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Graphic v. Brigar X-Press Solutions

February 3, 2012

GRAPHIC COMMUNICATIONS CONFERENCE OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS NATIONAL PENSION FUND; GEORGE TEDESCHI, TRUSTEE; AND MALCOLM PRITZKER, TRUSTEE, PLAINTIFFS,
v.
BRIGAR X-PRESS SOLUTIONS, INC., DEFENDANT.



MEMORANDUM-DECISION and ORDER

I. INTRODUCTION

Plaintiffs Graphic Communications Conference of the International Brotherhood of Teamsters National Pension Fund ("Fund"), Fund Trustee George Tedeschi, and Fund Trustee Malcolm Pritzker (collectively, "Plaintiffs"), brought this action against Defendant Brigar X-Press Solutions, Inc. ("Defendant") to collect delinquent payments to a multi-employer pension plan pursuant to the Employee Retirement Income Security Act ("ERISA"). Dkt. No. 1 ("Complaint") at

1. After Defendant failed to answer, Plaintiffs filed a Request for entry of default on August 2, 2010. Dkt. No. 9. The Clerk of the Court executed a Certificate of default on August 4, 2010. Dkt. No. 10.*fn1 Presently before the Court is Plaintiffs' Motion for default judgment, filed on June 15, 2011, along with a Declaration by Fund Controller Jim Thomas and other supporting materials. Dkt. Nos. 12 ("Motion"), 12-1 ("Thomas Declaration"). Plaintiffs submitted an updated proposed default judgment on January 3, 2012, along with a Second Declaration by Jim Thomas containing updated financial information. Dkt. Nos. 14-1 ("Proposed judgment"), 14-2 ("Second Thomas Declaration"). For the reasons that follow, Plaintiffs' Motion is granted.

II. BACKGROUND

Plaintiffs allege in the Complaint that Defendant agreed, pursuant to a collective bargaining agreement ("CBA") and a special participation agreement ("SPA"), to make monthly contributions to the Fund on behalf of covered employees. Compl. ¶ 5. Pursuant to the Agreement and Declaration of Trust governing the Fund, the Fund is entitled to assess interest and establish liquidated damages on delinquent contributions, and to recover all collection expenses. Id. ¶ 9. A contribution for any given month is delinquent and begins accruing interest if it is not paid by the fifteenth of the following month. Thomas Decl. ¶ 12. Interest is assessed at the rate of the eight percent or prime plus one percent, whichever is greater. Id. Liquidated damages are set at twenty percent of delinquent contributions. Id. ¶ 13.

Plaintiffs allege that, beginning in January 2010, Defendant became delinquent in making monthly contributions to the Fund. Compl. ¶ 8. According to Fund records, the following monthly contributions by Defendant were delinquent:

* January 2010 (received on May 11, 2010);

* February 2010 (received on July 23, 2010);

* March 2010 (received on July 29, 2010);

* April 2010 (received on October 12, 2010);

* May 2010 (received on October 15, 2010);

* June 2010 (received on October 26, 2010);

* July 2010 (received on October ...


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