WINE v. SHERRY-LEHMANN

Background

The pension fund sued Sherry-Lehmann, Inc. for unpaid withdrawal liability under the Employee Retirement Income Security Act (ERISA). On October 10, 2024, the court entered a default judgment against Sherry-Lehmann. A default judgment is a judgment entered after a party fails to defend the case. The court referred the calculation of damages to Magistrate Judge Sarah Netburn for a damages inquest, which is a proceeding to determine the amount owed.

On February 27, 2025, Magistrate Judge Netburn issued a report and recommendation. The report recommended $954,677.00 in unpaid withdrawal liability; interest at $470.80 per day beginning June 2, 2024; the greater of that interest or liquidated damages equal to 20% of the unpaid liability; $31,125.00 in attorneys’ fees; $1,523.78 in costs; and post-judgment interest. Sherry-Lehmann was served with the report on July 31, 2025, and no party objected.

Court’s Analysis

Because no objections were filed, the court reviewed the report for clear error, meaning an obvious mistake on the face of the record. Judge Lorna G. Schofield found no clear error concerning the unpaid withdrawal liability, interest, liquidated damages, costs, or post-judgment interest.

The court adopted the recommendation that liquidated damages would be the greater of interest on delinquent payments or 20% of the unpaid liability. As of the judgment date, the interest amount was $245,286.80, which exceeded the recommended $190,935.40 in liquidated damages based on 20% of the unpaid liability. The court therefore awarded $245,286.80 in liquidated damages and $245,286.80 in interest.

The court modified the attorneys’ fee calculation. It found that an hourly rate of $325 was reasonable for associate Zachary F. Ramsfelder. Using the recommended hours—20.9 hours for Raymond M. Baldino, 2.9 hours for Andrew F. Zazzali, Jr., and 50.8 hours for Ramsfelder—and hourly rates of $500 for Baldino and Zazzali and $325 for Ramsfelder, the court calculated reasonable attorneys’ fees of $28,410.00 rather than $31,125.00.

Disposition

The order adopted the report and recommendation as modified. It awarded the pension fund $1,475,184.38, consisting of $954,677.00 in unpaid withdrawal liability, $245,286.80 in interest through the judgment date, $245,286.80 in liquidated damages, $28,410.00 in attorneys’ fees, and $1,523.78 in costs.

The court also ordered Sherry-Lehmann to pay post-judgment interest from the date the clerk entered judgment until the judgment was satisfied, at the federal rate under 28 U.S.C. § 1961. Judge Lorna G. Schofield directed the clerk to enter judgment and close the case.