Facts

On December 6, 1991, Robnett Electric, Inc. signed a letter of assent agreeing to be bound to a collective bargaining agreement known as the Inside Wiremen's Agreement with the Los Angeles County Chapter of NECA (Agreement). Trustees of the Southern California IBEW-NECA Pension Plan, Trustees of the Southern California IBEW-NECA Defined Contribution Trust Fund, Trustees of the Southern California IBEW-NECA Health Trust Fund, Trustees of the Southern California IBEW-NECA Supplemental Unemployment Benefit Trust Fund, Trustees of the Los Angeles County Electrical Educational and Training Trust Fund, Trustees of the National Electrical Benefit Fund, Trustees of the Southern California IBEW-NECA Labor-Management Cooperation Committee, Trustees of the National NECA-IBEW Labor-Management Cooperation Committee Trust Fund, National Electrical Industry Fund, Los Angeles Electrical Workers Credit Union, and Southern California IBEW-NECA Administrative Corporation brought a lawsuit against Robnett Electric, Inc., alleging breach of written collective bargaining agreement and related trust agreements and violation of Section 515 of the Employee Retirement Income Security Act of 1974.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that defendant violated its statutory mandated obligation to timely pay fringe benefits contributions and other amounts since it was obligated to adhere to the Agreement terms, including preparing and submitting written monthly contribution reports to plaintiffs, paying plaintiffs fringe benefit contributions, and permitting plaintiffs and its agents to conduct audits of payroll and related records to determine if fringe benefit contributions and other amounts had been properly paid to them. Further, plaintiffs maintained that defendant submitted Monthly Reports to plaintiffs reflecting work performed by defendant's employees during the months of February 2023 through April 2023 covered by the Agreement in which it admitted to owing plaintiffs fringe benefit contributions and other amounts totaling at least $44,976.63 but failed to pay these amounts. Thus, plaintiffs argued that defendant has failed on an ongoing basis and will continue to fail to pay plaintiffs the required fringe benefit contributions and other amounts owed under the Agreement and that defendant was also obligated to pay plaintiffs liquidated damages for the detriment caused by their failure to timely pay the fringe benefit contributions and other amounts owed as assessed by the Southern California IBEW-NECA Joint Collection Committee Collection Policy and Procedures promulgated by plaintiffs under the authority of the Agreement at a rate of 1.5% for each 30 days that the contributions were delinquent up to a maximum of 18%. Finally, plaintiffs contended that under the Agreement, defendant owed plaintiffs interest accruing at 8% per annum on all unpaid or late paid fringe benefit contributions, and related amounts, from the dates the sums were originally due to plaintiffs through the date of judgment and post-judgment, which was December 2022 in this situation.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions.

Result

The case settled with plaintiffs to recover $36,714, plus post-judgment interest thereon at the rate of 8% per annum from Dec. 7, 2023, until paid in full. The parties agreed to provide Robnett twelve (12) months by which to repay its debt to plaintiff, who is prohibited from executing on the judgment as long as Robnett complies with the terms of the settlement reached.