Mason Tenders District Council Welfare Fund v. LJC Dismantling Corp.

Background

The Mason Tenders District Council Welfare Fund, Pension Fund, Annuity Fund, Training Fund, and Health and Safety Fund, together with Dominick Giammona in his fiduciary capacity as the Funds’ Contributions/Deficiency Manager, sued LJC Dismantling Corp. under the Employee Retirement Income Security Act of 1974. The claims sought unpaid fringe benefit contributions, dues checkoffs, and political action committee contributions.

On September 11, 2019, Judge Broderick granted summary judgment for Plaintiffs and denied LJC’s cross-motion for summary judgment. He directed Plaintiffs to submit a proposed judgment, updated interest calculations, and evidence supporting requests for audit costs and attorneys’ fees and costs. LJC did not respond to those submissions.

Report and Recommendation

Judge Broderick referred the damages issues to Magistrate Judge Sarah Netburn for an inquest and a report and recommendation. Judge Netburn recommended a total award of $1,251,137.25, plus additional interest to be calculated when final judgment was entered. The recommendation included unpaid contributions and related amounts, prejudgment interest, liquidated damages, audit costs, and attorneys’ fees and costs.

The parties had an opportunity to file written objections. LJC requested, and received, an extension until January 11, 2021. Neither party filed an objection.

Court’s Review and Ruling

Because there were no objections, Judge Broderick reviewed Judge Netburn’s report and recommendation for clear error, meaning an obvious mistake in the findings or recommendations. He found no clear error and adopted the report and recommendation in its entirety.

Judge Broderick confirmed the award and directed entry of judgment for Plaintiffs as follows:

- $698,816.59 for unpaid fringe benefit contributions, dues checkoffs, and political action committee contributions; - $185,900.00 in prejudgment interest on unpaid fringe benefit contributions; - $185,900.00 in liquidated damages; - $49,162.65 in prejudgment interest on unpaid dues checkoffs and political action committee contributions; - $62,868.93 in audit costs; and - $84,450.03 in attorneys’ fees and costs.

The opinion notes that the report and recommendation had calculated $33,201.70 plus $15.85 per day in prejudgment interest on the dues checkoffs and political action committee contributions. A footnote states that an additional $15,960.95 accrued during the 1,007 days since August 14, 2018, resulting in the final $49,162.65 amount. The Clerk’s Office was directed to enter judgment and close the case. Judge Broderick signed the order as United States District Judge.