United States District Court, D. Minnesota
John Raines and Tim McGough, as Trustees of the Carpenters & Joiners Welfare Fund and Twin City Carpenters Pension Master Trust Fund and each of their successors; John Raines as Trustee of the Carpenters and Joiners Apprenticeship and Journeymen Training Trust Fund, and each of their successors, Plaintiffs,
Lipe Brothers Construction, Inc., Defendant.
ORDER FOR DEFAULT JUDGMENT
A. Magnuson United States District Court Judge
matter is before the Court on Plaintiffs' Motion for
Default Judgment. (Docket No. 10). Bryan Morben, of Anderson,
Helgen, Davis & Cefalu, PA, appeared on behalf of the
Plaintiffs at a hearing held on October 5, 2017. There was no
appearance on behalf of Defendant.
Complaint was filed with the Court on March 2, 2017, and was
served on Defendant Lipe Brothers Construction, Inc.
(“Lipe Brothers”), on March 9, 2017.
Brothers failed to file an Answer with the Clerk of Court or
serve an Answer on Plaintiffs' counsel, and the time
allowed by law for Lipe Brothers to answer the Complaint has
Clerk entered default on April 4, 2017.
Plaintiffs John Raines and Tim McGough are Trustees and
fiduciaries of the above-referenced fringe benefit plans
(“the Funds”) under 29 U.S.C. § 1002(21).
Funds are multi-employer, jointly-trusteed fringe benefit
plans created and maintained pursuant to Section 302(c)(5) of
the Labor Management Relations Act of 1947, as amended 29
U.S.C. § 186(c)(5).
Funds are administered in accordance with the provisions of
the Employee Retirement Income Security Act of 1974, as
amended 29 U.S.C. § 1001, et seq. (“ERISA”).
Brothers is bound to the terms of a Collective Bargaining
Agreement (“CBA”) with the North Central States
Regional Council of Carpenters, Local Unions #361 and 606.
CBA requires Lipe Brothers to make fringe-benefit
contributions to the Funds in accordance with its terms.
These contributions must be made for the purpose of funding
employee benefits on behalf of all employees covered by the
CBA and in amounts set forth in the CBA.
CBA requires Lipe Brothers to complete a report form as
required by the Trustees, identifying each of its employees
and each hour worked by that employee during the month
performing covered service. The CBA also requires Lipe
Brothers to submit the report form with the payment for the
amounts due not later than the 15th day of the following
month. All contributions must be made and all reports must be
submitted to Wilson-McShane Corporation, 3001 Metro Dr #500,
Bloomington, MN 55425, as the administrative agent designated
by the Trustees.
Defendant is required to make available its employment and
payroll records for examination and audit by the Trustees or
their authorized agents whenever such examination is deemed,
by the Trustees, to be necessary to the proper administration
of the Funds and to ascertain whether Lipe Brothers has
complied with their contribution obligations.
CBA provides that Lipe Brothers is liable for liquidated
damages of ten percent for failure to submit monthly reports
and contributions in a timely fashion, and further provides
that Plaintiffs are entitled to their ...