Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-06163/USCOURTS-cand-4_06-cv-06163-5/pdf.json

Parties Involved:
Board of Trustees of the Laborers Health and Welfare Trust Fund for Northern California
Plaintiff
Board of Trustees of the Laborers Pension Trust Fund for Northern California
Plaintiff
Board of Trustees of the Laborers Training and Retraining Trust Fund for Northern California
Plaintiff
Board of Trustees of the Laborers Vacation-Holiday Trust Fund for Northern California
Plaintiff
CTR Precision Builders
Defendant
Christopher Thomas Rucker
Defendant
Christopher Thomas Rucker, General Contractor
Defendant

Document Text:

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

BOARD OF TRUSTEES OF THE LABORERS

HEALTH AND WELFARE TRUST FUND

FOR NORTHERN CALIFORNIA; BOARD OF

TRUSTEES OF THE LABORERS

VACATION-HOLIDAY TRUST FUND FOR

NORTHERN CALIFORNIA; BOARD OF

TRUSTEES OF THE LABORERS PENSION

TRUST FUND FOR NORTHERN

CALIFORNIA; and BOARD OF TRUSTEES

OF THE LABORERS TRAINING AND

RETRAINING TRUST FUND FOR

NORTHERN CALIFORNIA,

Plaintiffs,

 v.

CHRISTOPHER THOMAS RUCKER,

individually and dba CHRISTOPHER THOMAS

RUCKER, GENERAL CONTRACTOR and

CTR PRECISION BUILDERS,

Defendant. /

No. C-06-06163 PJH (EDL)

REPORT AND RECOMMENDATION

RE: PLAINTIFFS’ MOTION FOR

DEFAULT JUDGMENT

Hearing: July 10, 2007

The hearing on Plaintiff’s Motion for Default Judgment against Defendant Christopher

Thomas Rucker, individually and dba Christopher Thomas Rucker, General Contractor and CTS

Precision Builders (“Defendant”), came on for hearing on July 10, 2007, at 9:00 a.m. in Courtroom

E, 15th Floor, Federal Building, 450 Golden Gate Avenue, San Francisco, California. 94102. 

Defendant did not appear or file any opposition.

On October 2004, CTR Precision Builders, by its General Contractor Christopher Thomas

Rucker, became a signatory to a collective bargaining agreement with the Northern California

District Council of Laborers “Memorandum Agreement.” See Compl. ¶9. Pursuant to the

Case 4:06-cv-06163-PJH Document 29 Filed 07/11/07 Page 1 of 7
United States District Court

For the Northern District of California

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Memorandum Agreement, and predecessor agreements, Rucker agreed to be bound by all provisions

of the Laborers’ Master Agreement For Northern California (“Master Agreement”). See id. By

virtue of the Master Agreement and written trust agreements, Rucker promised and agreed that: (1)

he would pay employee fringe benefit contributions into each Trust Fund in regular monthly

installments commencing on or before the 15th day of each month immediately succeeding the

month in which the employee’s work was performed; (2) that in the event that any of the said

monthly installments were not paid in full on or before the 35th day of the month on which such

contributions became due, he would pay interest on the delinquent contribution in the amount of

1.5% per month until paid in full, and would also pay the amount of $150.00 for each delinquent

contribution as liquidated damages, and not as a penalty; and (3) that if any suit with respect to any

of the said contributions of payments were filed against them, he would pay into said trust funds the

attorneys’ fees, costs, and all other expenses incurred in connection with such suit. See Compl. ¶10. 

The Master Agreement also required that Rucker allow Plaintiffs to examine and copy CTR

Precision Builders’ records and pay for the cost of any audit that reveals more than one thousand

dollars in delinquent contributions. See Article IV, Section 7 of Exhibit E attached to Hagan Decl.

