Bricklayers & Trowel Trades Int'l Pension Fund v. Kel-Tech Constr., Inc.
Cases that cite this one
8 later published cases cite this decision.
- Service Employees International Union National Industry Pension Fund v. Metro Man I, Inc. (District Court, District of Columbia 2023)
- Bricklayers & Trowel Trades International Pension Fund v. Ohio Building Maintenance Leasing, Inc. (District Court, District of Columbia 2024)
- TRUSTEES OF THE NATIONAL ELEVATOR INDUSTRY PENSION FUND v. Maple Management LLC d/b/a RAE Lifts (District Court, E.D. Pennsylvania 2020)
- WISE FOODS, INC. v. UFCW HEALTH AND WELFARE FUND OF NORTHEASTERN PENNSYLVANIA (District Court, E.D. Pennsylvania 2021)
- Bricklayers & Trowel Trades International Pension Fund v. Ny Big Apple Construction Corporation (District Court, District of Columbia 2020)
- Service Employees International Union National Industry Pension Fund v. Hebrew Homes Health Network, Inc. (District Court, District of Columbia 2019)
- Shelton v. Krug (District Court, District of Columbia 2026)
- In re Grand Jury Investigation of Possible Violations of 18 U.S.C. § 1956 and 50 U.S.C. § 1705 (D.C. Cir. 2019)
This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.
Opinion of the Court
Plaintiffs Bricklayers & Trowel Trades International Pension Fund and International Masonry Institute (together, the "Plans") are multiemployer employee benefit plans within the meaning of the Employee Retirement Income Security Act of 1974 ("ERISA"), Pub. L. No. 93-406,
The Court will deny the First Motion as moot, given that it has been effectively superseded by the Second Motion.
I. Factual and Procedural Background
The Plans filed their complaint on July 7, 2017, Compl., and served Kel-Tech on July 24, 2017, see ECF No. 3. When Kel-Tech failed to respond within 21 days as required by Federal Rule of Civil Procedure 12(a)(1)(A)(i), the Clerk entered default against Kel-Tech at the Plans' request. ECF No. 5. The Plans then filed the instant motions for default judgment.
The Plans provide benefits to employees pursuant to agreements negotiated between local unions and employers. Pls.' App'x at 3. As described in the Plans' complaint, Kel-Tech has entered into collective bargaining agreements ("CBAs") with a local union, International Union of Bricklayers and Allied Craftworkers Local Union No. 1, New York ("Local 1"). Compl. ¶ 7. The Plans' declarations, but not their complaint, also reference a CBA between Kel-Tech and another local union, International Union of Bricklayers and Allied Craftworkers Local Union No. 84, New York ("Local 84"). Pls.' App'x at 3. The CBAs obligate Kel-Tech to make monthly reports to the Plans of the hours worked by covered employees, and to pay monthly contributions to the Plans.
The Plans are governed by trust agreements. Compl. ¶¶ 1-2. Although they never allege as much, the Plans appear to assume that, by virtue of the CBAs, Kel-Tech became bound by the terms of the trust agreements as well. See id. ¶¶ 10-11. The trust agreements provide that, if Kel-Tech fails to make the required contributions, the Plans may require Kel-Tech to pay: (i) the amount of unpaid contributions; (ii) 15% interest on delinquent contributions; (iii) an additional award equal to the greater of 15% interest on delinquent contributions or liquidated damages of 20% of the amount of the delinquent contributions; and (iv) attorney's fees and costs incurred in pursuing the delinquency. Pl.'s App'x at 3, 16-17. The Plans' "General Collection Procedures" contain similar provisions, although the Plans never explain how the Procedures are binding on Kel-Tech. See Compl. ¶¶ 12-13; Pls.' App'x at 9-12. The Procedures explain that the contributions and reports required by the CBAs become due on the 15th day of each month. See Pls.' App'x at 9.
The Plans' complaint and motion papers refer to different "cover groups" within each local union. See, e.g. , Compl. ¶¶ 16-17. While the Plans do not explain exactly what these groups are, the Court infers that each consists of a sub-group of local union employees. The Plans have identified four cover groups for which Kel-Tech allegedly owes contributions: three within Local 1 (cover group 1 ("1-NY-1"), cover group 64 ("1-NY-64"), and cover group 66 ("1-NY-66") ) and one within Local 84 (cover group 19 ("84-NY-19") ). See Pls.' Second Summary. Cover group 1-NY-64 was not mentioned in the Plans' complaint or the First Motion; rather, the Plans first sought damages associated with group 1-NY-64 in the Second Motion.
