Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_05-cv-00034/USCOURTS-cand-4_05-cv-00034-3/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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C05-0034 Supplemental Report and Recommendation Page 1 of 4

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

JOSE MORENO, et al.,

Plaintiffs,

v.

FIRE BARRIER, INC, ET AL.,

Defendants.

________________________________/

No. C 05-0034 PJH (JL)

SUPPLEMENTAL

REPORT AND RECOMMENDATION 

RE MOTION FOR DEFAULT

JUDGMENT

(Docket Number 14)

Introduction

The district court (Hon. Phyllis J. Hamilton) referred Plaintiffs’ motion for default

judgment under Rule 55(b) Federal Rules of Civil Procedure to this Court for Report and

Recommendation as provided by 28 U.S.C. § 636(b) and Civil Local Rule 72.

This Court submitted its Report and Recommendation to the district court and

Plaintiffs filed objections. The case was referred to this Court for further findings. Upon

review of the objections, this Court makes the following additional findings, incorporating by

reference its legal analysis in its original Report and Recommendation, and recommends

that the district court grant Plaintiffs’ motion and enter judgment accordingly.

Analysis

Section 502(g) of ERISA, 29 U.S.C. § 1132(g)(2), provides that, when a judgment in

favor of the plan is awarded, the court shall award the plan the amount of the unpaid

Case 4:05-cv-00034-PJH Document 31 Filed 02/08/06 Page 1 of 4
United States District Court

For the Northern District of California

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C05-0034 Supplemental Report and Recommendation Page 2 of 4

contributions, plus interest, liquidated damages, reasonable attorneys’ fees and costs, and

any other legal or equitable relief the court deems appropriate. Interest shall be determined

by using the rate provided under the plan. Liquidated damages shall be calculated as the

greater of an amount equal to interest, or the liquidated damages provided under the plan.

Plaintiffs have proved up damages of $11,295.22 in unpaid contributions for June,

July, August, September and October, 2004, based on the Trust Funds’ Statement of

Contributions Due and Defendants’ own Employer’s Report of Hours (Exs. B and C to John

Hagan Declaration). Plaintiffs’ claim excludes amounts contributed for Contract

Administration and Industry Stabilization. Multiplying the remaining contribution rates as

shown on the Employer’s Reports by the hours reported verifies that the amounts claimed

for known delinquent contributions, as shown on Ex. B to the Hagan Declaration, are

correct. The unpaid contributions are as follows: $2,507.50 for June 2004, $1,355.32 for

July 2004, $3,497.60 for August 2004, $2,186.00 for September 2004 and $1,748.80 for

October 2004. The total is $11,295.22. This is less than $13,543.37, the amount alleged in

the Amended Complaint. The court may award the proved-up amount because it does not

exceed the amount alleged in the Amended Complaint.

Section 28A of the Laborers Master Agreement provides for interest at the rate of

1.5% per month (18% per year) and flat fee liquidated damages of $150.00 for each

delinquent contribution. (Ex. A to Hagan Decl. at p. 9) The Court in its original Report and

Recommendation was concerned about the accuracy of Plaintiffs’ calculation of interest

and liquidated damages on these unpaid contributions. In their Objections, Plaintiffs

advised that the amounts were verified by the calculations in Exhibits D and E to the Hagan

Declaration. 

In Exhibit D, Plaintiffs set forth their claim for unpaid interest and flat fee liquidated

damages charged on contributions that were paid late for the work periods from September

2003 through May 2004. Calculated through November 25, 2004, these amount to

$1,950.00 in flat fee liquidated damages and $879.69 in interest. These amounts are

verified by the liquidated damages calculations attached as Exhibit E to the Hagan

Case 4:05-cv-00034-PJH Document 31 Filed 02/08/06 Page 2 of 4
United States District Court

For the Northern District of California

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C05-0034 Supplemental Report and Recommendation Page 3 of 4

Declaration. Therefore, the Court recommends that the district court award liquidated

damages and interest through November 25, 2004 in the amount of $2,907.06. 

