Board of Trustees of the Laborers Health and Welfare Trust Fund for Northern…

Background

The plaintiffs were Laborers Trust Funds governed by employee-benefit plans under the Employee Retirement Income Security Act (ERISA). RMT Landscape Contractors, Inc. became bound by collective bargaining agreements requiring it to make contributions to the Trust Funds based on hours worked by its employees. Contributions were due by the 25th day of the following month. Late payments could incur 1.5% monthly interest and liquidated damages.

The plaintiffs sought amounts that RMT had failed to report or pay from April 2015 forward. An audit covering July 2017 through March 2019 found $3,682.40 due. RMT paid that audit balance by November 26, 2019, but did not pay interest on it. The parties agreed that RMT remained delinquent, although they disputed whether liquidated damages were available and how much remained owed after payments.

Summary-judgment standard

Summary judgment is appropriate when the evidence shows no genuine dispute about a fact that could affect the result and the moving party is entitled to judgment under the law. The court must view the evidence favorably to the party opposing the motion. Here, the plaintiffs moved for summary judgment under Federal Rule of Civil Procedure 56.

Discussion

Liquidated damages and interest. RMT argued that liquidated damages were unavailable because the plaintiffs had not sent a formal demand letter concerning contributions that were paid late before the lawsuit was filed. RMT said it had received only monthly statements. The plaintiffs responded that those statements demanded payment, were clearly labeled “THIS IS A BILL,” and listed unpaid principal, liquidated damages, and interest.

The court held that the plaintiffs complied with the Trust Funds’ policy requiring a demand letter before filing suit. It therefore held that the plaintiffs were entitled to liquidated damages and interest.

Amount owed. RMT argued that its January 2020 payments totaling $88,311.85 created a genuine factual dispute because the plaintiffs could not receive the exact amount originally requested. The court rejected that argument. It stated that RMT admitted its delinquency, did not challenge the accuracy of the plaintiffs’ accounting, and could not defeat summary judgment merely by paying part of the balance. The court treated crediting the payments as a mathematical calculation rather than a factual dispute, while noting that the plaintiffs could not collect amounts that were no longer delinquent.

As of February 19, 2020, the court accepted a calculation of $188,725.38 in unpaid contributions, liquidated damages, and interest. The calculation included amounts under the LLC Master Addendum, amounts under the Landscape Tech Addendum, and interest related to the audit under the LLC Master Addendum.

Attorney’s fees and costs. The plaintiffs requested attorney’s fees and costs under ERISA and the Trust Agreement. The court found that an award would encourage prompt payment and better record keeping by employers and that the plaintiffs’ claims were adequately supported. It found the requested hourly rates reasonable and found the hours billed reasonable. The court also found the requested filing and service costs reasonable.

In the conclusion, the court awarded attorney’s fees and costs totaling $20,524.12 and listed a total award of $209,249.50.

Disposition

Judge Kandis Westmore granted the plaintiffs’ motion for summary judgment against RMT Landscape Contractors, Inc. The order awarded the amounts listed for unpaid contributions, liquidated damages, interest, attorney’s fees, and costs, for a stated total of $209,249.50.