International Painters and Allied Trades Industry Pension Fund v. Madison Coatings Company Inc

CourtDistrict Court, D. Maryland
DecidedOctober 31, 2019
Docket1:17-cv-01559
StatusUnknown

This text of International Painters and Allied Trades Industry Pension Fund v. Madison Coatings Company Inc (International Painters and Allied Trades Industry Pension Fund v. Madison Coatings Company Inc) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Painters and Allied Trades Industry Pension Fund v. Madison Coatings Company Inc, (D. Md. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

INTERNATIONAL PAINTERS AND * ALLIED TRADES INDUSTRY PENSION * FUND, et al. * * Plaintiffs, * * Case No. SAG-17-1559 v. * * MADISON COATINGS CO., INC. * * Defendant. * *

* * * * * * * * * * * * * *

MEMORANDUM OPINION

In this case, Plaintiffs International Painters and Allied Trade Industry Pension Fund (“Pension Fund”), Tim D. Maitland, a fiduciary on behalf of the Pension Fund, Finishing Trades Institute f/k/a International Union of Painters and Allied Trades Joint Apprenticeship and Training Fund (“FTI”), and the Painters and Allied Trades Labor Management Cooperation Initiative (“LMCI”) (collectively, “Plaintiffs”) seek unpaid contributions and associated damages from Defendant Madison Coatings Company, Inc. (“Madison”). Plaintiffs have filed a Motion for Summary Judgment, ECF 45, with an associated Memorandum of Law, ECF 45-1.1 I have reviewed those filings, along with Madison’s Opposition, ECF 52, and Plaintiffs’ Reply, ECF 53.

1 In a footnote, Plaintiffs note that Madison, despite seeking leave to file an Answer to the Amended Complaint, ECF 48, never filed one. ECF 52 at 2 n.1. Accordingly, Plaintiffs seek default judgment, in the alternative to their motion for summary judgment. ECF 45. For the purposes of adjudicating the pending Motion, I will consider Madison’s proposed Answer, attached at ECF 52 as Exhibit B, as if it had been filed, and I will decline to enter default judgment, but will consider the Motion for summary judgment on its merits. No hearing is necessary. See Loc. R. 105.6 (D. Md. 2018). For the reasons addressed herein, the Motion will be granted, and damages awarded as described herein. I. FACTUAL BACKGROUND2 On June 7, 2017, Plaintiffs filed a Complaint in this Court alleging that Madison failed to make contributions required under the Employee Retirement Income Security Act of 1974

(“ERISA”) and governing contracts. ECF 1. Specifically, Madison employed members of local labor unions or district councils affiliated with the International Union of Painters and Allied Trades (“the Union”) and agreed to abide by a Collective Bargaining Agreement (“the CBA”). ECF 45-3, ¶¶ 4-5, 7-8. The CBA, along with the Agreement and Declaration of Trust of the Fund (“Trust Agreement”), established and maintained the Pension Fund. Id. ¶¶ 4-6. The Pension Fund is an “employee benefit pension plan” as defined by ERISA. Id. ¶ 2. As a corporate employer using Union employees, Madison agreed to abide by the terms of the CBA and the Trust Agreement. Id. ¶ 5. Those obligations included making full and timely payment on a monthly basis to the Funds as required by the CBA, Trust Agreement, and plan

documents, and filing timely remittance reports with the Pension Fund detailing all the employees or work for which contributions were required under the CBA. Id. ¶ 6. A failure to comply with those obligations subjects an employer to damages including liquidated damages, interest, audit costs, and litigation costs, including attorneys’ fees. ECF 45-9 at 72, ¶ 10.11(b). In July, 2016, an auditor retained by Plaintiffs conducted an audit of Madison’s payroll records. ECF 45-3, ¶ 8; ECF 45-11. The audit revealed a substantial delinquency in contributions. ECF 45-11 at 3. Madison disputed the audit’s findings on several grounds, resulting in some significant reductions in the amount sought by Plaintiffs. ECF 45-3, ¶ 8(b)-(g); ECF 45-15 at 3.