For the $11,295.22 in contributions that remain unpaid for June through October of

2004, Plaintiffs request additional interest from November 25, 2004 to the date of the

judgment. At the rate of 18% per year, interest on $11,295.22 is $2,033.14 per year,

$169.43 per month or $5.57 per day. Consequently, this Court recommends an award to

Plaintiffs for interest due from November 25, 2004 through December 25, 2005 in the

amount of $2,202.59. 

In lieu of the $600.00 in liquidated damages charged for the June, July and August

2004 contributions that remain delinquent (Hagan Decl., Ex. D), Plaintiffs ask the court to

award $2,202.59, an amount equal to interest as provided in 29 U.S.C. §1132(g)(2)(c)(ii).

This amount does not exceed 20% of $11,295.22, the amount of unpaid contributions for

the relevant time period ($11,292.22 x 0.20=$2,259.04). The Court reviewed these

calculations and the statutory basis for them and is satisfied they are accurate. Plaintiffs

advise that if an audit reveals additional unreported hours, then they may seek another

judgment from the court. This Court finds this to be proper as there is no good reason to

delay entering default judgment for the pre-audit amount. (FRCP Rule 54(b)). The court at

this time should grant $2,202.59.

Accordingly, before attorneys’ fees and costs, the amount of the claim proved up is

as follows: 

$11,295.22 unpaid contributions for June, July, August, September and October,

2004; 

$879.69 unpaid interest accrued to November 25, 2004, on contributions due for the

period September 2003 through September 2004; 

$1,950.00 unpaid liquidated damages on contributions due during the period

September 2003 through September 2004; 

Case 4:05-cv-00034-PJH Document 31 Filed 02/08/06 Page 3 of 4
United States District Court

For the Northern District of California

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C05-0034 Supplemental Report and Recommendation Page 4 of 4

$600.00 flat fee liquidated damages charged for June, July, August, and September,

2004 (4 x $150), to be replaced by an award equal to interest pursuant to 29 U.S.C.

§ 1132(g)(2)(c)(ii) ($2,202.59).

The subtotal for amounts due as of November 25, 2004 is $13,524.91. 

Interest on the $11,295.22 in delinquent contributions, at the rate of 1.5% per month

for 13 months, from November 25, 2004 to December 25, 2005 ($169.43 x 13), in

the amount equal to interest per 29 U.S.C. § 1132(g)(2)(c)(ii), is $2,202.59. 

Subtotal before attorneys’ fees and costs of suit is $17,930.09.

 In the original Report and Recommendation, this Court was concerned that Plaintiffs

had miscalculated their attorneys’ fees and costs. Plaintiffs requested $454.56 in costs and

$2,907.06 in attorneys’ fees. (Watson Decl. at 2). The $454.56 correctly reflected the costs

on the Detail Cost Transaction File List submitted by Plaintiffs. (Exhibit A to Watson Dec.).

As to fees, Plaintiffs’ Detail Fee Transaction File List shows a total of $2,452.50. (Exhibit B

to Watson Dec.). The evidence supports total attorney fees and costs in the amount of

$2,907.06 ($454.56 + $2,452.50). 

Plaintiffs in their Objections advised that there was a typing error in paragraph 6 of

the May 25, 2005 Declaration of James P. Watson. The detailed billing statement, attached

to the Watson Declaration as Exhibit B, shows the correct amount of attorneys’ fees, which

is $2,452.50. Exhibit C lists costs of $454.56. 

Adding these attorneys’ fees and costs to the subtotal of $17,930.09, yields a total

judgment amount with interest calculated to December 25, 2005 of $20,837.15.

This Court therefore recommends that the district court order entry of judgment for

Plaintiffs in the amount of $20,837.15.

Respectfully submitted.

DATED: February 8, 2006

__________________________________

JAMES LARSON

 Chief Magistrate Judge

Case 4:05-cv-00034-PJH Document 31 Filed 02/08/06 Page 4 of 4