Chicago Regional Council of Carpenters Pension Fund v. Cottage Grove Glass Company Incorporated

• Court: District Court, N.D. Illinois
• Decided: February 12, 2018
• Docket: 1:16-cv-11148
• Status: Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND, et al. Plaintiffs, v. 16 CV 11148 COTTAGE GROVE GLASS COMPANY Judge John Blakey INCORPORATED, et ai., Defendants. PLAINTIFFS’ MOTION FOR ENTRY OF JUDGMENT Plaintiffs Chicago Regional Council of Carpenters Pension Fund et al.’s (“Plaintiffs”) hereby move this Court to enter a judgment against defendants COTTAGE GROVE GLASS COMPANY INCORPORATED, a dissolved Illinois corporation and PATRICIA KING doing business as COTTAGE GROVE GLASS COMPANY INCORPORATED (“Defendants”) pursuant to Federal Rule of Civil Procedure 55. In support of their Motion, Plaintiffs state as follows. I. SUMMARY OF DAMAGES. For the reasons explained more fully below, this Court should award Plaintiffs $16,621.67 in damages as follows: (A) Unpaid Fringe Benefit Contributions $2,836.01 | (QB) Mnterest ns 361.67 | (C) Liquidated Damages $902.94 | _(D) Auditors’ Fees 0 $2,565.00. _(E) Attorneys’ Fees and Costs $9,956.05 | ta et $16,621.67 |

Il. ENTRY OF JUDGMENT. A. Defendants’ Default. On December 7, 2016, Plaintiffs filed a complaint against the Defendants under the Employee Retirement Income Security Act (“ERISA”) for unpaid fringe benefit contributions owed by Defendants pursuant to an audit conducted by Plaintiffs’ designated auditor, Legacy Professionals, LLP (“Legacy”) for the period October 19, 2015 through September 30, 2016. Plaintiffs’ complaint also sought a judgment for all unpaid contributions, interest and liquidated damages, attorneys’ fees and costs and auditors’ fees pursuant to ERISA, the Area Agreements and the trust agreements to which Defendants are signatory. The complaint was served on Defendants on January 3, 2017. See Affidavits of Service, Docket Nos. 5-6. The affidavits of service were filed with the Clerk of Court on January 4, 2017. See Affidavits of Service, Docket Nos. 5-6. Defendants failed to answer or appear. This Court entered an order of default against Defendants on May 4, 2017. See Order, Docket Report No. 18. That order provides in part that: Pursuant to Federal Rule of Civil Procedure 55(a), an order of default is hereby entered in favor of the CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND ET AL. (“Trust Funds”) and against defendants COTTAGE GROVE GLASS COMPANY INCORPORATED, a dissolved Illinois corporation; PATRICIA KING doing business aa COTTAGE GROVE GLASS COMPANY INCORPORATED (collectively “Defendants”). Defendants are hereby ordered: A. to provide the Trust Funds or their designated auditors, Legacy Professionals, LLP complete access to Defendant’s books and records within twenty-one (21) days of the date of entry of this Order so that the Trust Funds may complete an audit of Defendant’s fringe benefit contributions for the period October 19, 2015 through September 30, 2016; B. to pay any and all amounts the Trust Funds may discover to be due pursuant to the audit, 29 U.S.C. §1132(g)(2)(A); C. to pay auditor’s fees incurred by the Trust Funds to complete the audit of Defendant’s books and records, 29 U.S.C. §1132(g)(2)(E);

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D. to pay interest on the amount that is due, 29 U.S.C. §1132(g)(2)(B); E. to pay interest or liquidated damages on the amount that is due, whichever is greater, 29 U.S.C. §1132(g)(2)(C); and F, to pay reasonable attorneys’ fees and costs the Trust Funds incurred in this action and attorneys’ fees that the Trust Funds incur to obtain full compliance with this Order and to collect any amounts due and owing to the Trust Funds, 29 U.S.C. §1132(g)(2)(D). It is further ordered that the Court reserves the right to award such other and further relief as the Court deems just and equitable. See Order, May 4, 2017, Docket Report No. 18. Defendant Martin Grant was dismissed without prejudice on May 4, 2017. See Plaintiffs’ Ex Parte Motion to Dismiss Defendant Martin Grant Without Prejudice Pursuant to Federal Rule of Civil Procedure 4, Docket Report No. 12. After the entry of the order of default on May 4, 2017 and after entry of a rule to show cause, Plaintiffs were able to conduct an audit of Defendants’ books and records which revealed unpaid fringe benefit contributions in the amount of $2,836.01. See Declaration of K. Guastaferri (6-7, Exhibit A; Order, June 30, 2017, Docket Report No. 21; Order, July 12, 2017, Docket Report No. 22; Order, August 2, 2017, Docket Report No. 25; Order, September 14, 2017, Docket Report No. 26. After completion of the audit, Plaintiffs asked Defendants for additional information on December 22, 2017 but Defendants did not produce any additional documents in response to the audit. See Letter from K. McJessy to P. King, December 22, 2017, Exhibit D. B. Damages for Unpaid Fringe Benefit Contributions. Defendants are bound by the Area Agreement with the Chicago Regional Council of Carpenters (“Union”). See Declaration of K. Guastaferri 3, Exhibit A. Under ERISA, Defendants are liable to Plaintiffs for any unpaid fringe benefit contributions. ERISA states as follows:

In any action under this subchapter by a fiduciary for or on behalf of a plan to enforce section 1145 of this title in which a judgment in favor of the plan is awarded, the court shall award the plan— (A) the unpaid contributions .... See 29 U.S.C. §1132(g)(2)(A). The audit of Defendants’ books and records revealed unpaid fringe benefit contributions in the amount of $2,836.01. See Declaration of K. Guastaferri [§[6-7, Exhibit A; Order, May 4, 2017, Docket Report No. 18. Accordingly, this Court should award Plaintiffs $2,836.01 for unpaid fringe benefit contributions. C. Interest. Under ERISA, 29 U.S.C. §1132, Plaintiffs are entitled to collect interest on the unpaid contributions. Section 1132(g)(2)(B) provides as follows: (2) In any action under this subchapter by a fiduciary for or on behalf of a plan to enforce section 1145 of this title in which a judgment in favor of the plan is awarded, the court shall award the plan— (B) interest on the unpaid contributions, For purposes of this paragraph, interest on unpaid contributions shall be determined by using the rate provided under the plan, or, if none, the rate prescribed under section 6621 of title 26. See 29 U.S.C. §1132(g)(2). And, section 6621 of title 26 provides as follows: (2) Underpayment rate. The underpayment rate established under this section shall be the sum of— (A) the Federal short-term rate determined under subsection (b), plus (B) 3 percentage points. See 26 U.S.C. §6621. This is consistent with the trust agreements which also allow Plaintiffs to collect interest on the amount due. See Declaration of K. Guastaferri 8-10, Exhibit A. Therefore, Plaintiffs are entitled to recover interest based on the statute.

The amount due as interest on the fringe benefit contributions is $361.67. See Declaration of K. Guastaferri (98-10, 12, Exhibit A. Accordingly, this Court should award Plaintiffs interest in the amount of $361.67 pursuant to 29 U.S.C. §1132(g)(2). D. Liquidated Damages. Under ERISA, 29 U.S.C. §1132, Plaintiffs are entitled to collect liquidated damages on the unpaid contributions. Section 1132(g)(2)(C)(i) provides as follows: (2) In any action under this subchapter by a fiduciary for or on behalf of a plan to enforce section 1145 of this title in which a judgment in favor of the plan is awarded, the court shall award the plan— (C) an amount equal to the greater of— (ii) liquidated damages provided for under the plan in an amount not in excess of 20 percent (or such higher percentage as may be permitted under Federal or State law) of the amount determined by the court under subparagraph (A), This is consistent with the trust agreements which also allow Plaintiffs to collect liquidated damages of 1.5% monthly on the amount due. See Declaration of K. Guastaferri □□□□ 10, Exhibit A. The total liquidated damages calculated at 1.5% per month compounded equals $902.94. See Declaration of K. Guastaferri 98-10, Exhibit A. Accordingly, this Court should award Plaintiffs liquidated damages in the amount of $902.94 pursuant to 29 U.S.C. §1132(g)(2)(C)(ii). E. Auditor’s Fees. Under the terms of the Trust Agreements and the Area Agreement, a signatory employer is liable for reasonable fees of auditors retained by Plaintiffs used to establish the amount of

_ delinquent contributions to Plaintiffs. See Declaration of K. Guastaferri 11, Exhibit A. Moreover, ERISA, 29 U.S.C. §1132, likewise provides that Plaintiffs are entitled to recover auditors’ fees incurred to prove the amount of contributions owed:

ERISA itself grants the district court authority to award the plaintiffs their reasonable attorney's fees and costs in successful actions to collect unpaid fringe benefit contributions owed to multi-employer plans, 29 U.S.C. § 1132(g)(2)(D), along with ‘such other legal or equitable relief as the court deems appropriate,’ id. § 1132(g)(2)(E). This court, among others, has construed the latter provision to include an award of audit costs. Moriarty ex rel. Local Union No. 727, I.B.T. Pension Trust v. Svec, 429 F.3d 710, 721 (7th Cir. 2005) (citing Operating Eng'rs Pension Trust v. A-C Co., 859 F.2d 1336, 1343 (9th Cir. 1988)). See Trustees of the Chicago Plastering Institute Pension Trust v. Cork Plastering Co., 570 F.3d 890, 902 (7th Cir. 2009). Plaintiffs incurred $2,565.00 in auditors' fees for the audit of Defendants’ fringe benefit contributions to Plaintiffs during the Audit Period. See Declaration of K. Guastaferri 11, Exhibit A. Accordingly, this Court should award Plaintiffs $2,565.00 in reasonable auditors’ fees for the audit of Defendants’ books and records to determine that Defendant owed unpaid fringe benefit contributions. F. Attorneys’ Fees and Costs. Under the terms of the Trust Agreements and the Area Agreement, Defendants are liable for reasonable attorneys’ fees and costs incurred by Plaintiffs to collect delinquent contributions because Plaintiffs were required to hire counsel to compel the audit of Defendants and to collect the amount due from Defendants. See Declaration of K. Guastaferri 99, Exhibit A. Defendants have a statutory obligation to pay attorneys’ fees and costs. Under ERISA, 29 U.S.C. §1132, Plaintiffs are entitled to recover attorneys’ fees and costs incurred to collect the unpaid contributions. Section 1132(g) provides as follows: (g) Attorney’s fees and costs; awards in actions involving delinquent contributions ... (2) In any action under this subchapter by a fiduciary for or on behalf of a plan to enforce section 1145 of this title in which a judgment in favor of the plan is awarded, the court shall award the plan—.... (D) reasonable attorney’s fees and costs of the action, to be paid by the defendant ...

