Mason Tenders District Council Welfare Fund v. Shelbourne Construction Corp.
- Alison Nathan
- 1:19-cv-07562
- U.S. District Court · Southern District of New York
- 4
In Mason Tenders v. Shelbourne, Judge Nathan entered default judgment for unpaid benefits, interest, damages, fees, costs, an injunction, and an audit.
The plaintiffs received a money judgment, an injunction requiring compliance with payment and reporting obligations, and an order requiring Shelbourne Construction Corp. to cooperate with an audit. Shelbourne and the persons covered by the injunction were subject to those requirements.
What happened
Mason Tenders District Council Welfare Fund v. Shelbourne Construction Corp. involved claims by several Mason Tenders funds and Dominick Giammona against Shelbourne Construction Corp. The plaintiffs sought payment for unpaid fringe benefits, dues checkoffs, Political Action Committee contributions, and related amounts.
The court had already granted the plaintiffs’ request for a judgment because Shelbourne had not appeared. It then reviewed the plaintiffs’ updated calculations and their decision to withdraw the request to preserve claims based on a later audit, while noting that they did not give up the right to bring those claims in a new case.
Judge Nathan ordered the Clerk to enter judgment for the plaintiffs in the specified amounts, prohibited Shelbourne and related persons from failing to make required payments and reports, and required Shelbourne to permit and cooperate with an audit. The Clerk was directed to close the case.
The detailed version
- Mason Tenders District Council Welfare Fund v. Shelbourne Construction Corp. · No. 1:19-cv-07562
- Alison Nathan
- Jan. 8, 2021
Background
On October 16, 2019, the plaintiffs—Mason Tenders District Council Welfare Fund, Mason Tenders District Council Pension Fund, Mason Tenders District Council Annuity Fund, Mason Tenders District Council Training Fund, Mason Tenders District Council Health and Safety Fund, and Dominick Giammona, identified as the Funds’ Contributions/Delinquency Manager—filed a motion for default judgment against Shelbourne Construction Corp.
On November 30, 2020, the court granted the motion and directed the plaintiffs to explain why the court should retain jurisdiction over claims that might result from a later audit. The court also required a supplemental affidavit providing totals and calculations for prejudgment interest and liquidated damages, including interest accruing after October 16, 2019.
Plaintiffs’ Response and Calculations
The plaintiffs responded on December 21, 2020. They withdrew the portion of their request seeking a judgment that would retain jurisdiction over amounts that might be found due from an audit for any period beginning March 29, 2017. They stated that they did not waive their right to bring a new action based on amounts identified by that later audit.
The plaintiffs explained their methodology for calculating interest. The court had previously found that methodology adequate and independently reviewed the updated calculations. Because the calculations were accurate and Shelbourne had not appeared or introduced evidence showing that the findings were inaccurate, the court concluded that the plaintiffs were entitled to the proposed amounts.
Judgment and Other Relief
The order directed the Clerk to enter judgment in favor of the plaintiffs and against Shelbourne Construction Corp. for:
- $361,358.30 in unpaid fringe benefit contributions; - $97,794.98 in prejudgment interest on those unpaid contributions; - $97,794.98 in liquidated damages; - $122,861.82 in imputed audit costs; - $4,429.00 in reasonable attorneys’ fees; - $544.39 in costs; - $27,663.05 in undeducted or unremitted dues checkoffs and Political Action Committee contributions; and - $14,355.49 in prejudgment interest on those dues checkoffs and Political Action Committee contributions.
The order also enjoined Shelbourne and the listed related persons from failing, refusing, or neglecting to pay or submit required fringe benefit contributions, dues checkoffs, Political Action Committee contributions, and Employee Retirement Income Security Act contributions, or from failing to submit required reports under the Employee Retirement Income Security Act, collective bargaining agreements, and trust agreements.
Finally, the order directed Shelbourne to permit and cooperate in an audit of its books and records for the period from March 29, 2017, through the date of the audit. After entering judgment, the Clerk was directed to close the case.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.