Nelson v. Advanced Signs, Inc.

Background

The plaintiffs were trustees and fiduciaries of three benefit funds: the Painters and Allied Trades District Council No. 82 Health Care Fund, the International Painters and Allied Trades Industry Pension Fund, and the Painters and Allied Trades District Council 82 STAR Fund. The opinion states that Advanced Signs, Inc., doing business as Lakehead Sign Company, agreed to collective bargaining agreements covering the period from May 1, 2015, through April 30, 2021.

Those agreements required Advanced Signs to make contributions or premiums to the funds, provide monthly reports, and pay interest and liquidated damages on late contributions. The plaintiffs alleged that Advanced Signs failed to pay all amounts due for October 2018 through May 2019. They sought unpaid contributions of $21,835.93, liquidated damages of $3,787.72, and interest of $437.45.

Procedural History

The plaintiffs asserted claims for breach of contract and damages under the Employee Retirement Income Security Act (ERISA). Advanced Signs was served but did not answer or otherwise appear. The clerk entered default against it. The plaintiffs then moved for entry of judgment and separately moved for attorney’s fees and costs.

Court’s Analysis

Because Advanced Signs defaulted, the court treated the well-pleaded factual allegations in the complaint as admitted. The plaintiffs still had to support the amount of damages. The court relied on the remittance reports and other evidence and found Advanced Signs liable for the unpaid contributions, liquidated damages, and interest. The court also found that the plaintiffs reasonably incurred $2,132.50 in attorney’s fees and $537.10 in costs in this action.

Disposition

The court ordered that the plaintiffs’ Motion for Entry of Judgment was granted in part and denied in part. The court’s order does not specify in the quoted disposition which portion was denied. The plaintiffs’ Motion for an Award of Attorneys’ Fees and Costs was granted. The court entered judgment making Advanced Signs liable to the plaintiffs for $28,730.70, consisting of $21,835.93 in unpaid contributions, $3,787.72 in liquidated damages, $437.45 in interest, $2,132.50 in attorney’s fees, and $537.10 in costs.