Carpenters' District Council Of Greater St. Louis and Vicinity et al v. Commercial Drywall Construction, LLC

Filing 29

MEMORANDUM AND ORDER: GRANTING 27 MOTION for Default Judgment filed by Ken Stricker, Plaintiff Carpenters' District Council Of Greater St. Louis and Vicinity, Earl Poe, III, Kirk Verseman, Plaintiff Mike Grigaitis, Scott B yrne, Terry M. Nelson, Ron Dicus, John W. Fischer, Plaintiff Robert Behlman, Plaintiff Bob Fritz, Albert Bond, Plaintiff Keith Taylor, Kevin Byrne, Plaintiff Robert Wolf, Donald J. Brussel, Jr., Michael T. Thuston, Plaintiff Kevin Deptula, Brian Paluch, Renee Bell, Robert Calhoun. Signed by District Judge Carol E. Jackson on 6/19/13. (KKS)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
CARPENTERS’ DISTRICT COUNCIL OF
GREATER ST. LOUIS AND VICINITY,
et al.,
Plaintiffs,
vs.
COMMERCIAL DRYWALL
CONSTRUCTION, LLC., et al.,
Defendants.

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No. 4:12-CV-805 (CEJ)

MEMORANDUM AND ORDER
This matter is before the Court on plaintiffs’ motion for default judgment against
defendant Commercial Drywall Construction, LLC., pursuant to Rule 55(b)(2),
Fed.R.Civ.P. The defendant has not filed a response and the time allowed for doing
so has expired.
I.

Background

Plaintiffs bring this action to collect delinquent fringe benefit contributions
pursuant to Section 301 of the Labor Management Relations Act of 1974 (LMRA), as
amended, 29 U.S.C. § 185, and pursuant to Section 502 of the Employee Retirement
Income Security Act of 1974 (ERISA), as amended, 29 U.S.C. § 1132. Plaintiffs are
Carpenters’ District Council of St. Louis (the Union), three employee benefit plans (the
Pension, Welfare, and Vacation Trusts, collectively, the Funds), and their trustees.
Defendant Commercial Drywall Construction, LLC is an employer in an industry
affecting commerce within the meaning of the LMRA and ERISA. Plaintiffs allege that
defendant failed to make timely contributions to the plans as required under the terms
of a collective bargaining agreement. In their motion, plaintiffs seek $81,734.27 in

delinquent contributions for the period of the fourth quarter of 2011 through the
second quarter of 2012.
The summons and a copy of the complaint were served on defendant on May
15, 2012. Defendant did not file an answer or other responsive pleading and, on July
5, 2012, the Clerk of Court entered default against defendant. On August 28, 2012,
the Court issued a default order to compel accounting, and defendant ultimately
submitted to an audit. Plaintiffs now move for default judgment based on the results
of the audit.
II.

Discussion

ERISA provides that employers shall make contributions when required by the
terms of a collective bargaining agreement. 29 U.S.C. § 1145. Employers who fail to
make the required contributions may be liable for the unpaid contributions, liquidated
damages, interest, attorney’s fees, and costs. 29 U.S.C. § 1132(g)(2).
On November 23, 2010, defendant entered into an agreement to be bound by
the terms of the 2008-2013 collective bargaining agreement between the Carpenters’
District Council of Greater St. Louis & Vicinity and the Missouri/Illinois Independent
Building Contractors, until April 30, 2013. [Doc. #5-3]. The collective bargaining
agreement requires defendant to pay fringe benefit contributions through the purchase
of fringe benefit stamps. [Doc. #5-2, at § 5.05].
Plaintiffs submit the affidavit of Juli Laramie, an accountant and the controller
for the employee benefit funds affiliated with the Carpenters’ District Council, and
exhibits showing the results of a payroll audit for the period of the fourth quarter of
2011 through the second quarter of 2012. These exhibits establish that, for this
period, defendant owes $81,734.27 in unreported contributions.

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Based on the documentation and affidavit submitted by the plaintiffs, the Court
finds that defendant Commercial Drywall Construction, LLC, was bound at all relevant
times by a valid CBA and that it breached its obligations by failing to timely pay or
report the required contributions. Plaintiffs have established that Commercial Drywall
Construction, LLC, is liable to them for a total of $81,734.27 in delinquent
contributions.
Accordingly,
IT IS HEREBY ORDERED that plaintiffs’ motion for default judgment [Doc.
#27] is GRANTED.
A separate judgment in accordance with this Memorandum and Order shall be
entered this same date.

CAROL E. JACKSON
UNITED STATES DISTRICT JUDGE
Dated this 19th day of June, 2013.

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