East Central Illinois Pipe Trades Health & Welfare Trust Fund et al v. River Valley Mechanical Service, Inc.

Filing 12

ORDER & OPINION entered by Judge Joe Billy McDade on 11/15/2016: IT IS ORDERED that Plaintiff's Motion for Default Judgment (Doc. 11 ) is GRANTED. Plaintiff is AWARDED $68,665.29 in unpaid contributions, interest, and liquidated damages, and $ 8,056.98 in attorneys' fees and costs. The Clerk is directed to ENTER default judgment against Defendant in the amount of $76,722.27. (SEE FULL WRITTEN ORDER & OPINION) (JRK, ilcd)

E-FILED

Tuesday, 15 November, 2016 11:02:38 AM
Clerk, U.S. District Court, ILCD

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF ILLINOIS
PEORIA DIVISION
EAST CENTRAL ILLINOIS PIPE
)
TRADES HEALTH & WELFARE TRUST )
FUND, by and through its Board of
)
Trustees, et al.,
)
)
Plaintiff,
)
)
v.
)
)
RIVER VALLEY MECHANICAL
)
SERVICE, INC.,
)
)
Defendant.
)

Case No. 1:16-cv-01147-JBM-JEH

ORDER & OPINION
This matter is before the Court on Plaintiff’s Motion for Default Judgment.
(Doc. 11). As explained below, Plaintiff’s Motion for Default Judgment is granted.
BACKGROUND
On May 12, 2016, Plaintiff filed its Complaint (Doc. 1) pursuant to 29 U.S.C. §
1145, claiming that Defendant failed to comply with the Employee Retirement
Income Security Act of 1974 (“ERISA”). Plaint alleges that Defendant is obligated to
make contributions to Plaintiff in accordance with collective bargaining agreements
and other agreements entered into between Defendant and Steamfitters Local 353
(Doc. 1 at 3). These agreements require, among other things, that Defendant
contribute to Plaintiff based on work performed by members of Local 353. Id. at 5.
Additionally, Defendant is obligated to submit reports to Plaintiff by the tenth of each
month stating how many hours were worked in the previous month by each person
on whose behalf contributions are to be made; to pay interest on any untimely

contributions, and to pay liquidated damages if contributions are unpaid or untimely.
Id. at 5-6. Defendant is also obligated to pay Plaintiff’s attorney’s fees if any action is
brought to recover delinquent contributions. Id. at 6.
In its Complaint, Plaintiff claims that Defendant has failed to submit the
necessary reports and has failed to make the required contributions. Id. at 6-7.
Additionally, Plaintiff alleges that Defendant owes liquidated damages and interest
on those payments as well. Id. Defendant was served with the Amended Complaint
but has failed to respond or otherwise defend in this action. (Doc. 11 at 2). Defendant
was subsequently found in default. Id.
DISCUSSION
Default judgment establishes, “as a matter of law, that defendants are liable
to plaintiff on each cause of action.” e360 Insight v. Spamhaus Project, 500 F.3d 594,
602 (7th Cir. 2007). The well-pleaded facts of the complaint relating to liability are
taken as true upon default. Dundee Cement Co. v. Howard Pipe & Concrete Prods.,
Inc., 722 F.2d 1319, 1323 (7th Cir. 1983). Defendant’s default was entered on August
22, 2016. Accordingly, Defendant is liable to Plaintiff under 29 U.S.C. § 1145 based
on its failure to timely provide reports, make contributions, or pay liquidated
damages and interest required by the collective bargaining agreement between
Defendant and Local 353, as alleged in the Complaint.
While liability may be established from the well-pleaded facts of the complaint,
a plaintiff must still show it is entitled to the amount of damages it seeks. Dundee
Cement, 722 F.2d at 1323. Default judgment may not be granted without a hearing
on damages unless the amount of damages claimed is “capable of ascertainment from

2

definite figures in the documentary evidence or in detailed affidavits.” Id. These
damages must be ascertained with “reasonable certainty.” In re Catt, 368 F.3d 789,
793 (7th Cir. 2004).
When a court finds in favor of a plan under 29 U.S.C. § 1145, the plan can be
awarded 1) the unpaid contributions; 2) any interest owed on unpaid contributions;
3) the greater of either the interest owed on unpaid contributions or the liquidated
damages for which the plan provides; 4) reasonable attorneys’ fees and costs of
litigation; and 5) any other legal or equitable relief the court finds appropriate. 29
U.S.C. § 1132(g)(2). Plaintiff requests damages in the amount of $68,665.29 plus
attorneys’ fees and costs in the amount of $8,056.98. (Doc. 11 at 3). To support the
figures, Plaintiff has submitted an affidavit from Mel Cox, who works for Healthscope
Benefits, the firm entitled to receive and process the fringe benefit contributions.
(Doc. 11-3 at 1). The affidavit details the calculation of damages through Remittance
Reports, and is accompanied by several spreadsheets and other documentary
evidence showing the amount of unpaid contributions, interest, and liquidated
damages. (Docs. 11-1; 11-2). The Court has reviewed the materials Plaintiff
submitted with its Motion, and has determined Plaintiff has adequately supported
its damages request with documentary evidence. As shown by the documentary
evidence and detailed affidavits, Defendant owes a total of $68,665.29 to Plaintiff for
unpaid benefit contributions, interest, and liquidated damages. (See Doc. 11-2).
Plaintiff also asks that it be awarded $8,056.98 for attorneys’ fees and costs.
(Doc. 11 at 3). Plaintiff has provided three affidavits from James R. Kimmey, each
accompanied by an itemization of attorney hours worked on this matter, the hourly

3

rate at which the attorney worked, and the amount of costs incurred. (Doc. 11-4 at 14). Plaintiff’s attorneys charged $195 per hour for 33.9 hours and $90 per hour for
9.15 hours. (Doc. 11-4 at 3, Doc. 11-5 at 3, Doc. 11-6 at 3). Cavanagh & O’Hara
requested a total of $7,434 in fees and $649.98 in costs, for a requested total of
$8,056.98.
In awarding fees under § 1132(g)(2)(D), courts must determine whether the
rate charged and the amount of time spent was reasonable. See Anderson v. AB
Painting & Sandblasting Inc., 578 F.3d 542, 544-46 (7th Cir. 2009). The Court finds
the rate charged by Plaintiff’s counsel is a reasonable hourly rate.
CONCLUSION
IT IS THEREFORE ORDERED that Plaintiff’s Motion for Default Judgment
(Doc. 11) is GRANTED. Plaintiff is AWARDED $68,665.29 in unpaid contributions,
interest, and liquidated damages, and $ 8,056.98 in attorneys’ fees and costs. The
Clerk is directed to ENTER default judgment against Defendant in the amount of
$76,722.27.

CASE TERMINATED.
Entered this _15th_ day of November, 2016.
s/ Joe B. McDade
JOE BILLY McDADE
United States Senior District Judge

4