Durso v. Casa Bella Contracting, Inc.

CourtDistrict Court, E.D. New York
DecidedAugust 12, 2025
Docket2:23-cv-07107
StatusUnknown

This text of Durso v. Casa Bella Contracting, Inc. (Durso v. Casa Bella Contracting, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durso v. Casa Bella Contracting, Inc., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------X JOHN R. DURSO, JOSEPH FONTANO, and WILLIAM F. CLARKE, as Trustees and Fiduciaries of the LOCAL 305 CIO’S PENSION FUND,

REPORT AND RECOMMENDATION Plaintiffs, CV 23–7107 (EK)(AYS)

-against-

CASA BELLA CONTRACTING, INC.,

Defendants. --------------------------------------------------X SHIELDS, Magistrate Judge,

John R. Durso, Joseph Fontano, and William F. Clarke (collectively, “Plaintiffs”), as trustees and fiduciaries of the Local 305 CIO's Pension Fund (the “Fund”), brought suit against Casa Bella Contracting, Inc. (“Defendant”), on September 25, 2023, alleging that Defendant violated the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., as amended by the Multiemployer Pension Plan Amendments Act of 1980. Before the Court, upon referral by the Honorable Eric R. Komitee for Report and Recommendation, is Plaintiffs’ motion for default judgment pursuant to Federal Rule of Civil Procedure 55(b)(2). See Order dated 12/04/2024. For the reasons set forth below, it is respectfully recommended that Plaintiffs’ motion be granted. I. Background a. Factual Background According to the Complaint, the Fund is an employee benefit plan within the meaning of ERISA Section 3(3), 29 U.S.C. § 1002(3). Compl. ¶ 4, Docket Entry (“DE”) [1]. It was established pursuant to the terms of various collective bargaining agreements (“CBAs”) between Local 338, RWDSU/UFCW (and its predecessor, Local 305, RWDSU/UFCW), a labor organization representing employees in an industry affecting commerce, on one hand, and employers that are required to make contributions to the Fund on behalf of their employees covered by the CBAs, on the other hand. Id. ¶ 5. The Fund provides various pension benefits to

covered employees, retirees, and their dependents, and it is operated pursuant to the terms of a Trust Agreement. Id. ¶¶ 6–7. Plaintiffs are the “plan sponsor” within the meaning of ERISA Section 3(16)(B)(iii), 29 U.S.C. § 1002(16)(B)(iii), and are fiduciaries of the Fund, as defined by ERISA Section 3(21)(A), 29 U.S.C. § 1002(21)(A). Compl. ¶¶ 9–10. Defendant, a New York corporation, was a party to and bound by a series of CBAs with Local 338, RWDSU/UFCW (or its predecessor, Local 305, RWDSU/UCFW). Compl. ¶¶ 11, 13; DE [16]. Pursuant to these CBAs, Defendant was obligated to pay—and did pay—contributions to the Fund on behalf of employees covered by the agreements. Compl. ¶ 14. The Fund's records indicate that Defendant either permanently ceased to have an obligation to contribute to the Fund

or permanently ceased all covered operations during the plan year ending December 31, 2016, effectuating a “complete withdrawal” from the Fund within the meaning of ERISA Section 4203(a), 29 U.S.C. § 1383(a). Id. ¶¶ 15–16. Under ERISA Section 4201, 29 U.S.C. § 1381, Defendant is obligated to pay withdrawal liability to the Fund for its proportionate share of the Fund's unfunded vested benefits. Id. ¶ 17. In accordance with ERISA Section 4211, 29 U.S.C. § 1391, the Fund calculated the present value of Defendant's withdrawal liability to be $93,260.00. Id. ¶ 18, Ex. A. On December 15, 2022, the Fund sent Defendant a written demand for payment of its withdrawal liability, including a payment schedule, according to which Defendant was obligated to pay eighty quarterly payments of $2,034.00, with the first payment due on or before January 1, 2023. Compl. ¶ 19, Ex. A. Defendant did not contest the finding that it had withdrawn from the Fund or challenge the Fund's withdrawal liability assessment, and it failed to make the initial quarterly payment by January 1, 2023. Id. ¶¶ 20–21. On June 22, 2023, the Fund notified Defendant of its failure to make its withdrawal liability payments and informed Defendant that it

had sixty days to cure its default and make its withdrawal liability payments. Id. ¶ 23, Ex. B. Defendant did not cure its failure to make quarterly withdrawal liability payments, thereby defaulting on its withdrawal liability obligations to the Fund under ERISA Section 4219(c)(5)(A), 29 U.S.C. § 1399(c)(5)(A). Id. ¶¶ 24–25. The entire outstanding balance of Defendant's withdrawal liability therefore became due and owing pursuant to ERISA Section 515 and 4219(c)(5), 29 U.S.C. §§ 1145, 1399(c)(5). Id. ¶ 26. To date, Defendant has not cured its default or paid its withdrawal liability. Id. ¶ 22; see also Mathurin Dec. ¶¶ 13–14, 16, DE [10-3]. b. Procedural History Plaintiffs commenced this action against Defendant on September 25, 2023 by filing a

Complaint. See generally Compl. Plaintiffs properly served Defendant with the summons and Complaint through the New York Secretary of State on October 11, 2023. See DE [6]; Fed. R. Civ. P. 4(h)(1)(B); N.Y. Bus. Corp. L. § 306(b)(1)(i). Defendant's deadline to respond to the Complaint was November 1, 2023. See DE [6]. After Defendant failed to answer the Complaint, Plaintiffs requested a certificate of default, see DE [8], which was entered by the Clerk of Court on January 19, 2024. See DE [9]. On December 2, 2024, Plaintiffs moved for default judgment, see Pls.’ Mot. Default J., DE [10]; on December 6, 2024, they served the motion for default judgment and supporting documents on Defendant's last known business address, see DE [11]. Plaintiffs seek judgment against Defendants in the amount of $114,855.80, comprised of $93,260.00 in withdrawal liability, $18,652.00 in liquidated damages, $2,475.00 in attorneys’ fees, and $468.80 in costs. See Pls.’ Br. 7–8, DE [10-1]. II. DISCUSSION a. Entry of Default Judgment Motions for default judgment are governed by Federal Rule of Civil Procedure 55, which

provides for a two-step process for the entry of judgment against a party who fails to defend. See Fed. R. Civ. P. 55; Priestley v. Headminder, Inc., 647 F.3d 497, 504–05 (2d Cir. 2011). First, the moving party must obtain the clerk's entry of default by noting the defaulting party's failure to respond or appear. See Fed. R. Civ. P. 55(a). Here, the Clerk of Court entered a default against Defendant on January 19, 2024. DE [9]. Second, the moving party must apply to the court for the entry of default judgment. See Fed. R. Civ. P. 55(b); see also Priestley, 647 F.3d at 504–05.

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Durso v. Casa Bella Contracting, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/durso-v-casa-bella-contracting-inc-nyed-2025.