Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_06-cv-01860/USCOURTS-caed-1_06-cv-01860-0/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1132 E.R.I.S.A.-Employee Benefits

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IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

BOARD OF TRUSTEES of IBEW LOCAL

UNION NO. 100 PENSION TRUST FUND;

IBEW LOCAL UNION NO. 11 HEALTH 

AND WELFARE TRUST FUND; JOINT

ELECTRICAL INDUSTRY TRAINING TRUST

FUND; NATIONAL ELECTRICAL BENEFIT

FUND; and BOARD OF TRUSTEES OF IBEW

DISTRICT NO. 9 PENSION PLAN TRUST FUND,

Plaintiffs, CV F 06 1860 AWI WMW P 

vs. ORDER GRANTING INTERIM

ACCOUNTING AND AUDIT

(DOCUMENTS 11, 12)

ELIJAH ELECTRIC, INC,

Defendant.

Plaintiffs filed their complaint on December 21, 2006, seeking an accounting as well as

damages for breach of a collective bargaining agreement. Defendant failed to file a responsive

pleading within the time permitted by the rules of civil procedure. Default was entered by the

Clerk of Court on March 12, 2007. 

The complaint seeks an accounting of the books and records of Defendant Elijah Electric,

Inc. The IBEW Local Union No. 100 Pension Trust Agreement, IBEW Local Union No. 100

Health and Welfare Trust Agreement and the IBEW District No. 9 Trust Agreement,

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 The declaration of Andrew Slater, counsel for Plaintiffs, is attached to the application for 1

an interim order.

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(collectively, Trust Agreements) by their terms authorize the Trustees to conduct an

audit/accounting of the payroll books and records of Elijah and to examine any and all reports

and returns made by Elijah to any governmental agency concerning time worked and/or

compensation paid employees to perform work covered by the Collective Bargaining

Agreement.1

Plaintiffs request an order pursuant to Federal Rule of Civil Procedure 55(b) compelling

Elijah to submit to an audit and accounting of Elijah’s payroll books and records of each

employee performing work covered by the Collective Bargaining Agreement. Plaintiffs also

seek an order allowing an examination of all reports and returns made by Elijah to any

governmental agency concerning time worked and compensation paid to employees who

perform work covered by the Collective Bargaining Agreement. 

Rule 55(b)(2) provides, in pertinent part:

 If, in order to enable the court to enter judgment or carry it into

effect, it is necessary to take an account or to determine the amount

of damages or to establish the truth of any averment by evidence or

to make an investigation or any other matter, the court may

conduct such hearings or order such references as it deems

necessary and proper...

Rule 55(b)(2) provides for much discretion in determining when it is

 “necessary and proper” to hold and inquest on damages. Tamarin v. Adamer Caterers, Incl., 13

F.3d 51 (1993). The amount of damages may be fixed by accounting methods. Kelley v. Carr,

567 F.Supp.831, 841 (W.D. Mich. 1983). The court in Tamarin noted that an inquiry on

damages is not necessary when the court is “inundated with affidavits, evidence or presentations

by opposing counsel.” Tamarin, 13 F.3d at 53. Here, Plaintiff’s counsel indicates that they can

only estimate the amount of damages, but the requirement for a default judgment needs to be

accurate. Plaintiffs specifically pled for the amount of damages from September

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2006 to the present, and requested an accounting in their complaint, putting Defendant on

notice. The complaint indicates that in addition to the damages from January 1, 2004 to

December 31, 2005, Elijah was also delinquent on paying benefit contributions for the

period from September 2006 to the present. 

Plaintiffs also seek an accounting on the second claim for relief. The trust

agreements authorized the Trustees to conduct an “audit/accounting examination of the

payroll books and records of each employee and, further, to examine any and all reports

and returns made by the Employer to any governmental agency concerning time worked

and/or compensation paid employees to perform work covered by the Collective

Bargaining Agreement.” 

Plaintiff’s correctly noted that they are entitled to not only the amounts actually

stated and ascertained, but also to additional damages that Plaintiffs prayed for in their

complaint. Henry v. Sneiders, 490 F.2d 315 (9 Cir. 1974). The Trust Funds also

th

requested additional damages that it was not able to ascertain earlier without an

accounting. Plaintiffs prayed as follows in the complaint: 

Plaintiffs PENSION TRUST, H&W TRUST, JOINT

TRAINING FUND, NEBF, VACATION FUND and

DISTRICT NO. 9 PENSION seek an order for an accounting

from January 1, 2004, to the date of entry of judgment to

determine the amount of fringe benefit contributions Elijah

owes said PENSION TRUST, H&W TRUST, JOINT

TRAINING FUND, NEBF, VACATION FUND and

DISTRICT NO. 9 PENSION ... WHEREFORE, Plaintiff’s

pray for judgment against defendant ELIJAH as follows: For

general damages of the unpaid contributions to all TRUST

FUNDS and the VACATION FUNDS, except the DISTRICT

NO. 9 PENSION, for the period of September 2006 to the

present in an amount to be proven at trial together with

interest at ten percent (10%) per annum thereon from the date

the contributions became due.”

This statement put defendants on notice of additional damages, and that Plaintiffs

were not only praying for already ascertained damages, but also for damages owed but yet

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to be ascertained.

Further, Plaintiffs noted that as stated in the complaint, the trust agreements

incorporated into the Collective Bargaining Agreements and signed by Elijah authorize the

trustees to conduct audits of employers for purposes of determining compliance and

require employers to submit to such audits. 

Accordingly, IT IS HEREBY ORDERED that Plaintiff’s motion to compel an

interim accounting and audit is granted. Defendant Elijah Electric, Inc., shall submit to an

audit and or accounting to that Plaintiffs can ascertain the amount of fringe benefit

contributions Elijah owes to Plaintiffs. 

IT IS SO ORDERED.

Dated: July 27, 2007 /s/ William M. Wunderlich 

mmkd34 UNITED STATES MAGISTRATE JUDGE

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