On October 2, 2006, Plaintiffs filed a complaint under Section 502 of the Employee

Retirement Income Security Act of 1974 (29 U.S.C. § 1132) and Section 301 of the LaborManagement Relations Act (29 U.S.C. § 185(a))(“ERISA”), alleging that Defendant Rucker violated

the Master Agreement by failing to make trust fund contributions for each hour worked by covered

laborers and failing to submit to an audit of their books and records as required of them by the

collective bargaining agreement, the written trust agreements, and by provisions of federal law. See

Compl. ¶1. The complaint sought an order compelling Defendant to pay damages for breach of the

collective bargaining agreement in an amount not less than $16,480.23, plus additional accrued

interest and liquidated damages, and other or further amounts. See id. at ¶14. The complaint also

sought an amount not less than $17,660.52, plus additional accrued interest, liquidated damages,

amounts as may be awardable under ERISA 502(g)(2) and that Rucker be compelled to forthwith

submit to an audit of his books and records by Plaintiff’s auditors to verify the precise amount owed

by Defendant. See id. at ¶18-22. 

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United States District Court

For the Northern District of California

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Defendant failed to answer the complaint or otherwise defend the action. On January 12,

2007, upon Plaintiff’s request, the Clerk of this court entered Defendant’s default under Rule 55(a). 

See Fed.R.Civ.P. 55(a). By its default, Defendant is deemed to have admitted the well-pleaded

averments of the complaint except those as to the amount of damages. See Fed.R.Civ.P. 8(d). 

On May 21, 2007, Plaintiffs submitted a Motion for Default Judgment with revised

calculations of requested relief. See Proposed Judgment Against Christopher Thomas Rucker and

CTR Precision Builders (“Proposed Judgment”) at ¶1. Plaintiffs now seek an order compelling

Defendant to pay $35,115.22: $18,513.32 of delinquent contributions; $9,356.02 of interest on

delinquent contributions; $723.54 of liquidated damages and interest on certain contributions paid

belatedly; $6,522.34 of attorneys’ fees and costs. See Exhibit H attached to Hagan Decl. at 1;

Exhibit J attached to Hagan Decl. at 1; Exhibit K attached to Hagan Decl at 1; Proposed Judgment at

¶1. Also, Plaintiff seeks additional interest and associated liquidated damages accruing at the rate

of 1.5% per month, until paid, and a mandatory injunction ordering Defendant to allow a Trust

Funds auditor to come onto Defendant’s premises to conduct an audit of its financial records for the

period from October 6, 2004 through April 31, 2007. See Proposed Judgment at ¶2.

A court may not enter a default judgment against an unrepresented minor, an incompetent

person, or a person in military service. See Fed.R.Civ.P. 55(b)(2). Defendant is not an

unrepresented minor, incompetent, or in the military. See Richman Decl. at ¶4. In accordance with

the Notice of Reference, Time, and Place of Hearing filed on June 14, 2007, any opposition to

Plaintiff’s motion for default judgment was due on or before June 19, 2007. See Plaintiffs’ Reply at

2. No opposition was filed. 

In an action to enforce payment of delinquent contributions, “the court shall award the plan

(A) the unpaid contributions, (B) interest on the unpaid contributions, (C) an amount equal to the

greater of (i) interest on the unpaid contributions or (ii) liquidated damages provided for in the plan

in an amount not in excess of 20 percent . . . of the amount determined by the court under

subparagraph (A), (D) reasonable attorney’s fees and costs . . . .” 29 U.S.C. § 1132(g)(2). An award

under section 1132(g)(2) is appropriate based on the amount of contributions that were delinquent at

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United States District Court

For the Northern District of California

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the time of suit, even if the defendant tendered the unpaid contributions prior to judgment. See

Northwest Adm’rs, Inc. v. Albertson’s, Inc., 104 F.3d 253, 258 (9th Cir. 1996) (“[M]andatory fees

are available under § 1132(g)(2) ‘notwithstanding the defendant's post-suit, pre-judgment payment

of the delinquent contributions themselves.’”) (quoting Carpenters Amended and Restated Health