See 29 U.S.C. §1132(g)(2) (emphasis added). Defendants are also liable for attorneys’ fees and costs incurred by Plaintiffs to enforce any judgment entered in this matter. See Free v. Briody, 793 F.2d 807, 808-09 (7" Cir. 1986). Here Plaintiffs incurred $9,956.05 in attorneys’ fees and costs as stated in the affidavit and detailed billing statements accompanying this petition. See Declaration of K. McJessy {{6- 8, Exhibit B. Billing statements are admissible to show the reasonableness of attorneys’ fees and costs in ERISA cases. See Trustees of the Chicago Plastering Inst. Pension Trust, 570 F.3d at 903 (relying on attorneys “time records”); Chicago Regional Council of Carpenters Pension Fund v. RCI Enterprises, Inc., 2011 U.S. Dist LEXIS *6-7 (N.D. IIL, July 20, 2011) (Feinerman, J.) (relying on billing time records for award of attorneys’ fees). Moreover, the fees charged here of $220/hour and $205/hour for attorney time are reasonable compared to the rates charged by other attorneys handling similar ERISA matters in the Northern District of Illinois. As a matter of law, the Northern District of Illinois has recognized that hourly rates of $195 per hour to $250 per hour are reasonable rates for attorney time for ERISA litigation. See Trustees of the Chicago Regional Council of Carpenters Pension Fund v. RCI Enterprises, Inc., 2011 U.S. Dist. LEXIS *6 (N.D. IIL.) (holding that attorney rates of $180/hr for a junior attorney to $250/hr for a partner are reasonable hourly rates for ERISA lawsuit by the Chicago Regional Council of Carpenters); Board of Trustees of the Rockford Pipe Trades Indus. Pension Fund y. Fiorenza Enters., 2011 U.S. Dist. LEXIS 28209, 21-22 (N.D. Ill. Mar. 18, 2011) (“the court finds that the hourly rates [of $195, $210 and $235 per hour]... are reasonable” for fringe benefit trust funds lawsuit against employer to collect unpaid contributions); Divane v. Mitchell Sec. Sys., 2008 U.S. Dist. LEXIS 27825 (N.D. Ill. Apr. 7,

2008) (“The court finds that the billing rates [of $220.00 to 240.00 for attorneys] are reasonable.”). Accordingly, this Court should award Plaintiffs $9,956.05 in reasonable attorneys’ fees and costs for the audit of Defendants’ books and records to determine that Defendants owed unpaid fringe benefit contributions. Ill. CONCLUSION. For the forgoing reasons, Plaintiffs respectfully request that this Court enter final judgment for Plaintiffs in the amount of $16,621.67 as follows: A. $2,836.01 in unpaid contributions pursuant to the audit; B. $2,565.00 for auditor’s fees incurred by Plaintiffs to complete the audit of Defendant’s books and records; C. $361.67 in interest pursuant to 29 U.S.C. § 1132(g)(2)(B); D. $902.94 in liquidated damages pursuant to 29 U.S.C. § 1132(g)(2)(C); and E. $9,956.05 in reasonable attorneys’ fees and costs Plaintiffs incurred in this action pursuant to 29 U.S.C. § 1132(g)(1) and/or § 1132(g)(2)(D). Plaintiffs shall also recover reasonable attorney’ fees and costs incurred by Plaintiffs in enforcing this order and any such further relief as this Court deems appropriate. See Free v. Briody, 793 F.2d 807, 808-09 (7" Cir. 1986). A proposed order is attached hereto as Exhibit C.

CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND et al. By: _ s/ Kevin P. McJessy One of Their Attorneys Kevin P. McJessy McJEssy, CHING & THOMPSON, LLC 3759 North Ravenswood, Suite 231 Chicago, ILlinois 60613 (773) 880-1260 (773) 880-1265 (facsimile) mcejessy@MCandT.com

CERTIFICATE OF SERVICE I, Kevin P. McJessy, an attorney, certify that I caused the foregoing Plaintiffs’ Motion for Entry of Judgment to be served upon Patricia King President Cottage Grove Glass Company, Inc. 7401 S. Cottage Grove Chicago, Illinois, 60619 via U.S. First Class Mail, postage prepaid, deposited in the United States Mail Depository located at 3759 N. Ravenswood, Chicago, Illinois on February 12, 2018.

s/ Kevin P. McJessy Kevin P. McJessy

16 CV 11148

Exhibit A

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND, et ai. Plaintiffs, v. 16 CV 11148 COTTAGE GROVE GLASS COMPANY Judge John Blakey INCORPORATED, a dissolved [Iinois corporation; PATRICIA KING doing business as COTTAGE GROVE GLASS COMPANY INCORPORATED; and MARTIN GRANT doing business COTTAGE GROVE GLASS COMPANY INCORPORATED, Defendants. DECLARATION OF KRISTINA M. GUASTAFERRI J, Kristina M. Guastaferri, hereby state as follows: I. lam the Administrator for the Chicago Regional Council of Carpenters Pension Fund, the Chicago Regional Council of Carpenters Health and Welfare Fund, the Chicago and Northeast Illinois Regional Council of Carpenter Apprentice and Trainee Program and the Labor/Management Union Carpentry Cooperation Promotion Fund (collectively “the Trust Funds”). 2. As part of my duties, | am responsible for managing the collection of contributions for medical, pension and other benefits due from employers pursuant to the collective bargaining agreement between the employers and the Chicago Regional Council of Carpenters (“Union”). Accordingly, | am familiar with the terms of the current collective bargaining agreement (“Area Agreement”) and the trust agreements establishing the Trust Funds. 3. Cottage Grove Glass Company Incorporated, (“Defendant”), is an employer bound by the Area Agreement with the Union because Defendant signed an Agreement with the

Union. A copy of the Agreement with the Union signed by Defendant binding the Defendant to the Area Agreement is attached as Exhibit 1. The Agreement further provides that Defendant agreed to be bound by the trust agreements establishing the Trust Funds and by the rules and regulations adopted by the Trustees of each Trust Fund. The Area Agreement, the trust agreements and the rules and regulations are collectively referred to herein as “Agreements.” 4. Pursuant to the Agreements, Defendant is required to pay fringe benefit contributions to the Trust Funds for work performed by Defendant's employees and Defendant’s non-union subcontractors performing work falling within the jurisdiction of the Union. 5. Pursuant to the Agreements, Defendant also agreed to submit to a periodic audit of its books and records in order to verify the accuracy of the contributions reported and paid to the Trust Funds. 6. The Trust Funds engaged Legacy Professionals, LLP (“Legacy”) to conduct an audit of Defendant’s fringe benefit contributions to the Trust Funds for the period October 19, 2015 to June 30, 2017 (“Audit Period”). 7. Legacy prepared a report (“Audit Report”) of Defendant's fringe benefit contributions to the Trust Funds based on Legacy’s review of Defendant’s records. Legacy delivered its Audit Report to the Trust Funds. A true and accurate copy of the Audit Report maintained in the Trust Funds’ records is attached as Exhibit 2. According to the Audit Report and based on the records produced by Defendant, Defendant owes $2,836.01 in unpaid fringe benefit contributions to the Trust Funds owed, in part, on behalf of Dontez E. Morris. I have reviewed the Trust Funds’ records and Mr. Morris was a Union member during the audit period, and he is still a Unton member. 8. The Agreements provide that the Trust Funds collect liquidated damages on unpaid fringe benefit contributions at a rate of 1% percent compounded monthly. The

Agreements also provide that the Trust Funds collect interest on unpaid fringe benefit contributions as allowed by law. 9. Because Defendant failed to comply with the terms of the Agreements, the Trust Funds have had to employ the services of the law firm McJessy Ching & Thompson, LLC. Asa result, the Trust Funds incurred attorneys* fees and costs. 10. Asummary of the damages owed according to the Audit Report as of February 8, 2018 is attached hereto as Exhibit 3. Defendant owes $361.67 in unpaid interest calculated pursuant to 26 U.S.C. §6621 and $902.94 in unpaid liquidated damages calculated in accordance with the Agreements. 1]. The Trust Funds paid Legacy $2,565.00 in fees for Legacy to conduct its review of Defendant’s books and records and to prepare the Audit Report. 12. In sum, based on the records produced by Defendant, Defendant owes unpaid contributions of $2,836.01, interest of $361.67, liquidated damages of $902.94, auditors’ fees of $2,565.00 plus the attorneys’ fees and costs incurred by the Trust Funds in this lawsuit. 13. [have personal knowledge of the matters stated in this affidavit and could testify competently to them. I, Kristina M, Guastaferri, hereby declare, under penalty of perjury pursuant to the laws of the United States, that the forgoing statements are true to the best of my knowledge information and belief. rh, Ye Mitte Kristina M Auastafe fr A Exectited on: 2/12 21K Date

EXHIBIT 1

Memorandum of Agreement = Employer COTTAGE GROVE GLASS COMPANY, INC. Address: 7401S. COTTAGE GROVE City CHICAGO State IL Zip 60619 PHONE 773-226-1550 THIS AGREEMENT is entered into between the Chicago Regional Council of Carpenters ("Union") and the Employer, including its successors and assigns covering the geographic jurisdiction of the Union including the following counties in Illinois: Boone, Bureau, Carroll, Cook, De Kalb, DuPage, Grundy, Henderson, Henry, Iroquois, Jo Daviess, Kane, Kankakee, Kendall, Lake, La Salle, Lee, Marshall, McHenry, Mercer, Ogle, Putnam, Rock Island, Stark, Stephenson, Whiteside, Will, Winnebago. The following counties in Iowa: Allamakee, Appanoose, Benton, Black Hawk, Bremer, Buchanan, Butler, Cedar, Cerro Gordo, Chickasaw, Clayton, Clinton, Davis, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Grundy, Hancock, Henry, Howard, lowa, Jackson, Jefferson, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Mahaska, Mitchell, Monroe, Muscatine, Scott, Tama, Van Buren, Wapello, Washington, Wayne, Winnebago, Winneshiek, Worth, Wright. The following counties in Wisconsin: Kenosha, Milwaukee, Ozaukee, Racine, Washington and Waukesha. The Union and the Employer do hereby agree to the following: 1. The Employer recognizes the Union as the sole and exclusive bargaining representative on behalf of its employees who are working within the territorial and occupational jurisdiction of the Union.

