National Electrical Benefit Fund v. China Power and Light, Inc.

Filing 9

REPORT AND RECOMMENDATIONS re 6 Plaintiff's MOTION for Default Judgment filed by National Electrical Benefit Fund. Signed by Magistrate Judge Jillyn K Schulze on 10/8/14. (jf2s, Deputy Clerk)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
NATIONAL ELECTRICAL BENEFIT FUND
v.
CHINA POWER AND LIGHT, INC.

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Civil No. PWG 14-1313

REPORT AND RECOMMENDATION
This case was referred to me pursuant to 28 U.S.C. § 636(b) and Local Rule 301.6 for
review of Plaintiff’s Motion for Judgment by Default. ECF No. 6. Defendant was properly
served and failed to plead or otherwise respond to the complaint, and the Clerk of the Court
entered default against it. ECF Nos. 4, 7. For the following reasons, I recommend that
Plaintiff’s motion be granted in the amounts requested.
I.

Background.
On April 17, 2014, Plaintiff, National Electrical Benefit Fund (NEBF), filed a complaint

against Defendant, China Power and Light, Inc., to collect delinquent pension contributions. The
complaint alleges that Defendant executed collective bargaining agreements under which
Defendant agreed to submit contributions to Plaintiff on behalf of its employees covered by these
agreements. ECF No. 1 at 2-3. Pursuant to those agreements, Defendant is bound to all terms
and conditions of the Restated Employees Benefit Agreement and Trust for NEBF. That
Agreement authorizes NEBF to recover not only delinquent contributions but also interest at a
rate of 10% per annum, liquidated damages equal to 20% of the delinquency, and all costs and
attorneys’ fees incurred in collecting the delinquency. Id. at 3. Plaintiff seeks judgment under
the Employee Retirement Income Security Act of 1974 (ERISA), specifically, section 1132(g)(2)
of Title 29 of the United States Code.

The complaint alleges that Defendant failed to pay NEBF contributions for work
performed by Defendant’s covered employees during 2011 and 2012. It claims that an April 2013
audit shows that Defendant owes $3,951.09 in delinquent contributions, $859.60 in interest,
$790.22 in liquidated damages, audit costs of $590.26, bank fees of $20.00, and legal fees and
costs of $1,061.20. ECF No. 1 at 3-4.
The motion for default judgment seeks greater numbers for interest, $899.67, and fees and
costs, $2,381.10. ECF No. 6 at 2. The total amount sought is $8,632.34. ECF No. 6-2 at 3. The
court is also requested to award “any additional fees and costs incurred by NEBF in connection
with the enforcement of a judgment[,] and interest on all amounts awarded.” Id. at 2-3.
II.

Analysis.
A. Liability.
In determining whether to award default judgment, the court takes as true the well-

pleaded factual allegations in the complaint as to liability. Ryan v. Homecomings Fin. Network,
253 F.3d 778, 780 (4th Cir. 2001). Where the Defendant has not sought to set aside the default
as provided by Federal Rule of Civil Procedure 55(c), or suggested in any way that it has a
meritorious defense, the standard for default judgment has been satisfied. Fanning v. Hotel
Management Advisors-Troy, LLC, 282 F.R.D. 280, 283 (D. D.C. 2012).
Plaintiff has pled facts which establish Defendant’s liability under ERISA, and these facts
are supplemented by the affidavit of Plaintiff’s Director of Audit and Delinquencies, Lauren
Loughran. It is alleged, and Ms. Loughran affirms, that Defendant executed contracts which
obligate it to forward monthly payments to Plaintiff and is bound by the terms of the Trust
Agreement. Copies of the agreement and audit are attached to Ms. Loughran’s affidavit. ECF
Nos. 6-3, 6-4. Finally, counsel Jennifer Hawkins attests that Defendant, upon the filing of a

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previous action, tendered a bad check which led to the filing of the current complaint. ECF No.
6-1 at 2. In sum, the complaint, affidavit, and exhibits establish liability and a default judgment
should be entered in favor of Plaintiff under Section 1132(g).
B. Damages.
If the court finds that liability is established, it should then determine appropriate
damages. Agora Financial, Inc. v. Samler, 725 F. Supp. 2d 491, 494 (D. Md. 2010) citing Ryan
v. Homecoming Financial Network, 253 F. 3d 778, 780-81 (4th Cir. 2001)). The court must
make an independent determination of damages. Id. Where, as here, Plaintiff has submitted
with its motion for default judgment affidavits and documentary evidence which are sufficient to
establish the amount that should be awarded, no hearing is necessary. Fed. Rule Civ. P. 55(b)
(2); General Ins. Co. v. O’Keefe, 275 F. Supp. 107, 109 (D. Md. 1967). In particular, when
ruling on a motion for default judgment in an ERISA contributions case, “‘the court may rely on
detailed affidavits or documentary evidence to determine the appropriate sum for the default
judgment.’” Fanning v. Hotel Management Advisors-Troy LLC, 282 F.R.D. 280, 283 (D. D.C.
2012), (quoting Adkins v. Teseo, 180 F. Supp. 2d 15, 17 (D. D.C. 2001)); see also United Artists
Corp. v. Freeman, 605 F.2d 854, 857 (5th Cir. 1979). Indeed, unpaid contributions, interest, and
liquidated damages can be considered “sums certain” pursuant to the statutory calculations and
the parties’ agreements. Combs v. Coal & Mineral Mgmt. Servs., Inc., 105 F.R.D. 472, 474 (D.
D.C.1984).
Ms. Loughran also attests that Plaintiff incurred attorneys’ fees and costs in connection
with this action. ECF No. 6-2 at 3. Counsel for Plaintiff separately attests to the legal work she
performed in connection with this case and the fees and costs incurred by Plaintiff. Her hourly
rate of $348 is reasonable, and the hours expended and the costs incurred also are reasonable and

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necessary for the prosecution of this case. Plaintiff also requests an additional award for
anticipated fees, costs, and interest incurred in connection with enforcing the judgment.
However, these amounts are not subject to determination at this time and accordingly cannot be
awarded at this time.
III.

Conclusion.
For the reasons set forth above, the court should:
(A) Grant Plaintiff’s motion for judgment by default; and
(B) Award Plaintiff damages in the amount of $8,632.34.

Date: October 8, 2014

/S/______
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JILLYN K. SCHULZE
United States Magistrate Judge

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