Alston v. Nagle Parking Inc.

Background

Fred Alston brought the action as trustee of the Local 272 Labor Management Pension Fund and the Local 272 Welfare Fund. He alleged that the three defendant employers failed to make contributions required by their contracts and failed to allow the funds’ trustees to audit their records to evaluate the adequacy of those contributions. The contracts covered March 6, 2015, through March 5, 2022, and were renewed through September 8, 2023.

Alston served each defendant on March 17, 2023. None answered or otherwise appeared, and the time to respond expired. The Clerk issued a certificate of default. After additional court orders concerning service and supporting documents, Alston moved for default judgment, an audit, payment of contributions owed, and attorneys’ fees and costs under the Employee Retirement Income Security Act (ERISA).

Default Judgment and Audit

The court held that allegations that an employer failed to make contributions to an ERISA plan as required by a collective bargaining agreement are sufficient at the pleading stage to allege ERISA liability. Because service had been established, the defendants had not answered, and none appeared to contest the motion, the court entered default judgment for Alston against all defendants.

The court ordered the defendants to permit Alston to review their books and records relating to the funds for the period from October 1, 2021, to the present. The conclusion describes this as default judgment and injunctive relief. The order did not specify an amount of unpaid contributions. It stated that, after the audit, Alston may apply for additional relief provided by ERISA.

Attorneys’ Fees and Costs

The court awarded fees and costs under ERISA and the agreements governing the defendants’ obligations. It accepted the requested attorney rate of $330 per hour for Jeffrey S. Dubin after considering the factors used to assess reasonable rates in fee applications.

The court found Dubin’s requested 17.20 hours excessive given the action’s brevity and lack of complexity. It noted that the complaint and default-judgment materials were largely formulaic and that some docketing time was excessive. The court therefore reduced the claimed hours by 50 percent and awarded $2,838.00 in attorneys’ fees.

The court also awarded $943.40 in costs: a $402.00 filing fee, a $1.40 PACER fee, and $540.00 in process-server fees.

Disposition

Judge Paul A. Engelmayer granted Alston’s motion for default judgment and injunctive relief. The defendants were ordered to permit the audit, and Alston was ordered to serve the decision on each defendant and file proof of service. The court also ordered Alston to file a revised proposed judgment and directed the Clerk to terminate the motion pending at docket 24.