2. The Employer has reviewed sufficient evidence and is satisfied that the Union is the exclusive bargaining representative of a majority of its employees presently working within the territorial and occupational jurisdiction of the Union. 3. The Employer and the Union agree to incorporate into this Memorandum Agreement and to be bound by the Agreements negotiated between the Chicago Regional Council of Carpenters and various employers and employer associations, including all Area Agreements for the period beginning with the execution of this Memorandum Agreement and ending on the expiration dates of any current and successor Agreements which are incorporated herein (see attached list). Unless the Employer provides written notice by certified mail to the Chicago Regional Council of its desire to terminate or modify the Agreement at least three (3) calendar months prior to the expiration of such Agreements, the Agreement shall continue in full force and effect through the full term and duration of all subsequent Agreements which are incorporated by reference. 4. The Employer agrees to be bound to the terms of the various Trust Agreements to which contributions are required to be made under the Agreements incorporated in Paragraph 3, including all and regulations adopted by the Trustees of each Fund. In Witness Whereof the parties have executed this Memorandum of Agreement on this 19th_ day of October, 2015. EMPLOYER CHICAGO REGIONAL GOUNCIL me ef) Lae 74d Authokized Regional Council rt Vv Representative Print Name and Title

Agreements , (Central Region)

Mid American Regional Bargaining Association, Cook, Lake and DuPage Mid American Regional Bargaining Association, Kane, Kendall and McHenry Mid American Regional Bargaining Association, Will Kankakee Contractors Association Residential Construction Employers Council, Cook, Lake and DuPage Residential Construction Employers Council, Will Residential Construction Employers Council, Grundy Woodworkers Association of Chicago (Mill-Cabinet) Contractors Association of Will and Grundy Counties Gypsum Drywall Contractors of Northern Illinois/Chicagoland Association of Wall and Ceiling Contractors (Western Region)

Ulinois

Quad City Builders Association, Commercial, Rock Island Mercer, Henry and Henderson Floor Covering, Rock Island, Mercer, Henry and Henderson Residential, Henry, Mercer and Henderson Illinois Valley Contractors’ Association, Bureau, LaSalle, Marshall, Putnam and Stark Window and Door, Boone, Bureau, Carroll, DeKalb, Henderson, Henry, Jo Daviess, LaSalle, Marshall, Mercer, Ogle, Putnam, Rock Island, Stark, Stephenson, Whiteside and Winnebago Commercial/Residential, DeKalb, Eastern Ogle and cities in Sandwhich and Somonauk Residential Construction Employers’ Council, DeKalb, Eastern Ogle and cities in Sandwich and Somonauk Residential Construction Employers’ Council, Boone, Carroll, Jo Daviess, Lee, Ogle, Stephenson, Whiteside and Winnebago Northern Hlinois Building Contractors Association Inc., Boone, Carroll, Jo Davies, Lee, Ogle, Stephenson, Whiteside and Winnebago Floor Covering, Boone, Carroll, DeKalb, Jo Daviess, Lee, Lee, Ogle, Stephenson, Whiteside and Winnebago Millwright, Boone, Bureau, Carroll, DeKalb, Henderson, Jo Davies, LaSalle, Lee, Marshall, Mercer, Ogle, Putnam, Rock Island, Stark, Stephenson, Whiteside, and Winnebago Associated General Contractors of Illinois (Heavy and Highway) Highway Districts 2-7 and portions of 1 and 8

lowa

Commercial, Muscatine, Scott, Louisa north of lowa River Floorcovering, Louisa north of lowa River, Muscatine and Scott Residential, Clinton, Louisa, Muscatine, Scott and Seven southern most townships of Jackson County including Monmouth, South Fork, Maquoketa, Fairfield, Van Buren, lowa and Union Heavy and Highway Associated Contractors Agreement Scott County Herberger Construction Heavy and Highway Heavy and Highway Contractors’ Association- entire State except Scott County Commercial Benton, Jones, Linn and Tama Residential Benton, Jones, Linn and Tama Commercial, Des Moines, Henry, Lee and Louisa south of Iowa River Residential, Des Moines, Henry, Lee and Louisa south of Iowa River

Commercial/Residential Dubuque, Delaware, Clayton, and Six Northern Townships in Jackson Commercial/Residential, Appanoose, Davis, Jefferson, Keokuk, Mahaska, Monroe, Van Buren, Wapello, and Wayne Commercial, Clinton, Seven Southern most townships of Jackson including Monmouth, South Fork, Maquoketa, Fairfield, Van Buren, Iowa, and Union Floor Covering, Dubuque, Delaware, Clayton, and six Northern Townships in Jackson Window and Door, State Commercial, Cedar, Iowa, Johnson, Poweshiek and Washington Commercial Interior Systems, Cedar, Iowa, Johnson, Poweshiek and Washington Residential, Cedar, Iowa, Johnson, Poweshiek and Washington Commercial, Cerro Gordo, Franklin, Hancock, Kossuth, Winnebago, Worth and Wright, Buchanan, Independent Contractors of Waterloo (Commercial) Butler, Chickasaw, Fayette, Floyd, Grundy, Howard, Mitchell, Winneshiek Millwright, Adair, Allamakee, Appanoose, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cedar, Calhoun, Carroll, Cerro Gordo, Chickasaw, Clayton, Clarke, Clinton, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Emmet, Fayette, Floyd, Franklin, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Jefferson, Johnson, Jones, Keokuk, Lee, Linn, Lucas, Louisa, Madison, Mahaska, Marion, Marshall, Mitchell, Monroe, Muscatine, Palo Alto, Pocahontas, Polk, Poweshiek, Ringhold, Scott, Story, Tama, Union, Van Buren, Warren, Wapello, Washington, Wayne, Webster, Winnebago, Winneshiek, Worth, Wright

(Northern Region)

Commercial Carpenters and Floor Coverers’ Agreement (Wisconsin) Commercial Carpenters Agreement, Kenosha/Racine Millwright Erectors’ Agreement Pile Drivers’ Agreement Insulators Agreement Overhead Door Agreement

The Employers Acknowledges receipt of a current copy of each agreement under which the company will be performing work. Each of the agreements are available upon request It is also understood and agreed that it is the Employers obligation to make a written request of additional Collective Bargaining Agreement(s) in the event that the Company performs work in areas for which it has not already obtained a copy of the applicable Agreement.

Employer \

Date 19 | if | iS

Side Letter Agreement

This Side Letter Agreement is entered into this 19" day of October, 2015 between the Chicago Regional Council of Carpenters (“Union”) and Cottage Grove Glass Co, Inc. (“Employer”) and shall be incorporated into and made part of the Collective Bargaining Agreement (“CBA”) between the parties.

The following is agreed: 1, The employer recognizes the requirement that it secure a wage and fringe benefit bond in accord with the provisions contained in Article XV of the Area Agreement. 2. Atthe time that the Agreement is executed the Union agrees that Cottage Grove Glass Co, Inc., shall have 90 days to secure the required $10,000 bond. During the 90 day period or in the event that the employer does not comply with this Side Letter Agreement, the Union will enforce the provisions contained in both Articles IT] and XV of the Area Agreement. a 3. Nothing contained in this Side Letter Agreement is intended to amend or modify the terms contained in the applicable CBA, and gives the employer no more favorable terms under the applicable Agreement.

Cottage Grove bes Co, Inc. GS Lat ae of Carpenters

Jolia fs Date

EXHIBIT 2

Legacy Professionals LLP ewtnanoe sat Records Reviewed __ Account Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Employer: Cottage Grove Glass Co Inc Contact: Patricla King Address: 7401 $ Cottage Grove Ave Title: Owner Chicago, It. 60619 Phorie: (773) 226-1550 Phone; (773) 226-1550 —_ □ . ERISA Employer Audit Results: [Associated Account(s) Discrepancy Total Hours 97.19. Discrepancy Benefit:Hours 97.19 | Discrepancy Amount $2;836.0t Liquidated Damages $567.20

Reviewed. Employer Records Yes Annual Federal Unemployment Tax Return (940) Yes Bank Statements, No Cash Disbursement-Journals — Yes Check Register / Cancelled Cheeks / Vouchers , N/A Construction. Loan Data N/A Cotitribution Reports to All Other Funds Yes Contribution Reports to-Audited Funds No Federal Income Tax-Returns (1120.or 1065) No. General Ledgers. Yes Individual Earnings Records No Invoices from Sub-Contractors No JobListilob CostRecords = . N/A Miséellaneous Incorrie Payment Reports (1099) No Payroll Journals: Yes Quarterly Federal Tax:Returns (941) . Yés Quarterly Unemployment Wage Reports NIA Summary of Information Returns (1096) No Time Cards Yes Transmittal of Incomé-and Tax Statements (W-3) No Vendor List Yes Wage and Tax Statements (W-2) Initiation. Type: New-Agréement . Copy Forwarded to Attormey

Date‘Reviewed:. Hi A, l i Reviewer: Yad = : fe lt AF

Legacy Professionals LLP Discrepancy Summary By Month Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 (773) 226-1550 Page: 1 of 8 Discrepancy Contribution Discrepancy Reporting Period Total Hours |Benefit Hours Rate Amount October 2015 (22.50) (22.50) $29.18 ($656.5! November 2015 (35.03) (35.03) $29.18 ($1,022.18 December 2015 96.15 96.15 $29.18 □□□□□□□□□ February 2016 51.32 51.32 $29.18 $1,497.52 March 2016 7,25 7,25 $29.18 $211.56

