Boards of Trustees of the Ohio Laborers Benefits v. HENRY F. TEICHMANN, INC

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF OHIO

EASTERN DIVISION

Boards of Trustees of the

Ohio Laborers Benefits, Case No: 2:23-cv-3047

Plaintiffs, Judge Graham

v.

Magistrate Judge Deavers

Henry F. Teichmann, Inc.,

Defendant.

Opinion and Order

Plaintiffs Boards of Trustees of the Ohio Laborers Benefits are the fiduciaries of several

employee benefit plans. They have sued defendant Henry F. Teichmann, Inc. under the Employee

Retirement Income Security Act of 1974 to recover amounts due to the Plans. This matter is before

the Court on plaintiffs’ motion for default judgment.

I. Background

Plaintiffs are the fiduciaries of four employee benefit plans (the Ohio Laborers’ District

Council–Ohio Contractors’ Association Insurance Fund; the Laborers’ District Council and

Contractors’ Pension Fund of Ohio; the Ohio Laborers’ Annuity Fund; and the Ohio Laborers’

Training and Apprenticeship Trust Fund) and one labor-management cooperative trust known as

Ohio Laborers’ District Council–Ohio Contractors’ Association Cooperation and Education Trust.

The Plans collectively are known as the Ohio Laborers Benefits, and they maintain their principal

place of business in Westerville, Ohio.

Pursuant to certain collective bargaining agreements, defendant was obligated to make

monthly contributions to the Plans on behalf of its employees. The complaint alleges that defendant

failed to make the required contributions beginning in January 2022. The complaint alleges that the

Plans are entitled under ERISA to collect the delinquent contributions, as well as to recover

liquidated damages and interest.

Defendant was served with the complaint and has failed to plead or otherwise defend in this

action. The Clerk made an entry of default. See Fed. R. Civ. P. 55(a). Defendant was also served

with the current motion for default judgment, but has not responded.

It should be noted, however, that following the filing of the complaint, defendant permitted

plaintiffs to perform an audit of defendant’s financial records. In the motion for default judgment,

plaintiffs seek an award of damages based upon the findings of the audit, which defendant has not

disputed.

II. Discussion

A. Liability

In examining a motion for default judgment under Fed. R. Civ. P. 55(b)(2), the court accepts

plaintiffs’ well-pled allegations as to defendant’s liability as true. Antoine v. Atlas Turner, Inc., 66 F.3d

105, 110 (6th Cir. 1995). The court reviews “the pleadings as a whole to determine whether a

‘sufficient basis’ exists entitling Plaintiff to judgment pursuant to Rule 55(b).” United States v. Allen,

No. 2:12-CV-1034, 2014 WL 5305518, at *2 (S.D. Ohio Oct. 15, 2014) (quoting Nishimatsu

Construction Co., Ltd. v. Houston National Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)).

An employer “who is obligated to make contributions to a multiemployer plan under the

terms of the plan or under the terms of a collectively bargained agreement shall, to the extent not

inconsistent with law, make such contributions in accordance with the terms and conditions of such

plan or such agreement.” 29 U.S.C. § 1145. A plan fiduciary may bring a cause of action for

appropriate relief. See 29 U.S.C. § 1132(a)(2).

The Court finds that plaintiffs’ well-pleaded allegations and the evidence submitted in

support of the motion for default judgment establish that defendant has breached its obligations

under ERISA. Under the CBAs and Plan documents, defendant was obligated to make monthly

contributions on behalf of its employees. See, e.g., Doc. 19-5 at L-20. Plaintiffs have demonstrated

that defendant failed to make the required contributions from January 2022 through November

2023. See Doc. 19-2; Gaston Decl., ¶ 13. In some cases, defendant’s payments were late, and for

other months, defendant had not paid the contributions at all, as of the filing of this lawsuit.

Accordingly, the Court finds that plaintiffs have established defendant’s liability under

ERISA for purposes of the motion for default judgment.

B. Damages

Plaintiffs’ complaint seeks an award of damages that would include unpaid contributions,

liquidated damages, and interest. Such amounts are sums certain which can be determined from the

terms of the CBAs and Plan documents, and for which a hearing is not necessary. See Fed. R. Civ.

