Trustees of Local 138 Pension Trust Fund v. Intercounty Paving Associates LLC

CourtDistrict Court, E.D. New York
DecidedMarch 18, 2021
Docket2:19-cv-03106
StatusUnknown

This text of Trustees of Local 138 Pension Trust Fund v. Intercounty Paving Associates LLC (Trustees of Local 138 Pension Trust Fund v. Intercounty Paving Associates LLC) 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
Trustees of Local 138 Pension Trust Fund v. Intercounty Paving Associates LLC, (E.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ----------------------------------------------------------X TRUSTEES of the LOCAL 138, 138A & 138B INTERNATIONAL UNION OF OPERATING ENGINEERS WELFARE FUND, ANNUITY FUND, LEGAL FUND, VACATION FUND,APPRENTICESHIP TRAINING FUND and TRUSTEES of the CENTRAL PENSION FUND OF THE INTERNATIONAL UNION OF OPERATING ENGINEERS, REPORT AND RECOMMENDATION 19CV 3106 (RJD) (CLP) Plaintiffs,

-against-

INTERCOUNTY PAVING ASSOCIATES LLC,

Defendant. ----------------------------------------------------------X POLLAK, Chief United States Magistrate Judge:

On May 24, 2019, plaintiffs, Trustees of the Local 138, 138A & 138B International Union of Operating Engineers Welfare Fund, Annuity Fund, Legal Fund, Vacation Fund, Apprenticeship Training Fund (the “Local 138 Funds”), and Trustees of the Central Pension Fund of the International Union of Operating Engineers (together, “Trustees” or “plaintiffs”) commenced this action against Intercounty Paving Associates LLC (“Intercounty” or “defendant”), under Sections 502(a)(3) and 515 of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, 29 U.S.C. §§1132(a)(3),1145; andSection 301 of the Labor Management Relations Act of1947(“LMRA”), as amended, 29 U.S.C. § 185, seeking to collect 1 delinquent employer contributions owed to the Funds. (Compl.1 ¶ 1). On June 25, 2019, defendant Intercounty filed an answer in response to the Complaint. (ECF No. 7). On March 2, 2020, the parties agreed to stipulate to liability on the part of the defendant

(the “Stipulation”). (ECF No. 18). The Stipulation provided in relevant part that: “Intercounty acknowledges that as part of its obligations to the Fund and Local 138, it is obligated to permit periodic audits of its books and records and to pay whatever unpaid contributions are found to be due and owing, as well as liquidated damages, interest, attorney’s fees and cost.” (Id.) The Stipulation further provided that: “Intercounty acknowledges that it has failed to meet its obligations to the Fund as alleged in the Complaint.” (Id.) Thereafter, during a conference with this Court held on March 31, 2020, the parties agreed to have the issue of damages determined on paper submissions. (ECF Minute Entry, dated 4/1/2020). On April 17, 2020, the Trustees submitted their motion for damages. (ECF No.

21). In a response dated July 15, 2020, defendant indicated that it was not opposing plaintiffs’ damages request. (ECF No. 22). Plaintiffs then submitted a revised declaration of damages dated July 20, 2020. (ECF No. 24). Having reviewed plaintiffs’ revised request for damages and considering that defendant has no objection to the calculations, this Court respectfully recommends that plaintiffs be awarded damages as set forth below.

1 Citations to “Compl.” refer to the Complaint filed on May 24, 2019, ECF No. 1. 2 FACTUAL BACKGROUND The Trustees of the Local 138, 138A & 138B International Union of Operating Engineers Welfare Fund, Annuity Fund, Legal Fund, Vacation Fund, Apprenticeship Training Fund, and