In their complaint, the Plans bring three counts against Kel-Tech. Count I seeks to recover required contributions to the Plans that Kel-Tech had not made as of the filing of the complaint, allegedly in violation of ERISA, the CBAs, the trust agreements, and the General Collection Procedures. Compl. ¶¶ 15-21. Count II seeks to recover interest, liquidated damages and attorney's fees on contributions that Kel-Tech made late, but before the filing of the complaint, under the trust agreements and the General *337Collection Procedures. Id. ¶¶ 22-26. Count III seeks injunctive relief requiring Kel-Tech to make reports and pay contributions in a timely manner going forward. Id. ¶¶ 27-31. The Plans also seek "contributions, interest, liquidated damages, and reasonable attorneys' fees and costs that may accrue and/or are found to be due and owing to the Plaintiffs subsequent to the filing of this Complaint, during the pendency of this action, and up to the date of judgment." Id. at 10.
In support of the First Motion, the Plans submitted a declaration detailing their damages for each cover group (excluding 1-NY-64), as well as a document summarizing the amounts set forth in the declaration. See Pls.' App'x at 2-7; Pls.' First Summary. With their Second Motion, the Plans submitted a revised declaration and summary with new damages amounts. See Pls.' Second Decl.; Pls.' Second Summary. The revisions reflect damages for contributions due to cover group 1-NY-64, additional accrued interest, as well as the Plans' allegation that Kel-Tech has, since the filing of the First Motion, paid some contributions it owed but failed to make other contributions as they came due. Table 1, below, summarizes the damages requested in the First Motion by cover group and category; Table 2 summarizes the damages requested in the Second Motion in the same format.
In both the First and Second Motions, the Plans also request an award of $3,599.00 in attorney's fees and $590.00 in costs. Pls.' First Summary; Pls.' Second Summary. Their counsel has provided an affidavit supporting this award, along with a spreadsheet detailing the legal work underlying the fee request. See Pls.' App'x at 18-26.
Table 1: Summary of Damages Requested in First Motion
Local 1 Local 84 1-NY-1 1-NY-64 1-NY-66 84-NY-19 Unpaid Contributions $13,485.04 - $14,188.21 $1,806.12 Count I Interest on Unpaid $287.33 - $330.70 $2,264.40 Contributions Liquidated Damages or $2,697.02 - $2,837.66 $2,264.40 Additional Interest on Unpaid Contributions Interest on Late $1,524.51 - $1,125.32 - Contributions Count II Liquidated Damages or $7,693.95 - $4,907.16 - Additional Interest on Late Contributions
*338Table 2: Summary of Damages Requested in Second Motion
Local 1 Local 84 1-NY-1 1-NY-64 1-NY-66 84-NY-19 Unpaid Contributions $11,460.80 $1,076.04 $16,211.97 $1,806.12 Count I Interest on Unpaid $372.07 $41.69 $521.29 $2,400.95 Contributions Liquidated Damages or $2,292.16 $215.21 $3,242.39 $2,400.95 Additional Interest on Unpaid Contributions Interest on Late $2,938.27 $21.91 $2,735.94 - Contributions Count II Liquidated Damages or $14,569.90 $75.26 $10,607.48 - Additional Interest on Late Contributions
II. Legal Standard
"A court has the power to enter default judgment when a defendant fails to defend its case appropriately or otherwise engages in dilatory tactics." Boland v. Elite Terrazzo Flooring, Inc. ,
Under Federal Rule of Civil Procedure 55, there is a "two-step procedure" for obtaining a default judgment. Ventura v. L.A. Howard Constr. Co. ,
An entry of default "establishes the defaulting party's liability for the well-pleaded allegations of the complaint."
*339Elite Terrazzo Flooring ,
III. Analysis
As explained below, the Court determines that it may exercise personal jurisdiction over Kel-Tech. The Court then concludes that the facts alleged in the Plans' complaint establish Kel-Tech's liability with respect to Count I, but not Count II. In addition, the Plans have not established Kel-Tech's liability for claims based on Kel-Tech's purported obligations to Local 84. With respect to damages, the Plans have not established interest and liquidated damages to a reasonable certainty. Nor have the Plans demonstrated their entitlement to a permanent injunction, as requested in Count III. Accordingly, the Court concludes that the record supports a judgment awarding only some of the damages that the Plans have requested.
