Kelley et al v. Teampay Healthcare LLC, a Delaware limited liability company et al
Filing
19
MOTION by Plaintiffs Gregory Kelley, Paige Kelly, Marshall Mauer, Floyd A. Schlossberg, The Service Employees International Union Healthcare IL Health and Welfare Fund, The Service Employees International Union Healthcare IL Pension Fund for judgment Plaintiffs' Motion For Final Judgment (Attachments: # 1 Exhibit 1-2)(Rowe, Elizabeth)
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
GREGORY KELLEY, PAIGE KELLY, FLOYD
A. SCHLOSSBERG, and MARSHALL MAUER
as Trustees of THE SERVICE EMPLOYEES
INTERNATIONAL UNION HEALTHCARE IL
HEALTH AND WELFARE FUND, and as
Trustees of THE SERVICE EMPLOYEEES
INTERNATIONAL UNION HEALTHCARE IL
PENSION FUND,
Plaintiffs,
v.
TEAMPAY HEALTHCARE LLC, a
Delaware limited liability company,
DAWN DOBBS, individually, and
REGGIE GRIFFIN, individually.
Defendants.
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Case No. 17-cv-5946
Judge Edmond E. Chang
PLAINTIFFS’ MOTION FOR FINAL JUDGMENT
Plaintiffs GREGORY KELLEY, PAIGE KELLY, FLOYD A. SCHLOSSBERG, and
MARSHALL MAUER as Trustees of THE SERVICE EMPLOYEES INTERNATIONAL UNION
HEALTHCARE IL HEALTH AND WELFARE FUND (“Welfare Fund”), and as Trustees of THE
SERVICE EMPLOYEEES INTERNATIONAL UNION HEALTHCARE IL PENSION FUND
(“Pension Fund”), (Welfare Fund and Pension Fund known jointly as “The Funds”), by and through
their attorneys, Dowd, Bloch, Bennett & Cervone, pursuant to Fed.R.Civ.P. 55(b)(2) and
Fed.R.Civ.P. 54, respectfully move this court for entry of default judgment on all counts in the form
of the attached proposed order or otherwise, against Defendants TEAMPAY HEALTHCARE LLC
(“Teampay”) and Dawn Dobbs (“Dobbs”). In support of this motion, the Plaintiffs state as follows:
1.
This is a claim against Teampay for delinquent reports and contributions due to
employee fringe benefit funds under Section 515 of the Employee Benefits Retirement Income
Security Act ("ERISA"), 29 U.S.C. §1145. It is also a claim against Dobbs in her personal capacity
to the extent Teampay deducted contributions from employees’ wages but failed to remit those
contributions.
2.
The Funds filed their four-count Complaint on August 15, 2017, consisting of a
demand for delinquent reports (Count I against Teampay); a demand for remittance of benefits
contributions deducted from employee wages (Count II against Teampay); a claim for violation of
fiduciary duties under ERISA by Dobbs when she took Welfare Fund assets in the form of amounts
deducted from wages but used them for other purposes (Count III against Dobbs); and a claim for
personal liability for wage theft on the same factual basis as Count III, as established by Section 13
of the Illinois Wage Payment and Collection Act, 820 ILCS 115/13 (Count IV against Dobbs).
3.
On October 2, 2017, the Court held Teampay in default (Order Granting Plaintiffs’
Motion to Held Teampay Healthcare LLC in Default [Docket No. 13]). Dobb, too, is now in default,
having been served with summons on November 6, 2017, and having not appeared within the time
allowed (Affidavit of Service on Dobbs [Docket No. 18]).1
1
Plaintiffs also brought claims against an individual named Reggie Griffin, but
now ask that those claims be dismissed without prejudice.
2
4.
Teampay has provided payroll records for the relevant period. Based on that payroll
Teampay submitted, the Funds have computed the amounts owed as follows:
Teampay Courtyard Delinquencies
Welfare
April 2017
May 2017
June 2017
July 2017
August 2017
September 2017
October 2017
November 2017
Total Principal Contributions
20% Liquidated Damages
Interest
Teampay Courtyard Delinquency
$
900.00
$
1,200.00
$
1,800.00
$
1,500.00
$
2,100.00
$
2,400.00
$
2,550.00
$
2,550.00
$ 15,000.00
$
3,000.00
$
454.20
$ 18,454.20
Teampay Norridge Delinquencies
Welfare
April 2017
May 2017
June 2017
July 2017
August 2017
September 2017
October 2017
November 2017
Total Principal Contributions
20% Liquidated Damages
Interest
Teampay Norridge Delinquency
$
2,400.00
$
3,000.00
$
3,000.00
$
3,000.00
$
3,300.00
$
3,300.00
$
3,600.00
$
3,750.00
$ 25,350.00
$
5,070.00
$
877.89
$ 31,297.89
(Ex.1, Declaration of Christina Barnett ¶7.)
