Harris v. The Hartford Construction Group LLC involving default judgment in Cumming, Ga.

Date of Action: June 25, 2013

Type of Action:  Default Judgment

Name(s) of Defendant(s): The Hartford Construction Group LLC, Travis M. Donnelly, the Hartford Construction Group, LLC 401(k) Profit Sharing Plan and the Hartford Construction Group LLC Group Health Plan

Allegations: On Dec. 21, 2012, the U.S. Department of Labor filed a complaint against the defendants alleging between Feb. 26, 2009 and June 17, 2009, defendants Hartford and Travis M. Donnelly withheld employee contributions in the approximate amount of $3,400.46, failed to segregate the contributions from company assets as soon as they reasonably could do so and failed to timely forward them to the Hartford Construction Group LLC 401(k) profit sharing plan. During the period that participant contributions were not remitted to the Hartford Plan as required, defendants caused or allowed the contributions to be commingled with the general assets of Hartford. Defendants had failed to take action to restore to the Hartford Plan the full amount of the un-remitted contributions plus lost interest in the approximate amount of $513.99 as of Oct. 1, 2012. Defendants failed to monitor, control or attempt to rectify the acts of one another with respect to the Hartford Plan.

The complaint further alleged that on or about Oct. 22, 2009, Humana Employers Health Plan of Georgia Inc. (hereinafter “Humana”) cancelled its policy with Hartford retroactive to March 31, 2009, due to defendants Hartford’s and Travis M. Donnelly’s failure to remit required premium payments. During the period Feb. 26, 2009 through June 17, 2009, defendants Hartford and Travis Donnelly withheld employee contributions in the approximate amount of $4,905.33, failed to segregate the contributions from company assets as soon as they reasonably could do so, and failed to timely forward them to the Hartford Construction Group LLC Group Health Plan. During the periods that participant contributions were not remitted to the Hartford GHP as required, defendants caused or allowed the contributions to be commingled with the general assets of Hartford. Defendants failed to take action to restore to the plan the full amount of the un-remitted contributions. Due to defendants Hartford’s and Travis Donnelly’s failure to ensure that premiums were paid to Humana and due to Humana’s cancellation of its insurance coverage, approximately $20,000 in health benefits were denied to Hartford GHP participants.

Resolution: The court has ordered the defendants are enjoined from violating the provisions of Title I of the Employee Retirement Income Security Act. Defendants are permanently enjoined from acting as a fiduciary, trustee, agent or representative in any capacity to any employee benefit plan, as defined by ERISA. Defendants are ordered to make restitution to the Hartford Plan in the amount of $3,954.12, plus additional lost earnings from June 3, 2013 through the date of judgment, with post judgment interest to be assessed against any remaining unpaid balance of such amount. Defendants shall make restitution to the Hartford GHP in the amount of $4,905.33, with post judgment interest. Defendants are removed from any position the defendants hold as a named or functional fiduciary to the Hartford Plan or Hartford GHP. An independent fiduciary has been appointed for the purpose of receiving funds and defendants are ordered to pay all fees and costs of the independent fiduciary.

Court: United States District Court for the Northern District of Georgia, Atlanta Division

Docket Number:  1:12-cv-04465-AT

U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.