Benefit Fund v. John W. Ryan Constr. Co., Inc., 767 F.2d 1170, 1175 (5th Cir. 1985)); Idaho

Plumbers & Pipefitters Health & Welfare Fund v. United Mech. Contractors, Inc., 875 F.2d 212,

215-16 (9th Cir. 1989) (“[W]hen (1) the fiduciary obtains a judgment in favor of the plan, (2) unpaid

contributions exist at the time of suit, and (3) the plan provides for liquidated damages,” section

1132(g)(2) is triggered and a liquidated damage award is mandatory) (emphasis in original, citations

omitted); see also Iron Workers Dist. Council v. Hudson Steel Fabricators & Erectors, Inc., 68 F.3d

1502, 1507 (2nd Cir. 1995) (“[T]he amount of an award of interest or liquidated damages should

logically be predicated upon the amount of the unpaid contributions originally at issue, whether or

not outstanding at the time of judgment, since that amount correctly measures the damage caused by

the delinquency.”). The Court therefore can award unpaid contributions, as well as liquidated

damages and interest on both unpaid contributions and the ones that Defendant paid belatedly. Id.

Plaintiffs have the burden of proving their damages through testimony or written affidavit. To

prove their damages, Plaintiffs submitted the declarations of Ronald Richman, Plaintiffs’ counsel,

and of John Hagan, the manager of the Accounts Receivable Department of the Laborers Funds

Administrative Office of Northern California, Inc., which provides administrative services to the

plaintiff trust funds. Mr. Hagan examined the trust fund records as of May 21, 2007 and determined

that Rucker owed benefit contributions for a number of months to the Laborers Trust Funds. See

Hagan Decl. at ¶¶ 18-20. He determined that the minimum amount of contributions Defendants owed

totaled $24,664.77 plus reasonable attorney’s costs and fees, as follows: $18,513.22 in delinquent

contributions; $4,678.01 in interest on delinquent contributions; $750.00 of contractual liquidated

damages on delinquent contributions; and $723.54 of liquidated damages and interest on certain

contributions paid belatedly. See Hagan Decl. at ¶¶ 21-24. Accordingly, Plaintiffs state in their

Reply that they seek to recover $18,513.32 in delinquent contributions pursuant to 29 U.S.C.

§1132(g)(2)(A); $4,678.01 in interest on delinquent contributions pursuant to 29 U.S.C.

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United States District Court

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 §1132(g)(2)(B); $4,678.01 in additional interest pursuant to 29 U.S.C. § 1132(g)(2)(C) (providing

for damages in an amount equal to the greater of (i) interest on the unpaid contributions, or (ii)

liquidated damages provided for the Plan in an amount not in excess of 20 percent (or such higher

percentage as may be permitted under Federal or State law) of the amount determined by the court

under subparagraph (A)); and $723.54 of liquidated damages and interest on certain contributions

paid belatedly. See Plaintiffs’ Reply at 2; Hagan Decl. at ¶¶ 21-26. The amount of $18,513.32

appears to be a typographical error: the submissions indicate that delinquent contributions totaled

$18,513.22 and not $18,513.32. See Exhibit H attached to Hagan Decl. at 1.

The Master Agreement provides that an employer who is in default will pay “reasonable

attorneys fees, court costs and all other reasonable expenses incurred in connection” with a suit to

collect delinquent contributions. See Exhibit D attached to Hagan Decl. at 2. Plaintiffs have

submitted the May 21, 2007 declaration of attorney Ronald Richman to prove attorneys’ fees and

costs of $4,685.78. Mr. Richman calculates that he, along with other members of his firm, spent 20.8

hours at the rate of $225.00 per hour prosecuting this action, for a subtotal of $4,680.00 of attorneys’

fees incurred in prosecuting this action. See Richman Decl. at ¶5. Mr. Richman also declared $5.78

of costs. Id. In addition, original counsel for Plaintiffs Trust funds charged attorneys’ fees and costs

for this lawsuit in the amount of $1,836.56. See Exhibit L attached to Hagan Decl. at 9. Plaintiff’s

total attorneys’ fees and costs were $6,522.34 as of June 22, 2007. See Richman Decl. at ¶5; Hagan

Decl. at ¶ 25.

