United States District Court, D. Maryland, Southern Division
TRUSTEES OF THE NATIONAL AUTOMATIC SPRINKLER INDUST. WELFARE FUND, et al., Plaintiffs,
FIRST RESPONDER FIRE PROTECTION CORPORATION Defendant.
J. HAZEL UNITED STALES DISTRICT JUDGE.
Trustees of the National Automatic Sprinkler Industry Welfare
Fund. National Automatic Sprinkler Local 669 UA Education
Fund, National Automatic Sprinkler Industry Pension Fund.
Sprinkler Industry Supplemental Pension Fund, and
International Training Fund ("Plaintiffs"" or
the "NASI Funds") bring this action against
Defendant First Responder Fire Protection Corporation
("Defendant") under the Employee Retirement Income
Security Act of 1974 ("FRISA"). as amended by the
Multiemployer Pension Plan Amendments Act of 1980. 29 U.S.C.
§§ 1001 et seq. Following Defendant's
failure to answer or otherwise defend in this action, the
Clerk of the Court entered default against Defendant on June
7. 2017. ECF No. 8. Now pending before the Court is
Plaintiffs' Motion for Default Judgment against Defendant
pursuant to Fed.R.Civ.P. 55(b). ECF No. 7. No hearing is
necessary. See I.oc. R. 1 05.6 (D. Md. 2016). For
the reasons that follow. Plaintiffs' Motion for Default
Judgment is granted. Judgment is entered against Defendant in
the total amount of $241.609.95.
NASI Funds are multiemployer employee benefit plans as
defined in Section 3(3) of ERISA. 29 U.S.C. § 1002(3).
ECF No. 1 ¶ 2. The Funds arc established and maintained
according to the provisions of the Restated Agreements and
Declarations of Trust establishing the NASI Funds
("Trust Agreements"), and the Collective Bargaining
Agreements between Sprinkler Fitters Local Unions No. 483.
669. 709 ("the "Unions") and the Defendant.
Id. The NASI Funds are administered at 8000
Corporate Drive. Landover. Maryland 20785. Id.
First Responder Fire Protection Corporation is a corporation
existing under the laws of the State of California, with
offices located in California. ECF No. 1 ¶ 3. Defendant
operates as a contractor or subcontractor in the sprinkler
industry, and at all times relevant to the action was and is
an employer in an industry affecting commerce as defined by
ERISA, 29 U.S.C. §§ 1002(5). (9). (11). (12) and
(14) and by the Labor-Management Relations Act (LMRA). 28
U.S.C. §§ 142(1). (3) and 152(2). See Id.
allege that Defendant entered into agreements with the
Unions, which, in turn, bound them to the Collective
Bargaining Agreements executed between the Unions and the
National Fire Sprinkler Association. ECF No. 1 ¶ 4: FCF
No. 7-3 ¶¶ 2-8; see also FCF Nos. 7-4-7-9
(agreements between Defendant and Focal Union 669); ECF Nos.
7-10-7-14 (agreements between Defendant and Focal Union 483);
and ECF Nos. 7-15-7-18 (agreements between Defendant and
Local Union 709). Pursuant to the Collective Bargaining
Agreements. Defendant was obligated to pay to the NASI Funds
certain sums of money for each hour worked by its employees
who were covered by the Collective Bargaining Agreements. ECF
No. 1 ¶ 5; see also ECF No. 7-3 ¶¶
2-8. According to the Complaint. Defendant employed
individuals covered by the Collective Bargaining Agreements
from March 2015 through the present. ECF No. ¶ 6.
at all times relevant to the action. Defendant was bound to
the Trust Agreements. ECF Nos. 7-19-7-23. and the Guidelines
for Participation in the KAS1 funds ("Guidelines"),
ECF No. 7-24. ECF No. 1 ¶ 7. Under the terms of the
Trust Agreements, when an employer becomes two or more months
delinquent in making the required contributions, and has not
submitted the proper reporting forms, the NASI Funds are
permitted to project the amount of the employer's
delinquency using the following formula:
[T]he greater of (a) the average of the monthly payments or
reports submitted by the Employer for the last three (3)
months for which payments or reports were submitted, or (b)
the average of the monthly payments or reports submitted by
the Employer for the last twelve (12) months for which
payments or reports were submitted . . .
ECF No. 1 ¶ 10: see also ECF No. 7-3 ¶ 16.
Additionally, when an employer fails to timely pay required
contributions, the employer is obligated to pay liquidated
damages under the following calculation:
(1) If payment is not received . . . by the 15th of the
month. 10% of the amount [owedj is assessed.
(2) An additional 5% is added if payment is not received ...
by the last working day of the month in which payment was
(3) An additional 5% is added if payment is not received by
the 15th of the month following the month in which payment
ECF No. 1 ¶ 14: ECF No. 7-3 ¶ 20.
allegedly failed to pay complete contributions to the NASI
Funds for the months of October 2015. November 2015. December
201 5, January 2016. August 2016. and September 2016.
See ECF No. 1 ¶ 8. Defendant further failed to
pay complete contributions for the months of July 2016
through November 2016 and did not submit reporting forms for
these months, Id. ¶ 8. Using the
above-mentioned delinquency formula. Plaintiffs claimed a
total amount of $90, 446.20 in delinquent contributions from
Defendant. See Id. ¶ 9. 11. 15: ECF No. 1-3 at
Adding the additional months of November ...