Board of Trustees, Sheet Metal Workers' National Pension Fund, et al. v. Broadway Industries, Inc.

Summary

This proposed findings of fact and recommendations addresses Plaintiffs’ motion for default judgment against Broadway Industries, Inc. for allegedly delinquent employee-benefit contributions and refusal to permit a payroll audit under ERISA, the LMRA, and collective bargaining agreements. The magistrate judge recommends awarding $128,506.31 in damages, attorneys’ fees, and costs, ordering production of specified payroll records, and entering default judgment for Plaintiffs.

Holdings

1. The court had subject matter jurisdiction under 28 U.S.C. § 1331 and 29 U.S.C. § 1132(e)(1), personal jurisdiction under ERISA's nationwide-service provision, and proper venue under 29 U.S.C. § 1132(e)(2).
2. Broadway was properly served through its registered agent, and the Clerk properly entered default because Broadway failed to plead or otherwise defend within the time permitted by the Federal Rules of Civil Procedure.
3. Following entry of default, Broadway's well-pleaded factual allegations were admitted, and those allegations stated claims under ERISA and the LMRA for failure to make required contributions and failure to provide records necessary for an audit.
4. Plaintiffs established entitlement to $124,601.67 in contributions, interest, and liquidated damages and $3,904.65 in attorneys' fees and costs, for a recommended total monetary award of $128,506.31.
5. Plaintiffs demonstrated entitlement to injunctive relief requiring Broadway to provide payroll records, check registers, and general ledgers from January 2019 through the present.

Questions Presented

1. Whether the court had subject matter and personal jurisdiction over Broadway and whether venue was proper.
2. Whether Broadway was properly served and whether the Clerk properly entered default.
3. Whether the admitted allegations stated claims under ERISA and the LMRA for unpaid or delinquent contributions and failure to comply with audit obligations.
4. Whether Plaintiffs established entitlement to contributions, interest, liquidated damages, attorneys' fees, and costs despite Broadway's default.
5. Whether Plaintiffs were entitled to injunctive relief requiring Broadway to produce payroll and related records for an audit.

Disposition

other