Board of Trustees of the Teamsters Joint Council 32-Employer Health and Welfare…

Background

The Board sued Northwestern under a collective bargaining agreement and the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1145. The Board alleged that Northwestern failed to submit monthly fringe-benefit remittance reports and other audit materials and failed to make required fringe-benefit contributions to a multiemployer health plan for March 2023 through January 2024.

Northwestern was served with the complaint on February 22, 2024, but did not answer or otherwise respond. The Board therefore sought entry of default and later moved for default judgment. The Board asked the court to order Northwestern to produce the reports and to award monetary damages in an amount to be determined after reviewing those materials.

Court’s analysis

For default judgment, the court considered whether the complaint’s unchallenged factual allegations, taken as true, stated a legitimate cause of action. The court concluded that they did. The court explained that ERISA allows a collective bargaining agreement to require plan participants to provide audit materials and make contributions. It also stated that ERISA plan fiduciaries may obtain liquidated damages, attorney fees, and injunctive relief in an action to recover unpaid contributions.

The court found that the Board had sufficiently pleaded liability and was entitled to injunctive relief requiring Northwestern to provide the reports and other audit materials. However, the Board had not alleged a sum certain because the amount of contributions allegedly owed depended on materials that were not yet available. The court therefore concluded that determining damages, attorney fees, and costs at that stage was premature.

Order

Judge Jeffrey M. Bryan ordered that the Board’s motion for default judgment was GRANTED IN PART. The Board’s request for relief under 29 U.S.C. § 1132(g)(2)(E) was granted. Within fourteen days after receiving the order, Northwestern must submit complete and accurate monthly fringe-benefit remittance reports for March 2023 through April 2024.

Northwestern must also produce necessary employment and payroll audit records from January 2019 through the date of the order that relate to employees covered by the collective bargaining agreement, along with other relevant information required to administer the funds.

Within twenty days after receiving the reports, the Board may file and serve a motion seeking default judgment for unpaid contributions, liquidated damages, interest, and reasonable attorney fees and costs. Northwestern may respond within ten days after being served with that motion. The court will then review the submissions and decide whether a hearing is necessary. The order did not determine the amount of any monetary award at this stage.