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Board of Trustees of Teamsters Local 631 Security Fund for Southern Nevada v. ABC Expo Services, LLC

United States District Court, D. Nevada

May 19, 2019

BOARD OF TRUSTEES OF THE TEAMSTERS LOCAL 631 SECURITY FUND FOR SOUTHERN NEVADA; BOARD OF TRUSTEES OF THE TEAMSTERS CONVENTION INDUSTRY TRAINING FUND, Plaintiffs,
v.
ABC EXPO SERVICES, LLC, a Nevada limited liability company Defendant.

          Adam P. Segal, Esq., Bryce C. Loveland, Esq., Christopher M. Humes, Esq., BROWNSTEIN HYATT FARBER SCHRECK, LLP, Attorneys for Plaintiffs.

          ORDER GRANTING MOTION FOR DEFAULT JUDGMENT (ECF NO. 7)

          Jennifer A. Dorsey U.S. District Judge.

         Before the Court is the Plaintiffs', the Boards of Trustees of the Teamsters Local 631 Security Fund for Southern Nevada, and of the Teamsters Convention Industry Training Fund (“Trust Funds”), Motion for Default Judgment against Defendant ABC Expo Services, LLC (“ABC Expo”). (ECF No. 7.) Default having been entered against Defendant, the Court having reviewed the Plaintiffs' Motion, being fully advised, and good cause appearing, the Court now makes the following findings of facts and conclusions of law.

         I. Finding of Facts.

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

         2. Defendant ABC Expo, acted as an employer within the State of Nevada employing persons who perform work covered by a collective bargaining agreement (“CBA”) between ABC Expo and the International Brotherhood of Teamsters Local 631 (“Union”).The Trust Funds are ERISA employee benefit trust funds that provide benefits to Covered Employees.

         3. The CBA requires that in the event ABC Expo subcontracts work covered by the CBA to a company not signatory to a CBA with the Union, the ABC Expo would ensure that the subcontractor observes the applicable working conditions and wage rates, including the remittance of employee benefit contributions to the Trust Funds.

         4. ABC Expo subcontracted work covered under the CBA to Thunder and Lightning, LLC (“T & L”).

         5. T & L was not signatory to a CBA with the Union.

         6. T & L failed to remit all required employee benefit contributions to the Trust Funds.

         7. Demand has been made to ABC Expo to remit T & L's delinquent contributions and other amounts due to the Trust Funds on behalf of T & L, but ABC Expo has failed and refused to pay, and continues to refuse to pay these amounts.

         8. A contract compliance review (“Audit”) was performed of ABC Expo, showing that ABC Expo owes $1, 060, to the Trust Funds for employee benefit contributions. Additionally, the Audit also shows that ABC Expo owes $13, 711, due to T & L's failure to remit employee benefit contributions.

         9. The Trust Funds' Collection Policy requires an additional $5, 000 in attorney's fees and costs in any instance where the Trust Funds seek a delinquency judgment by default judgment.

         II. ...


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