P. 55(b)(1); Ironworkers Dist. Council of S. Ohio v. Reinforcing Servs. Co., LLC, No. 3:09-CV-067, 2009

WL 4154905, at *3 (S.D. Ohio Nov. 20, 2009).

Under ERISA, a fiduciary bringing a cause of action for delinquent contributions is entitled

to an award of the unpaid contributions, liquidated damages (if provided for under the plan), and

interest on the unpaid contributions. See 29 U.S.C. § 1132(g)(2).

Plaintiff’s audit of defendant’s financial records show that from January 2022 through

November 2023, defendant was obligated to make total contributions of $58,982.10. See Doc. 19-2.

After the filing of this lawsuit, defendant made payments which exceeded the underlying principal

amount due. Accordingly, plaintiffs state that defendant is entitled to a credit of $4,756.00 against

the amounts owing for liquidated damages and interest.

Liquidated damages are recoverable if the plan provides for them in an amount not in excess

of 20%. See 29 U.S.C. § 1132(g)(2)(C)(ii). Here, liquidated damages of 10% were provided for by

the Plans. See, e.g., Doc. 19-5 at L-21. Plaintiffs have submitted a calculation of liquidated damages,

with a total amount owing of $5,853.21.1 See Doc. 19-2.

Interest on the unpaid contributions is recoverable as well. See 29 U.S.C. § 1132(g)(2)(B).

The Plans provided for interest at the rate of 1% per month on all unpaid contributions. See, e.g.,

Doc. 19-5 at L-21. Plaintiffs have submitted a calculation of interest, with a total amount owing of

$2,114.89. See Doc. 19-2.

Under ERISA, a fiduciary bringing a cause of action for delinquent contributions is also

entitled to an award of reasonable attorney’s fees and costs. See 29 U.S.C. § 1132(g)(2)(D); Bldg. Serv.

Loc. 47 Cleaning Contractors Pension Plan v. Grandview Raceway, 46 F.3d 1392, 1400 (6th Cir. 1995)

(noting that “an award of reasonable attorneys’ fees is mandated” when the plan prevails in an action

for delinquent contributions). In determining an attorney’s fees amount, the court should use the

lodestar method by which a reasonable hourly rate is calculated by a reasonable number of hours

expended. See id., 46 F.3d at 1401.

Plaintiffs state that they are not seeking the full lodestar amount, which they calculate to be

$8,643.00. Instead, plaintiffs seek an award of attorney’s fees of $7,087.26 (82% of the lodestar).

Plaintiffs’ legal counsel has submitted a declaration which details the fee request. Counsel expended

14.1 hours, and an additional 20.6 hours was expended by a paralegal. See Hymore Decl., ¶ 8. The

1 This amount of $5,853.21 is $45 less than the expected amount of $5,898.21 (10% of $58,982.10).

As explanation, plaintiff’s audit determined that liquidated damages were not owing on $450 in

contributions for October 2023. See Doc. 19-2.

Court finds that this number of hours is reasonable to investigate the claim, file the case, perform an

audit, and obtain default judgment.

Counsel states that he normally charges a rate of $350 per hour for himself and a rate of

$180 per hour for his paralegal. These hourly rates are within the range of what this Court has

determined to be reasonable in ERISA litigation. See Bd. of Trustees of Ohio Laborers Benefits v. Olive

Leaf Landscaping, Inc., No. 2:22-CV-2799, 2023 WL 8031493, at *5 (S.D. Ohio Nov. 20, 2023). Given

that plaintiffs seek a fee award which 18% below the lodestar amount, the reduced hourly rates are

$287 for legal counsel and $148 for the paralegal. The Court finds that these rates are reasonable

and thus approves an attorney’s fee award of $7,087.26.

Plaintiffs seek an award of costs in the amount of $430.86. This amount represents the filing

fee and the cost for certified mail service. The Court approves this amount.

In sum, the Court finds that plaintiffs are entitled to a total award of $10,730.22. This

amount is the sum of liquidated damages ($5,853.21), interest ($2,114.89), attorney’s fees ($7,087.26),

and costs ($430.86), minus a credit for overpayment by defendant ($4,756.00).

III. Conclusion

Accordingly, the Court grants plaintiff’s motion for default judgment (doc. 19), and awards

damages to plaintiffs in the total amount of $10,730.22.

s/ James L. Graham

JAMES L. GRAHAM

United States District Judge

DATE: October 9, 2024