THE LABORERS DISTRICT COUNCIL CONSTRUCTION INDUSTRY PENSION FUND v. MINISCALCO CORPORATION

CourtDistrict Court, E.D. Pennsylvania
DecidedApril 18, 2023
Docket2:20-cv-05745
StatusUnknown

This text of THE LABORERS DISTRICT COUNCIL CONSTRUCTION INDUSTRY PENSION FUND v. MINISCALCO CORPORATION (THE LABORERS DISTRICT COUNCIL CONSTRUCTION INDUSTRY PENSION FUND v. MINISCALCO CORPORATION) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
THE LABORERS DISTRICT COUNCIL CONSTRUCTION INDUSTRY PENSION FUND v. MINISCALCO CORPORATION, (E.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

THE LABORERS DISTRICT COUNCIL CIVIL ACTION CONSTRUCTION INDUSTRY PENSION FUND, et al., No. 20-5745-KSM Plaintiffs,

v.

MINISCALCO CORPORATION,

Defendant.

MEMORANDUM MARSTON, J. April 18, 2023 Plaintiffs the Laborers’ District Council Construction Industry Pension Fund (“Pension Fund”), the Laborers’ District Council Building and Construction Health and Welfare Fund (“Building & Construction Health and Welfare Fund”), the Laborers’ District Council Education and Training Fund (“Training Fund”), the Laborers’ District Council Prepaid Legal Fund (“Legal Fund”), the Laborers’ District Council of the Metropolitan Area of Philadelphia and Vicinity Laborers’ International Union of North America (“Union”), the Laborers’ – Employers’ Cooperation and Education Trust (“LECET”), the Laborers’ District Council Local, Regional and State Health and Safety Benefit Fund (“Health and Safety Fund”), and the Contractors Association of Eastern Pennsylvania (“Contractors Association”) (collectively “Plaintiffs”) have sued Defendant Miniscalco Corporation for allegedly breaching its duties under the Employment Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., by failing to remit employee contributions to Plaintiffs. (See Doc. No. 1.) Defendant failed to respond to the Complaint and did not otherwise appear. On July 22, 2021, Plaintiffs moved for default judgment against Defendant Miniscalco Corporation (Doc. No. 17), which this Court granted in part and denied in part on March 16, 2022 (Doc. Nos. 27, 28). Nearly a year later, on February 22, 2023, counsel for Defendant entered an appearance on behalf of the corporation (Doc. No. 47) and on March 7, Defendant filed a Motion to Vacate the Default Judgment (Doc. No. 49). For the reasons discussed below, the Court denies Defendant’s motion.

I. Background On August 26, 2016, Henry Miniscalco, owner of Defendant Miniscalco Corporation, signed a Collective Bargaining Agreement (“CBA”) with the Laborers’ District Council. (Doc. No. 49-1 at 2; Doc. No. 52-1 at 3.) On November 17, 2020, Plaintiffs sued Defendant, alleging that Defendant failed to make benefit fund contributions for work performed from May 1, 2020 to present, in contravention of the CBA and in violation of § 515 of ERISA. (See, e,g., Doc. No. 1 at ¶¶ 16–17, 20, 22, 34–35; see also Doc. No. 27 at n.10 (noting that “Plaintiffs’ counsel uses different dates in different pleadings” and explaining reasoning for using the May 1, 2020 date”).) In addition, Plaintiffs

alleged that Defendant breached a settlement agreement that Plaintiffs and Defendant had entered in 2019 to resolve a different dispute (which also involved unpaid benefit fund contributions) by failing to pay interest of $4,299.18. (Id. at ¶ 21; Doc. No. 1-1.) Defendant did not respond to the Complaint, and no representative entered an appearance on behalf of Defendant either. On June 15, 2021, at Plaintiffs’ request, the Clerk of Court entered default. On July 22, Plaintiffs filed a motion for default judgment. (Doc. No. 17.) The Court held a hearing on the default judgment motion on October 13, 2021. (Doc. No. 23.) No representative for Defendant attended the hearing. On March 16, 2022, the Court granted in part and denied in part Plaintiffs’ motion for default judgment. (Doc. Nos. 27, 28.) The Court found that Plaintiffs stated claims for violations of ERISA and breach of contract of both the CBA and the 2019 settlement agreement. (Doc. No. 27 at 4–7 & n.4.) The Court also concluded that the Chamberlain factors favored entry of default judgment. (See id. at 7–8.) As to relief, the Court found that Plaintiffs were