Total Benefit Discrepancy Amount $2,836.0° Hours 97.19 |Hours 97.19 Liquidated Damages $567.2( Total Amount Due □□□□□□□□□

Legacy Professionals LLP Discrepancy Summary By Error Type Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 (773) 226-1550 Page: 2 of 8

Description Dollar Amour

SIGNATORY EMPLOYER: PAYROLL Clerical Error □□□□□□□□□□ Current Record $5,418.4:

□□□ Sub-Total Discrepancies From All Listed Codes $2,836.0 Liquidated Damages $567.2 Total Amount Due $3,403.2

Legacy Professionals LLP Liquidated Damages Schedule □□□ □□ ree eee en eee re eee ence eran ee ence eee eee Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL. 60619 (773) 226-1550 Page: 3 of 8 Contributions Compounding Calculating Total Liquidated Reporting Period Due Periods Percentage Damages Owed October 2015 ($656.55) November 2015 ($1,022.18) December 2015 $2,805.66 23 20.00% $561.’ February 2016 $1,497.52 21 20.00% $299.£ March 2016 $211.56 20 20.00% $42.3

Total Damages this Schedule □□□□□ Total Discrepancies $2,836.01 20% of Discrepancies $567.2

Assessed Damages □□□□□

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EXHIBIT 3

Cottage Grove Glass Co Inc 02/08/2018 Acct# 25509 Audit Discrepancies S 2,836.01 Liquidated Damages S 902.94 interest S 361.67 Audit Fees S 2,565.00 Sub-Total S 6,665.62 Attorney Fees ?? Total $6,665.62 + Atty Fees

Exhibit B

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND, et al. Plaintiffs, 16 CV 11148 v. Judge John Blakey COTTAGE GROVE GLASS COMPANY INCORPORATED, et al., Defendants. DECLARATION OF KEVIN P. MCJESSY I, Kevin P. McJessy, hereby declare, under penalty of perjury pursuant to the laws of the United States, that the following statements are true: l. I am one of the attorneys representing the Chicago Regional Council of Carpenters Pension Fund, the Chicago Regional Council of Carpenters Welfare Fund, the Chicago and Northeast Illinois Regional Council of Carpenter Apprentice and Trainee Program, and the Labor/Management Union Carpentry Cooperation Promotion Fund (collectively “the Trust Funds”) in the above-captioned lawsuit (“Lawsuit”) against COTTAGE GROVE GLASS COMPANY INCORPORATED, a dissolved Illinois corporation and PATRICIA KING doing business as Cottage Grove Glass Company Incorporated (“Defendants”). 2. I have been licensed to practice law in the State of Illinois and the United States District Court for the Northern District of Illinois since 1995. I am an attorney with McJessy, Ching & Thompson, LLC (““MC&T”).

3. As part of my practice, I handle claims under ERISA. I personally represented the Trust Funds in this Lawsuit. I have represented the Trust Funds in this Lawsuit since its inception. As such I am familiar with the matters set forth in this declaration. 4. Joseph Borders is an attorney with MC&T. He has been an attorney since 1993. 5. John Sopata is an attorney with MC&T. He has been an attorney since 1999. 6. Sheila Keating is a paralegal with MC&T. She has been a paralegal since 1987. 7. The Trust Funds have incurred $9,956.05 in fees and expenses to compel Defendants to comply with their obligations under the terms of the Collective Bargaining Agreement and applicable trust agreements. 8. The Trust Funds have collectively incurred fees totaling $9,365.00 for 38.50 hours of attorney services and $710.00 for 7.10 hours of paralegal services. A copy of the client ledger showing the time spent and a description of the work performed is attached as Exhibit 1. Name Services Hours Rate Total Kevin McJessy (“KM”) Attorney 31.50 $220/hr. $6,930.00 Joseph Borders (“JB”) Attorney 0.30 $205/hr. $61.50 John Sopata (“JS”) Attorney 6.70 $205/hr. $1,373.50 Sheila Keating (“SK) Paralegal _7.10 $100/hr. $710.00 Total 9,075.00 The hourly rate for attorneys and paralegals charged to the Trust Funds as set forth above is consistent with the rates approved in the Northern District of Illinois for ERISA collection work. See, e.g., Rappa v. Sun Life Assur. Co., 2014 U.S. Dist. LEXIS 124896, *11 (W.D. Wis. Sept. 8, 2014) (“Sun Life does not object to plaintiff's counsel's rate of $300 per hour, and the court finds

that rate reasonable given the nature of ERISA cases.”); Board of Trustees of the Rockford Pipe Trades Indus. Pension Fund v. Fiorenza Enters., 2011 U.S. Dist. LEXIS 28209, 21-22 (N.D. Ill. Mar. 18, 2011) (“the court finds that the hourly rates [of $195, $210 and $235 per hour] . . . are reasonable” for fringe benefit trust funds lawsuit against employer to collect unpaid contributions); Divane v. Mitchell Sec. Sys., 2008 U.S. Dist. LEXIS 27825 (N.D. Ill. Apr. 7, 2008) (“The court finds that the billing rates [of $220.00 to 240.00 for attorneys] are reasonable.”). 9. The Trust Funds incurred $881.05 in expenses for the filing fee, process server charges, photocopy charges, postage charges and legal research charges. A detailed description of all expenses incurred by the Trust Funds in this matter is shown in the cost summary attached as Exhibit 2. 10. +‘ The attorneys’ fees, paralegal fees and costs charged to the Trust Funds in this matter are consistent with MC&T’s regular charges for services to the Trust Funds on similar matters. 11. [have personal knowledge of the matters stated in this affidavit and could testify competently to them. FURTHER AEFIANT SAYETH NOT. oN ) izle Kevin P. Mclesby Date

Chent Ledger ALL DATES Received From/Paid” Explanation Lwyr Hours Amount Disbs Regional Council of Carpenters - OTT Cottage Grove Glass Co., Inc. - Audits Resp Lawyer: KM KM 0.40 — Reviewed correspondence from S. Gamboa requesting KM 0.40 88.00 Hrs X 220.00 demand letter because Cottage Grove Glass is not complying with audit. (.1) Research corporate information to confirm contact information for company. (.1) Prepared audit demand letter to Cottage Grove Glass. (.2) Lawyer: KM 0.10 — Reviewed and responded to correspondence from S. KM 0,10 22.00, □ Hrs X 220.00 Gamboa regarding no contact from Cottage Grove es ee Glass and he will prepare a "No Audit No Cooperation" Lawyer: KM 0.10 — Reviewed correspondence from Legacy Professionals KM 0.10 22.00 Hrs X 220.00 forwarding audit report of Cottage Grove. Lawyer:KM 2.20 Reviewed REDACTED from client R2PACTED KM 2.20 484.00. □□ 220.00 REDACTED . Research on issues related to status of Cottage Grove and personal liability of principals. Drafted complaint. Eee Reviewed and revised appearance, civil cover sheet and summonses. an ee KM 0.30 Telephone call with J. Conklin regarding *°°40™ KM 0.30 66.00 Hrs X 220.00 REDACTED (.2) Reviewed correspondence from J. Conklin REDACTED reviewed attached reports. (.1) 1.50 _ Prepared civil cover sheet, attorney appearance and SK —s1.50 150.00 100.00 summonsestoCottageGrove Glass, PatriciaKingand Martin Grant (.4). Filed complaint, cover sheet and appearance with court (.4). Reviewed ECF notice regarding judges' assignments andcompleted summonses as appropriate(.3). Preparedemal correspondence to courtintake clerk forwarding summonses issuance (.2). Prepared correspondence to. Libbyands. Conklin. REDACTED §... 0.10 | Reviewed ECF court order assigning case to Judge KM 0.10 22.00 Hrs X 220.00 Blakey and Magistrate Gilbert. □□ Lawyer: SK 0.40 Reviewed process server's affidavit of service of Cottage © 40.00 HrsX 100.00 —_—_— Grove Glass and Patricia King; filed affidavit ofservice =

Lawyer: KM 0.40 —_ Reviewed proofs of service for service on Patricia King KM 0.40 88.00 Hrs X 220.00 and Cottage Grove Glass. (.1) Confer with S. Keating regarding additional research on location of M. Grant. (.1) Reviewed LEXIS report on M. Grant for additional relevant information on his whereabouts. (.2) _ oe Lawyer:SK 0.20 —Filedinitial statusreport withcout, = SKC 2000 Lawyer: KM 0.80 — Reviewed file for status of service and confer with S. KM 0.80 176.00 Hrs X 220.00 Keating regarding same. (.2) Reviewed materials and reports related to defendant Martin Grant, service attempts and whereabouts based on searches. (.4)

Chent Ledger ALL DATES Received From/Paid” Explanation Lwyr Hours — \mount ___Disbs REDACTED (.1) Telephone call to J. Conklin regarding REDACTED (.1) Lawyer:KM 0.70 Telephone call with J. Conklin regarding REDACTED KM 0.70 154.00 Hrs X 220.00 REDACTED -(3) ee □ Reviewed correspondence from J. Conklin REDACTED □

partially reviewed lengthy report. (3) Arranged with __ §. Keating to review WESTLAW report and to follow : up on any likely address locations. (.1) : □ Lawyer: SK 0.60 Internet search for Cincinnati process server for service SK 0.60 60.00 Hrs X 100.00 of Martin Grant; confer with Precision Investigations re: estimate for skip trace of M. Grant in Cincinnati and service (to confirm he is at 12123 Sycamore Terrace and to locate apartment location within the apartment complex); reviewed prior local process server documents and prepared report to Precision Investigations on information we currently have on M. Grant; confer with local process server re: 1601 N. Cleveland address of M. Grant is not a church but Grant's property seems to be located between church and related school; prepared email correspondence to local process server forwarding summons and complaint and location photos for attempted service on Grant. Lawyer:SK 0.20 _ Filed initial status report with court. SK 0.20 2000 Hrs X 100.00 ee Lawyer: KM 0.40 Prepared initial status report of status of litigation; KM 0.40 88.00 Hrs X 220.00 reviewed file materials as necessary to prepare report. Lawyer:KM 1.40 Appeared in court before Judge Blakey regardinginitial KM — 1.40 308.00 HrsX 220.00 □□ status conference, default against two defendants and oe continued service on Martin Grant set for 3/2/17.(13) Reviewed ECF court order of Judge Blakey granting = oo default and setting nexthearing date. (1) KM 0.40 Attention to file for status of service on Martin Grant by KM 0.40 88.00 Hrs X 220.00 reviewing file materials related to same, conferring with S. Keating regarding REDACTED

