David Frye, Trustee; Ward Daniels, Trustee; Indiana Laborers Welfare, Pension, Training and Defined Contribution Trust Funds v. DIR Group, LLC

Summary

The United States District Court for the Southern District of Indiana granted plaintiffs’ motion for default judgment against DIR Group, LLC in an ERISA delinquent-contribution action. The court awarded $44,918.74 for unpaid contributions, liquidated damages, interest, attorney fees, and costs, and allowed recovery of additional collection-related fees and costs.

Holdings

1. Upon entry of default, the well-pleaded factual allegations relating to liability are accepted as true, and entry of default judgment establishes the defendant's liability on each cause of action alleged in the complaint.
2. A plaintiff seeking default judgment must establish monetary damages with reasonable certainty, but no evidentiary hearing is required when the amount is liquidated or ascertainable from documentary evidence or detailed affidavits.
3. Under ERISA §§ 515 and 502(g)(2), an employer obligated to contribute to a multiemployer plan must make contributions according to the plan or collective bargaining agreement, and plan fiduciaries are entitled to recover unpaid contributions, interest, liquidated damages within the statutory limit, reasonable attorney fees, costs, and other appropriate relief.
4. Plaintiffs were entitled to reasonable attorney fees of $1,168.50 and reimbursement of the $402.00 filing fee as costs.

Questions Presented

1. Whether default judgment should be entered against DIR Group, LLC after the Clerk entered default for failure to answer or appear.
2. Whether Plaintiffs established the amount of damages with reasonable certainty without an evidentiary hearing.
3. Whether Plaintiffs were entitled under ERISA to unpaid contributions, liquidated damages, interest, reasonable attorney fees, and costs.
4. Whether the requested attorney fees and costs were reasonable and recoverable.

Disposition

other