Trustees of Central Laborers' Pension, Welfare & Annuity Funds v. Housman

Filing 13

ORDER GRANTING 8 Motion for Default Judgment as to filed by Trustees of Central Laborers' Pension, Welfare & Annuity Funds. Signed by Judge Staci M. Yandle on 2/2/2016. (mah)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS

TRUSTEES OF CENTRAL LABORERS’
PENSION, WELFARE & ANNUITY
FUNDS,

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Plaintiff,
vs.
JON HOUSMAN, Individually and d/b/a
HOUSMAN’S LANDSCAPING,
Defendant.

Case No. 15-CV-56-SMY-SCW

MEMORANDUM AND ORDER
YANDLE, District Judge:
Before the Court is Plaintiff Trustees of Central Laborers’ Pension, Welfare & Annuity
Funds’ Motion for Entry of Default Judgment (Doc. 8). For the following reasons, Plaintiff’s
Motion is GRANTED.
Plaintiff is the Trustees of Central Laborers’ Pension, Welfare & Annuity Funds (the
“Funds”). Plaintiff alleges that Defendant entered into an Agreement to participate in the Funds
to secure health and welfare benefits for his employees represented by local laborer unions
affiliated with the Funds (see Doc. 2). According to Plaintiff, Defendant’s agreement with the
Funds obligated him to pay fringe benefits as required by the terms of the Agreement. Pursuant
to the Agreement, Defendant was also liable for reasonable attorneys’ fees and costs, and
liquidated damages associated with any effort the Funds required to collect delinquent
contributions from Defendant. Id. Plaintiff alleges that Defendant breached his obligation under

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the Agreement by failing to pay fringe benefits and to perform its obligations pursuant to the
Agreement.
On May 8, 2015, Plaintiff moved for entry of default (Doc. 5). An entry of default was
issued by the Clerk of Court on May 11, 2015 (Doc. 6). On October 22, 2015, Plaintiff moved
for default judgment against Defendant (Doc. 8). Pursuant to Rule 55(b)(2) of the Federal Rules
of Civil Procedure, the Court held a hearing to determine the amount of damages on December
21, 2015. Following the hearing, the Court permitted Plaintiff to supplement its motion in order
to provide documentation of its attorneys’ fees (Doc. 11). Plaintiff filed the supplemental
documents on December 30, 2015 (Doc. 12).
A party is authorized to seek a default judgment pursuant to Federal Rule of Civil
Procedure 55. Under this Rule, the Court may enter a judgment by default when the non-moving
party has “failed to plead or otherwise defend” itself. Fed. R. Civ . P. 55(a). The decision to
grant or deny default judgment lies within the district court's discretion and is only reviewed for
abuse of discretion. Homer v. Jones–Bey, 415 F.3d 749, 753 (7th Cir.2005). “As a general rule,
a default judgment establishes, as a matter of law, that defendants are liable to plaintiff as to each
cause of action alleged in the complaint as long as plaintiff's allegations are well-plead.” Dundee
Cement Co. v. Howard Pipe & Concrete Products, Inc., 722 F.2d 1319, 1323 (7th Cir.1983)
(citing Breuer Electric Mfg. Co. v. Toronado Systems of America, Inc., 687 F.2d 182, 186 (7th
Cir.1982)). Plaintiff must then establish a right to the requested relief sought. In re Catt, 368
F.3d 789, 793 (7th Cir.2004).
A party obtaining a default judgment in its favor is not entitled to an award
“exceed[ing][the] amount” prayed for in the demand for judgment. Fed. R. Civ. P. 54(c).
Allegations within the complaint regarding damages are not deemed true upon the rendering of a

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default judgment. In re Catt, 368 F.3d at 793 (citations omitted); Dundee Cement Co., 722 F.2d
at 1323 (citations omitted). Instead, the district court must determine with reasonable certainty
the proper amount to award as damages to the prevailing party. Id. Such determination can be
made either based upon an evidentiary hearing or from “definite figures contained in the
documentary evidence or in detailed affidavits.”

Dundee Cement Co., 722 F.2d at 1323

(citations omitted); see also In re Catt, 368 F.3d at 793.
In this case, there is sufficient evidence supporting Plaintiff’s allegations that Defendant
was contractually obligated to pay contributions and failed to do so. The evidence establishes
that from January 10, 2010, to June 30, 2014, Defendant failed to fulfill its contractual
obligations. Based upon the documentary and testimonial evidence produced during the hearing,
the Court awards Plaintiff the following damages upon default: $149,469.18 in delinquent
contributions, $14,936.22 in liquidate damages, $640.00 in audit costs, and $1,726.00 in
attorneys’ fees and costs.
Accordingly, Plaintiff's Motion for Default Judgment (Doc. 8) is GRANTED. The Court
DIRECTS the Clerk of Court to enter default judgment in favor of Plaintiff Trustees of Central
Laborers' Pension, Welfare & Annuity Funds and against Defendant Jon Housman, individually
and d/b/a Housman’s Landscaping in the amount of $166,771.40.
IT IS SO ORDERED.
DATED: February 2, 2016
s/ Staci M. Yandle
STACI M. YANDLE
United States District Judge

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