Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-01491/USCOURTS-cand-3_07-cv-01491-0/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:185 Employee Pension Plan

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United States District Court

For the Northern District of California

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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, et al., as Trustees of

the OPERATING ENGINEERS HEALTH

AND WELFARE TRUST FUND FOR

NORTHERN CALIFORNIA, et al.,

Plaintiffs,

 v.

FREEWAY ELECTRIC, INC., DAVID

WILLIAM SCHAFHIRT, and WESTERN

SURETY COMPANY,

Defendants. /

No. C 07-1491 CRB

ORDER GRANTING MOTION FOR

DEFAULT JUDGMENT

This is an ERISA action for unpaid contributions to a union trust fund. Now before

the Court is plaintiffs’ motion for default judgment. Defendants have not responded to

plaintiffs’ motion. After carefully considering the papers filed by plaintiffs, the Court

concludes that oral argument is unnecessary, see Local Rule 7-1(b), and GRANTS the

motion for default judgment.

BACKGROUND

In March 2007, plaintiffs filed this ERISA action to recover unpaid contributions

owed for the period November 2005 through February 2007, as well as contributions found

due on an audit for the months of December 2004 through July 2006, plus liquidated

damages, interest, and attorneys’ fees and costs. After the lawsuit was filed, plaintiffs 

Case 3:07-cv-01491-CRB Document 30 Filed 11/27/07 Page 1 of 3
United States District Court

For the Northern District of California

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conducted a second audit and now seek additional unpaid contributions for the period August

2006 through April 15, 2007. Defendants were served with the complaint, but failed to

answer or otherwise communicate with the Court. Default against all defendants was entered

on September 7, 2007. Plaintiffs now move for a default judgment. 

The evidence establishes that defendants have failed to make contributions, plus

liquidated damages, interest and fees and costs in the total amount of $2,130.72 arising out of

the audit for the months of December 2004 through July 2006. A second audit reviewing the

months of August 2006 through April 15, 2007 revealed that defendants owe contributions,

liquidated damages, interest and fees and costs in the total amount of $14,842.65. The record

also establishes that defendants owe plaintiffs $42,311.47 for reported but unpaid

contributions, liquidated damages, and interest for several months between November 2005

and February 2007. Plaintiffs have also submitted evidence that they have incurred

attorneys’ fees and costs in the total amount of $6,235.80.

DISCUSSION

ERISA provides that

[e]very employer who is obligated to make contributions to a multiemployer

plan under the terms of a collectively bargained agreement shall to the extent

not inconsistent with law, make such contributions in accordance with the

terms and conditions of such plan or such agreement.

29 U.S.C. § 1145. ERISA also authorizes an award of interest on delinquent and unpaid

contributions, as well as liquidated damages and attorneys’ fees and costs in an action for

collection of contributions. See 29 U.S.C. § 1132(g). In the Ninth Circuit, to qualify for an

award of statutory liquidated damages, unpaid contributions must exist at the time the lawsuit

was filed. See Idaho Plumbers & Pipe Fitters Health and Welfare Fund v. United

Mechanical Contractors, Inc., 875 F.2d 212, 215 (9th Cir. 1989). This requirement is

satisfied here.

As the allegations of the complaint are accepted as true, and as the evidence

establishes that defendants owe plaintiffs a sum certain, plaintiffs’ motion for a default

judgment is GRANTED in the total amount of $65,520.64. Defendants are ordered further to

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G:\CRBALL\2007\1491\ordergrantingdefaultjudgment.wpd 3

pay plaintiffs interest on the above amount at the rate of 12 percent from October 11, 2007 to

the date of defendants’ satisfaction of the award. Judgment will be entered and 

the case management conference scheduled for November 30, 2007 is accordingly vacated. 

IT IS SO ORDERED.

Dated: November 27, 2007 

CHARLES R. BREYER

UNITED STATES DISTRICT JUDGE

Case 3:07-cv-01491-CRB Document 30 Filed 11/27/07 Page 3 of 3