Mastropietro v. Burbank Electrical Contractor, Inc.

CourtDistrict Court, N.D. New York
DecidedApril 6, 2023
Docket1:21-cv-01129
StatusUnknown

This text of Mastropietro v. Burbank Electrical Contractor, Inc. (Mastropietro v. Burbank Electrical Contractor, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mastropietro v. Burbank Electrical Contractor, Inc., (N.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

MICHAEL MASTROPIETRO, JOHN MOSHER, MICHAEL MARTELL, JOSEPH P. GROSS, CHRISTOPHER SPRARAGEN, and BRIAN HART, as 1:21-cv-1129 (BKS/ML) Trustees of the I.B.E.W., Local 236 Health and Benefit Fund and I.B.E.W. Local 236 Annuity Fund, and I.B.E.W. Local 236,

Plaintiffs,

v.

BURBANK ELECTRICAL CONTRACTOR, INC. and DEAN BURBANK,

Defendants.

Appearance: For Plaintiffs: William Pozefsky Pozefsky, Bramley & Murphy 90 State Street, Suite 1405 Albany, NY 12207 Hon. Brenda K. Sannes, Chief United States District Judge: MEMORANDUM-DECISION AND ORDER I. INTRODUCTION Plaintiffs Michael Mastropietro, John Mosher, Michael Martell, Joseph P. Gross, Christopher Spraragen, and Brian Hart, as trustees of the I.B.E.W. Local 236 Health and Benefit Fund, the I.B.E.W. Local 236 Annuity Fund (collectively, the “Funds”), and I.B.E.W. Local 236 (the “Union”), filed this action against Defendants Burbank Electrical Contractor, Inc. (“Burbank”) and Dean Burbank, alleging that Defendants violated the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., and the Labor-Management Relations Act of 1947 (“LMRA”), as amended, 29 U.S.C. § 141 et seq., and committed conversion under New York state law. (Dkt. No. 1). Defendants have not answered the complaint or otherwise appeared in this action. Presently before the Court is Plaintiffs’ renewed motion pursuant to Rule 55(b) of the Federal Rules of Civil Procedure for default judgment. (Dkt. No. 20).1 Plaintiffs seek a monetary judgment against Defendants for amounts due to the Funds and

Union, as well as costs and attorney’s fees. For the following reasons, Plaintiffs’ motion for default judgment is granted. II. BACKGROUND Plaintiffs brought their initial motion for default judgment on March 31, 2022. (Dkt. No. 14). The Court denied the motion without prejudice because Plaintiffs had not provided the agreements underlying their claims or adequately supported their request for damages and attorney’s fees and costs. (See generally Dkt. No. 16). The Court assumes familiarity with the facts of this case, as set forth in its previous decision. III. DISCUSSION A. Liability 1. ERISA Causes of Action a. ERISA § 515 (29 U.S.C. § 1145)

Under Section 515 of ERISA: [e]very employer who is obligated to make contributions to a multiemployer plan under the terms of the plan or under the terms of a collectively bargained agreement shall, to the extent not inconsistent with law, make such contributions in accordance with the terms and conditions of such plan or such agreement.

1 Plaintiffs’ renewed motion for default judgment consists of supplemental affidavits and supporting materials to “supplement the Affidavits previously filed” with the initial motion for default judgment. (Dkt. No. 20). Thus, the Court has construed Plaintiffs’ latest submission as a renewed motion for default judgment which incorporates the materials filed with the initial motion for default judgment. (See Dkt. No. 14). Plaintiffs served the renewed motion for default judgment on Defendants, who have not responded. (Dkt. No. 21). 29 U.S.C. § 1145. According to the First Cause of Action, Defendant Burbank is liable under ERISA for failing to remit required payments and contributions to the Funds. (Dkt. No. 1, ¶¶ 13–23). As noted in the Court’s ruling on Plaintiffs’ initial motion for default judgment, Plaintiffs allege that

Burbank was obligated by the “Small Works Addendum to the Inside Agreement between Local 236 and the Albany Electric Contractors Association, NECA, Albany Chapter and the Union for the periods from January 1, 2007 to the present” (the “Agreement”), “Trust Agreements,” and “rules and practices of the Funds” to “submit to the Funds monthly written reports . . . describing the employees of Defendant Burbank covered by the Agreement, the hours worked by such Covered Employees and the payments or contributions to be made for such Covered Employees,” and to file such reports and make payment to Plaintiffs “of all amounts due as shown” “no later than 15 calendar days following the end of each calendar month in which the work covered by the Agreement is performed.” (Id. ¶¶ 12, 16). Burbank is also liable under the Agreement “for interest on [] unpaid contributions.” (Id. ¶ 17). The complaint alleges that

Burbank filed the required monthly reports for the period of April 2019 through February 2020 but failed “to make the required payments and contributions shown to be due thereon.” (Id. ¶ 18). However, because the complaint did not “reflect any language or terms from the Agreement, Trust Agreements, or other Funds documents,” the Court declined to enter a finding of liability. (Dkt. No. 16, at 4–5). Plaintiffs have now submitted the agreements at issue. (See Dkt. No. 20-4 (Letters of Assent; Inside Agreement effective June 1, 2018; Inside Agreement effective June 1, 2019; and Small Works Addendum effective January 1, 2007)). Section 6.02 of the Inside Agreement effective June 1, 2018 provides: “The Employer shall contribute [$11.76] per hour for each electrical worker employed by him in the jurisdiction of the Local Union into the Health/Welfare Fund of such Local.” (Dkt. No. 20-4, at 28). Section 6.02 of the Inside Agreement effective June 1, 2019 contains a similar provision requiring the employer to contribute $12.10 per hour to a Local’s Health/Welfare Fund. (Id. at 62). Similarly, Section 6.04 of each Inside Agreement

requires the employer to make certain contributions to an annuity fund. (Id. at 28 (Inside Agreement effective June 1, 2018 providing: “[T]he Employer shall contribute [$2.90] per hour for each Journeyman Wireman and third through sixth period apprentices”), 62 (identical provision in Inside Agreement effective June 1, 2019)). The Inside Agreements also provide that Burbank is liable for interest on unpaid contributions. (Id. at 64 (“[A]ny Employer who becomes delinquent in making payments to the respective trust funds shall be liable for the amount of delinquent contributions plus interest on the delinquent amount at the rate of 2 percentage points over the prime rate per annum.”); Dkt. No. 20-6, at 59 (same)). Finally, the Small Works Addendum to the Inside Agreements, which has been in force since January 1, 2007, provides: “All contributions listed above [are] to be sent together with a completed payroll report

prescribed by the Trustees mailed to reach the Trustees or the designated agent of the Trustees no later than 15 calendar days following the end of each calendar month.” (Dkt. No. 20-4, at 76). Accordingly, by virtue of the above contractual provisions, Plaintiffs’ allegations that Burbank filed the required monthly reports for the period of April 2019 through February 2020 but failed “to make the required payments and contributions shown to be due thereon” are sufficient to establish Burbank’s liability for delinquent contributions and deductions under ERISA, as well as for the interest due thereon. See United States v. Beam, No. 12-cv-87, 2012 WL 1802316, at *2, 2012 U.S. Dist. LEXIS 69054, at *4 (N.D.N.Y. May 17, 2012) (“By failing to answer plaintiff’s complaint or oppose this motion, defendant has effectively conceded that [it] is bound by the terms of the [Agreement] [it] entered into with plaintiff.”); Gesualdi v.

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