Operating Engineers Health and Welfare Trust Fund, et al. v. Eagle Environmental & Construction, et al.

Summary

This report and recommendation addresses Plaintiffs’ motion for default judgment in an ERISA action against Eagle Environmental & Construction and Ronald Batiste. The court recommends ordering Defendants to comply with a payroll audit and provide contribution reports, awarding Plaintiffs $2,856.50 in attorney’s fees and $1,421.42 in costs, and retaining jurisdiction to amend the judgment if the audit identifies unpaid contributions.

Holdings

1. The court determined that subject matter jurisdiction existed under ERISA and the LMRA, personal jurisdiction existed under ERISA's nationwide service provision because the plans were administered in the district, venue was proper, and Defendants had been properly served.
2. The Eitel factors favored entry of default judgment and supported an order requiring Defendants to comply with Plaintiffs' audit request and provide contribution reports.
3. Plaintiffs were entitled to discretionary attorney's fees under ERISA § 502(g)(1), but not mandatory fees under § 502(g)(2), because Plaintiffs had not yet demonstrated that unpaid contributions existed. After deducting noncompensable clerical time, the recommended fee award was $2,856.50, plus $1,421.42 in costs.

Questions Presented

1. Whether the court had subject matter jurisdiction, personal jurisdiction, and adequate service to consider default judgment.
2. Whether the Eitel factors supported entry of default judgment requiring Defendants to comply with the requested audit and provide contribution reports.
3. Whether Plaintiffs were entitled to attorney's fees and costs under ERISA despite not yet establishing that unpaid contributions existed.
4. Whether the court should retain jurisdiction to permit Plaintiffs to seek amendment of the judgment after the audit determines whether additional contributions are owed.

Disposition

other