Restrepo v. Inline Cable Corp.

CourtDistrict Court, E.D. New York
DecidedSeptember 8, 2025
Docket1:24-cv-04831
StatusUnknown

This text of Restrepo v. Inline Cable Corp. (Restrepo v. Inline Cable Corp.) 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
Restrepo v. Inline Cable Corp., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------X HUMBERTO RESTREPO, as Chairman of the Joint Industry Board of the Electrical Industry, Plaintiff, REPORT AND RECOMMENDATION -against- 24 CV 4831 (OEM)(RML) INLINE CABLE CORP. D/B/A INLINE CABLE CORPORATION INC. A/K/A INLINE CABLE TECHNOLOGIES INC. A/K/A INLINE TECHNOLOGIES, Defendant. -------------------------------------------------------X LEVY, United States Magistrate Judge:

By order dated December 3, 2024, the Honorable Orelia E. Merchant, United States District Judge, referred plaintiff’s motion for default judgment to me for report and recommendation. For the reasons stated below, I respectfully recommend that the motion be granted. BACKGROUND Plaintiff Humberto Restrepo (“plaintiff”), as Chairman of the Joint Industry Board of the Electrical Industry (the “Joint Industry Board”), filed this case on July 11, 2024 against defendant Inline Cable Corp. d/b/a Inline Cable Corporation Inc. a/k/a Inline Cable Technologies Inc. a/k/a Inline Technologies (“defendant” or “Inline”), asserting claims under the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001-1461 (“ERISA”), as amended by the Multiemployer Pension Plan Amendments Act of 1980, Pub. L. No. 96-364, 94 Stat. 1208. (Complaint, dated July 11, 2024 (“Compl.”), Dkt. No. 1.) Plaintiff seeks a judgment for withdrawal liability arising from defendant’s cessation of pension benefit contributions to the Pension Trust Fund of the Pension Hospitalization and Benefit Plan of the Electrical Industry (the “Pension Fund”), plus interest, liquidated damages, and attorney’s fees and costs. (Id.; Plaintiff’s Memorandum of Law, dated Dec. 2, 2024 (“Pl.’s Mem.”), Dkt. No. 17, at 15.) Plaintiff properly served defendant with the summons and complaint. (See Affidavit of Service of Elizabeth Ostman, sworn to Aug. 22, 2024 (“Ostman Aff.”), Dkt. No. 8; see also Declaration

of Adrianna R. Grancio, Esq., dated Dec. 2, 2024 (“Grancio Decl.”), Dkt. No. 16, ¶¶ 7, 8; Exs. C- E.) Defendant failed to answer or move with respect to the complaint, and the Clerk of the Court noted its default on October 11, 2024. (Clerk’s Certificate of Default, dated Oct. 11, 2024, Dkt. No. 13.) Inline is bound by a collective bargaining agreement (“CBA”) with the Local Union No. 3 of the International Brotherhood of Electrical Workers, AFL-CIO (the “Union”) that requires it to remit hourly contributions at rates specified in the CBA to plaintiff, the administrator for the Pension Fund and other multiemployer benefit funds affiliated with the Union, on behalf of each employee who performed work under the CBA. (Compl. ¶¶ 4, 10, 14; Grancio Decl. ¶ 12, Ex. H.) The Pension Fund is a defined benefit pension plan subject to Title

IV of ERISA, 29 U.S.C. §§ 1301-1461, a “multiemployer plan” within the meaning of section 3(37) of ERISA, 29 U.S.C. § 1002(37), an “employee pension benefit plan” within the meaning of section 3(2)(A) of ERISA, 29 U.S.C. § 1002(2)(A), and has a joint labor-management Board of Trustees in accordance with section 302(c)(5) of the Labor Management Relations Act of 1947, 29 U.S.C. § 185(c)(5). (Compl. ¶¶ 15-16.) The Joint Industry Board is the administrator of the Pension Fund within the meaning of section 3(16)(A) of ERISA, 29 U.S.C. § 1002(16)(A). (Id. ¶ 17.) The Joint Industry Board and its members, including plaintiff, are “fiduciaries” of the Pension Fund within the meaning of ERISA § 3(21)(A), 29 U.S.C. § 1002(21)(A). (Id.) In mid-2023, defendant permanently ceased to have an obligation to contribute to the Pension Fund. (Id. ¶ 18.) Defendant thereby effected a “complete withdrawal” from the Pension Fund within the meaning of ERISA § 4203(a), 29 U.S.C. § 1383(a), and incurred withdrawal liability to the Pension Fund under ERISA §§ 4201 and 4211, 29

U.S.C. §§ 1381 and 1391. (Id. ¶ 19.) Withdrawal liability was calculated by the Pension Fund’s actuary using the calculation methods set out in ERISA § 4211(b)(1), 29 U.S.C. § 1391, and adopted by the Pension Fund in its Trust Agreement, in the amount of $164,962. (Id. ¶¶ 20-21; see also Grancio Decl. ¶¶ 39-41, Ex. I (Trust Agreement), Ex. L (Actuary’s Report).) By letter dated March 25, 2024 (the “Notice and Demand Letter”), the Joint Industry Board notified defendant that it had incurred withdrawal liability to the Pension Fund in the amount of $164,962, payable in six monthly payments of $24,256 and a final seventh payment of $19,427, with the first payment due on May 1, 2024. (Compl. ¶ 21; see also Grancio Decl. ¶ 28, Ex. K (Notice and Demand Letter).) The Notice and Demand Letter also gave defendant ninety days from receipt to (1) ask the Trustees to review any specific matter relating

to the determination of defendant’s withdrawal liability and schedule of payments, (2) identify any inaccuracy in the determination of the amount of the unfunded vested benefits allocable to defendant, and (3) furnish any additional relevant information to the Trustees. (See Grancio Decl. ¶ 29, Ex. K.) By letter dated May 2, 2024 (the “Demand Letter”), plaintiff informed defendant that it had failed to make the first monthly payment of $24,256 by May 1, 2024. (See Compl. ¶ 27; Grancio Decl. ¶ 32, Ex. L.) The Demand Letter directed defendant to make payment no later than July 2, 2024, and warned that otherwise the entire withdrawal liability would be immediately payable. (Compl. ¶ 28; Grancio Decl. ¶ 32, Ex. L.) To date, defendant has neither disputed nor paid any amount of the withdrawal liability assessment. (Compl. ¶¶ 29-30; Grancio Decl. ¶¶ 33-35.) Plaintiff now seeks a judgment representing withdrawal liability in the amount of $164,962, interest thereon at the rate of eight percent per month through the date of judgment, liquidated damages calculated as twenty percent

of the unpaid principal in the amount of $32,992.40, and attorney’s fees and costs in the amount of $6,818.96. (Pl.’s Mem. at 6.) DISCUSSION A. Default Judgment Standard The Federal Rules of Civil Procedure prescribe a two-step process for a plaintiff to obtain a default judgment. First, “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default,” as it has done here. FED. R. CIV. P. 55(a). Second, after a default has been entered against the defendant and the defendant fails to appear or move to set aside the default under Rule 55(c), the court may, on a plaintiff’s motion, enter a

default judgment. FED. R. CIV. P. 55(b)(2). To grant a default judgment, the court must ensure that the plaintiff took all the required steps in moving for default judgment, including providing proper notice to defendants of the lawsuit. US Flour Corp. v. Certified Bakery, Inc., No. 10 CV 2522, 2012 WL 728227, at *4 (E.D.N.Y. Mar.

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Bluebook (online)
Restrepo v. Inline Cable Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/restrepo-v-inline-cable-corp-nyed-2025.