Board of Trustees of the Bay Area Roofers Health & Welfare Trust Fund v. Elite…

Background

The plaintiffs are the boards of trustees of five trust funds and Carlos Opfermann, a trustee of those funds. The opinion states that the funds are employee benefit plans. Elite was party to a collective bargaining agreement and a trust agreement requiring it to make contributions to the funds for certain employees.

The trust agreement authorized the plaintiffs to request and review business records to determine whether an employer had met its obligations. In October 2023, the plaintiffs’ auditor notified Elite that the funds would conduct an audit covering January 1 through December 31, 2022, and requested six categories of documents. Elite did not provide the documents. The plaintiffs’ counsel later made written and telephone demands, but Elite still had not produced them when the action was filed on November 26, 2024.

The clerk entered Elite’s default on February 14, 2025. Because of that default, the complaint’s factual allegations other than those concerning damages were treated as admitted. Elite was served with the plaintiffs’ motion for default judgment but did not respond.

Court’s Analysis

The plaintiffs sought an injunction requiring Elite to produce the requested records, any unpaid contributions identified by the audit, liquidated damages and interest, and attorney’s fees and costs. The court found that the factors relevant under Eitel v. McCool favored granting default judgment.

The court concluded that an injunction was appropriate because the trust agreement required Elite to provide records for an audit and Elite continued to refuse to provide the requested documents. The court did not immediately determine the amount of any unpaid contributions, liquidated damages, or interest. Instead, it established a procedure for the plaintiffs to seek those amounts after the audit.

The court found the requested attorney’s fees of $5,824 reasonable and awarded the requested $405 filing fee as costs.

Ruling

Judge Maxine Chesney granted the plaintiffs’ motion for default judgment. The order requires Elite to submit to an audit on at least two weeks’ written notice and to make available the six categories of documents requested for the 2022 audit period.

If supported by the audit results, the plaintiffs may file and serve calculations of unpaid contributions, liquidated damages, and interest within six months of the order. Elite may respond within three weeks after service of those materials.

The plaintiffs were awarded $5,824 in attorney’s fees and $405 in costs, for a total of $6,229. The court retained jurisdiction to enforce the order and amend the judgment to include any additional amounts the court later determines are due. The clerk was directed to enter judgment for the plaintiffs against Elite.