The Amalgamated National Health Fund, et al. v. Hickey Freeman Tailored Clothing, Inc., et al.

District Court, S.D. New York·Decided March 17, 2026·No. 1:23-cv-01428·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------- X : THE AMALGAMATED NATIONAL HEALTH : FUND, et al., : : Plaintiffs, : : 23-CV-01428 (JAV) -v- : : OPINION AND ORDER HICKEY FREEMAN TAILORED CLOTHING, : INC., et al., : : Defendants. : : ---------------------------------------------------------------------- X JEANNETTE A. VARGAS, United States District Judge: Before the Court are Plaintiffs’ objections to Magistrate Judge Katharine Parker’s June 24, 2025 Report and Recommendation. ECF No. 120 (“Objs.” or “Objections”). In her thoughtful and well-reasoned Report and Recommendation, Magistrate Judge Parker recommended granting in part and denying in part both Plaintiffs’ and Defendants’ motions for summary judgment. ECF No. 119 (“R&R” or “Report and Recommendation”). For the following reasons, the Courts overrules Plaintiffs’ Objections and ADOPTS the Report and Recommendation in its entirety. BACKGROUND

On April 12, 2023, Plaintiffs the Amalgamated National Health Fund (the “Health Fund”), the Trustees of the Amalgamated National Health Fund (the “AMNH Trustees”), the National Plus Plan, and the Trustees of the National Plus Plan filed an Amended Complaint. ECF No. 28 (“Am. Compl.” or “Amended Complaint”). The Amended Complaint asserted claims pursuant to the Employee Retirement Income Security Act of 1974 (“ERISA”) against Defendants Hickey Freeman Tailored Clothing, Inc. (“Hickey Freeman”) and Stephen Granovsky (“Granovsky”) (collectively, “Defendants”) to (i) enforce a collective bargaining

agreement (“CBA”) between Hickey Freeman and the Rochester Regional Joint Board, Workers United (the “Union”) and (ii) collect delinquent contributions, liquidated damages, interest, and attorneys’ fees and costs. Id. at 1. The claims against the Pension Fund related to the 401(k) contributions were later settled, leaving only the claims by the Health Fund and AMNH Trustees. See R&R at 11. On October 15, 2024, the Health Fund and the AMNH Trustees (collectively,

“Plaintiffs”) moved for summary judgment on all claims against Hickey Freeman and partial summary judgment against Granovsky on an unpleaded breach of fiduciary duty claim (“fiduciary breach claim”). ECF No. 79 (“Pls. Mot.” or “Plaintiffs’ Motion”). On November 19, 2024, Defendants cross-moved for summary judgment to dismiss all claims against Granovsky. ECF No. 91 (“Defs. Cross-Mot.” or “ Defendants’ Cross-Motion”). On June 10, 2025, Magistrate Judge Parker issued an R&R in this matter.

Therein, she recommended granting Plaintiffs’ Motion as to Hickey Freeman and denying without prejudice the fiduciary breach claim against Granovsky. R&R at 1- 2. Magistrate Judge Parker also recommended granting Defendants’ Cross-Motion as to the fraud claim against Granovsky and denying without prejudice the fiduciary breach claim against Granovsky.1 Id. at 2. More specifically, Magistrate Judge Parker first recommended granting

Plaintiffs’ Motion and awarding damages of $3,508,460.76, which is the amount that Plaintiffs allege Hickey Freeman failed to pay in required employer and employee contributions under the CBA for the period from part of October 2020 through January 2023. Id. at 3, 14-15. She noted that the $3,508,460.76 figure was not genuinely disputed considering credible testimony, defense counsel’s concession at oral argument that the amount owed to the Health Fund was $3,508,460.76, and

Defendants’ failure to present specific evidence supporting an alternative calculation or refuting the Health Fund’s calculation. Id. at 16-17. Magistrate Judge Parker also recommended that Plaintiffs be granted interest and liquidated damages on the $3,508,460.76 award, as well as reasonable attorneys’ fees and costs. Id. at 17-19. Tracking language from ERISA and relevant provisions of the CBA, she recommended that Plaintiffs be awarded interest at the rate of one percent (1%) per month or part thereof and liquidated damages at an

amount equal to the greater of interest on or twenty percent (20%) of the Delinquent Contributions. Id. at 3, 15, 17-19. Magistrate Judge Parker further

1 Although Magistrate Judge Parker recommended denying both the Plaintiffs’ Motion and Defendants’ Cross-Motion as to the breach of fiduciary claim against Granovsky, adopting those recommendations would effectively dismiss that claim because she recommended denial on the basis that the claim was never formally asserted. See R&R at 22-23. recommended that Plaintiffs be permitted to submit a motion for reasonable attorneys’ fees and costs. Id. at 19. Next, Magistrate Judge Parker recommended denying without prejudice

Plaintiffs’ Motion and Defendants’ Cross-Motion as to the fiduciary breach claim against Granovsky. Observing that Plaintiffs failed to plead this claim, Plaintiffs did not formally move to amend the complaint, Plaintiffs failed to demonstrate good cause to amend the complaint, the fiduciary breach claim and the fraud claim rely on different sets of facts to support their elements, and allowing Plaintiffs to now amend their pleading would prejudice Granovsky, the Magistrate Judge concluded

that Plaintiffs should not be permitted to assert a new claim in their summary judgment papers. Id. at 20-23. Further, since a fiduciary breach claim had not been formally asserted against Granovsky, Magistrate Judge Parker recommended denying Defendants’ Cross-Motion on that claim as well. Id. at 22-23. Finally, Magistrate Judge Parker recommended granting Defendants’ Cross- Motion to dismiss the fraud claim against Granovsky because no reasonable jury could conclude that he had committed fraud against the Health Fund. Id. at 30.

The Magistrate Judge first noted that Plaintiffs’ fraud claim rests on five statements made by Granovsky or Alan Peck, whom Plaintiffs allege acted as Granovsky’s agent, representing that Hickey Freeman would pay the delinquent contributions owed to the Health Fund. Id. at 24-25. Magistrate Judge Parker concluded that the alleged fraudulent statements are too vague to constitute a promise or a promise on which a reasonable person would rely. Id. at 26. She also held that there was no evidence of intent to defraud and that the statements could not serve as the basis for a fraud claim because they were made in the context of a failed settlement negotiation. Id.

On June 24, 2025, Plaintiffs submitted their Objections to Magistrate Judge Parker’s R&R. Objs. On July 8, 2025, Defendants filed their response to Plaintiffs’ Objections, ECF No. 121, but Defendants did not themselves file any objections to Magistrate Judge Parker’s R&R. LEGAL STANDARDS

When reviewing a magistrate judge’s R&R, a district court “may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge.” 28 U.S.C. § 636(b)(1)(C). After a party submits a timely objection, the district court reviews de novo the portions of the R&R to which the party properly objected. Id.; Fed. R. Civ. P. 72(b)(3). For the portions of the R&R to which no objection is made, the district court need only review for clear error. See Fischer v. Forrest, 286 F. Supp. 3d 590, 600 (S.D.N.Y. 2018), aff’d, 968 F.3d 216 (2d Cir. 2020).

“The purpose of the Federal Magistrates Act was to promote efficiency of the judiciary, not undermine it by allowing parties to relitigate every argument which it presented to the Magistrate Judge.” Vega v. Artuz, No. 97-CV-3775 (LTS) (JCF), 2002 WL 31174466, at *1 (S.D.N.Y. Sept. 30, 2002) (cleaned up).

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The Amalgamated National Health Fund, et al. v. Hickey Freeman Tailored Clothing, Inc., et al., (S.D.N.Y. 2026).

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