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Raines v. Lipe Brothers Construction, Inc.

United States District Court, D. Minnesota

October 6, 2017

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,
v.
Lipe Brothers Construction, Inc., Defendant.

          ORDER FOR DEFAULT JUDGMENT

          Paul A. Magnuson United States District Court Judge

         This 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.

         FINDINGS OF FACT

         1. The 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.

         2. Lipe 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 lapsed.

         3. The Clerk entered default on April 4, 2017.

         4. 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).

         5. The 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).

         6. The 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”).

         7. Lipe 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.

         8. The 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.

         9. The 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.

         10. The 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.

         11. The 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 ...


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