Plaintiffs also seek injunctive relief in the form of an order requiring Defendant to submit to

an audit of CTR Precision Builders’ financial records by an auditor of Plaintiffs’ choice. Id. The

Master Agreement provides for an audit of signatory employers. See Exhibit E attached to Hagan

Decl. at 2. Plaintiffs have demanded that Defendant submit to an audit and he has not complied. See

Compl. at ¶22. Plaintiff seeks auditor access to “such books, records, papers and reports of defendant

that are relevant to the enforcement of the collective bargaining agreement and Trust Agreements,”

including, but not limited to, the following for the period of October 6, 2004 through the present:

//

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United States District Court

For the Northern District of California

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Individual Earnings Records; federal tax forms W-3/W-2 and 1069.1099; reporting

forms for all Trust Funds, State DE-3/DE-6 Tax Reports; Workers’ Compensation

insurance; employee time cards; payroll registers/journals; quarterly payroll tax

returns (Form 941); check register and supporting cash vouchers; forms 1120, 1040 or

partnership tax returns; general ledger; source records, including time cards and time

card summaries for all employees; certified payroll reports; personnel records

indicating job classifications and hire/termination dates; cash disbursement journal;

vendor invoices; copies of subcontract agreements; cash receipts journal; job cost

records; records of related entities; and any other books and records that may be

necessary to complete the auditor’s determination or provide additional explanation of

defendant’s financial records.

See Proposed Judgment at ¶2. As Defendant is contractually obligated to submit to an audit, and as

he has not submitted to such an audit, Plaintiffs have demonstrated that injunctive relief is

appropriate. 

For the foregoing reasons, the Court recommends as injunctive relief that judgment be entered

compelling Defendant to permit a Trust Funds auditor to come onto Defendant’s premises and to

submit to an audit of Defendant’s financial records for the period from October 6, 2004 through April

30, 2007, for the purpose of determining the amount of fringe benefit contributions owed, and that

Defendant be ordered to provide relevant records requested by the auditor as set forth above.

In addition, the court recommends that judgment be entered in Plaintiffs’ favor for

$35,115.12: $18,513.22 in delinquent contributions; $9,356.02 in interest on those delinquent

contributions; $723.54 in liquidated damages and interest on certain contributions that Defendant

paid belatedly; $6,522.34 in attorneys’ fees and costs. Post-judgment interest thereon will accrue at

1.5% per month until judgment is fully satisfied. See Section 28A of the Laborers Master

Agreement; Trust Agreement Article IV § 3. The Court also recommends that the district court

reserve jurisdiction of the parties and the subject matter to enforce the injunction and to entertain a

motion for a further money judgment, should the audit disclose additional amounts that may be owed

by Defendant to the Trust Funds.

//

//

//

//

Case 4:06-cv-06163-PJH Document 29 Filed 07/11/07 Page 6 of 7
United States District Court

For the Northern District of California

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Any party may serve and file specific written objections to this recommendation within ten

(10) working days after being served with a copy. See 28 U.S.C. § 636 (b)(1)(C); Fed.R.Civ.P. 72

(b); Civil Local Rule 72-3. Failure to file objections within the specified time may waive the right to

appeal the District Court’s order.

IT IS SO RECOMMENDED.

Dated: July 11, 2007 

ELIZABETH D. LAPORTE

United States Magistrate Judge

Case 4:06-cv-06163-PJH Document 29 Filed 07/11/07 Page 7 of 7