“[J]udgment by default may not be entered without a hearing on damages unless the amount claimed is liquidated or capable of ascertainment from definite figures contained in the documentary evidence or in detailed affidavits.” (quotation marks omitted)
How later courts described this case
- “[J]udgment by default may not be entered without a hearing on damages unless the amount claimed is liquidated or capable of ascertainment from definite figures contained in the documentary evidence or in detailed affidavits.” (quotation marks omitted)
- holding that a district court must “conduct an inquiry in order to ascertain the amount of damages with reasonable certainty” before entering judgment (quotation marks omitted)
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF ILLINOIS
ROCK ISLAND DIVISION
THE BOARD OF TRUSTEES OF SHEET )
METAL WORKERS LOCAL 91 HEALTH )
& WELFARE PLAN, )
)
Plaintiff, )
)
v. ) Case No. 4:25-cv-04100-SLD-RLH
)
INTEGRATED ENVIRONMENTS )
TESTING & BALANCING, LLC, )
)
Defendant. )
ORDER
Before the Court is Plaintiff The Board of Trustees of Sheet Metal Workers Local 91
Health & Welfare Plan’s motion for default judgment, ECF No. 6, asking the Court to order
Defendant Integrated Environments Testing & Balancing, LLC to submit to an audit to
determine the amount of contributions required to be paid to a fringe benefits fund under the
terms of a collective bargaining agreement. For the following reasons, the motion is GRANTED
IN PART and DENIED IN PART.
BACKGROUND1
On July 26, 2021, Defendant agreed to be bound by a collective bargaining agreement
(“CBA”) governing pay and benefits for members of the Sheet Metal Workers Local 91 Union
(“the Union”). Compl. 2; see Signature Page, Compl. Ex. B, ECF No. 1 at 42. The CBA was
effective from June 1, 2021, through May 31, 2024. CBA 1,2 Compl. Ex. A, ECF No. 1 at 6–42.
1 Unless otherwise noted, the facts related herein are taken from the Complaint, ECF No. 1. Exhibits attached to the
complaint are properly considered part of the complaint. See Fed. R. Civ. P. 10(c) (“A copy of a written instrument
that is an exhibit to a pleading is a part of the pleading for all purposes.”). The Court accepts the allegations relating
to liability as true by virtue of Defendant’s default. See Wehrs v. Wells, 688 F.3d 886, 892 (7th Cir. 2012).
2 The first two pages of the CBA are unpaginated, but the page numbers used in this order are consistent with the
page numbers beginning on the third page of the CBA.
The Union executed a materially identical collective bargaining agreement covering the period of
June 1, 2024 to May 31, 2027. Extended CBA 1,3 Supp. Br. Ex. A, ECF No. 7-1. The CBA
compelled Defendant to make payments to a health and welfare plan (“the Plan”) and submit
monthly reports of such contributions. “Failure of the Employer to remit promptly the payroll
report or contribution payments on or before the fifteenth day of the following month shall be a
violation of [the CBA].” CBA 8; Extended CBA 8. Defendant “failed to file contribution
reports or pay contributions for the months of May through December of 2024, and January
through April 2025.” Compl. 3.
Plaintiff serves as the trustee of the Plan under the Employee Retirement Income Security
Act of 1974 (“ERISA”), 29 U.S.C. §§ 1101–1461. The CBA empowered Plaintiff “to order an
audit of [Defendant’s] payroll records” to ensure proper payment of wages and benefits. CBA
10; Extended CBA 9. When an audit is ordered, the CBA requires Defendant to make its
financial records available to auditors within ten days and otherwise cooperate with the audit.
“In the event the audit discloses a willful underpayment of wage and/or benefits, [Defendant]
agrees to promptly pay such amounts as reasonably necessary to bring current the obligations
plus pay 2% interest per month on any outstanding balance.” CBA 10; Extended CBA 9.
On May 16, 2025, Plaintiff filed suit under §§ 1132 and 1145 of ERISA. Plaintiff seeks
an order requiring Defendant to submit to an audit and accounting “as to all employees of
[Defendant] covered by the CBA as to wages received and hours worked by such employees to
determine amounts required to be paid to the Plan.” Compl. 4. Plaintiff further asks the Court to
order Defendant to submit all delinquent monthly contribution reports, pay delinquent pension
fund contributions, and pay attorney’s fees pursuant to 29 U.S.C. § 1132(g). Id. at 4–5.
3 The first two pages of the Extended CBA are unpaginated, but the page numbers used in this order are consistent
with the page numbers beginning on the third page of the Extended CBA.
Attached to the complaint were a copy of the CBA and a signature page showing Defendant’s
agreement to be bound by the terms of the CBA. See generally CBA; Signature Page. After
Defendant failed to timely file a responsive pleading, the Court entered Defendant’s default on
September 24, 2025. See Sept. 24, 2025 Entry of Default.