Lawyer:KM 0.30 Confer with S. Keating and W. Major (Process Server) KM 0.30 66.00 □□□□ 220.00 _ regarding REDACTED Lawyer: SK 0.20 Call from process server regarding continuing problems SK 0.20 20.00 Hrs X 100.00 with service on Martin Grant; confer with K. McJessy regarding” 3 process server will search for an _ address link between Patricia King and Martin Grant. Lawyer: KM 1.90 Telephone call with W. Major, process server, regarding = =KM (1.90 418000 220.00 —__ status of serviceon MartinGrant andhiscontentionof—

Cilent Ledger ALL DATES Received From/Paid” Explanation Lwyr Hours — \mount Disbs her address 1601 Cleveland, Chicago and determined that M. Grant's home was foreclosed and purchased by S. Smith so service is likely not good; work with S. oe | Keating to review LEXIS reports for information onS. Smith, M. Grant and 1601 Cleveland, Chicago where □□ service occurred. (1.0) Telephone call with J. Conklin regarding REDACTED □ ee _(.1) Reviewed correspondence from J. Conklin regarding REDACTED ; partially reviewed same. (.2) Started drafting motionfor □□□ extension of time to serve M. Grant under Rule 4(m). (4). Lawyer: JS 0.60 Completed drafting motion for leave for more time to JS 0.60 123.00 Hrs X 205.00 serve defendant pursuant to Rule 4(m); edited and revised same. 0.50 _ Prepared notice of motion for extension of time; filed SK 0.50 50.00 X 100.00 © motion for extension of time with court; filed notice of motion with court. □ Lawyer: KM 0.50 Prepared motion for extension of time to serve M. KM 0.50 110.00 Hrs X 220.00 Grant; reviewed file materials as necessary to draft motion. Lawyer: KM 0.10 Reviewed ECF court order of Judge Blakey continuing KM 0.10 22.00 □□ 220.00 ~—_alll matters to 4/19/17 at 9:45 am. Lawyer: KM 2.40 — Appeared in court for status hearing and for motion to KM 2.40 528.00 Hrs X 220.00 extend time to serve Martin Grant, motion granted. (Time due to end of call on long hearing, 9:45 am appearance with case called at approximately, 10:50 am) Lawyer: KM 0.30 Reviewed documents relevant to locating whereabouts = KM 0.30 66.00 Hrs X 220.00 _ofM. Grant; confer with S.Keatingregarding’ oe Lawyer: KM 0.30 Telephone call with J. Conklin regarding REDACTED KM 0.30 66.00 Hrs X 220.00 REDACTED (.1) Reviewed correspondence from J. Conklin REDACTED (2) _Lawyer:SK 0.40 ReviewedREDACTEDreceived from J.Conklinand SK —_—0.40-~—— 40.00 □□□ 100.00 compared to client records, previous Lexis reportsand ee ‘internet searches andfoundnonewservicelocation information; confer with K.McJessy re:"PP°STP □□

Lawyer: SK 0.40 Reviewed documents and notes regarding service SK 0.40 40.00 Hrs X 100.00 attempts on Martin Grant and prepared e-correspondence to Scott Stern Associates process servers forwarding summons and complaint to Martin . Grant for service. . . oe □ Lawyer: KM 0.90 __ Reviewed file for status of service on MartinGrant; =KM — 0.90 19800 □ ~—HrsX220.00 unable o serve unable to locate despitetwo process Prepared correspondence toJ.Libby,N.Lagalo

Cilent Ledger ALL DATES Received From/Paid” Explanation Lwyr Hours \mount □□□□□□□□□ him and no further options at this time. (.4) Lawyer: SK 0.70 Prepared notice of motion for motion to dismiss SK 0.70 70.00 Hrs X 100.00 defendant Grant; filed motion to dismiss Grant with court; filed notice of motion with court; prepared correspondence to Judge Blakey forwarding file-stamped courtesy copies of same. Lawyer: KM 0.60 Prepared motion for entry of default order compelling KM 0.60 132.00 □ Hrs.X 220.00 audit against Cottage Grove and Patricia King; : reviewed file materials as necessary to prepare motion. Lawyer:KM 1.50 = Appeared in court before Judge Blakey regarding status KM 1.50 330.00 Hrs X 220.00 of service and notice of pending motions to dismiss one defendant and for order compelling audit against the others; travel to and from court. (1.4) Reviewed ECF court order of Judge Blakey setting status for 4/19/17 and granting motion to dismiss Martin Grant without prejudice. (.1) Lawyer: KM 0.30. Prepared draft order for motion on default; prepared KM 0.30 66.00 Hrs X 220.00. correspondence to proposed order box for Judge Blakey : forwarding draftorder, oe ee 7 Lawyer: KM 2.20 — Appeared in court before Judge Blakey for motion for KM 2.20 484.00 Hrs X 220.00 entry of default order; travel to and from court. (Noted longer attendance time due to unusual, special security at Dirksen Building and long call before Judge Blakey) Lawyer:KM 0.10 Reviewed ECF court order of Judge Blakey granting | KM 0.10 22.00 Hrs X 220.00 motion and entering default order. 0.10 — Prepared correspondence to M. Ragona to confirm KM 0.10 22.00 Hrs X 220.00 current auditor on this matter. Lawyer: KM 0.80 Reviewed correspondence from M. Ragonaadvisinghe = KM __ 0.80 176.00 Hrs X 220.00 _ishandling the audit going forward.(.1) Prepared correspondence to Patricia King and Cottage Grove _ forwarding order and demanding compliance and _ oe explaining Trust Funds next action if Cottage Grove ee doesnotcomply. (7) Lawyer: JS 1.60 Drafting Motion for Rule to Show Cause as to Patricia JS 1.60 328.00 Hrs X 205.00 King, including Draft Order. Lawyer:KM 0.10 Prepared correspondence to M. Ragona on whetherany © KM 0.10 22.00 | □ 220.00 —_ records have been received in responsetocourtorder added m——~—~”—C:Cisiw*”S oe ee Lawyer: KM 0.50 — Reviewed correspondence from M. Ragona regarding no KM 0.50 110.00 Hrs X 220.00 records received from Cottage Grove Glass for audit. (.1) Edited and revised motion for rule to show cause hearing prepared by J. Sopata and reviewed exhibits, added certified card. (.4) Lawyer: SK 0.40 Prepared notice of motion for motion forrule toshow ss SK_— 0.40 40.00 100.00 cause; fled motion with court filed notice ofmotion. = □□ □□□□□□□□□□□□□□□□□□□□□□□□□ KM 0.10 Prepared correspondence to P. King forwarding court KM 0.10 22.00 220.00 __order resetting court hearing to 7/12/17. Lawyer: KM 1,70 Appeared in court before Judge Blakey regarding =sssssKM_—s170«37400 220.00 —_hearingonmotiontosetruletoshowcausehearing, = to and from coun (14) Revised dratorderper

Cuent Ledger ALL DATES Received From/Paid“ Explanation Lwyr Hours Amount Disbs Hrs X 220.00 order for rule-to-show-cause hearing by process server and advising her of consequences if she does not comply, namely, writ of attachment. 0.20 Prepared email correspondence to local process server SK 0.20. 20.00 Hrs X 100.00 forwarding 7/12/17 rule to show order, McJessy correspondence and 5/4/17 order for service upon : Patricia King. Lawyer: SK 0.30 Confer with and prepared email correspondence to SK 0.30 30.00 Hrs X 100.00 process server re: status of service of K. McJessy transmittal letters and court's 2 orders regarding rule to show cause upon Patricia King (process server has made attempts but King not at Cottage Grove location; directed process server to skip trace P. King to affect service as court date is 8/2/17). _Lawyer:KM 0.10 Reviewed affidavit of service of order on Patricia King; KM 0.10 = 22.00 220.00 ~=~—s arranged forfilingofsame. ee Lawyer: SK 0.30 Prepared and filed attorney appearance of J. Sopata with SK 0.30 30.00 Hrs X 100.00 court. □□ 0.10 Reviewed ECF court order of Judge Blakey granting KM 0.10 22.00 Hrs X 220.00 —_—_ motion for writ of attachment based on Patricia King's failure to appear in response to motion for ruleto show cause. ee ee oe Lawyer: JS 1.50 Attendance at Rule to Show Cause hearing, at which JS 1.50 307.50 Hrs X 205.00 Writ of Attachment was ordered for Patricia King; travel to and from court. Lawyer: KM 0.10. Reviewed notice of telephone call from PatriciaKing, = KM 0.10. 22.00 Hrs X 220.00. Cottage Grove owner, regarding audit, current order and need for compliance upon pain of arrest. Lawyer: KM 0.80 — Reviewed correspondence from P. Dittoe, U.S. Marshal KM 0.80 176.00 Hrs X 220.00 Service regarding rule to show cause and writ of attachment. (.1) Telephone call with P. King regarding order against her and need to appear in court and to submit to audit per court order. (.3) Telephone call to Judge Blakey's courtroom deputy, Gloria, with P. King and left message asking to set status hearing date now so P. King can appear. (.1) Prepared correspondence to P. King forwarding contact information for auditor and seeking to confirm our telephone call today. (.2) Prepared correspondence to N. Lagalo and J. Libby regarding REDACTED (1) Lawyer: 0.20 Reviewed correspondence from P. King followingupon KM 0.20 4400 220.00 efforts to reach auditor to schedule the audit; prepared. ——eorrespondence toM.Ragona forwarding email from, King trying to setupaudit.(.1) Reviewed □□ scheduled for 8/18/17 at9:00am. (I) □□ 0.20 Telephone call with M. Ragona regarding cooperation of KM 0.20 44.00 Hrs X 220.00 Patricia King and audit of Cottage Grove scheduled for tomorrow. ope eee KM 0.30 Telephone call from M. Ragonaregardingresultsof = KM 0.30 66.00 220.00 □□□ audit, not all records produced, supplemental document = request forthcoming. (.2) Reviewed correspondence,