A. Personal Jurisdiction
In most cases, a district court may exercise personal jurisdiction only to the extent that a state court of general jurisdiction in that district could. See Fed. R. Civ. P. 4(k)(1)(A) ; Walden v. Fiore ,
Section 502(e)(2) of ERISA contains the following jurisdictional provision:
Where an action under [29 U.S.C. §§ 1001 to 1191c ] is brought in a district court of the United States, it may be brought in the district where the plan is administered, where the breach took place, or where a defendant resides or *340may be found, and process may be served in any other district where a defendant resides or may be found.
Exercising personal jurisdiction over Kel-Tech is also consistent with the Fifth Amendment. Given that the complaint concerns Kel-Tech's obligations under CBAs entered into in the United States (presumably, in its home state of New York), there are obviously sufficient contacts with the United States to satisfy the Fifth Amendment. See Compl. ¶¶ 3, 7.
B. Liability
Because default has been entered, Kel-Tech is liable for the well-pleaded allegations in the Plans' complaint. See Amrine Drywall ,
*3411. Count I (Unpaid Contributions)
Section 515 of ERISA provides a federal cause of action to enforce an employer's obligation to contribute to a multiemployer plan:
Every employer who is obligated to make contributions to a multiemployer plan under the terms of the plan or under the terms of a collectively bargained agreement shall, to the extent not inconsistent with law, make such contributions in accordance with the terms and conditions of such plan or such agreement.
The Court notes that the complaint does not mention cover group 1-NY-64, even though the Plans now seek damages for 1-NY-64. The Court concludes that this does not affect its analysis on liability, because identifying the particular employees for whom contributions have not been paid (and, by extension, the cover groups they belong to) does not appear to be required to plead the claim.
The Plans' well-pleaded allegations do not, however, make out a claim with respect to the Local 84, for two reasons. First, while the Plans reference cover group 84-NY-19 in their complaint, see
Second, the claims related to Local 84 appear to be time-barred. The statute of limitations is an affirmative defense that usually must be raised by the defendant. However, especially in atypical cases in which a defendant does not appear, " 'courts have the discretion ... to raise on their own initiative certain nonjurisdictional barriers to suit,' including statutes of limitations." Maalouf v. Islamic Republic of Iran ,
The Plans' claims related to Local 84 arose long before the applicable limitations period. While ERISA provides a statute of limitations for fiduciary claims, see
2. Count II (Late Contributions)
The current record does not support any default judgment for the Plans on Count II, which seeks interest, liquidated damages and fees for late (but paid) contributions, because Kel-Tech's liability is not supported by well-pleaded factual allegations in the complaint. Unlike Count I, which seeks to enforce Kel-Tech's obligations under the CBAs with Local 1 pursuant to ERISA, Count II is brought under the Plans' trust agreements and General Collection Procedures. See Compl. ¶¶ 12-14, 19, 24. In fact, Count II could not have been brought pursuant to ERISA because, as other circuits have held (and as the D.C. Circuit has suggested in dictum), ERISA provides for interest and liquidated damages only on contributions that are unpaid , not contributions that are made late but paid before suit is brought. See
The problem is that the Plans nowhere allege that Kel-Tech was bound by the trust agreements or General Collection Procedures. In a similar case recently before this Court, the plaintiff alleged (by attaching the relevant portions of the CBAs to its motion for a default judgment) that the defendant employer had entered *343into CBAs that incorporated the terms of an ERISA plan's trust agreement by reference. See Fanning v. AMF Mech. Corp. , No. 17-cv-1514 (TJK),
The Court acknowledges that there is authority holding that an employer that contributes to a multiemployer plan pursuant to a CBA is bound, as a matter of law, by the plan's trust agreement, even if the CBA does not expressly incorporate the trust agreement by reference. Plumbers & Steamfitters Local No. 150 Pension Fund v. Vertex Constr. Co. ,
In short, Count II depends on an allegation that Kel-Tech is bound to the interest-rate and liquidated-damages provisions in the trust agreements and General Collection Procedures. The Plans have not made any such allegation, and so the current record does not support entry of default judgment on Count II.