entitled to an audit/accounting to determine the amount of benefit fund contributions owed by Defendant but declined to enter judgment in the amount of $66,588.00, which was an estimate of the unpaid contributions as calculated by the Collection Manager for the Benefit Fund, Kevin Gale. (Id. at 9–11; see also id. at 11 (At this time, the Court declines to enter judgment in the amount of estimated unpaid contributions.”).) However, the Court determined that the Plaintiffs were entitled to $4,299.18 for the unpaid interest from the 2019 and for some (but not all) of the attorney’s fees requested. (See id. at 12–13.) Specifically, the Court awarded Plaintiffs $9,186.80 in attorney’s fees and costs. (Id. at 14.) With respect to the accounting, the Court ordered Defendant to produce a number of documents, including, among others, “copies of all

contribution reports pertaining to May 1, 2020 through the present,” “cancelled checks as proof of payment,” “individual payroll cards or payroll books pertaining to May 1, 2020 through the present,” and “Forms W-2 and 1099 for May 1, 2020 through the present.” (Id. at 14–15; see also Doc. No. 28.) On September 27, 2022, Plaintiffs filed a motion for sanctions, arguing that sanctions were warranted because Mr. Miniscalco “sent a self-selected subset of the documents rather than producing the full payroll documents” required by the Court’s March 16, 2022 Order. (See Doc. No. 29 (arguing that “Henry Minsicalco and Miniscalco Corporation should be adjudged to be in contempt of this Court’s March 16, 2022 order”).) On October 13, the Court held a show cause hearing on the motion. (Doc. No. 33.) The Court requested additional information from Plaintiffs and did not rule on the motion at the time. On November 22, Plaintiffs supplemented the motion. (Doc. No. 35.) On November 21, Plaintiffs filed a motion to amend/correct the default judgment.1 (Doc. No. 34.) Plaintiffs argued that remittance reports showed that Defendant owed $68,593.31 in

contributions for work performed during August 2019, September 2019, November 2019, December 2019, January 2020, February 2020, March 2020, April 2020, May 2020, June 2020, July 2020, June 2021, and July 2021, and that they had only discovered these after default judgment was entered. (See id.) Plaintiffs also sought interest on the unpaid contributions and additional attorneys’ fees and costs. Last, Plaintiffs contended that they now needed the audit to cover May 1, 2019 to the present (as opposed to the previously ordered audit for May 1, 2020 to the present). (Id. at 3.) The Court held another show cause hearing on January 3, 2023. (Doc. No. 43.) Mr. Miniscalco appeared at the January 3 hearing and stated that he had believed Robert

Birch, Esquire was representing him in this matter. (See Doc. No. 42 (“Henry Miniscalco having appeared at today’s show cause hearing and having believed that his attorney, Robert Birch, Esquire, would appear on his corporation’s behalf . . .”).) The Court ordered Mr. Miniscalco to obtain counsel for Defendant by February 3 and for the parties to provide a joint status update by that date as well. (Id.) No counsel entered an appearance for Defendant by the deadline. On February 14, the Court ordered Mr. Minsicalco to “show good cause for why the Court should not sanction him and/or hold him contempt for his failure to abide by the Court’s order to secure

1 Plaintiffs’ motion to amend remains under advisement at this time. counsel for his corporation, Defendant Miniscalco Corporation” and scheduled a show cause hearing for February 23. (Doc. No. 26.) On February 22, Robert Birch, Esquire entered his appearance on behalf of Defendant, and the Court cancelled the show cause hearing and scheduled a status hearing for March 8. (Doc. Nos. 47, 48.) Following the status hearing, the Court denied Plaintiffs’ motion for sanctions, without prejudice. (Doc. No. 51.)

On March 7 (the day before the hearing), Defendant filed a motion to vacate the default judgment. (Doc. No.

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THE LABORERS DISTRICT COUNCIL CONSTRUCTION INDUSTRY PENSION FUND v. MINISCALCO CORPORATION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-laborers-district-council-construction-industry-pension-fund-v-paed-2023.