Chen Leager ALL DATES Received From/Paid” Explanation Lwyr Hours Amount _ Disbs 0.20 Telephone call to P. King to arrange hearing before KM 0.20 44.00 Hrs X 220.00 Judge Blakey; call with P. King to G. Lewis, Judge Blakey's courtroom deputy, and left message. Lawyer:KM 0.10 Reviewed and responded to correspondence from P. KM 0.10. 22.00 Hrs X 220.00 Dittoe (U.S. Marshal Service) regarding status of compliance with the rule to show cause order. . Lawyer:KM 0.10 Telephone call with M. Ragona regarding documents KM 0.10 22.00 Hrs X 220.00 due today he will follow up tomorrow. Lawyer:KM 0.10 Telephone call with P. King regarding production of KM 0.10... 22.00 Hrs X 220.00 information to Legacy, namely, bank statements and forthcoming hearing on 9/14/17 and need for her to appear, =: KM 0.10 Reviewed correspondence from M. Ragona forwarding KM 0.10 22.00 Hrs X 220.00 updated record request for Cottage Grove Glass Company; prepared correspondence to J. Sopata forwarding same for hearing he is covering on 9/14/17. Lawyer: JB 0.30 Preparation and consultation with KPM regarding JB 0.30 61.50. Hrs X205.00 9/14/17 hearing. : Lawyer: JS 1.50 Attendance at Writ of Attachment hearing, at which JS 1.50 307.50 Hrs X 205.00 Defendant appeared in Court and was ordered to cooperate with proceedings; travel to and from hearing. Lawyer:KM 0.10 Reviewed ECF court order of Judge Blakey setting court KM 0.10 22.00. Hrs X 220.00 hearing for 9/28/17; prepared correspondence to P. King : Le forwarding coutorde. = : □□ Lawyer: KM 0.40 Telephone call with M. Ragona regarding production of KM 0.40 88.00 Hrs X 220.00 records from Cottage Grove, records not produced, follow up regarding status of audit. (.2) Prepared correspondence to Cottage Grove forwarding record request from Legacy Professionals and advising of ongoing failure to produce information, she is ordered to appear on October 12th per the Court's prior order and forwarded court's prior order. (.2) Lawyer: KM 0.20 Prepared correspondence to J. Conklin forwarding sss xKM 0.20 4400 Hrs X 220.00 REDACTED 8 oe oe . C1) Reviewed correspondence from Cottage Grove Glass Company responding to KPM email from □ 108/17 with summary ofrecordsitdoesnothave; prepared correspondence to Cottage Grove Glass =: Companyrespondingtosame. (1) : Lawyer: KM 0.70 Telephone call from P. King, Cottage Grove Glass KM 0.70 154.00 Hrs X 220.00 Company, responding to KPM email, will produce bank statements and tax returns today, claims not to have any other documents. (.2) Prepared correspondence to P. King and M. Ragona, confirming same. Prepared correspondence to client REDACTED. (.1) Reviewed correspondence from P. King forwarding partial bank statements for the audit period; reviewed 12-months of bank statements. (.3) Prepared correspondence to P. King advising of specific 12-months of bank statements still missing. (-1) □ Lawyer: KM 0.40 Telephone call withM. Ragona regarding newrecord = =8=9KM 0.40 88.00 220.00 □□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□ = ee

Client Ledger ALL DATES Received From/Paid "Explanation Lwyr Hours \mount _Disbs__ correspondence from P. King advising she. will forwarding remaining bank statements tomorrow morning. (.1) Lawyer: KM 0.50 — Reviewed several correspondence from P. King KM 0.50 110.00 Hrs X 220.00 forwarding additional bank statements; reviewed bank statements for company activity. (.4) Prepared several correspondence to M. Ragona forwarding bank statements for audit. (.1) Lawyer:KM 1.30 Reviewed file materials for preparation of subpoenas; KM 1.30... 286.00 Hrs.X 220.00 prepared subpoena rider for BMO Harris Bank _ prepared subpoena rider for Southshore Federal Credit : Union. (1.0) Reviewed and responded to correspondence from P. King, Cottage Grove Glass ee : Company, regarding whether we have all the records ee. we require and whether she has to appear tomorrow, : □□ and forwarding to her the court's last order. (.2) _ Telephone call from P. King regarding hearing set for tomorrow. (1) AS Lawyer: SK 0.60 Prepared document subpoenas to BMO Harris Bank and SK 0.60 60.00 Hrs X 100.00 Southside Federal Credit Union (.4); prepared certificate of service forwarding same to Cottage Grove (.2). KM 1.50 Reviewed correspondence from P. King advising she KM 1.50 330.00 Hrs X 220.00 has an emergency this morning and cannot be at the __ : court hearing. (.1) Appeared in court before Judge ae □ Blakey regarding status hearing on productionof = oe records for the audit; travel to and from court. (1.4) KM 0.10 — Prepared correspondence to P. King forwarding court KM 0.10 22.00 Hrs X 220.00 order from hearing, advising she should have called Judge Blakey's chambers. Reviewed and responded to correspondence from P. King regarding next hearing date set for 11/22/17. KM 0.30 Reviewed correspondence from Southside Credit Union = KM 0.30 66.00 X 220.00. _ forwarding partial subpoena response; reviewed _ oo documents produced by Southside Credit Union showing transactions by Cottage Grove previously □□ undisclosed to auditor. ee Lawyer: KM 0.10 Reviewed correspondence from BMO Harris Bank KM 0.10 22.00 Hrs X 220.00 confirming receipt of subpoena and requesting until December 1, 2017 to respond with production of records. 0.20. Forwarded subpoena responses of Southside Credit = SK 0.202000 100.00. =~ “~Unionand BMOHarristoM.Ragona. Lawyer: KM 0.30 Telephone call with J. Sopata regarding tP*7"™ KM 0.30 66.00 Hrs X 220.00 mac □□□ Reviewed and responded to correspondence from P. King regarding results of hearing which she did not attend. (.1) JS 1.50 Attendance at status call, at which judge wasinformed = =§ JS-———sd:S0s 307.50 205.00 —s of documents obtained and forthcoming auditreport. □□ KM 0.20 — Reviewed audit report of Cottage Grove Glass Company KM 0.20 44.00 Hrs X 220.00 with findings. Lawyer:KM 0.20 Telephone call to J. Conklin regardingREDACTED _ 0.20 44.00 □□ 220.00) REDACTED A) Reviewed correspondence from Conklin.

COent Ledger ALL DATES Received From/Paid” Explanation | —_Lwyr Hours \mount □□□□□□□□□□□ Lawyer: KM 0.40 Prepared audit demand letter seeking payment of final KM 0.40 88.00 Hrs X 220.00 amount due according to the audit. | UNBILLED OO ,-—s#BILLED |_| 7 BALANCES □□□ | CHE + RECOV + FEES =TOTAL DISBS + FEES + TAX RECEIPTS =A/R TRUST 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 |-——>_ UNBILLED [| _séBILLED- |_| BALANCES □□ | CHE + RECOV’ + FEES =TOTAL DISBS + FEES +TAX RECEIPTS = A/R TRUST 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00

SELECTIONS - Client Ledger Attorneys Fee Petition Search Filter None by ADMIN Monday, February 12, 2018 at 10:33:35 AM 13.0 SP2 (13.0.20140210) 0288-COTT All All Lawyer All Intro Lawyer All Lawyer All Lawyer All f Law All Active, Inactive, Archived Matters Sort by Default age for Each Lawyer No age for Each Matter No Date Dee/31/2199 Only No Only No Shown - Billed Only No Shown - Disbursements No Shown - Receipts No Shown - Time or Fees Yes Shown - Trust No with Retainer Bal No with Neg Unbld Disb No All Lawyer All Corrected Entries No # on Paid Payables No Address No Payments No Summary by Account No No Up To Feb/12/2018 that Payments Were Applied to No Entries in Date Order

Ne Lit Vet ALL DATES Received From/Paid” Explanation _ Lwyr Hours Amount Disbs □□ 0.40 — Prepared audit demand letter seeking payment of final KM 0.40 88.00 Hrs X 220.00 amount due according to the audit. poo UNBILLED or BILLED | BALANCES □□□ | LS CHE + RECOV + FEES =TOTAL DISBS + FEES + TAX RECEIPTS =A/R TRUST 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 poo UNBILLED or | BILLED | BALANCES □□□ | TO" CHE + RECOV’ + FEES =TOTAL DISBS + FEES + TAX RECEIPTS =A/R TRUST 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00

SELECTIONS - Client Ledger Template Attorneys Fee Petition Search Filter None sted by ADMIN Monday, February 12, 2018 at 10:33:35 AM 13.0 SP2 (13.0.20140210) 0288-COTT All Clients All Intro Lawyer All Lawyer All Lawyer All Lawyer All Law All From Active, Inactive, Archived Matters Sort by Default for Each Lawyer No for Each Matter No tivity Date Dec/31/2199 Only No Only No Shown - Billed Only No Shown - Disbursements No Shown - Receipts No Shown - Time or Fees Yes Shown - Trust No with Retainer Bal No with Neg Unbld Disb No All Lawyer All e Corrected Entries No Check # on Paid Payables No Client Address No lidate Payments No Summary by Account No No Up To Feb/12/2018 that Payments Were Applied to No Entries in Date Order

ALL DATES Received From/Paid Explanation ee Lwyr Hours —_ \mount Disbs Regional Council of Carpenters - Cottage Grove Glass Co., Inc. - Audits Resp Lawyer: KM Expense Recovery — Postage Recovery 0.00 7.04 Expense Recovery Photocopy Recovery 0.00 432 Billing on Invoice FEES 88.00 DISBS 11.36 0.00 10524 Billingon Invoice — FEES 22.00 □□□□ : ae □□□ Billing on Invoice FEES 22.00 0.00 10661 Midwest : Process Server recovery - as to Cottage Grove Glass and 0.00 □□□□□ Investigations PatriciaKing = ae ae Expense Recovery □□ Photocopy Recovery 0.00 4,44 RELXIncd/b/a —_—LLegal Research 0.00 □□□□ LexisNexis ae Oe Billing on Invoice FEES —_ 722.00 DISBS — 89.44 0.00 10729 Capital One Services Filing Fee 2 oe 0.00 400.00. Expense Recovery Photocopy Recovery 0.00 4.80 Inc.d/b/a Legal Research 0.00 7.24 ee Billing on Invoice FEES = 148.00 DISBS = 414.74 0.00 10798 ~~ RELX Inc.d/b/a LegalResearch ts ststsi«*«C*é#NO 8.14 LexisNexis ee ee Billing on Invoice FEES = 1521.00 DISBS 8.14 0.00