On December 2, 2025, Plaintiff filed the motion for default judgment now before the
Court. Plaintiff asks the Court to require Defendant to submit to an audit, to order an account to
be taken of all employees as to wages received and hours earned, and to order Defendant to
submit all delinquent monthly contribution reports to Plaintiff “covering the period for which the
Collective Bargaining Agreement is to be effective.” Mot. Default J. 2. It also asks the Court to
order Defendant to pay delinquent contributions, interest, liquidated damages, costs, and
attorney’s fees. Id. at 3. Upon request of the Court, Plaintiff filed a supplemental brief on March
17, 2026, and attached the Extended CBA. See generally Supp. Br., ECF No. 7. Plaintiff has not
provided a signature page showing Defendant’s agreement to be bound by the terms of the
Extended CBA.
DISCUSSION
I. Default Judgment
Federal Rule of Civil Procedure 55 outlines a two-step process for the entry of default
and default judgment. First, the Court must enter a defendant’s default if it fails to plead or
otherwise defend against the suit. See Fed. R. Civ. P. 55(a). After default has been entered, the
plaintiff may move for default judgment pursuant to Rule 55(b). To be entitled to default
judgment, a plaintiff “must establish his entitlement to the relief he seeks.” In re Catt, 368 F.3d
789, 793 (7th Cir. 2004). In determining whether the plaintiff has met this burden, the Court
accepts all well-pleaded allegations of the complaint relating to liability, but not those relating to
damages. Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319, 1323
(7th Cir. 1983). The amount of any damages may be established at a damages hearing or
through documentary evidence or affidavits that establish a definite figure. Id.
The well-pleaded facts in Plaintiff’s complaint show that Defendant is liable for violating
ERISA by failing to make required payments to the Plan. See 29 U.S.C. § 1145 (“Every
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 . . . make such contributions
in accordance with the terms and conditions of such plan or such agreement.”). From May 2024
to April 2025, Defendant failed to make contributions to the Plan or file contribution reports.
Compl. 3. However, no materials in Plaintiff’s filings show that Defendant’s obligation to make
contributions or file contribution reports extended beyond May 2024. The CBA to which
Defendant agreed to be bound expired on May 31, 2024. See CBA 1; Signature Page. Although
the Union executed a materially identical agreement effective through May 31, 2027, see
generally Extended CBA, Plaintiff has not provided an accompanying signature page showing
that Defendant is a party to the Extended CBA, nor has Plaintiff pointed to a provision of the
CBA indicating Defendant’s intent to be bound by future extensions of the CBA.
Therefore, under ERISA and the CBA, an audit is appropriate to determine the extent of
damages incurred as a result of Defendant’s failure to contribute and report only for the month of
May 2024. See CBA 9–10; 29 U.S.C. § 1132(g). If Plaintiff desires an audit for any months
after May 2024, it has leave to file an amended complaint that establishes its entitlement to an
audit covering those months by May 8, 2026.
As damages cannot be established until the completion of the audit, default judgment
may not yet be entered. See In re Catt, 368 F.3d at 793 (holding that a district court must
“conduct an inquiry in order to ascertain the amount of damages with reasonable certainty”
before entering judgment (quotation marks omitted)); see also e360 Insight v. The Spamhaus
Project, 500 F.3d 594, 602 (7th Cir. 2007) (“[J]udgment by default may not be entered without a
hearing on damages unless the amount claimed is liquidated or capable of ascertainment from
definite figures contained in the documentary evidence or in detailed affidavits.” (quotation
marks omitted)).
CONCLUSION
Accordingly, Plaintiff The Board of Trustees of Sheet Metal Workers Local 91 Health &
Welfare Plan’s motion for default judgment, ECF No. 6, is GRANTED IN PART. The Court
finds that Defendant Integrated Environments Testing & Balancing, LLC is liable for violating
ERISA and therefore ORDERS Defendant to submit to an audit. Because the amount of
damages cannot be determined until the audit is performed, the Court DENIES Plaintiff’s request
for the entry of default judgment. The Court also DENIES Plaintiff’s request for an audit for
months after May 2024. If Plaintiff desires an audit for any subsequent months, it may file an
amended complaint by May 8, 2026.
By May 26, 2026, Defendant must submit to an audit by Plaintiff and provide every
company record that is necessary to determine the amount of contributions owed by Defendant
from May 1, 2024 to May 31, 2024.
By June 26, 2026, Plaintiff may file a renewed motion for default judgment with the
results of the audit regarding the amounts of any unpaid contributions, interest, and liquidated
damages, together with any claims for reasonable attorney’s fees and all supporting
documentation.
Entered this 24th day of April, 2026.
s/ Sara Darrow
SARA DARROW
UNITED STATES DISTRICT JUDGE