Exhibition Employees Local 829 I.A.T.S.E. Pension Fund v. National Convention…

Background

The Exhibition Employees Local 829 I.A.T.S.E. Pension Fund and Judith P. Broach, acting as the Fund’s independent fiduciary, sued National Convention Services, LLC. The complaint alleged that National Convention Services was bound by a collective bargaining agreement with Exhibition Employees Union, Local No. 829. Under that agreement, the company allegedly had to make hourly contributions to benefit funds for covered employees but failed to make required contributions.

Default judgment standard

A default judgment is a judgment entered against a party that fails to defend. The court first considered whether the company’s failure to respond was willful, whether it had a potentially valid defense, and whether denying judgment would prejudice the plaintiffs. The court found that all three considerations favored entering default judgment. It also found that it had federal-question jurisdiction because the claims arose under federal statutes and personal jurisdiction because the company was organized under New York law, had its principal place of business in New York, and was properly served.

Liability

The plaintiffs asserted claims under Section 515 of the Employee Retirement Income Security Act (ERISA) and Section 301 of the Labor Management Relations Act (LMRA). The court found that the plaintiffs had adequately established the elements of the ERISA claim: National Convention Services was an employer, it was bound by a collective bargaining agreement requiring contributions to employee benefit plans, and it failed to make those contributions. The court relied on the complaint, the collective bargaining agreement, and trust agreements requiring employer contributions.

The court also found that the plaintiffs had adequately established liability under the LMRA. Section 301 provides a claim for violating a contract between an employer and a labor organization, and the court found that the allegations sufficiently showed that National Convention Services breached the collective bargaining agreement by failing to make required contributions. The plaintiffs did not seek damages on the LMRA claim.

Damages and disposition

The court independently reviewed sworn declarations and documentary evidence because damages are not automatically accepted as true when a defendant defaults. It entered judgment for $33,499.78, consisting of $17,528.50 in unpaid contributions, $5,538.89 in interest through February 10, 2025, $5,538.89 in liquidated damages, and $4,893.50 in reasonable attorneys’ fees and costs. The opinion’s earlier factual summary describes the alleged unpaid contributions as covering April 2019 through March 2020, while the damages award describes the contribution period as January 1, 2018 through December 31, 2020; the opinion does not explain this difference. The court granted the plaintiffs’ motion for default judgment, directed entry of judgment, and ordered the case closed.