Fred Alston as a Trustee of the Local 272 Labor Management Pension Fund v…
Fred Alston as a Trustee of the Local 272 Labor Management Pension Fund v. Parking 56 LLC
- Alison Nathan
- 1:20-cv-01726
- U.S. District Court · Southern District of New York
- 5
In Fred Alston v. Parking 56 LLC, Judge Nathan granted in part and denied in part default judgment over unpaid Employee Retirement Income Security Act contributions.
Fred Alston and the Local 272 Labor Management Pension Fund and Local 272 Welfare Fund received a $13,471.50 judgment against Parking 56 LLC, which did not defend the case.
What happened
Fred Alston, as trustee of the Local 272 Labor Management Pension Fund and Local 272 Welfare Fund, sued Parking 56 LLC for failing to make required benefit contributions. Parking 56 LLC did not appear or defend the case.
The court found that the allegations stated a claim under the Employee Retirement Income Security Act and that the unpaid contributions were supported by an audit. But it found that Alston had counted the interest twice too many times. The court also found the requested attorneys’ fees and costs reasonable.
Judge Alison J. Nathan granted in part and denied in part the motion for default judgment and directed entry of judgment for the plaintiffs totaling $13,471.50. The award included unpaid contributions, two $688.44 interest amounts, attorneys’ fees, and costs.
The detailed version
- Fred Alston as a Trustee of the Local 272 Labor Management Pension Fund v… · No. 1:20-cv-01726
- Alison Nathan
- Mar. 26, 2021
Background
Fred Alston, as trustee of the Local 272 Labor Management Pension Fund and Local 272 Welfare Fund, moved for default judgment against Parking 56 LLC. A default judgment is a judgment entered when a party has failed to defend the case. The opinion states that Parking 56 LLC did not appear or defend, and that the clerk had entered a certificate of default.
The plaintiffs alleged that Parking 56 LLC was required under its contract with Garage Employees Union Local No. 272 to make contributions to the pension and welfare funds. They alleged that the company failed to make those contributions from May 1, 2018, through September 30, 2019. The claims were brought under Section 515 of the Employee Retirement Income Security Act, which requires employers obligated to contribute to a multiemployer plan to make those contributions according to the plan or agreement’s terms.
Liability and Damages
Because Parking 56 LLC defaulted, the court accepted the complaint’s well-pleaded allegations as true. The court concluded that the allegations stated a claim under the Employee Retirement Income Security Act.
The court also found that the requested unpaid-contribution damages were reasonably ascertainable and supported by evidence. An audit report showed $11,669.68 in unpaid hourly contributions. The motion sought $9,669.68 in principal because $2,000 had already been paid after the audit report was prepared.
The court found an error in the requested interest. The collective bargaining agreement provided for interest at 1.5% per month, or 18% per year. The plaintiffs requested $1,376.88 in interest and another $1,376.88 in additional interest. But the audit report calculated the interest for the relevant period as $688.44, which the court found represented the appropriate amount for each of the two interest components. The court therefore awarded $688.44 in interest and $688.44 in additional interest, rather than the larger amount requested.
The court found the requested attorneys’ fees and costs reasonable. It stated that the nine hours spent on the case and the requested hourly rates were reasonable, and that the fees were limited to 20% of the delinquent contributions under the collective bargaining agreement.
Ruling
Judge Alison J. Nathan granted in part and denied in part Alston’s motion for default judgment. The clerk was directed to close the case and enter judgment for the plaintiffs against Parking 56 LLC for $13,471.50, consisting of:
- $1,844.44 in unpaid contributions to the Local 272 Pension Fund; - $7,825.24 in unpaid contributions to the Local 272 Welfare Fund; - $688.44 in interest at 18%; - $688.44 in additional interest at 18%; - $1,933.94 in attorneys’ fees; and - $491 in costs.
The order resolved Docket Number 14.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.