Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_04-cv-04581/USCOURTS-cand-3_04-cv-04581-0/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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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

GIL CROSTHWAITE, JOHN BONILLA, in

their respective capacities as trustees of the

OPERATING ENGINEERS HEALTH AND

WELFARE TRUST FUND FOR NORTHERN

CALIFORNIA, et al.,

Plaintiffs,

 v.

ANTHONY KENNETH BARBARIA,

individually and doing business as AKB

GRADING,

Defendant.

 /

No. C-04-4581 MMC

ORDER GRANTING PLAINTIFFS’

MOTION FOR DEFAULT JUDGMENT;

VACATING HEARING

(Docket No. 10)

Before the Court is the motion for default judgment against defendant Anthony

Kenneth Barbaria, individually and doing business as AKB Grading (“Barbaria”), filed April

19, 2005 by plaintiffs Gil Crosthwaite, John Bonilla, in their respective capacities as

trustees of the Operating Engineers Health and Welfare Trust Fund for Northern California;

Pension Trust Fund for Operating Engineers; Pensioned Operating Engineers Health and

Welfare Fund; Operating Engineers and Participating Employers Pre-Apprenticeship,

Apprentice and Journeymen Affirmative Action Training Fund; Operating Engineers

Vacation and Holiday Plan; Operating Engineers Contract Administration Trust Fund;

Operating Engineers Market Preservation Trust Fund; Operating Engineers Industry

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Stabilization Trust Fund; Business Development Trust Fund; and Heavy and Highway

Committee (“Trust Funds”). No opposition has been filed. Having read and considered the

papers filed in support of the motion, the Court finds the matter appropriate for resolution

without oral argument, and hereby VACATES the May 27, 2005 hearing. For the reasons

set forth below, the motion is GRANTED.

 BACKGROUND

Barbaria and Operating Engineers Local Union No. 3 entered into a collective

bargaining agreement titled “Independent Northern California Construction Agreement”

("Collective Bargaining Agreement"). (See Declaration of Wayne E. McBride (“McBride

Decl.”) ¶ 3 and Ex. A (Collective Bargaining Agreement).) The Collective Bargaining

Agreement incorporates the terms of the Operating Engineers’ Master Agreement for

Northern California (“Master Agreement”). (See McBride Decl. Ex. A § 2 and Ex. B (Master

Agreement).) According to the terms of the Master Agreement, Barbaria agreed to pay

certain contributions into the Trust Funds. (See McBride Decl. Ex. B § 12.00.00.) In the

event of delinquent contributions, the Master Agreement provides for payment of liquidated

damages, interest, and attorneys’ fees and costs. (See id. §§ 12.13.00-.02.)

The Trust Funds allege in their complaint that Barbaria failed and refused to pay the

amounts due to the Trust Funds for the period February 2004 through March 2004. The

Trust Funds seek damages for delinquent contributions, liquidated damages, and interest,

as well as court costs and attorneys’ fees.

Barbaria failed to answer the Trust Funds' complaint. The Trust Funds applied for

entry of default, which the Clerk of the Court entered on January 24, 2005. The Trust

Funds now move for default judgment.

LEGAL STANDARD

Pursuant to Rule 55(b) of the Federal Rules of Civil Procedure, entry of default does

not automatically entitle plaintiff to a judgment. Fed. R. Civ. P. 55(b)(2). A decision to

grant or deny default judgment lies within the court’s sound discretion. See Aldabe v.

Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). “The general rule of law is that upon default

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the factual allegations of the complaint, except those relating to the amount of damages,

will be taken as true.” Televideo Systems, Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th

Cir. 1987) (quoting Geddes v. United Financial Group, 559 F.2d 557, 560 (9th Cir. 1977)). 

In addition, “[a] judgment by default shall not be different from or exceed in amount that

prayed for in the demand for judgment.” Fed. R. Civ. P. 54(c). The Court may hold such

hearings as it deems necessary in order to determine the amount of damages, to establish

the truth of any averment by evidence, or to make an investigation of any other matter

necessary in order to enable the Court to enter judgment or to carry it into effect. See Fed.

R. Civ. P. 55(b)(2).

The Court may deny a motion for default judgment where it determines no

meritorious claim has been alleged. See Aldabe, 616 F.2d at 1092-93. Although wellpleaded allegations in the complaint are admitted by the defendant’s failure to respond, a

default does not admit allegations that are mere conclusions of law. See Nishimatsu

Construction Co. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975). “Necessary

facts not contained in the pleadings, and claims which are legally insufficient, are not

established by default.” Cripps v. Life Ins. Co. of No. America, 980 F.2d 1261, 1267 (9th

Cir. 1992). Accordingly, if the complaint omits allegations essential to recovery, a default

judgment cannot stand. See Nishimatsu, 515 F.2d at 1206. 