3
Payroll
Deductions
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
138.56
$
$
$
138.56
Payroll
Deductions
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
1,023.52
$
$
$
1,023.52
Pension
$
$
$
$
$
$
$
$
$
$
$
$
318.04
373.23
409.42
384.07
701.64
221.71
2,408.11
481.62
87.28
2,977.01
Pension
$
$
$
$
$
$
$
$
$
$
$
$
572.00
624.53
662.81
630.80
958.05
324.67
3,772.86
754.57
142.00
4,669.43
5.
Pursuant to the Funds’ collection procedures, Employers who fail to report and/or
remit contributions are liable to pay an additional 20% if the Fund files a lawsuit against the
Employer to recover any amount due, and interest at the rate of 1% per month, compounded
monthly, as well as all costs of collection, including reasonable attorneys’ fees and court costs
(Ex.1, Declaration of Christina Barnett ¶¶5-6). Liquidated damages and interest owed pursuant
to the Funds’ collection procedures and 29 U.S.C §1132(g)(2) are a “mandatory rather than a
discretionary determination on the part of the court.” Central States, Southeast and Southwest
Areas Pension Fund, 795 F. Supp. 2d 740, 744 (N.D. Ill. 2011).
6.
Teampay’s failure to make timely reports and contributions violates Section 515
of ERISA, 29 U.S.C. §1145 and Section 301 of the LMRA, 29 U.S.C. §185.
7.
Based on the amount of work Plaintiffs’ counsel has completed to date and the
work Plaintiffs’ counsel anticipates doing in the future to bring this matter to conclusion, the
Plaintiffs’ have incurred or will incur attorneys’ fees and costs in the amount of $11,059.80
related to collection (Declaration of Josiah A. Groff, Exhibit 2 hereto, ¶8).
8.
Teampay’s only payments towards these delinquencies are two checks, numbers
1103 and 1104, in the respective amounts of $6,890.52 and $1,339.60. Despite demand being
duly made, as of the date of this declaration, Teampay has refused to offer any specific proposal
for how it would pay the balance of what it owes.
9.
Dobbs is personally liable to the extent of the payroll deductions shown above,
and for the attorneys’ fees involved in collecting them.
4
10.
As shown in the charts below, Teampay owes $61,390.29, of which $12,221.88 is
jointly owed by Dawn Dobbs, individually:
Teampay Courtyard Delinquencies
Welfare
April 2017
May 2017
June 2017
July 2017
August 2017
September 2017
October 2017
November 2017
Total Principal Contributions
20% Liquidated Damages
Interest
Teampay Courtyard Delinquency
$
900.00
$
1,200.00
$
1,800.00
$
1,500.00
$
2,100.00
$
2,400.00
$
2,550.00
$
2,550.00
$ 15,000.00
$
3,000.00
$
454.20
$ 18,454.20
Teampay Norridge Delinquencies
Welfare
April 2017
May 2017
June 2017
July 2017
August 2017
September 2017
October 2017
November 2017
Total Principal Contributions
20% Liquidated Damages
Interest
Teampay Norridge Delinquency
$
2,400.00
$
3,000.00
$
3,000.00
$
3,000.00
$
3,300.00
$
3,300.00
$
3,600.00
$
3,750.00
$ 25,350.00
$
5,070.00
$
877.89
$ 31,297.89
Summary of Teampay Delinquencies
Total Delinquency
Attorneys' Fees and Costs
Check No. 1103
Check No. 1104
Grand Total Due
Amount
$ 58,560.61
$ 11,059.80
$ (6,890.52)
$ (1,339.60)
$ 61,390.29
5
Payroll
Deductions
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
17.32
$
138.56
$
$
$
138.56
Payroll
Deductions
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
127.94
$
1,023.52
$
$
$
1,023.52
Pension
$
$
$
$
$
$
$
$
$
$
$
$
318.04
373.23
409.42
384.07
701.64
221.71
2,408.11
481.62
87.28
2,977.01
Pension
$
$
$
$
$
$
$
$
$
$
$
$
572.00
624.53
662.81
630.80
958.05
324.67
3,772.86
754.57
142.00
4,669.43
Summary of Dawn Dobbs Delinquencies
Total Delinquency from Payroll Deductions
Attorneys' Fees and Costs
Grand Total Due
11.
$
$
$
Amount
1,162.08
11,059.80
12,221.88
Plaintiffs request that their claims against Defendant Reggie Griffin be dismissed
without prejudice.
WHEREFORE, for the reasons stated above, Plaintiffs respectfully request that the Court
enter a final judgment against Defendant Teampay Healthcare LLC in the amount of $61,390.29, and
against Dawn Dobbs, jointly and severally, to the extent of $12,221.88, and dismissing Defendant
Reggie Griffin without prejudice.
Respectfully submitted,
/s/ Elizabeth L. Rowe
Elizabeth L. Rowe
An Attorney for the Plaintiffs
J. Peter Dowd (ARDC# 0667552)
Josiah A. Groff (ARDC# 6289628)
Elizabeth L. Rowe (ARDC# 6316967)
DOWD, BLOCH, BENNETT, CERVONE,
AUERBACH & YOKICH
8 S. Michigan Ave. 19th Floor
Chicago, IL 60602
312-372-1361
November 30, 2017
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