SMG).

May 19, 2006

Appearances: For the Plaintiff: ZACHARY N. LEEDS Cohen, Weiss and Simon LLP New York, NY.

MEMORANDUM ORDER

FREDERIC BLOCK, District Judge

On October 12, 2005, plaintiff filed a complaint, seeking unpaid contributions to Local 3 International Brotherhood of Electrical Workers' ("Local 3") various employee benefit plans pursuant to the Employee Retirement Income Security Act of 1974 ("ERISA"). Because defendant Decora Electric Co., Inc., ("Decora") has failed to respond to the complaint or otherwise defend against this action, plaintiff moved for an entry of default, which the Clerk of the Court granted, see Docket No. 7, and a default judgment. For the reasons set forth below, the Court awards default judgment as to Decora and the matter is referred to Magistrate Gold for an inquest on damages.

I.

When a party moves for judgment against an adverse party in default, the Court, in its discretion, may enter judgment against the defaulting party. See Fed.R.Civ.P. 55(b)(2). Although it is clear that the defendants have defaulted, a court may also consider whether the facts alleged in the complaint state a valid cause of action in determining whether a default judgment should be entered. See Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61, 65 (2d Cir. 1981) ("a district court has discretion under [ Fed.R.Civ.Pro.] 55(b)(2) once a default is determined to require proof of necessary facts and need not agree that the alleged facts constitute a valid cause of action").

Section 515 of ERISA requires "[e]very employer who is obligated to make contributions to a multiemployer plan under the terms of the plan or under the terms of a collectively bargained agreement" to "make such contribution in accordance with the terms and conditions of such plan or such agreement." 29 U.S.C. § 1145. Having reviewed the complaint, the Court concludes that it contains sufficient factual allegations to state a valid claim under ERISA.

II.

Default judgment against Decora is granted as to plaintiff's ERISA claim. The matter is referred to Magistrate Gold for an inquest on damages.

SO ORDERED.