Trustees of the New York City District Council of Carpenters Pension Fund v…

Background

The plaintiffs—collectively, the Funds—sued Prime Contractors Inc., United Technology Inc., and QBE Insurance Corporation to recover unpaid employer contributions, liquidated damages, and related amounts. The claims included violations of sections 502(a)(3) and 515 of the Employee Retirement Income Security Act, a federal law governing employee-benefit plans.

United Technology was the general contractor for two New York City School Construction Authority projects: the P.S. 67X Project and the Monroe Academy for Visual Arts Project. It subcontracted Prime to perform sidewalk-shed protective bridging and scaffolding work. Prime signed letters agreeing to be bound by the applicable project labor agreements, collective-bargaining agreements, and employee-benefit-fund agreements. Those agreements required Prime to make hourly contributions to the Funds for covered employee work.

The Funds determined that Prime had failed to make required contributions on both projects. After payments and settlements involving United Technology and QBE, the Funds sought $16,807.25 in liquidated damages from Prime. They did not seek attorney’s fees or costs from Prime.

Default and Liability

Prime was properly served. It initially appeared, but it did not file a supported opposition to the Funds’ application for default judgment. The clerk entered Prime’s default. The report treats Prime’s failure to respond as willful, finds that delaying judgment could prejudice the Funds, and notes that Prime presented no meritorious defense.

The report concludes that the court had federal-question jurisdiction because the complaint asserted claims under the Employee Retirement Income Security Act. It also concludes that the court had personal jurisdiction over Prime because Prime had been served, appeared, and did not object. The report further concludes that venue was proper in the Southern District of New York.

The report finds that the Funds adequately pleaded Prime’s liability under section 515 of the Employee Retirement Income Security Act. That provision requires an employer bound by a collective-bargaining agreement to make contributions required by the agreement. The Funds submitted the relevant agreement, certified payroll records, and audit records supporting the unpaid contributions. Because the Employee Retirement Income Security Act claim supported the requested recovery, the report did not reach the merits of the Funds’ other claims, which sought recovery for the same conduct and damages.

Damages and Recommended Disposition

The report accepts the well-pleaded liability allegations as true because of Prime’s default but requires evidence supporting the amount of damages. It finds that the Funds’ declarations and documents adequately established $16,807.25 in liquidated damages and showed that the award would not give the Funds an improper double recovery after their settlements with United Technology and QBE. The report also finds that an evidentiary hearing was unnecessary.

Magistrate Judge Robyn F. Tarnofsky respectfully recommended that the default-judgment motion be granted and that judgment be entered against Prime in favor of the Funds for $16,807.25 in liquidated damages, plus post-judgment interest under 28 U.S.C. § 1961. The report and recommendation instructed the parties that objections could be filed within 14 days and stated that failing to object would waive objections and prevent appellate review. The text does not state whether District Judge Analisa Torres later adopted the recommendation or entered the final judgment.