U.A. LOCAL 322 PENSION FUND et al v. JERSEY COAST PLUMBING, INC.

Filing 6

MEMORANDUM OPINION & ORDER granting 5 Motion for Default Judgment. Signed by Judge Noel L. Hillman on 5/8/2017. (tf, )

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
U.A. LOCAL 322 PENSION FUND,
et al.,
Plaintiffs,
v.

1:16-cv-01862-NLH-AMD
MEMORANDUM
OPINION & ORDER

JERSEY COAST PLUMBING, INC.,
Defendant.

APPEARANCES:
MATTHEW THOMAS TOKARSKY
JENNINGS SIGMOND PC
1835 MARKET STREET
28TH FLOOR
PHILADELPHIA, PA 19103
On behalf of Plaintiffs
HILLMAN, District Judge
WHEREAS, pending before the Court is the motion of
Plaintiffs, U.A. Local 322 Pension Fund, U.A. Local 322 Health and
Welfare Fund, U.A. Local 322 Annuity Fund, U.A. Local 322
Education Fund, Local 322 of the United Association of Journeymen
and Apprentices of the Plumbing and Pipe Fitting Industry of the
United States and Canada, AFL-CIO, U.A. Local 322 Political Action
Committee, Kurt R. Krueger, Jr., South Jersey Mechanical
Contractors Association Industry Fund and Dan Falasca, Jr.,
for default judgment against Defendant, Jersey Coast Plumbing,
Inc. d/b/a Jersey Coast Plumbing Inc. d/b/a Jersey Coast Plumbing
d/b/a Jersey Coast Plumbing Pleasantville, for unpaid
contributions, contractual liquidated damages, statutory interest

and attorneys' fees and costs incurred by Plaintiffs pursuant to
29 U.S.C. §§ 185(a) and 1132(g)(2); and
WHEREAS, Section 515 of the Employee Retirement Income
Security Act, 29 U.S.C. § 1145, provides that "[e]very Employer
who is obligated to make contributions to a multiemployer plan . .
. under the terms of a collectively bargained agreement shall . .
. make such contributions in accordance with . . . such
agreement"; and
WHEREAS, Plaintiffs claim that Defendant has failed to pay
contributions in the estimated amount of $49,598.17 to the Fund
from the period from January 2010 through December 2013.

In

addition, Defendant owes liquidated damages and interest on
contributions paid beyond the due date in the amount of
$11,075.72, and attorneys' fees and costs totaling $5,290.02
through September 30, 2016; and
WHEREAS, because Defendant failed to respond to numerous
deficiency letters Plaintiffs sent to Defendant, Plaintiffs
instituted the instant suit against Defendant; and
WHEREAS, Defendant was served with Plaintiffs’ complaint on
May 18, 2016; but
WHEREAS, Defendant failed to file an answer or otherwise
appear, and on June 27, 2016, the Clerk granted Plaintiffs’
request for the entry of default against Defendant pursuant to
Fed. R. Civ. P. 55(a); and
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WHEREAS, because Defendant still has not appeared in this
action, Plaintiffs have filed the instant motion for default
judgment against Defendant pursuant to Fed. R. Civ. P. 55(b); and
WHEREAS, although every “well-pled allegation” of the
complaint, except those relating to damages, are deemed admitted,
Comdyne I. Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir. 1990),
before entering a default judgment the Court must decide whether
“the unchallenged facts constitute a legitimate cause of action,
since a party in default does not admit mere conclusions of law,”
Chanel, 558 F. Supp. 2d at 535 (citation omitted); and
WHEREAS, the decision to enter a default judgment is left to
the Court's discretion, but “‘in exercising its discretion, the
trial court must consider three factors: 1) whether the plaintiff
will be prejudiced if the default is lifted; 2) whether the
defendant has a meritorious defense; and 3) whether the default
was the result of the defendant's culpable misconduct.’”
International Union of Operating Engineers of Eastern Pennsylvania
and Delaware Benefit Pension Fund v. N. Abbonizio Contractors,
Inc., 134 F. Supp. 3d 862, 865 (E.D. Pa. 2015) (quoting Hritz v.
Woma Corp., 732 F.2d 1178, 1182 (3d Cir. 1984)); and
WHEREAS, with regard to the second two factors, the Court
finds that because Defendant was properly served but has failed to
appear in this action, it is unknown whether Defendant has a
meritorious defense to Plaintiffs’ claims, and the inference is
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that Defendant’s default was the result of its own culpable
misconduct; and
WHEREAS, with regard to the first factor, the Court finds
that Plaintiffs will be prejudiced if default judgment is not
entered against Defendant, because under ERISA, a plan is still
required to pay benefits to participants regardless of whether an
employer makes its contributions to the plan, and “[i]f the plan
at issue is part of a multi-employer contribution system, as here,
any delinquent contributions owed by a covered employer impairs
the plan's ability to pay both the beneficiaries of the delinquent
employer as well as employees of companies who have made their
contributions.”

Id. (citing 29 C.F.R. § 2530.200b–2) (other

citation omitted); and
WHEREAS, if an employer fails to make the contributions as
required by the collective bargaining agreement and Section 515,
then the employer is subject to the provisions of Section
502(g)(2) of ERISA, 29 U.S.C. § 1132(g)(2), which provides for the
mandatory award of the following if a judgment under Section 515
is entered in the Fund's favor:
(A)

the unpaid contributions,

(B)

interest on the unpaid contributions,

(C)

an amount equal to the greater of:
(i)

interest on the unpaid contributions; or

(ii) liquidated damages provided for under the plan in
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an amount not in excess of 20 percent (or such higher
percentage as may be permitted under Federal or State
law) of the amount determined by the Court under
Subparagraph (a),
(D)

reasonable attorney's fees and costs of the action, to

be paid by the Defendant, and
(E)

such other legal or equitable relief as the court

deems appropriate; and
WHEREAS, the Court finds that Plaintiffs have provided
competent documentation to support their demand under 29 U.S.C. §§
185(a) and 1132(g)(2) for unpaid contributions, contractual
liquidated damages, statutory interest and attorneys' fees and
costs;
THEREFORE,
IT IS on this

8th

day of

May

, 2017

ORDERED that Plaintiffs’ Motion for Default Judgment [5] be,
and the same hereby is, GRANTED.

An Order of Judgment will be

entered separately.

s/ Noel L. Hillman
NOEL L. HILLMAN, U.S.D.J.

At Camden, New Jersey

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