Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-01518/USCOURTS-cand-4_06-cv-01518-1/pdf.json

Parties Involved:
Italian French Baking Company
Defendant
Northwest Administrators, Inc.
Plaintiff

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

NORTHWEST ADMINISTRATORS, INC., 

Plaintiff,

 v.

ITALIAN FRENCH BAKING COMPANY,

Defendant. /

No. C-06-01518 CW (EDL)

REPORT AND RECOMMENDATION

RE: PLAINTIFFS’ MOTION FOR

DEFAULT JUDGMENT

I. INTRODUCTION

On February 27, 2006, Plaintiff filed a complaint under Section 502 of the Employee

Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1132, and Section 301(c)(1) of the

Labor-Management Relations Act, 29 U.S.C. § 185(a). Plaintiff alleged that Defendant, a California

corporation, violated a collective bargaining agreement and certain Trust Agreements, by failing to

make regular, timely contributions to the Western Conference of Teamsters Pension Trust Fund

(“Trust Fund”), which Plaintiff administers. The complaint, brought by Plaintiff on behalf of the

Trustees of the Trust Fund (“Trustees”), sought payment of delinquent contributions, liquidated

damages, interest, costs, attorney’s fees and injunctive relief.

On March 22, 2006, Defendant was served with the complaint. Defendant failed to answer

the complaint or otherwise defend the action. On May 5, 2006, upon Plaintiffs’ request, the Clerk of

this court entered Defendant’s default under Federal Rule of Civil Procedure 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). 

Case 4:06-cv-01518-CW Document 20 Filed 08/15/06 Page 1 of 4
United States District Court

For the Northern District of California

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Plaintiffs’ Motion for Default Judgment was referred to this Court pursuant to Civil Local

Rule 72-1. The Court held a hearing on Plaintiffs’ Motion for Default Judgment and Attorney’s

Fees on August 15, 2006. Plaintiff appeared at the hearing through counsel Michael J. Carroll. 

Defendant did not appear for the hearing.

II. DISCUSSION

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); 50 App. U.S.C. § 520. As a

corporation, Defendant is not a unrepresented minor, an incompetent person or person in military

service, or otherwise exempted from default judgment. See Mem. of P. & A. in Supp. of Pl.’s Mot.

for Default J. (“Pl.’s Mem.”) 2. 

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) . . . (ii) liquidated

damages provided for under 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 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), (quoting Carpenters Amended and Restated Health Benefit Fund v. John W. Ryan

Constr. Co., Inc., 767 F.2d 1170, 1175 (5th Cir. 1985)) (“[M]andatory fees are available under §

1132(g)(2) ‘notwithstanding the defendant's post-suit, pre-judgment payment of the delinquent

contributions themselves’”); Idaho Plumbers & Pipefitters Health & Welfare Fund v. United

Mechanical 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.).

a. Damages

Plaintiffs have the burden of proving their entitlement to relief through testimony or written

affidavit. Plaintiffs met that burden through the declarations of: Walt Pentz, Manager of Northwest

Case 4:06-cv-01518-CW Document 20 Filed 08/15/06 Page 2 of 4
United States District Court

For the Northern District of California

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Administrators, Inc. and custodian of records of the Trust Fund relating to Defendant; Diane

Andrade, manager of the trust fund delinquency collection department of the law firm of Erskine &

Tulley and custodian of the records relating to the defendant’s obligation to the Trust Fund; and

Michael Carroll, Plaintiffs’ counsel. The evidence establishes that, as of the signature date of

February 5, 2001, Defendant was bound by the terms and conditions of the Italian French Baking

Company Northern California Bakery Wagon Drivers and Related Classifications Area Agreement

(“Collective Bargaining Agreement”), for the term of October 1, 2000 through September 30, 2005. 

See Pentz Decl. ¶ 2, Ex. 1; Compl. ¶ 4. Defendant is also subject to the provisions of the Western

Conference of Teamsters Agreement and Declaration of Trust (“Trust Agreement”). See Pentz

Decl. ¶ 4, Exs. 2-3; see also Compl. ¶¶ 2, 4. The Collective Bargaining Agreement remains in full

force and effect. See Pentz Decl. ¶ 3. Defendant has acknowledged that it is bound by the

Collective Bargaining Agreement by adhering to its terms and conditions, including payment of trust

fund contributions to Plaintiffs. Id.

From November 2005 through June 2006, Defendant did not timely pay its contributions to

the Trust Fund. See Andrade Decl. ¶ 3, Ex. 5; Andrade Supp. Decl. ¶ 3, Ex. 8; Compl. ¶ 7. 

Plaintiffs calculate the delinquent contributions, taking into account recently paid overdue

contributions from November 2005 through April 2006, to total $4,292.48. Andrade Supp. Decl.

Ex. 8.

b. Liquidated Damages and Interest

Plaintiff requests liquidated damages in the amount of $3,477.73 and interest in the amount

of $247.06. See Andrade Decl. ¶ ¶ 4-5, Ex. 5; Andrade Supp. Decl. Ex. 8. The Trust Agreement

provides for liquidated damages in the amount of 20% of the contribution amount and interest at 7%

from the due date to the payment date or to August 1, 2006, if the contributions remain unpaid. See

Andrade Decl. ¶ 4; Andrade Supp. Decl. ¶ 5, Ex. 8; See also Pentz Decl. Ex. 3 at Art. IV, Section 3

of the Trust Agreement. Both the Trust Agreement and Section 1132(g)(2) provide for an award of

interest on unpaid contributions. Accordingly, liquidated damages and interest should be awarded in

the total amount of $3,724.79. 

//

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United States District Court

For the Northern District of California

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c. Attorney’s Fees and Costs

 Reasonable attorney’s fees and costs of action shall be awarded to a Trust Fund or Employee

Benefit Plan that receives a judgment in its favor. See 29 U.S.C. § 1132(g)(2)(D); Pentz Decl. Ex. 3

at Art. IV, Section 3. Plaintiffs have submitted the declaration of attorney Michael Carroll to prove

attorney’s fees and costs. Mr. Carroll calculates that, at a rate of $180.00 per hour, attorneys’ fees of

$720.00 have accumulated. See Carroll Decl. at ¶ 5. The amount of time expended and the billing

rate are reasonable given the work performed. 

Mr. Carroll calculates Plaintiffs’ costs for prosecuting this action to be $375.00, consisting of

the filing fee, the fee for service of process and the fee for service of a subpoena and notice of taking

deposition. See Carroll Decl. at ¶ 2. These costs are reasonable and should be reimbursed.

III. CONCLUSION

For the reasons set forth above, and for good cause shown, It Is Hereby Recommended that

the following default judgment be entered:

This Court having previously entered default against Defendants, and

Plaintiffs having applied to this Court for the entry of default judgment,

IT IS ORDERED that:

1. Damages are awarded against Defendants in the amount of $4,292.48;

2. Liquidated damages and interest are awarded in the amount of $3,724.79;

3. Attorneys’ fees and costs are awarded in the amount of $720.00 in attorney’s fees,

and $375.00 in costs.

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.

Dated: August 15, 2006 

ELIZABETH D. LAPORTE

United States Magistrate Judge

Case 4:06-cv-01518-CW Document 20 Filed 08/15/06 Page 4 of 4