Opinion
No. C 02-05709 CRB
October 20, 2003
ORDER GRANTING DEFAULT JUDGMENT
Now before the Court is plaintiffs' motion for default judgment. Defendants have not answered the complaint and have not otherwise communicated with the Court. After carefully considering the papers filed by the plaintiffs, the Court concludes that oral argument is unnecessary, see Local Rule 7-1(b), and GRANTS the plaintiffs' motion for default judgment.
BACKGROUND
A. Procedural History
Plaintiffs filed this ERISA action to recover unpaid contributions to an ERISA plan, as well as liquidated damages, interest, and attorneys fees and costs, on December 5, 2003. Defendants were served with the First Amended Complaint in June 2003, but have failed to answer or otherwise communicate with the Court. The Clerk of the Court entered default against defendants on August 12, 2003. Plaintiffs have now moved for a default judgment. They seek an award of unpaid contributions, liquidated damages, interest and attorneys fees and costs.
B. The Evidence In The Record
Defendants entered into a collective bargaining agreement with the Sheet Metal Workers Local Union No. 104 (the "cba"). By entering into the cba, defendants agreed to pay health welfare, pension and other fringe benefit contributions on behalf of covered employees to the Sheet Metal Workers of Northern California Trust Funds. Defendants are required to pay the contributions no later than the 15th day of the following month. Contributions are considered delinquent unless the plaintiffs receive the contributions by the 20th.
Exhibit 3 to the Declaration of Rachelle Hislop demonstrates that at the time plaintiffs filed this lawsuit defendants had not made contributions to account number 25100/666 for the months of September and October 2002. After the lawsuit was commenced, defendants made the September and October payments, but did not pay the liquidated damages due for those delinquent contributions. They also made late payments for the months of November and December 2002, and January, March, April and May 2003. As of the date plaintiffs filed this motion, defendants still owe unpaid contributions for March, April and May 2003. In sum, defendants owe plaintiffs $39,369.45 in unpaid contributions, $50,546.78 in liquidated damages, and $2,682.50 in interest.
As for account number 25102/222, at the time plaintiffs filed this lawsuit defendants had still not made contributions for September and October 2002. After the lawsuit was filed, defendants made late payments for November and December 2002, as well as January, March, April and May 2003. At the time plaintiffs filed this motion, defendants still owed partial contributions for March, April and May 2003. In sum, defendants owe plaintiffs $7,897.22 in unpaid contributions, $19,220.17 in liquidated damages, and $527.35 in interest.
The total amounts owed for both accounts is as follows: (1) $47,266.67 in unpaid contributions, (2) $69,766.95 in liquidated damages, and (3) $3,209.85 in interest. Plaintiffs have also established that they have incurred $560.00 in costs and $1,100.00 in attorneys fees.
DISCUSSION
ERISA provides that
[e]very employer who is obligated to make contributions to a multiemployer plan under the terms of a collectively bargained agreement shall to the extent not inconsistent with law, make such contributions in accordance with the terms and conditions of such plan or such agreement.29 U.S.C. § 1145. ERISA also authorizes an award of interest on delinquent and unpaid contributions, as well as liquidated damages and attorneys fees and costs in an action for collection of contributions.See 29 U.S.C. § 1132(g). In the Ninth Circuit, to qualify for an award of statutory liquidated damages, unpaid contributions must exist at the time the lawsuit was filed. See Idaho Plumbers Pipe Fitters Health and Welfare Fund v. United Mechanical Contractors. Inc., 875 F.2d 212, 215 (9th Cir. 1989).
As is set forth above, when plaintiffs filed this lawsuit contributions were overdue for September and October 2002; thus, plaintiff is entitled to an award of statutory liquidated damages on those overdue amounts. A court may also enter judgment for contributions owed and liquidated damages for those amounts that become delinquent after the complaint is filed. See Local 81 v. Wedge Roofing, 811 F. Supp. 1398, 1401-02 (N.D. Cal. 1992). Accordingly, the Court will enter judgment for the above amounts.
CONCLUSION
The Court GRANTS plaintiffs' motion for a default judgment in the total amount of $122,214.80. This amount consists of $47,578.00 in unpaid contributions, $69,766.95 in liquidated damages, $3,209.85 in interest, $1,100.00 in attorney fees, and $560.00 in costs.
IT IS SO ORDERED.