Moore et al v. Paul's Architectural Woodcraft Company et al

Filing 16

Findings of Fact, Conclusions of Law and Order for Default Judgment GRANTING 10 Motion for Default Judgment. (Written Opinion). Signed by Judge Richard H. Kyle on 07/21/11. (kll)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Civ. No. 11-714 (RHK/SER)
James E. Moore and Tim McGough, as
Trustees of the Carpenters & Joiners Welfare
Fund, Twin City Carpenters Pension Master
Trust Fund, and Twin City Carpenters Vacation
Fund; James E. Moore as Trustee of the
Carpenters and Joiners Apprenticeship and
Journeymen Training Trust Fund, and each of
their successors,
Plaintiffs,

FINDINGS OF FACT,
CONCLUSIONS OF LAW, AND
ORDER FOR DEFAULT
JUDGMENT ON LIABILITY

vs.
Paul’s Architectural Woodcraft Company Inc., a/k/a
Paul’s Architectural Woodcraft Co./ Mouldings
Plus and Matthew Benson, individually,
Defendants.

This matter came before the Court on the Motion for Default Judgment (Doc. No.
10) brought by Plaintiffs.

Having carefully considered the Motion, and all the files,

records, and proceedings herein, the Court makes the following:
FINDINGS OF FACT
1.

The Summons and Complaint were filed with the Court on March 23,

2011. Service was accomplished upon Defendants on March 24, 2011.
2.

Defendants have failed to file and serve a response or Answer to the

Complaint. An Amended Application for Entry of Default and Amended Affidavit of
Amanda R. Cefalu in support of the Application for Entry of Default were filed with the
Court on May 18, 2011.

3.

Plaintiffs are trustees and fiduciaries of the above-referenced funds

(hereinafter “Funds”). The Funds are multi-employer plans as defined by 29 U.S.C.
§ 1002(37). They are established to provide, inter-alia, pension, health and welfare
vacation benefits and training to employees doing carpentry work in the construction
trades, and are maintained for the benefit of workers pursuant to a Collective Bargaining
Agreement.
4.

Defendants are bound to the terms of a Collective Bargaining Agreement

between the North Central States Regional Council of Carpenters and Associated
General Contractors of Minnesota and Minnesota Drywall and Plaster Association.
5.

The Collective Bargaining Agreement requires employers to make fringe

benefit contributions to the Funds in accordance with its terms. These contributions
must be made on behalf of each bargaining unit employee as defined in the Collective
Bargaining Agreement in amounts set forth and agreed upon therein. The Collective
Bargaining Agreement requires employers to contribute every month, not later than the
fifteenth (15th) of the following month, such sums for Pension, Health and Welfare,
Vacation, Dental, Apprenticeship, and Promotion Funds as they may be established, an
amount for each hour worked by all employees covered by the Collective Bargaining
Agreement.
6.

The Collective Bargaining Agreement and Trust Agreements provide that

an employer is liable for an additional 10% of all contributions, which are not timely
submitted, for liquidated damages, and also provides that Plaintiffs are entitled to their
attorneys’ fees and costs.

2

7.

Defendants breached their obligation under the Collective Bargaining

Agreement by failing to timely submit the fringe fund reports and contributions for the
months of December 2010 through March 2011.
8.

After this lawsuit commenced, Defendants made the payment on the

outstanding contributions in the amount $22,793.74 for the months of December 2010
and January 2011.
9.

In May 2011 Defendants also submitted those overdue payroll reports for

the months of February 2011 and March 2011, which reflected contributions due and
owing in the amount of $24,083.49.
10.

Defendants failed to remit outstanding contributions pursuant to the

February 2011 and March 2011 reports in the amount of $24,083.49.
11.

Defendants have to date failed to submit the monthly fringe benefit report

forms due for the months of April, May and June, 2011. Without these reports Plaintiffs
are not able to ascertain their damages.
12.

The Collective Bargaining Agreement provides that Plaintiffs are entitled to

their reasonable attorneys’ fees and costs of this action.
CONCLUSIONS OF LAW
1.

Defendants are in default, and Plaintiffs are entitled to Entry of Default

Judgment.
2.

Defendants are liable to Plaintiffs for all fringe benefit contributions owed

pursuant to the terms of the Collection Bargaining Agreement for the months of
December 2010 through June 2011, liquidated damages, and attorneys’ fees and costs
incurred in collecting the delinquency.
3

3.

Defendants are liable in the amount of $24,083.49 for contributions due

pursuant to the February 2011 and March 2011 reports submitted voluntarily by
Defendants.
4.

Defendants are liable in the amount of $4,620.42 in liquidated damages

for untimely payments of fringe fund contributions pursuant to the reports submitted by
Defendants for the months of December 2010 through March 2011.
5.

The fact of liability has been conclusively established and the only

outstanding issue is the amount of damages owed by Defendants.
ORDER
IT IS ORDERED:
1.

That Plaintiffs' Motion for Default Judgment (Doc. No. 10) is GRANTED;

2.

Defendants are liable for $28,703.91 for outstanding contributions and

liquidated damages for the months of December 2010 through March 2011;
3.

Defendants are ORDERED to submit fringe benefit report forms for the

months of April, May and June 2011 to Plaintiffs within ten (10) days of the date of this
Order.

The reports shall be submitted to the Plaintiffs’ agent at Wilson-McShane

Corporation, 3001 Metro Drive, Suite 5000, Minneapolis, MN 55425;
4.

Defendants are entitled to their reasonable attorneys’ fees and costs

incurred in the collection of unpaid contributions and liquidated damages pursuant to 29
U.S.C. §1132(g).
5.

Upon receipt of the outstanding reports, Plaintiffs may move the District

Court for the entry of a money judgment for all unpaid fringe benefit contributions and
4

liquidated damages owed for the period of December 2010 through June 2011, plus
reasonable attorneys’ fees and costs.

Dated: July 21, 2011

s/Richard H. Kyle
RICHARD H. KYLE
United States District Judge

5