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Mackey v. Precision Excavation Inc.

United States District Court, D. Minnesota

May 13, 2019

Tim Mackey and Daniel Shoemaker, as Trustees of the Minnesota Laborers Healt and Welfare Fund; Tim Mackey and Daniel Shoemaker, as Trustees of the Minnesota Laborers Pension Fund; Tammy Braastad and Tim Mackey, as Trustees of the Minnesota Laborers Vacation Fund; Fred Chase and Joe Fowler, as Trustees o the Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota; Mark Ryan and Dave Borst, as Trustees o the Minnesota Laborers Employers Cooperation and Education Trust; The Minnesota Laborers Health and Welfare Fund; The Minnesota Laborers Pension Fund; The Minnesota Laborers Vacation Fund; The Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota; and The Minnesota Laborers Employers Cooperation and Education Trust, Plaintiffs,
v.
Precision Excavation Inc., Defendant.

          ORDER

          Eric C. Tostrud United States District Judge

         Plaintiffs brought this case to collect unpaid fringe-benefit contributions, and now move for a default judgment and an injunction pursuant to Rules 54(b), 55(b)(2), and 65 of the Federal Rules of Civil Procedure. ECF No. 9. A hearing on the motion was held on May 13, 2019. ECF No. 19. Christy E. Lawrie of McGrann Shea Carnival Straughn & Lamb, Chartered, appeared on behalf of the Plaintiffs. Id. There was no appearance on behalf of Defendant. Id.

         I

         1. Plaintiffs are Trustees of the Minnesota Laborers Health and Welfare Fund; the Minnesota Laborers Pension Fund; the Minnesota Laborers Vacation Fund; the Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota; the Minnesota Laborers Employers Cooperation and Education Trust, (collectively, “the Funds”). Compl. ¶ 1 [ECF No. 1].

         2. The Funds are multi-employer jointly-trusteed fringe-benefit plans created and maintained pursuant to Section 302(c)(5) of the Labor Relations Management Act of 1974 (“LMRA”), as amended, 29 U.S.C. § 186(c)(5). Id. ¶ 2.

         3. The Funds are administered in accordance with the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended 29 U.S.C. § 1001, et seq. Id. The Funds are exempt from federal income taxation pursuant to the Internal Revenue Code. Id.

         4. The Funds filed the Complaint in this matter on January 14, 2019. See Id. The Summons and Complaint were served upon defendant Precision Excavation Inc. on January 17, 2019. ECF No. 4.

         5. Precision failed to file a responsive pleading.

         6. The Clerk of Court entered default on February 11, 2019. ECF No. 8.

         7. Precision is bound by the terms of a collective bargaining agreement between the Highway, Railroad and Heavy Construction Division of Associated General Contractors of Minnesota and the Laborers' District Council of Minnesota and North Dakota on behalf of its affiliated Local Unions (“CBA”) covering the period of May 1, 2017 through April 30, 2020. Skoog Aff. Ex. B [ECF No. 12-1].

         8. The CBA requires Precision to contribute every month, not later than the fifteenth day of the following month, sums to the Funds in an amount designated in the CBA for each hour worked by all employees covered by the CBA. Id. Ex. A, art. 22 [ECF No. 12-1].

         9. The CBA requires Precision to accurately report all hours worked by each employee covered by the CBA and calculate the contributions due and owing to the Funds in any given month on a remittance report form which must be submitted with Precision's monthly payment to the Funds. Id. ¶ 4 [ECF No. 12]; Id. Ex. A, art. 22 ¶ 2(a).

         10. The CBA states that Precision shall be considered “delinquent” for a particular month if its required report and payment for that month are not postmarked on or before the fifteenth day of the following month, irrespective of whether such delinquency is willful or otherwise. Id. Ex. A, art. 22 ¶ 5(a).

         11. The CBA requires Precision to maintain adequate records to identify the type of work being performed by its employees to allow the Funds to determine whether Precision is accurately ...


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