Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-06915/USCOURTS-cand-4_06-cv-06915-2/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1145 E.R.I.S.A.

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United States District Court

For the Northern District of California

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

BOARD OF TRUSTEES OF THE

LABORERS HEALTH AND WELFARE

TRUST FUND FOR NORTHERN

CALIFORNIA, et al.,

Plaintiffs,

v.

CLARK ARNOLD CORP., et al.,

Defendants.

___________________________________/

No. C-06-6915 CW (EMC)

ORDER RE SUPPLEMENTAL

BRIEFING AND EVIDENCE

Plaintiffs’ motion for default judgment has been referred to the undersigned for a report and

recommendation. Having reviewed the papers submitted by Plaintiffs, the Court hereby orders that

Plaintiffs provide supplemental briefing and evidence as follows.

(1) In their motion, Plaintiffs claim that there is $22,337.19 in unpaid contributions. However,

Plaintiffs appear to have made an error in their calculations. Based on the papers submitted

by Plaintiffs, in February 2006, unpaid contributions for the pension trust fund totaled

$1,393.84, not $1,443.84. In light of this error, the Court hereby orders Plaintiffs to

recalculate the interest owed on the unpaid contributions.

(2) Plaintiffs have asked for interest both for unpaid contributions and for contributions that

were untimely made. While Plaintiffs have explained the methodology used to calculate

interest, they have not provided the Court with sufficient information to determine whether

Plaintiffs’ interest calculations are correct. For example, for unpaid contributions, Plaintiffs

have provided information as to the dates that partial payments were made for the January

Case 4:06-cv-06915-CW Document 20 Filed 03/28/07 Page 1 of 3
United States District Court

For the Northern District of California

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2006 contribution, see Hagan Decl. ¶ 21, but have not provided information as to the dates

that partial payments were made for the remaining monthly contributions (e.g., February,

March, and May 2006). Similarly, for paid but untimely contributions, Plaintiffs have

provided information as to the date that payment was made for the November 2005

contribution, see id. ¶ 23, but have not provided information as to the dates that payments

were made for the remaining monthly contributions (e.g., December 2005 and February-June

2006). Plaintiffs are ordered to provide the missing information and show calculations for

interest.

(3) For June 2006, Plaintiffs claim that Clark Arnold failed to make the monthly contribution

and at the same time made an untimely payment. See id. ¶¶ 19, 23. However, the papers

submitted by Plaintiffs do not show any payment, or even a partial payment, by Clark Arnold

for June 2006. See id., Ex. I. Plaintiffs are ordered to clarify this matter.

(4) As noted above, Plaintiffs have asked for interest for unpaid contributions as well as for

contributions that were untimely made. Similarly, Plaintiffs have asked for liquidated

damages for unpaid contributions, plus for contributions that were untimely made. For some

months, there appear to have been both unpaid contributions and paid but untimely

contributions -- i.e., February, March, May, and June 2006. In other words, for some

months, a partial, late payment was made. For these months, it seems reasonable for

Plaintiffs to be awarded interest for the unpaid portion as well as interest for the paid portion

that was late. However, it is not clear why Plaintiffs should be awarded liquidated damages

for the unpaid portion ($150 per month), plus additional liquidated damages for the paid

portion that was late (another $150 per month). The Master Agreement simply provides for

liquidated damages for a delinquency. See id., Ex. G (Master Agreement) (“Subject to

accounting verification, liquidated damages shall be assessed on delinquent contributions at a

flat rate of one hundred and fifty dollars ($150.00) per month to reflect the internal

administrative costs incurred by the trust administrators in monitoring and tracking such late

contributions.”). Plaintiffs are ordered to justify their claim for “double” liquidated damages

for these months.

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For the Northern District of California

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Plaintiffs shall provide the supplemental briefing and evidence within two weeks of the

issuance of this order.

IT IS SO ORDERED.

Dated: March 28, 2007

_________________________ EDWARD M. CHEN

United States Magistrate Judge

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