DISCUSSION

1. Delinquent Contributions and Liquidated Damages

The Trust Funds seek an award of $6005.25 in delinquent contributions and $973.48

in liquidated damages. In support of this claim, the Trust Funds submit a declaration from

Wayne E. McBride, Collections Manager for the Operating Engineers Local Union No. 3

Trust Funds. As set forth in his declaration, McBride oversees payment of employer

contributions pursuant to collective bargaining agreements and trust agreements, and is

familiar with internal accounting reports regarding delinquent contributions owed by

employers under collective bargaining agreements. (See McBride Decl. ¶ 1.) McBride

attests that in the course of his duties as Collections Manager, he has obtained personal

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knowledge of Barbaria’s account. (See id.) 

a. Delinquent Contributions

 McBride identifies the sections of the Master Agreement wherein Barbaria is

required to make monthly payments to the funds on behalf of the covered employees. 

(See McBride Decl. ¶¶ 3-4 and Exs. A and B §§ 12.00.00 et seq.) McBride also identifies

the sections of the Master Agreement providing for attorneys' fees and court costs in the

event of suit. (See id. ¶ 10 and Exs A and B § 12.13.02.) McBride attaches a copy of his

computations of the contributions, liquidated damages, and interest owed by Barbaria. 

(See McBride Decl. ¶ 8 and Ex. D.) McBride attests that the contributions due are based

upon the fringe benefit reporting submitted by and on behalf of AKB Grading for the period

of February 2004 through March 2004. (See id. ¶ 9.)

The Court finds McBride's declaration provides sufficient evidentiary support for the

Trust Funds’ claim for $6005.25 in delinquent contributions. 

b. Liquidated Damages

 The Master Agreement provides that the Trust Funds shall receive liquidated

damages of either thirty-five dollars ($35) or fifteen percent (15%) of the delinquent

contributions, whichever is greater, for each failure to pay in full within the time provided. 

(See McBride Decl. Ex. B § 12.13.00.) McBride attests that the Trust Funds are entitled to

$973.48 in liquidated damages. (See McBride Decl. Ex. D.) That amount, however, is not

15% of the $6005.25 in delinquent contributions. The correct amount is $900.79, which is

15% of $6005.25 (15% of $2509.20 for February 2004 plus 15% of $3496.05 for March

2004). (See id.) 

The Court finds sufficient evidentiary support for an award of liquidated damages in

the amount of $900.79. 

2. Interest

The Master Agreement provides that the sum of the delinquent contributions and

liquidated damages due shall bear interest at the rate of twelve percent (12%) per annum

until paid, beginning on the date immediately following the date on which the employer

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becomes delinquent. (See McBride Decl. Ex. B § 12.13.00.) The Master Agreement also

states that an employer is delinquent if payment is not received by the 25th day of the

month following the month in which an employee performed work covered by the Master

Agreement. (See id. § 12.01.00.) 

Barbaria failed to pay contributions in February 2004 and March 2004. (See id.) 

Interest started accruing March 26, 2004 on $2885.58, which is the sum of delinquent

contributions and liquidated damages for the month of February. There are 416 days from

March 26, 2004 to May 16, 2005. Thus, the total interest on the February 2004 delinquent

contributions is $394.65. Interest started accruing April 26, 2004 on $4020.46, which is the

sum of delinquent contributions and liquidated damages for the month of March. There are

385 days from April 26, 2004 to May 16, 2005. Thus, the total interest on the March 2004

delinquent contributions is $508.89. 

The Court finds sufficient evidentiary support for an award of interest in the amount

of $903.54 through May 16, 2005, and an additional $2.27 per day until paid.

3. Attorneys' Fees and Costs

The Master Agreement further provides for an award of reasonable attorneys' fees

and court costs incurred by the Trust Funds in collecting delinquent contributions. (See

McBride Decl. Ex. B § 12.13.02.) The Trust Funds submit the declaration of Tracy L.

Mainguy, attorney for the Trust Funds, in support of their claim for fees and costs. 

According to that declaration, Mainguy performed services totaling $1622.50, for reviewing,

preparing, and drafting documents, calculated at a billing rate of $150.00 per hour. (See

Mainguy Decl. ¶ 2-3.) Mainguy also expended $229.50 in costs for filing the complaint and

for service of process. (See id. ¶ 4.) 

The Court finds both the billing rate of $150.00 per hour and the work performed to

be reasonable, and finds sufficient evidentiary support for an award of attorneys’ fees in the

amount of $1622.50 and costs in the amount of $229.50. 

CONCLUSION

For the reasons set forth above, plaintiffs’ motion for default judgment is hereby

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GRANTED, and judgment shall be entered against Barbaria in the amount of $6,005.25 in

delinquent contributions, $900.79 in liquidated damages, $903.54 in interest through

May 16, 2005, $1622.50 in attorneys' fees, and $229.50 in costs, for a total award of

$9661.58. Interest shall continue to accrue at $2.27 per day, from May 16, 2005 until the

judgment is paid.

The Clerk shall close the file.

IT IS SO ORDERED.

Dated: May 16, 2005 

/s/ Maxine M. Chesney 

MAXINE M. CHESNEY

United States District Judge

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