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

Background

The plaintiffs commenced the action on April 21, 2021, and served the defendants with the summons and complaint. PF Commercial Flooring, Ltd. and Absolute Flooring, Inc. answered and filed counterclaims, but their counsel withdrew on September 8, 2022. The defendants did not obtain replacement counsel or continue defending the case, despite a court warning that a default judgment could be entered. The Clerk entered a certificate of default on October 4, 2022. The defendants received notice of a November 2, 2022, hearing to show why default judgment should not be entered but did not appear.

Claims and Liability

The complaint alleged that the defendants violated their collective bargaining agreement by failing to remit required benefit contributions. The plaintiffs asserted claims under the Employee Retirement Income Security Act, or ERISA, and the Labor Management Relations Act, or LMRA. The court stated that the complaint adequately alleged that the defendants were parties to, or otherwise bound by, the collective bargaining agreement and failed to make contributions for covered work. The court also found that the complaint adequately alleged that Absolute Flooring, Inc. was PF Commercial Flooring, Ltd.’s alter ego and single employer, making the defendants jointly and severally liable for each other’s obligations to the plaintiffs.

Judgment and Awards

Under Rule 55 of the Federal Rules of Civil Procedure, the court entered a default judgment against PF Commercial Flooring, Ltd. and Absolute Flooring, Inc. The court awarded total damages of $1,620,060.51, consisting of:

- $1,177,175.46 in delinquent benefit contributions, based on an audit of Absolute Flooring, Inc.’s books and records for April 21, 2015, through December 31, 2021; - $206,244.96 in interest, calculated under the collective bargaining agreement and the plaintiffs’ collection policy; - $235,435.09 in liquidated damages; and - $1,205.00 in audit costs.

The court noted that the defendants had conceded they had no documents rebutting the audit. It also awarded the plaintiffs $28,510.98 in attorneys’ fees and costs, finding the requested hourly rates, billed hours, and costs reasonable. The court awarded post-judgment interest at the statutory rate.

Disposition

Judge Lorna G. Schofield dismissed the defendants’ counterclaims, retained jurisdiction to enforce the judgment, directed the plaintiffs to serve the order on the defendants, directed the Clerk to enter judgment, and closed the case.