C. Damages
Having established Kel-Tech's liability with respect to Count I (insofar as it relates to Local 1), the Court must now "make an independent determination-by relying on affidavits, documentation, or an evidentiary hearing-of the sum to be awarded as damages." Ventura ,
As limited by the Court's ruling on liability above, the damages and fees sought against Kel-Tech are as follows: (1) the total amount of unpaid contributions to cover groups 1-NY-1, 1-NY-64, and 1-NY-66, which date from November 2016 through February 2018; (2) interest on those unpaid contributions; (3) liquidated damages; and (4) attorney's fees and costs. See Compl. ¶¶ 16-21; Pls.' Second Decl.; Pls.' Second Summary. Upon review of the entire record and the applicable law, the Court concludes it is proper to grant the request insofar as it relates to unpaid contributions and attorney's fees, but not interest or liquidated damages.
In cases where "a court awards a default judgment against a defendant for contributions owed under a collective bargaining agreement," such as this one, Section 502(g)(2) of "ERISA provides that the court must award: (1) the unpaid contributions; (2) interest on the unpaid contributions;
*344(3) liquidated damages; and (4) reasonable attorney's fees and costs of the action." Flynn v. Mastro Masonry Contractors ,
The complication in this case is that, as explained above, Kel-Tech is not alleged to have assented to the documents that contain the interest-rate and liquidated-damages clauses that the Plans seek to enforce, leaving unclear whether the Plans should receive the benefit of those clauses or the statutory default provisions.
Therefore, the Plans' damages will be limited to the amount of the unpaid contributions for Local 1, along with their reasonable attorney's fees and costs. In support of these proposed damages and fees, the Plans provide declarations from a knowledgeable employee; a declaration from their attorney, R. Richard Hopp; and summaries reflecting the amounts set forth in the declarations. See Pls.' Second Decl.; Pls.' App'x at 18-36; Pls.' Second Summary. Another court in this District has accepted similar declarations as adequate in a case brought by the Plans. See Bricklayers & Trowel Trades Int'l Pension Fund v. Barron , No. 18-cv-165 (CRC),
Both the First and Second Motions seek contributions that came due after the filing of the complaint. See Pls.' Br. at 4; Pls.' Second Decl. ¶ 2. The Plans' request for damages incurred post-filing is proper. Courts have entered judgments that include such damages where the complaint alleges, as it does here, that the plaintiff intends to seek them. See Compl. at 10; Boland v. Hetrick ,
Thus, relying on the declarations the Plans have submitted, and the entire record, see Fanning v. Permanent Sol. Indus., Inc. ,
Therefore, the record supports a monetary judgment of $32,937.81.
Table 3: Summary of Damages Supported by the Record
Local 1 Local 84 1-NY-1 1-NY-64 1-NY-66 84-NY-19 Unpaid Contributions $11,460.80 $1,076.04 $16,211.97 - Count I Interest on Unpaid - - - - Contributions Liquidated Damages or - - - - Additional Interest on Unpaid Contributions Interest on Late - - - - Contributions Count II Liquidated Damages or - - - - Additional Interest on Late Contributions
D. Injunctive Relief
The final issue before the Court is whether the Plans are entitled to their requested injunctive relief: a permanent injunction requiring Kel-Tech to "submit accurate reports" and "pay all contributions" to the Plans "on or before the due date each month." ECF No. 10-3 at 2. ERISA permits a court to order "such other legal or equitable relief as the court deems appropriate."
*346The Plans argue that their proposed injunction satisfies the traditional prerequisites for equitable relief. See Pls.' Br. at 7-13.
First, they cite cases highlighting the importance of a stable funding source for pension plans, given that such plans must continuously pay out benefits to beneficiaries. Pls.' Br. at 9-10 (citing Cent. States, Se. & Sw. Areas Pension & Health & Welfare Funds v. McNamara Motor Express, Inc. ,
Second, the Plans argue that beneficiaries might experience " 'emotional distress' caused by the knowledge that their employer *347was not paying the fringe benefit fund contributions that they had earned through their labor." Pls.' Br. at 10 (quoting United Steelworkers of Am. v. Textron, Inc. ,
Third, the Plans argue that Kel-Tech's " 'persistent contempt' for the judicial process" justifies an injunction.
