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

Background

A final default judgment had previously been entered against Minelli Construction Co., Inc. The matter was then referred to Magistrate Judge Sarah Netburn for an inquest, meaning a proceeding to determine damages. Judge Netburn issued a Report and Recommendation and a supplemental Report addressing interest.

The recommendations covered unpaid contributions, interest on unpaid fringe-benefit contributions, liquidated damages, audit costs, and attorney’s fees and costs. The collective bargaining agreements provided for interest at Citibank’s prime lending rate plus 200 basis points, compounded daily on a declining principal basis. The supplemental report recommended $45,898.53 in prejudgment interest, and the order calculated additional interest through March 3, 2021.

Review of the Recommendations

The parties had fourteen days to object to the reports, but no timely objections were filed. Under 28 U.S.C. § 636(b)(1)(C), a district judge may accept, reject, or modify a magistrate judge’s recommendations. Because there were no timely objections, Judge Schofield reviewed the record for clear error and found none.

Ruling

Judge Schofield adopted both reports in full. The Clerk was directed to enter default judgment for the plaintiffs against Minelli in the following amounts:

- $2,612.96 in unpaid contributions; - $51,339.71 in prejudgment interest on the unpaid fringe-benefit contributions through entry of judgment; - $94,911.51 in liquidated damages; - $2,850 in audit costs; and - $12,929.28 in attorney’s fees and costs.

The order states that post-judgment interest will accrue at the statutory rate. After entry of the default judgment, the Clerk was directed to close the case.