2 The following facts are drawn in the light most favorable to the non-moving party, Madison. Pertinent to the parties’ remaining dispute, in 2015, and again in 2018, Madison reached settlement agreements with employee benefit funds (“the Local NY Funds”) associated with two local New York chapters, Local Union No. 806 and District Council 9. ECF 52, Ex. D, F. The 2015 and 2018 settlement agreements included payment of “benefit fund contributions to the Local 806 Structural Steel and Bridge Painters of Greater New York Employee Trust Funds and the

District Council 9 Painting Industry Insurance & Annuity Funds,” ECF 52 at 49 (Ex. F), along with contributions owed to one of the Local NY Union chapters, the Local 806 Structural Steel and Bridge Painters of Greater New York, id. The Parties to the settlement agreements were the Local NY Funds and Madison, not Local Union No. 806 or District Council 9 themselves. See ECF 52 at 41 (Ex. D) (“THIS SETTLEMENT AGREEMENT has been entered into between the Trustees of the District Council 9 Painting Industry Insurance & Annuity Funds and Structural Steel and Bridge Painters Local Union No. 806 Funds” and Madison); id. at 49 (Ex. F) (“THIS SETTLEMENT AGREEMENT has been entered into between the Trustees of the Local 806 Structural Steel and Bridge Painters of Greater

New York Employee Trust Funds and the Trustees of the District Council 9 Painting Industry Insurance & Annuity Funds” and Madison). Although the Settlement Agreements purported to collect “Pension” contributions, in addition to contributions to the Local NY Funds themselves, id. at 47 (Ex. E); id. at 52 (Ex. G), the agreements do not specify where, if anywhere, the Local NY Funds would remit the “pension” amounts collected. Plaintiffs acknowledge receipt of one check from the Local NY Funds for $33,400.50, collected on the Pension Fund’s behalf in connection with the 2015 settlement agreement. ECF 45-3, ¶ 8(b). Plaintiffs credited the check against Madison’s delinquency. Id. Plaintiffs also submitted a Declaration of Judith Sznyter, Esq. in connection with their Motion for Summary Judgment. ECF 45-25. Ms. Sznyter’s declaration supported Plaintiffs’ request for attorneys’ fees and costs in the amount of $117,726.66. ECF 45-2 at 39; 45-25. II. LEGAL STANDARDS Rule 56(a) of the Federal Rules of Civil Procedure states that the court “shall grant

summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The moving party, bears the burden of showing that there is no genuine dispute of material facts. See Casey v. Geek Squad, 823 F. Supp. 2d 334, 348 (D. Md. 2011). If the moving party establishes that there is no evidence to support the non-movant’s case, the burden then shifts to the non-movant to proffer specific facts to show a genuine issue exists for trial. Id. The non-movant must provide enough admissible evidence to “carry the burden of proof at trial.” Id. at 349 (quoting Mitchell v. Data Gen. Corp., 12 F.3d 1310, 1315-16 (4th Cir. 1993)). The mere existence of a scintilla of evidence in support of the non-movant’s position is insufficient; rather, there must be evidence on which

the jury could reasonably find for the non-movant. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252 (1986). Moreover, a genuine issue of material fact cannot rest on “mere speculation, or building one inference upon another.” Casey, 823 F. Supp. 2d at 349. Additionally, summary judgment shall be warranted if the non-moving party fails to provide evidence that establishes an essential element of the case. The non-movant “must produce competent evidence on each element of his or her claim.” Miskin v. Baxter Healthcare Corp., 107 F. Supp. 2d 669, 671 (D. Md. 1999).

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International Painters and Allied Trades Industry Pension Fund v. Madison Coatings Company Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-painters-and-allied-trades-industry-pension-fund-v-madison-mdd-2019.