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Trustees of Plumbers and Pipefitters Union Local 525 Health and Welfare Trust v. Now Services of Nevada, LLC

United States District Court, D. Nevada

May 19, 2019

TRUSTEES OF THE PLUMBERS AND PIPEFITTERS UNION LOCAL 525 HEALTH AND WELFARE TRUST AND PLAN; TRUSTEES OF THE PLUMBERS AND PIPEFITTERS UNION LOCAL 525 PENSION PLAN; AND THE TRUSTEES OF THE PLUMBERS AND PIPEFITTERS LOCAL UNION 525 APPRENTICE AND JOURNEYMAN TRAINING TRUST FOR SOUTHERN NEVADA, Plaintiffs,
v.
NOW SERVICES OF NEVADA, LLC dba Cool Air Now dba Plumbing Repair Now, a Nevada limited liability company, Defendant.

          Adam P. Segal, Esq. Nevada Bar No. 6120 Bryce C. Loveland, Esq. Nevada Bar No. 10132 Christopher M. Humes, Esq. Nevada Bar No. 12782 BROWNSTEIN HYATT FARBER SCHRECK, LLP Attorneys for Plaintiffs

          ORDER GRANTING MOTION FOR DEFAULT JUDGMENT (ECF NO. 29)

          Jennifer A. Dorsey, U.S. District Judge.

         Before the Court is the Plaintiffs', Trustees of the Plumbers and Pipefitters Union Local 525 Health and Welfare Trust and Plan, Trustees of the Plumbers and Pipefitters Union Local 525 Pension Plan, and the Trustees of the Plumbers and Pipefitters Local Union 525 Apprentice and Journeyman Training Trust for Southern Nevada (“Trust Funds”), Motion for Default Judgment (the “Motion”) against Defendant Now Services of Nevada, LLC (“Now Services”). Default having been entered against Defendant, the Court having reviewed the Plaintiffs' Motion, being fully advised, and good cause appearing, the Court now provides a brief procedural history and makes the following findings of facts and conclusions of law.

         I. Procedural History.

         On June 13, 2018, Now Services's counsel filed a Joint Motion to Withdraw. (ECF No. 16.) This Court granted counsels' Motion to Withdraw and ordered Now Services to notify the Court in writing of the identity of new counsel by July 30, 2018. (Minute Order (ECF No. 18, filed July 5, 2018).) Now Services never complied with the Court's Order.

         On August 7, 2018, this Court again ordered Now Services to retain an attorney and for Now Services's attorney to file a notice of appearance by September 7, 2018. (ECF No. 20.) Now Services again failed to comply with the Court's order, and continues to do so as of the filing of this Order.

         The Trust Funds then moved for sanctions against Now Services in the form of an entry of Default Judgment. (ECF No. 21, filed Sep. 21, 2018.) On February 8, 2019, the Court held a Hearing and denied the Motion without prejudice, instructing the Trust Funds to first seek entry of default against Now Services. (ECF No. 24, filed Feb. 12, 2019.) The Trust Funds followed the Court's direction and filed a motion for clerk's entry of default. (ECF No. 26, filed Feb. 14, 2019.) The Court granted the motion for default on February 19, 2019. (ECF No. 27.)

         The Trust Funds now seek a default judgment.

         II. Finding of Facts.

         1. Plaintiffs Boards of Trustees are fiduciaries for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”).

         2. Juan Carrilio Sotelo dba Sotelo Air and/or Sotelo Air, Inc., dba Cool Air Now (“Sotelo Air”) acted as an employer within the State of Nevada employing persons who perform work covered by a collective bargaining agreement (“CBA”) between Sotelo Air and the United Association of Journeymen and Apprentices of Plumbing and Pipe Fitters Local 525 (“Covered Employees”).

         3. Juan Carrilio Sotelo owns Sotelo Air, as well as another entity, Now Services of Nevada, LLC dba Cool Air now dba Plumbing Repair Now.

         4. The Trust Funds are ERISA employee benefit trust funds that provide benefits to Covered Employees.

         5. The CBA incorporates by reference the trust agreements establishing the Trust Funds and any amendments ...


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