Expense Recovery Postage Recovery 0.00 1.34 Billing on Invoice FEES — 882.00 0.00 10947 Expense Recovery Photocopy Recovery - 0.00 4.56 Inc.d/b/a Legal Research April 2017 0.00 3.74 LexisNexis Expense Recovery Postage Recovery ee oe 0.00 7.02 Billing on Invoice FEES 770.00 DISBS 5.90 0.00 11051 Expense Recovery Photocopy Recovery 0,00. □□□□ Billing onInvoice = FEES —= 770.00 DISBS — 14.00 0.00 11129 Expense Recovery Postage Recovery es 2 00 1.82 Recovery Photocopy Recovery __ 0.00 5.88 Expense Recovery PostageRecovery ——s_- — o00.t—*™” 0.46 Billing on Invoice FEES — 500.00 DISBS 7.70 0.00 11191 Midwest □□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□□ RuletoShow = (ss si 885 «00 Uielntios GuseOmeronhKins Inc.d/b/a Legal Research July 2017 0.00 8.35 LexisNexis nnn □□ Recovery _Postage Recovery 0.00 □□□□

Recovery Photocopy Recovery —_— 0.00 28.85

ALL DATES Received From/Paid" Explanation —sss—s—isLyr sours Amount Disbs Expense Recovery Postage Recovery 0.00 16.40 BillingonInvoice FEES 435.00 0.00 11390 PACEr PACR 0.00 0.30 BMOHarrisBank Photocopy Recovery - Subpoena #813725-17 0.00 177.85 NA. on Invoice FEES 1248.00 DISBS 16.70 0.00 11565 Expense Recovery... Postage Recovery 0.00 0,46 BillingonInvoice FEES 415.50 DISBS —-178.31 0.00 11640 Expense Recovery... Postage Recovery 0.00 3.00 Expense Recovery —_— Photocopy Recovery 0.00 2.04 Billingon Invoice | FEES 176.00 DISBS 5.04 : 0.00. 06 a □□ |——— UNBILLED —————————— | [> _ BILLED —————— |_ | —- BALANCES □□□ | CHE + RECOV’ + FEES =TOTAL DISBS = +: FEES + TAX RECEIPTS = A/R TRUST 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 |[---—> UNBILLED ~-—--— | |-—--—-- —_ BILLED. —~— |__ |->-— 3ALANCES □□□□ | TO" CHE + RECOV’ + FEES =TOTAL DISBS + FEES +TAX RECEIPTS = A/R TRUST 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00 0.00 0.00 0.00 0.00 881.05 9075.00 0.00 9956.05 0.00 0.00

RT SELECTIONS - Client Ledger Template Attorneys Fee Petition Search Filter None by ADMIN Monday, February 12, 2018 at 10:05:16 AM 13.0 SP2 (13.0.20140210) 0288-COTT All Clients All Intro Lawyer All Lawyer All Lawyer All Lawyer All Law All From Active, Inactive, Archived Matters Sort by Default for Each Lawyer No for Each Matter No tivity Date Dec/31/2199 Only No Only No Shown - Billed Only No Shown - Disbursements Yes Shown - Receipts No Shown - Time or Fees No Shown - Trust No

Exhibit C

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND, et al., Plaintiffs, 16 CV 11148 v. Judge John Blakey COTTAGE GROVE GLASS COMPANY INCORPORATED, et al., Defendants. JUDGMENT Plaintiffs Chicago Regional Council of Carpenters Pension Fund et al.’s (“Trust Funds”) motion for entry of judgment is granted and judgment is entered in favor of the Trust Funds and jointly and severally against COTTAGE GROVE GLASS COMPANY INCORPORATED, a dissolved Illinois corporation and PATRICIA KING doing business as COTTAGE GROVE GLASS COMPANY INCORPORATED (“Defendants”) in the amount of $16,621.67 as follows: A. $2,836.01 in unpaid fringe benefit contributions pursuant to the audit; B. $2,565.00 for auditor’s fees incurred by the Trust Funds to complete the audit of Defendant’s fringe benefit contributions; C. $361.67 in interest pursuant to 29 U.S.C. § 1132(g)(2)(B); D. $902.94 in liquidated damages pursuant to 29 U.S.C. § 1132(g)(2)(C); and E. $9,956.05 in reasonable attorneys’ fees and costs the Trust Funds incurred in this action pursuant to 29 U.S.C. § 1132(g)(1) and/or § 1132(g)(2)(D). The Trust Funds shall also recover reasonable attorney’ fees and costs incurred by the Trust Funds in enforcing this order and any such further relief as this Court deems appropriate. See Free v. Briody, 793 F.2d 807, 808-09 Cir. 1986).

Date Judge John Blakey

Exhibit D

Kevin P. McJess M Mc]J ES SY, C H I NG & 3759 N. Ravenswood, Sue 231 Chicago, Illinois 60613 THOMPSON LLC (773) 880-1260 MAIN er eet tin Cr 2 Dr evin Mc. ess. t ICENSE nos) FAX (Liconsed iMlinok batifornia) mejessy@MCandT.com

VIA EMAIL TO: cottagegroveglass@sbcglobal.net WITH A COPY VIA U.S. MAIL December 22, 2017 Cottage Grove Glass Company, Inc. c/o Patricia King, President 7401 S. Cottage Grove Chicago, Illinois, 60619 RE: Chicago Regional Council of Carpenters Pension Fund et al. v. Cottage Grove Glass Company, Inc., et al, Case No. 16CV11148 Demand on Audit Report Dear Ms. King:

_ Tam enclosing a copy of the Audit Report prepared by Legacy Professionals LLP (“Legacy”) for the Chicago Regional Council of Carpenters Pension Fund et al. (“Trust Funds”) based on the documents produced by Defendants Cottage Grove Glass Company, Inc. and Patricia King (collectively “Cottage Grove”) for the period October 19, 2015 to June 30, 2017 (“Audit Period”). According to the Audit Report, Cottage Grove owes the Trust Funds $2,836.01 in unpaid fringe benefit contributions. In addition, Cottage Grove owes $902.94 in liquidated damages, $345.47 in interest, $2,565.00 in auditors’ fees and $9,401.20 in attorneys’ fees and costs. Accordingly, the total amount due is $16,050.62. Unpaid Contributions $2,836.01 Liquidated Damages $902.94 Interest $345.47 Auditors' Fees $2,565.00 Attorneys' Fees & Costs $9,401.20 TotalDue $16,050.62 If Cottage Grove objects to any findings in the Audit Report it must provide its objections to us by January 2, 2018. Cottage Grove should provide specific objections to the findings in the Audit Report in writing and produce any documents that Cottage Grove may have which support its objections. The objections and documents must be delivered to our office on or before January 2, 2018.

MCJESSY, CHING & THOMPSON uc December 22, 2017 Page 2

If we do not receive any objections along with supporting documents from Cottage Grove disputing the findings in the Audit Report on or before January 2, 2018, we will presume that the findings in the Audit Report are accurate and we will file an appropriate motion with the Court seeking entry of a final judgment against Cottage Grove for all amounts due. Note that it is our understanding that Cottage Grove is not represented by counsel in this matter and, therefore, we are directing this letter to your attention. If Cottage Grove has hired counsel to represent it in this matter, please provide us with the name and contact information of Cottage Grove’s counsel, such as a phone number, address or email address, and we will address all future communications to Cottage Grove’s counsel. We look forward to Cottage Grove’s response to this letter no later than January 2, 2018. Sincerely, McJEssy, CHING & THOMPSON, LLC port Kevin P. McJessy KPM/sk Enclosure cc: Kristina Guastaferri (w/enc., via email) John Conklin (w/enc., via email)

PROFESSIONALS LLP CERTIFIED PUBLIC ACCOUNTANTS

November 22, 2017 Ms. Kristina Guastaferri, Administrator Chicago Regional Council of Carpenters Fringe Benefit Funds 12 East Erie Street Chicago, Illinois 60611 Re: Employer: Cottage Grove Glass Co Inc (#25509) Reporting Period: October 19, 2015 to June 30, 2017

We were engaged by the Board of Trustees of the Chicago Regional Council of Carpenters Fringe Benefit Funds (the Funds), to assist them in determining whether the above referenced employer’s contributions to the Funds were made in accordance with the provisions of the Collective Bargaining and Trust Agreements during the above referenced reporting period. The employer’s management is responsible for making contributions in accordance with the provisions of the Collective Bargaining and Trust Agreements. This engagement was performed in accordance with Statements on Standards for Consulting Services issued by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of an opinion on the employer’s fulfillment of their contribution requirements of the Collective Bargaining and Trust Agreements. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. Our procedures and findings are included in the attached schedules. This report is intended solely for the information and use of the Trustees and Administrator of the Chicago Regional Council of Carpenters Fringe Benefit Funds and is not intended to be and should not be used by anyone other than these specified parties.

