Broach v. Metropolitan Exposition Services, Inc.

Background

The Exhibition Employees Local 829 I.A.T.S.E. Pension Fund, the Exhibition Employees Local 829 I.A.T.S.E. Annuity Fund, and Judith P. Broach, acting as the court-appointed independent fiduciary of the funds, sued Metropolitan Exposition Services, Inc. under the Employee Retirement Income Security Act of 1974 and a collective bargaining agreement.

The agreement required Metropolitan to make monthly contributions to the funds for covered employees performing specified exhibition and trade-show work. The plaintiffs alleged that Metropolitan failed to make all required contributions for the period from January 1, 2014, through January 31, 2016. The plaintiffs’ auditor later reduced the claimed amount after Metropolitan provided additional records. A June 9, 2020 report calculated unpaid contributions, interest, and liquidated damages through that date, and the plaintiffs also sought attorney’s fees and litigation costs.

Default and Standing

The plaintiffs moved for a default judgment under Federal Rule of Civil Procedure 55(b)(2). Metropolitan did not appear in the action, attend the scheduled conferences, or attend the default-judgment hearing. The court explained that a default judgment requires well-pleaded allegations establishing liability and evidence supporting the amount of damages; a defendant’s default does not automatically establish legal conclusions or the amount of damages.

The court held that the funds themselves did not have standing to sue under the ERISA provision at issue because ERISA limits the plaintiffs who may bring that type of civil action to participants, beneficiaries, and fiduciaries. The court held that Broach, as the funds’ independent fiduciary, had standing to bring the action and collect the judgment on the funds’ behalf.

Liability

The court concluded that the complaint’s factual allegations established Metropolitan’s liability under ERISA Section 515, 29 U.S.C. § 1145, and the collective bargaining agreement. Metropolitan was an employer and a party to the agreement, which required it to make contributions at specified rates for covered employees. The plaintiffs supported their allegations with the agreement, audit reports, payroll records, and correspondence concerning the unpaid amounts. Metropolitan did not introduce evidence showing that the findings were inaccurate.

Damages and Fees

The court found that the plaintiffs provided sufficient support for unpaid contributions of $11,216.35 for the Pension Fund and $6,344.74 in the damages discussion for the Annuity Fund. In the conclusion, however, the court awarded $6,344.73 for the Annuity Fund. The court awarded $20,256 in attorney’s fees and $828.33 in costs. The conclusion stated that these amounts, together with the awarded unpaid contributions, totaled $38,645.41.

The court did not determine the requested prejudgment interest or liquidated damages because the plaintiffs had not adequately explained how the interest figures were calculated. It ordered the plaintiffs to file, within twenty-one days, a supplemental affidavit explaining those calculations and stating the amounts of interest, liquidated damages, and additional attorney’s fees and costs incurred after June 11, 2020. The plaintiffs also had to submit a proposed final judgment within twenty-one days.

Disposition

The court granted in part and denied in part the motion for default judgment. It entered judgment in the stated amount of $38,645.41 to Broach as independent fiduciary for the funds, awarded unpaid contributions, attorney’s fees, and costs, and required further submissions concerning additional damages and fees.