Mackey et al v. Construction Cleaning Specialists LLC

Filing 63

ORDER: IT IS HEREBY ORDERED that 1. Plaintiffs' Motion for Entry of Judgment is GRANTED 47 ; and 2. The Clerk shall enter judgment in the amount of $28,835.42 against Construction Cleaning and in favor of Plaintiffs. LET JUDGMENT BE ENTERED ACCORDINGLY. (Written Opinion) Signed by The Hon. Paul A. Magnuson on 12/29/2016. (LLM)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA

Tim Mackey and John Nesse as Trustees of
the Minnesota Laborers Health and Welfare
Fund, Gary Reed and John Nesse as Trustees
of the Minnesota Laborers Pension Fund,
James Brady and Martha Henrickson as
Trustees of the Minnesota Laborers Vacation
Fund, Gary Reed and John Bartz as Trustees
of the Construction Laborers’ Education,
Training, and Apprenticeship Fund of
Minnesota and North Dakota, Dan Olson and
Chris Born as Trustees of the Minnesota
Laborers Employers Cooperation and
Education Trust, the Minnesota Laborers
Health and Welfare Fund, the Minnesota
Laborers Pension Fund, the Minnesota
Laborers Vacation Fund, the Construction
Laborers’
Education,
Training,
and
Apprenticeship Fund of Minnesota and North
Dakota, and the Minnesota Laborers
Employers Cooperation and Education Trust,

Case No. 15-cv-68 (PAM/JJK)

Plaintiffs,
v.

ORDER

Construction Cleaning Specialists LLC,

Defendant.

This matter is before the Court on Plaintiffs’ Motion for Entry of Judgment.
Plaintiffs seek a default money judgment against Defendant Construction Cleaning
Specialists LLC. The Court held a hearing on the Motion on December 22, 2016.
Christy E. Lawrie of McGrann Shea Carnival Straughn & Lamb, Chartered, appeared for

and on behalf of the Plaintiffs. Robert Wollesen appeared on behalf of Construction
Cleaning.
FINDINGS OF FACT
1.

The Complaint was filed with the Court on January 12, 2015.

2.

The Complaint was served on Defendant Construction Cleaning on January

22, 2015.
3.

Construction Cleaning failed to file an Answer with the Clerk of Court or

serve an appropriate Answer upon the Plaintiffs’ counsel, and the time allowed by law for
Construction Cleaning to answer the Complaint lapsed.
4.

The Clerk entered default on February 13, 2015. (Docket No. 8.)

5.

The Court entered a default judgment on September 1, 2015, leaving for

future determination the amount of damages to be awarded. (Docket No. 21.) In that
Order, the Court made findings of fact that apply to the current Motion. (Id. ¶¶ 5-14.)
6.

The Funds’ authorized agent requested that Construction Cleaning provide

its employment and payroll records for the period of January 1, 2013, through April 30,
2014 (“Audit Period”).
7.

Construction Cleaning breached the terms of the CBA by refusing to

provide the requested records for the Audit Period.
8.

Following the filing of this lawsuit, this Court’s Order on the Plaintiffs’

Motion for Default Judgment and Injunction, and several additional Show Cause
hearings, Construction Cleaning produced the required payroll and employment records
for the Audit Period.
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9.

The Funds’ Auditor reviewed the payroll and employment records

prepared and maintained by Construction Cleaning, and determined that $12,312.96 is
due and owing to the Funds for the Audit Period.
10.

The CBA provides that if a payment for contributions is not submitted to

the Funds on or before the fifteenth day of the month following the month for which the
contributions are due, the employer is subject to a penalty in the amount of ten percent of
the contributions as liquidated damages.
11.

Liquidated damages in the amount of $1,231.30 is due and owing to the

Funds for the Audit Period.
12.

Additionally, the CBA provides that Construction Cleaning is liable to the

Funds for interest charges on the unpaid contributions.
13.

The Funds’ Collection Policy further provides for the collection of interest

at a rate equal to the actuarial assumed rate of return for the Minnesota Laborers Pension
Fund plus .5 percent when an auditor determines a discrepancy of five percent or greater
than the total contributions remitted by the employer in a 12-month period.
14.

The current actuarial assumed rate of return for the Minnesota Laborers

Pension Fund is 7.5 percent. As such, the Funds are entitled to interest on the unpaid
contributions at a rate of 8 percent annually.
15.

Interest in the amount of $3,105.36 is due and owing from Construction

Cleaning for the Audit Period
16.

Finally, the CBA further provides that a delinquent employer shall be

required to pay all reasonable attorneys’ fees and court costs incurred by the Funds.
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17.

The Funds incurred $10,311.74 in attorneys’ fees and costs in pursuing this

delinquency. Those fees and costs were reasonable under the circumstances and limited
to performing those services necessary for the prosecution of the claims.
CONCLUSIONS OF LAW
1.

Construction Cleaning is in default and Plaintiffs are entitled to entry of

judgment.
2.

Construction Cleaning is liable to the Funds in the amount of $12,312.96

for unpaid contributions for the Audit Period.
3.

Construction Cleaning is liable to the Funds in the amount of $6,210.72 for

double interest for the Audit Period.
4.

Construction Cleaning is liable to the Funds in the amount of $10,311.74

for attorney’s fees and costs for the Audit Period.
Accordingly, IT IS HEREBY ORDERED that:
1.

Plaintiffs’ Motion for Entry of Judgment (Docket No. 47) is GRANTED; and

2.

The Clerk shall enter judgment in the amount of $28,835.42 against
Construction Cleaning and in favor of Plaintiffs.

LET JUDGMENT BE ENTERED ACCORDINGLY.

Dated: December 29, 2016

s/ Paul A. Magnuson
Paul A. Magnuson
United States District Court Judge

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