A é 4° 4 Pgfuseconale ef

311 South Wacker Drive | Suite 4000 | Chicago,IL 60606 | 312-368-0500 312-368-0746 Fax | www.legacycpas.com =<@g>222

Chicago Regional Council of Carpenters Trust Funds ERISA Employer Audit Procedures April 2008 (Revised May 2017)

PROCESSES

I. GENERAL: a. Review the ERISA employer audit initiation request document(s) and CRCC’s Employer File Inquiry reports for the specified period. b. Review the Collective Bargaining Agreement and Addendum(s) to determine the applicable hours subject to contributions. c. Compare the Federal Employer Identification Number (FEIN) and organizational type (i.e. proprietorship, partnership, corporation, etc.) reflected in CRCC’s Employer data base to documents reviewed and/or discussions with the employer representative. Address any differences in the report. d. Identify the records to be reviewed. e. Discuss with the Trust Fund’s Office any questionable issues that may arise such as: scope limitation(s), piece-rate bonus/incentive wages paid to individuals performing jurisdictional work, items addressed in the ERISA employer audit initiation request and other unusual or special circumstances. f. If hours worked are not available or do not appear credible, alternate procedures may need to be applied, and should be discussed with the Trust Fund’s Office. g. Calculate discrepancy dollars by multiplying the discrepancy hours listed in the report findings by the appropriate contribution rates. h. Liquidated damages should be computed at 1.5% compounded monthly on each month that discrepancy dollars are owed, not to exceed 20% of the total discrepancy dollars owed. PAYROLL: a. Review copies of tax and/or related documents to determine the completeness of the payroll records and to identify the individuals employed by the company. b. Compile a list of individuals the company reported to the CRCC Trust Funds during the engagement period. Identify discrepancies that exist between the hours worked individuals (not considered as management or superintendent) and the hours reported to the CRCC Trust Funds. Include the discrepancy hours in the report findings. c. Compile a list of individuals the company reported to other Carpenter Trust Funds during the engagement period. From that list, identify discrepancies that exist between the hours worked by individuals (not considered as management or superintendent) and the hours reported to the other Carpenter Trust Funds. Use the criteria specified by the CRCC Trust Funds (see Criteria for Individuals) for inclusion of under and over reported hours of an individual. In months where

individuals are reported exclusively to other Carpenter Trust Funds, do not include any credit discrepancies in the report findings, unless instructed otherwise by the CRCC Trust Fund’s Office. d. Eliminate individuals listed on this employer’s contribution report(s) submitted to other Union Trade trust funds, provided those individuals were not reported by this employer to any Carpenter Trust Fund in or around the engagement period and it was reasonably determined that non- jurisdictional work was performed. e. Identify individuals who were not listed on this employer’s contribution reports, but meet criteria specified by the CRCC Trust Funds (see Criteria for Individuals) for inclusion. Include their hours in the report findings and provide the Trust Funds with each individual’s address, phone number, hourly wage rate, and job description (if available). f. Identify individuals who were not listed on this employer’s contribution reports, do not meet criteria specified by the Trust Funds (see Criteria for Individuals) for inclusion, but do meet criteria that may warrant further consideration by the Trust Funds. Capture the employees’ quarterly gross wages and provide the Trust Funds with a list of these individuals, as well as, their addresses, phone numbers, hourly wage rates, and job descriptions (if available). g. Identify individuals who meet criteria specified by the Trust Funds (see Criteria for Individuals) for participation in the 160 hour program. Do not include their hours in the report findings, but specify those month(s) reported at less than 160 hours. Provide the Trust Funds with each individual’s address, phone number, hourly wage rate or note if “salaried.” Also indicate if the individual was reported, works with tools of the trade, identify and note any familial relation (if known), and note potential employee misclassification in the Trust Funds’ data base. h. Ifthe above procedures are not applicable, individuals may be eliminated based upon other criteria specified by the Trust Fund’s Office (see Criteria for Individuals),

Iii, DISBURSEMENTS: a. Peruse the disbursement records to identify payees that are known, acknowledged or appear to perform bargaining unit work and request the Employer provide a description of the goods or services provided for each payee. b. Review Federal Forms 1096 and Forms 1099-Misc (if available) and compare recipient names to the aforementioned payees. c. Identify those payees who appear to meet criteria specified by the Trust Funds and record the □ payments issued to the payees during the engagement period. Some of the payees may be eliminated based upon criteria specified by these Trust Funds (see Criteria for Individuals and Entities). d. Request sample invoices from the employer representative to determine the type of work performed for each payee. Additional invoices should be requested for all payments to each payee performing jurisdictional work, or who is not clearly defined and/or excludable, Payments for jurisdictional work should be included in the report findings. Payments for non-jurisdictiorial work should be excluded from the report findings. Jurisdictional work should be assumed if no invoice is provided.

Perform the below procedures on payments to payee that have not been excluded

Individuals: e. Identify individuals paid through disbursements that meet criteria specified by these Trust Funds (see Criteria for Individuals) for inclusion in the report findings. If hours are not specified, determine reportable hours based upon Trust Fund criteria (see Calculation of Hours — Individual). Also provide the Trust Funds with each individual’s address, phone number, hourly wage rate, and job description (if available).

Entities: f. Identify entities that may have performed bargaining unit work and were not signatory to the Collective Bargaining Agreement at the time payment was issued. Include in the report findings the hours worked within the Trust Funds’ geographic jurisdiction (if identifiable). If hours are not reflected on the invoices, hours should be determined based upon criteria specified by the Trust Funds (see Criteria for Entities). Also provide the Trust Funds with the entities’ name, address, phone number and a brief description of the goods/services provided (if available). g. Identify entities signatory to the Collective Bargaining Agreement that may have performed bargaining unit work within the Trust Funds’ geographic jurisdiction and did not report individuals in or around the months that payments were issued. Address each company in the report narrative, note the total amount paid, provide a description of the services, and enclose the invoice(s) (if available). h. Identify those potentially related entities not signatory to the Collective Bargaining Agreement at the time that payment was issued. These companies may be included in the report findings or their records pursued. Contact the Trust Fund’s Office for further discussion.

. Legacy Professionals LLP

Reviewed Employer Records Yes Annual. Federal Unemployment Tax Return (940). Yes Bank Statements No Cash Disbursement.Journals — . Yes. ‘Check Register Cancelled Checks / Vouchers , N/A Construction. Loan-Data N/A Contribution Reports to-All Other Funds Yes Contfibution:Reports to Audited Funds No Federal Incorie Tax-Returns (1120-of 1065) No. General Ledgers. Yes Individual Earnings Records No Invoices from Sub-Contractors No: dJob:ListUob;CostRecords . NIA Misééllarieous Incorie: Payrrient Reports (1099) No Payroll Journals: Yes Quarterly Federal Tax.Returns (941) . Yes Quarterly Unemployment'‘Wage Reports NIA Summary of Information Returns (1096) No Time Cards Yes Transmittal of Income and Tax Statements (W-3) No Vendor List Yes Wage and Tax Statements (W-2) Initiation Type: New-Agreement Copy Forwarded :to:Attorey

Date'Reviewed: ipeayt i Revlewer; La fe RL ETE

Legacy Professionals LLP pancy Summary By Fund Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 mployer: Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 hone: (773) 226-1550

Period Discrepancy Contribution Contributions Fund Ending Hours Rate Due

Welfare 10/15 to 9/16 97.19 $11.79 $1,145.8 9/16 to 6/17 0.00 $11.79 $0.0

und Totals: pe g7t9f $1,145.8 Pension 10/15 to 9/16 97.19 $12.65 $1,229.4 9/16 to 6/17 0.00 $13.60 $0.0

und Totals: PO et $1,229.4 Apprenticeship 10/15 to 9/16 97.19 $0.63 $61.2 9/16 to 6/17 0.00 $0.63 $0.0

Totals: PT g7i9f $61.2 intl. Fund 10/15 to 9/16 97.19 $0.10 $9.7 9/16 to 6/17 0.00 $0.10 $0.0

Totals: fC g7igf $9.7

Legacy Professionals LLP Discrepancy Summary By Fund A a A □□□ Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 (773) 226-1550

Period Discrepancy Contribution Contributions Fund Ending Hours Rate Due

Labor/Management 10/15 to 9/16 97.19 $0.02 $1.9 9/16 to 6/17 0.00 $0.02 $0.0

und Totals: pT g7.19f $1.9 Supp Ret 10/15 to 9/16 97.19 $3.74 $363.4 9/16 to 6/17 0.00 $4.00 $0.0

und Totals: □□ gig} $363.4 IND ADV / M.1A.F. 10/15 to 9/16 97.19 $0.00 $0.0 9/16 to 6/17 0.00 $0.00 $0.0

und Totals: PO e719} $0.0 CAF 10/15 to 9/16 97.19 $0.25 $24.3 9/16 to 6/17 0.00 $0.25 $0.0

und Totals: LC e7.i9{ $24.3 All Funds $2,836.0 iquidated Damages $567.2 otal Amount Due to All Funds $3,403.2

Legacy Professionals LLP Discrepancy Summary By Month Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 mployer: Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 hone: (773) 226-1550 Page: 1 of 8 Discrepancy |Discrepancy Contribution Discrepancy Reporting Period Total Hours Benefit Hours Rate Amount October 2015 (22.50) (22.50) $29.18 ($656.5 November 2015 (35.03) (35.03) $29.18 □□□□□□□□□□ December 2015 96.15 96.15 $29.18 $2,805.6 February 2016 51.32 51.32 $29.18 $1,497.5 March 2016 7.25 7.25 $29.18 $211.5

Total Benefit Discrepancy Amount $2,836.0 Hours 97.19 |Hours 97.19 Liquidated Damages $567.2 Total Amount Due $3,403.2

Legacy Professionals LLP Discrepancy Summary By Error Type Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Cottage Grove Glass Co Inc Contact: Patricia King dress: 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 one: (773) 226-1550 Page: 20f8

Description Dollar Amou

SIGNATORY EMPLOYER: PAYROLL Clerical Error ($2,582.4 Current Record $5,418.4

Sub-Total Discrepancies From All Listed Codes □□□□□□□ Liquidated Damages $567.: Total Amount Due $3,403.:

Legacy Professionals LLP Liquidated Damages Schedule nT NNT □□ a □ ranean Number: 25509 Engagement Period: October 19, 2015 to June 30, 2017 Cottage Grove Glass Co Inc Contact: Patricia King 7401 S Cottage Grove Ave Title: Owner Chicago, IL 60619 (773) 226-1550 Page: 3 of 8 Contributions Compounding Calculating Total Liquidated Reporting Period Due Periods Percentage Damages Owed October 2015 ($656.55) November 2015 ($1,022.18) December 2015 $2,805.66 23 20.00% $561. February 2016 $1,497.52 21 20.00% □□□□□ March 2016 $211.56 20 20.00% $42.

Total Damages this Schedule $902. Total Discrepancies $2,836.01 20% of Discrepancies $567.

Assessed Damages $567.

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