Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-03059/USCOURTS-cand-4_06-cv-03059-0/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:185 Labor/Mgt. Relations (Contracts)

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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.

ATOLL TOPUI ISLAND, INC., a

California corporation, and

LOPETI KITEAU TOPUI, an

individual,

 Defendants.

____________________________/

No. C 06-3059 SBA

ORDER AUTHORIZING

SUPPLEMENTAL SUBMISSIONS RE

MOTION FOR DEFAULT JUDGMENT 

We have reviewed plaintiffs’Motion for Default Judgment, filed October 26, 2006

(“Motion”). The court ORDERS plaintiffs to provide supplemental evidence or

argument as necessary to address the following issues and questions.

1. Plaintiffs were unable to effect personal service on Lopeti Kiteau Topui.

According to plaintiffs' proof of service, plaintiffs served the defendants by leaving

copies of the Summons and Complaint with a resident of "suitable age" at Lopeti Kiteau

Topui's residence, 340 Chesapeake Avenue in Foster City, California, and by mailing

copies to that address. See, Amended Proof of Service, filed August 7, 2006. What is

the basis for plaintiffs' belief that Mr. Topui resides at 340 Chesapeake Avenue in Foster

City?

2. Plaintiffs move this court for a judgment that Mr. Topui is individually

liable on the ground that he constitutes a "fiduciary" and that he breached his fiduciary

duties. Motion at 8. Although plaintiffs' Complaint alleges that defendants are

fiduciaries as defined by ERISA, the Complaint does not allege a claim for breach of

Case 4:06-cv-03059-SBA Document 19 Filed 11/15/06 Page 1 of 4
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fiduciary duty. Plaintiffs seek judgment by default. Allegations that are not set forth in

the Complaint cannot be deemed admitted. Therefore, the court cannot recommend that

the District Judge enter judgment against Mr. Topui individually on the ground that he

has breached a fiduciary duty.

Have plaintiffs alleged any other basis for finding that Mr. Topui is individually

liable for the damages sought in the Complaint? Administrators of ERISA fringe benefit

funds have argued that the bare allegation that an individual who owns or is an officer

of a corporation is an "employer" under ERISA, if unrebutted, is a sufficient basis for

imposing individual liability. However, Operating Engineers Pension Trust, v. Reed,

726 F.2d 513 (9th Cir. 1984), seems to suggest that the bare allegation that an individual

is an "employer" under ERISA is not sufficient to support personal liability where the

company at issue is incorporated. In order to obtain a judgment that an individual owner

and/or officer of a corporation is personally liable for delinquent contributions,

Reed seems to require allegations, legal and factual, sufficient to find either (1) that the

owner and/or officer was a fiduciary and breached a fiduciary duty or (2) that federal

requirements for piercing the corporate veil are satisfied. Absent a claim for breach of

fiduciary duty, does the Ninth Circuit limit imposition of personal liability on corporate

owners and officers to those cases in which plaintiffs have demonstrated a basis for

piercing the corporate veil? 

3. Plaintiffs seek unpaid contributions in the amount $10,394.43 for 951 hours

worked by Sailoame Mapa between March 2003 and August 2004 and allegedly

unreported by defendants. Hagan Decl., at Ex. I. However, plaintiffs' evidence indicates

that, for some of the months between March 2003 and August 2004, defendants underreported Mr. Mapa's hours and, for other months, defendants over-reported the hours

worked by Mr. Mapa. Hagan Decl., at Ex. I. If we understand Exhibit I, it appears that

Mr. Mapa worked a total of 1871 hours during this period and that defendants reported

a total of 1373 hours – leaving unreported a net of 498 hours. 

Did defendants pay contributions for some or all of the 1373 hours they reported?

If, in a particular month, defendants paid contributions in excess of those actually owed

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as a result of over-reporting, those overpayments should be credited to later deficits.

Plaintiffs might be entitled to interest and/or liquidated damages as a result of reporting

errors, but would not be entitled to collect contributions for 951 hours unless defendants

actually failed to pay contributions for 951 of the 1871 hours apparently worked by Mr.

Mapa. Plaintiffs must confirm that, although defendants over-reported Mr. Mapa's hours

for some months, in none of those months did defendants pay contributions for hours in

excess of those actually worked.

4. Plaintiffs seek reimbursement of attorneys' fees at the rate of $225.00 per

hour. Bevington Decl., at ¶6. Plaintiffs present no evidence about counsel's experience

and qualifications in order to support the requested billing rate.

In this instance, the court will take judicial notice of the Supplementary

Declaration of Bruce K. Leigh in Support of Motion for Default Judgment, filed October

13, 2006, in C06-0328 JSW. However, the court ADMONISHES plaintiffs' counsel that

Local Rule 54.6(b)(3) requires a party seeking fees to provide a description of counsel's

"relevant qualifications and experience."

5. Plaintiffs' request for costs includes multiple entries relating to messenger

service and/or process service fees. There appear to be at least two entries for service

on the same date (5/23/06). Moreover, plaintiffs' list of costs indicates that service

attempts were listed for 5/11, 5/19, and 5/23, yet the Proof of Service of Complaint and

Summons indicates that service was attempted in June. Bevington Decl., at Ex. C;

Amended Proof of Service, filed August 7, 2006. Plaintiffs must identify the basis for

each messenger and process server fee for which reimbursement is sought.

6. Exhibits H, I, and K to the Hagan Declaration contain employees' social

security numbers. The court ADMONISHES plaintiffs that individual's social security

numbers should be maintained as confidential records and should be redacted from

public filings. Where such information is necessary to the disposition of the case,

plaintiffs should seek permission to file such confidential information under seal.

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The court ORDERS the Clerk to remove Exhibits H, I and K, from the ECF system

and place them under seal. The court ORDERS plaintiffs to e-file amended versions of

these exhibits with employees' social security numbers redacted.

By November 30, 2006, plaintiffs must file with the court and serve on defendants

additional evidence or argument responsive to the above concerns.

If defendants wish to respond to plaintiffs’ November 30th submissions or

any other matters set forth in plaintiffs’ Motion for Default Judgment, then by

December 13, 2006, defendants must file with the court and serve on plaintiffs a letter

asking the court to grant defendants permission to respond and to set a briefing schedule.

On December 20, 2006, at 1:30 p.m., as previously scheduled, the court will

conduct the hearing in connection with plaintiffs’ Motion for Default Judgment. Any

party wishing to attend may appear at 1301 Clay Street, Courtroom 4, Oakland,

California, 94612.

The Court ORDERS plaintiffs to serve a copy of this Order on defendants

immediately.

IT IS SO ORDERED.

Dated: November 15, 2006

/s/ Wayne D. Brazil 

WAYNE D. BRAZIL

United States Magistrate Judge

Copies to: 

Plaintiffs with direction to serve defendants, 

SBA, wdb, stats, Clerk

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