United States District Court, S.D. Ohio, Western Division, Dayton
IRON WORKERS DISTRICT COUNCIL OF SOUTHERN OHIO & VICINITY BENEFIT TRUST, et al., Plaintiffs,
MILLENNIUM STEEL, INC., Defendant.
L. OVINGTON MAGISTRATE JUDGE.
ORDER GRANTING MOTION FOR DEFAULT JUDGMENT
M. ROSE UNITED STATES DISTRICT JUDGE.
this Court, Plaintiffs Iron Workers District Council of
Southern Ohio & Vicinity Benefit Trust, Iron Workers
District Council of Southern Ohio & Vicinity Pension
Trust, Iron Workers District Council of Southern Ohio &
Vicinity Annuity Trust (collectively “Trusts” or
“Plaintiffs”) submitted a Motion for Default
Judgment against the Defendant Millennium Steel, Inc.
(“Millennium”). This Court now grants the
Plaintiffs' Motion for Default Judgment pursuant to 55(b)
of the Federal Rules of Civil Procedure against Defendant
Millennium in its entirety.
Trusts are three employee welfare and pension benefit plans.
Aff. of Peggy Gotthardt ¶¶ 5-10. Defendant
Millennium is bound to the terms of the collective bargaining
agreement (“CBA”) with Iron Workers Local No. 22,
Indianapolis, Indiana and Iron Workers Local No. 70,
Louisville, Kentucky. ECF #1, ¶ 14, Complaint. Defendant
Millennium executed a participation agreement
(“Participation Agreement”) on April 2, 2001
which bound it to the Plaintiffs' Agreements and
Declarations of Trust (“Trust Agreements”).
Id. at ¶¶ 18-19. Pursuant to the Trust
Agreements, Millennium is required to allow the Trusts'
authorized agent access to its payroll records for the
purpose of a payroll audit. Id. at ¶ 17. After
refusing to undergo an audit which caused the Plaintiffs to
file this action, Defendant Millennium finally succumbed to
the Plaintiffs' insistence and on or around September 30,
2016, an audit was performed by the Plaintiffs' auditors,
Clark Schaefer Hackett (“Audit”). Aff. of Peggy
Gotthardt ¶ 19. The Audit found Defendant Millennium
owed $235, 361.43 in unpaid fringe benefit contributions, and
the Trusts' have calculated Defendant Millennium owes
$48, 024.09 in liquidated damages, $48, 896.79 in interest
assessments from those contributions. Id. at
¶¶ 21-27. Additionally, pursuant to the Trust
Agreements, Defendant Millennium has met the shortage
threshold necessary to be liable for the costs of the audit,
making it liable thereof, in the amount of $5, 420.00.
Id. at ¶ 28. Defendant Millennium has failed to
timely fulfill its contribution obligation in violation of
the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), and is liable for the
Trusts' reasonable attorneys' fees pursuant to
Section 502(g) of ERISA. 29 U.S.C. § 1132(g) in the
amount of $8, 863.86. Id. at ¶ 29.
13, 2016, Plaintiffs filed the Complaint to compel an audit
and collect all amounts discovered owing against Defendant.
ECF #1, Complaint. On July 14, 2016, the summons was issued
by this Court. ECF # 2, Summonses. On or around July 19,
2016-but no later than July 21, 2016 when the certified mail
receipt was received by this law firm-service was executed on
Defendant. ECF # 3, Summonses Returned Executed. Defendant
had twenty-four (24) days after service was executed to
answer the Complaint pursuant to Rules 6(d) and 12(a)(1)(A)
of the Federal Rules of Civil Procedure, meaning their Answer
was due August 15, 2016. As of this date, no answer, motion,
or responsive pleading has been filed. See Dkt.
STATEMENT OF FACTS
Plaintiffs Are Multiemployer Employee Benefit Plans Under
Benefit Trust provides life insurance, weekly accident and
sickness benefits, hospitalization coverage, medical and
surgical coverage, and dental coverage for the benefit of
participating employees and their families, and is an
employee welfare benefit plan within the meaning of Section
3(1) of ERISA, 29 U.S.C. § 1002(1). Aff. Gotthardt
¶¶ 5-6; see ECF #1, Complaint ¶ 3.
The Pension Fund was created for the purpose of providing
pension, retirement, and death benefits for participating
employees and their beneficiaries, and is an employee pension
benefit plan within the meaning of Section 3(2) of ERISA, 29
U.S.C. § 1002(2). Aff. Gotthardt ¶¶ 7-8;
see ECF #1, Complaint ¶ 5. The Annuity Trust
was created for the purpose of providing pension, retirement,
and death benefits for participating employees and their
beneficiaries, and is an employee pension benefit plan within
the meaning of Section 3(2) of ERISA, 29 U.S.C.
§1002(2). Aff. Gotthardt ¶¶ 9-10; see
ECF #1, Complaint ¶ 7.
have been established pursuant to the Benefit Trust
Agreement, the Pension Trust Agreement, and the Annuity Trust
Agreement (collectively the “Trust Agreements”)
that were entered into by various Iron Worker local unions
representing field construction iron workers in Ohio,
Kentucky, Indiana, and West Virginia (collectively the
“Iron Worker Local Unions”), and various
employers having collective bargaining agreements with one or
more of the Iron Worker Local Unions. Aff. Gotthardt
¶¶ 11-12. Plaintiffs are maintained pursuant to one
or more collective bargaining agreements between the Iron
Worker Local Unions and more than one signatory employer.
Id. Plaintiffs are multi-employer plans within the
meaning of Section 3(37)(A) of ERISA, Title 29 U.S.C. §
1002(37)(A). Aff. Gotthardt ¶ 11.
Defendant Millennium Was Obligated To Submit To An Audit And
Pay All Contributions Found Owing To The Plaintiffs.
the terms and conditions of employment in the CBA and Trust
Agreements is the requirement that Defendant Millennium make
employer contributions to the Plaintiffs on behalf of covered
employees. ECF #1, ¶ 16, Complaint. At all times
relevant to this action Defendant Millennium has been party
to at least one collective bargaining agreement which binds
it to the Trust Agreements. Aff. Gotthardt ¶ 13.
Defendant Millennium employed workers whose wages, hours, and
terms and conditions of employment are set forth in the CBA
and all predecessor collective bargaining agreements.
Id. Pursuant to the Trust Agreements, Defendant
Millennium is liable for both liquidated damages and interest
assessments if fringe benefit contributions are not timely
remitted as required. Aff. Gotthardt ¶ 15.
pursuant to the Trust Agreements, Defendant Millennium is
required to allow the Plaintiffs' authorized agent access
to its payroll records for the purpose of a payroll audit.
ECF #1, ¶ 21, Complaint. On September 30, 2016, an audit
was performed by the Plaintiffs' auditors, Clark Schaefer
Hackett (“Audit”). Aff. of Peggy Gotthardt ¶
19. The Audit found Defendant Millennium owed $235, 361.43 in
unpaid fringe benefit contributions and from those delinquent
amounts, the Funds' office determined Defendant
Millennium owes $48, 024.09 in liquidated damages and $48,
896.79 in interest assessments. Id. at ¶¶
21-27. The contributions result from the improper
underreporting of contributions owed by Defendant Millennium,
making it liable for those amounts. Ms. ...