International Brotherhood of Electrical Workers Local Union No. 22 v. Langer Electric Company, Inc.

District Court, D. Nebraska·Decided April 21, 2023·No. 8:21-cv-00263·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL UNION NO. 22, et al., 8:21CV263

Plaintiffs,

vs. ORDER

LANGER ELECTRIC COMPANY, INC.,

Defendant.

This matter comes before the Court on the following motions related to garnishment proceedings initiated by Plaintiffs in an attempt to collect upon the judgment entered in this case against Defendant, Langer Electric Company, Inc. (“Langer Electric”): • Langer Electric’s Motion to Quash Summons and Orders of Garnishment, or Alternatively to Vacate Pending Garnishment Orders (Filing No. 109); • Plaintiffs’ Motion for Order for Garnishee [Langer Properties and Development LLC] to Pay Funds into Court (Filing No. 137); • Langer Electric’s Motion to Quash Summons and Orders of Garnishment, or Alternatively, to Vacate Pending Garnishment Orders, and to Compel Plaintiffs’ Counsel to Use the Official Forms Prescribed by the Nebraska Supreme Court and for Attorney’s Fees (Filing No. 144); • Plaintiffs’ Motion for Order for Garnishee [Bank of the Valley] to Pay Funds into Court (Filing No. 150); • Plaintiffs’ Application for Determination of Garnishee [Langer Properties and Development LLC] Liability (Filing No. 152); and • Garnishee Langer Properties and Development LLC’s Motion for Leave to Amend Answers to Garnishment Interrogatories (Filing No. 172).

BACKGROUND On July 14, 2021, Plaintiffs commenced this action against Langer Electric pursuant to § 301(a) of the Labor Management Relations Act of 1947 (“LMRA”), 29 U.S.C. § 185(a), for breach of a labor agreement, and pursuant to §§ 502 and 515 of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 1132 and 1145, to collect fringe benefit contributions from Langer Electric due and owing to the Plaintiffs. (Filing No. 1). On February 7, 2022, the parties entered into a settlement agreement, pursuant to which Langer Electric agreed to submit to a payroll audit. (Filing No. 31; Filing No. 31-1). The payroll audit findings were finalized on May 26, 2022, revealing a delinquency owed by Langer Electric to Plaintiffs in the amount of $805,380.95, consisting of $680,841.15 in principal, $60,468.94 in interest, and $64,070.86 in liquidated damages. (Filing No. 31). Langer Electric elected to exercise its option under the settlement agreement to enter into a payment plan and agreed to entry of a judgment against it in the amount of $834,410.48. (Filing No. 31-3). Pursuant to the parties’ Joint Motion for Confession of Judgment (Filing No. 31), on August 8, 2022, the Court entered judgment against Langer Electric for Plaintiffs in the amount of $834,410.48. (Filing No. 32). On September 12, 2022, to collect upon the judgment, Plaintiffs began filing affidavits and praecipes in garnishment for various entities and individuals that may have property of or be indebted to Langer Electric. See, e.g., Filing No. 34. On November 17, 2022, Plaintiffs moved the Court for an order of examination in aid of execution pursuant to Fed. R. Civ. P. 69(a) and Neb. Rev. Stat. § 25-1565. (Filing No. 42). On November 18, 2022, the Court entered an order requiring Christopher Langer (“Mr. Langer”), as principal and owner of Langer Electric, to appear for a debtor’s examination before the undersigned magistrate judge on January 5, 2023. (Filing No. 43). On November 30, 2022, Langer Electric’s counsel moved to withdraw from her representation, representing to the Court that her client consented to her withdrawal and intended to secure other counsel to the extent it required additional representation. (Filing No. 45). On December 1, 2022, the Court granted Langer Electric’s counsel’s motion to withdraw and ordered her to serve the Court’s order upon her client. (Filing No. 46). On December 19, 2022, withdrawing counsel filed a certificate of service showing she served the Court’s order by certified mail, with a return receipt signed by Mr. Langer on December 12, 2022. (Filing No. 52). On December 30, 2022, new counsel entered an appearance for Langer Electric and moved to vacate the Court’s order scheduling the January 5, 2023, debtor’s examination, asserting Mr. Langer was not the judgment debtor and arguing Plaintiffs’ document requests were overbroad. (Filing No. 53). Following a telephonic hearing held on the motion on January 4, 2023, the Court found Plaintiffs’ document requests were not overbroad, and that Mr. Langer, as the principal and owner of Langer Electric, was properly subjected to Plaintiffs’ discovery requests in aid of execution. The Court did cancel the January 5, 2023, debtor’s examination so the parties could meet and confer on a mutually agreeable date and time for the examination. The Court also directed the parties to meet and confer regarding what documents Langer Electric would produce prior to the rescheduled debtor’s examination, and the necessity and scope of a protective order. (Filing No. 58). On January 13, 2023, Plaintiffs filed a Notice to Court Regarding Order to Meet and Confer (Filing No. 59), outlining the parties’ largely unsuccessful meet and confer. After reviewing Langer Electric’s Response (Filing No. 68) to Plaintiffs’ Notice, the Court entered an Order on January 17, 2023, rescheduling the debtor’s examination of Mr. Langer, as principal and owner of Langer Electric, for January 24, 2023. The Court further ordered Langer Electric to produce all documents the Court previously ordered it to produce in its November 18, 2022, Order (Filing No. 43), by January 20, 2023. The Court further ordered the parties to, by January 19, 2023, jointly move for a protective order, or if they could not agree, separately move for protective orders. (Filing No. 69). Unsurprisingly, the parties did not jointly agree on a protective order, and the Court ultimately entered the protective order proposed by Langer Electric. (Filing No. 75). On January 24, 2023, the parties appeared as ordered for the debtor’s examination. The parties required the Court’s assistance to resolve certain disputes that arose during the examination. (Filing No. 86). One of the disputes pertained to records produced by Langer Electric showing that on December 30, 2021, Langer Electric paid approximately $1,200 in closing costs and over $100,000 to a title company in checks signed by Mr. Langer. Mr. Langer testified during his examination with Plaintiffs’ counsel that he could not recall what those payments was for. After further examination by the Court, Mr. Langer testified he was “flustered” earlier in his examination, but recalled the payments were for a loan from Langer Electric to Langer Properties and Development, LLC (“Langer Properties”). Mr. Langer testified his wife is the managing partner of Langer Properties and that he is a member. Langer Properties owns real estate that Langer Electric rents pursuant to a lease. Mr. Langer testified the six-figure payment was an unsecured loan from Langer Electric to Langer Properties that has a “term” to be paid back, but “it just hasn’t been set yet.” (Filing No. 86 at 13:20-19:20). Following the debtor’s examination, Plaintiffs continued to file affidavits and praecipes for garnishment, see Filing Nos. 78-79 and 88-97, and the Clerk of Court issued summons and orders of garnishment as requested, see Filing Nos. 80-81 and 98-107. These garnishment papers advised and instructed the garnishees that (1) judgment was entered

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International Brotherhood of Electrical Workers Local Union No. 22 v. Langer Electric Company, Inc., (D. Neb. 2023).

International Brotherhood of Electrical Workers Local Union No. 22 v. Langer Electric Company, Inc. (International Brotherhood of Electrical Workers Local Union No. 22 v. Langer Electric Company, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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