Shelton v. Krug

Summary

The United States District Court for the District of Columbia grants Joseph Shelton’s motion for default judgment against Kelly Krug in an ERISA action concerning delinquent employee benefit plan contributions and reports. The court awards $51,707.75 in unpaid contributions, interest, liquidated damages, attorney’s fees, and costs, and orders Krug to provide missing reports, permit an audit, and comply with ongoing contribution and reporting obligations. The opinion is dated January 9, 2026.

Holdings

1. Default judgment was appropriate because the well-pleaded allegations established that Krug was an ERISA employer bound by a collective bargaining agreement requiring contributions to the Fund and that she failed to make those contributions.
2. Krug was liable for failing to submit the monthly reports required by the governing agreements.
3. The Fund was entitled to audit Krug's records relating to covered employees, reports, and contributions.
4. Shelton proved the unpaid contributions, liquidated damages, and interest to a reasonable certainty, and was entitled to $42,512.75 in those damages.
5. Shelton was entitled to $9,195.00 in attorney's fees and litigation costs because the submitted billing records and declarations established that the requested amounts and hourly rates were reasonable.
6. The court granted an injunction requiring Krug to file monthly reports, pay contributions that become due after judgment, and make appropriate records available for audit.

Questions Presented

1. Whether Krug's failure to respond and the well-pleaded allegations established liability for delinquent ERISA contributions.
2. Whether Krug was liable for failing to submit required monthly reports.
3. Whether the Fund was entitled to audit Krug's employment and contribution records.
4. Whether Shelton proved the amount of unpaid contributions, interest, liquidated damages, attorney's fees, and costs to a reasonable certainty.
5. Whether an injunction requiring future reporting, contribution payments, and cooperation with an audit was appropriate.

Disposition

other