Trustees of the Central Pension Fund of the International Union of Operating Engineers are employer and employee trustees of multi-employer labor-management trust funds organized and operated in accordance with Section 302 of the LMRA. (Compl. ¶ 4). The Funds are “employee benefit plans,” as defined in Section 3(1) of ERISA, and fiduciaries established pursuant to an Agreement and Declaration of Trust. (Id. ¶¶ 4-6). The Funds have their principal place of business at 137 Gazza Boulevard, Farmingdale, New York 11735. (Id. ¶ 4). Defendant Intercounty is a New York corporation, with its principal place of business located in New York. (Id. ¶ 8). Intercounty is an “employer” within the meaning of ERISA and, during all relevant times, wasbound by certain Collective Bargaining Agreements (“CBAs”) to pay monthly benefit contributions to the Funds for every hourof covered work on behalf of

certain employees within the trade and geographical jurisdiction of the Union. (Id.¶¶ 9, 10, 12). Under the CBAs, Intercounty is required to submit periodic reports to the Funds, detailing the number of hours of covered work performed, and, when requested, furnish its books and records to the Funds for audit purposes. (Id.¶ 12). Plaintiffs allege that an audit of the defendant’s books and records was conducted for the periods January 1, 2016 through May 31, 2016, June 1, 2016 through December 31, 2016, January 1, 2017 through May 31, 2017, June 1, 2017 through December 31, 2017, and January 1, 2018 through March 31, 2018. (Id.¶20). The audit determined that defendant owed contributions to the Funds for the period June 1, 2016 through December 31, 2016 in the amount of $17,451.28; for the period January 1, 2017 through

3 May 31, 2017 in the amount of $544.88; for the period June 1, 2017 through December 31, 2017 in the amount of $4,554.90; and for the period January 1, 2018 through March 31, 2018 in the amount of $5,564.89. (Id. ¶21). Plaintiffs further allege that it was determined that there was a

credit taken for the period January 1, 2016 through May 31, 2016 in the amount of $4,469.50. (Id.) These unpaid contributions equal $23,646.45. (Id. ¶ 25) Plaintiffs allege that they provided defendant with a copy of the audit report on May 16, 2019, but the defendant did not respond. (Id.) Thus, in the First Cause of Action,plaintiffs seek an award of damages representing delinquent contributions in the total amount of $23,646.45, plus interest, liquidated damages, auditors’ fees, attorneys’ fees and costs. (Id. ¶ 22). The Second Cause of Action alleges that defendant filed remittance reports for the period October 1, 2018 through February 24, 2019, but did not remit the contributions owed, which total $564,665.26. (Id. ¶ 27). Plaintiffs also assert that defendant failed to file reports for the period February 25, 2019 until the date of the Complaint. (Id.) Thus, in the Second Cause of Action,

plaintiff seeks an award of delinquent contributions in the amount of $564,665.26, plus contributions owed for the period February 25, 2019 until May 24, 2019, the date the Complaint was filed, along with interest, liquidated damages, and any attorneys’fees required to collect the contributions. (Id. ¶¶ 27-32). DISCUSSION A. Damages Available Under ERISA The benefit plans operated by plaintiffs fall under the purview of ERISA in that the Funds are run by an organization of employees with the goal of providing health and retirement benefits to members of the employee organization, in accordance with 29 U.S.C. § 1002. ERISA

4 specifies the types of damages to be awarded when judgments are entered in favor of benefit plans. See 29 U.S.C. § 1132(g)(2). These include the following: 1. the unpaid contributions, 2. interest on the unpaid contributions, 3. an amount equal to the greater of-- i. interest on the unpaid contributions, or ii. liquidated damages provided for under the plan in an amount not in excess of 20 percent (or such higher percentage as may be permitted under Federal or State law) of the amount determined by the court under subparagraph (A), 4. reasonable attorney’s fees and costs of the action, to be paid by the defendant, and 5. such other legal or equitable relief as thecourt deems appropriate. Id. Plaintiffs have also alleged a claim under 29 U.S.C. § 1145

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Trustees of Local 138 Pension Trust Fund v. Intercounty Paving Associates LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-local-138-pension-trust-fund-v-intercounty-paving-associates-nyed-2021.