Reviewing the record as a whole, the Court concludes that there is simply no basis to find irreparable harm that cannot be adequately addressed by money damages. While Kel-Tech has been delinquent in making its payments and (on at least some occasions) submitting records to the Plans, there is nothing (apart from a few conclusory allegations in the Plans' complaint) to suggest that a monetary judgment would be an inadequate remedy. The Plans have not shown that Kel-Tech's conduct has significantly hampered, or will hamper, their ability to assess and collect the money they are owed. In fact, during the pendency of this lawsuit-before the Court's ruling on the instant motions-Kel-Tech has apparently made some of the payments at issue in the complaint, and the Plans have assessed additional contributions they allege they are owed. See Pls.' App'x at 4; Pls.' Second Decl. ¶ 2.
It is also notable that the Plans have not sought an audit of Kel-Tech's records. Such audits are often requested in employer-contribution cases and, in some circumstances, are more likely than the injunction requested in this case to provide relief that cannot be had through money damages alone. See, e.g., Fanning , --- F.R.D. at ----,
Thus, the record before the Court does not support the Plans' request for a permanent injunction that would require Kel-Tech to submit accurate records and make timely contributions.
IV. Further Proceedings
The Court will give the Plans an opportunity to address the deficiencies identified in this Opinion related to liability, damages, and injunctive relief. The Court leaves it to the Plans how best to do so: whether by filing supplemental briefing and declarations, a revised motion, and/or an amended complaint. If the Plans do file an amended complaint, they must either serve it on Kel-Tech or explain why service is not required. Moreover, the Plans must make any and all further submissions by August 31, 2018. In the meantime, the Court will hold its decision on the Second Motion in abeyance. If the Plans do not make any further submission by August 31, the Court will grant the Second Motion in part, deny it in part, and enter a default judgment consistent with this Memorandum Opinion.
V. Conclusion and Order
For the reasons stated above, the Court hereby ORDERS that the Plans' First Motion (ECF No. 9) is DENIED AS MOOT . The Court FURTHER ORDERS that the Plans shall file any supplemental briefing and declarations, revised motion for default judgment, or amended complaint by August 31, 2018 .
SO ORDERED.
The Court notes that there appears to be a typographical error in the First Motion itself, which erroneously describes the amount requested as $59,800.62. However, the supporting papers make clear that the amount requested was in fact $59,600.82.
While the Second Motion does not expressly incorporate the papers filed with the First Motion by reference, the Court deems the Second Motion to do so implicitly.
The Court notes that the Plans' counsel, in his own submission, erroneously states that process was served on Kel-Tech's CEO, Philip Kelleher. See ECF No. 4 ¶ 2. The Court assumes this was the result of a simple oversight.
In their complaint, the Plans describe Kel-Tech as a corporation. Compl. ¶ 3. In the Second Motion, the Plans have changed the caption to indicate that Kel-Tech is in fact a limited liability company. See ECF No. 10. The Plans have not moved to amend the pleadings to correct Kel-Tech's name, see Fed. R. Civ. P. 15, or to add or drop parties, see Fed. R. Civ. P. 21. However, this distinction does not appear to affect the validity of service of process, because "[i]f the name used in the complaint leaves no doubt as to the defendant's identity, and service is otherwise sufficient, then service is proper regardless of the error."Winston & Strawn LLP v. Law Firm of John Arthur Eaves ,
The Court notes decisions by a few courts of appeals holding that, notwithstanding the "national contacts" test, there may be rare circumstances in which exercising jurisdiction over a remote defendant might be so extremely unfair as to violate due process. See Peay v. BellSouth Med. Assistance Plan ,
Count III, which requests injunctive relief, does not assert a separate cause of action. See Base One Techs., Inc. v. Ali ,
As noted, the Second Circuit has held that employers are not bound by liquidated-damages clauses in trust agreements to which they have not agreed. Jaspan ,
The Court finds that the attorney's fees and costs sought in this case are "reasonable," consistent with ERISA's provision allowing the Court to award such fees.
The Court assumes, without deciding, that these prerequisites apply because the Plans make the same assumption. See id. at 8. In practice, many courts in this District appear not to have applied this standard. See, e.g., Bricklayers ,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.