Pace Industry Union-Management Pension Fund, et al. v. Welsh Gold Stampers

Filing 30

MEMORANDUM & ORDER, ORDER ADOPTING REPORT AND RECOMMENDATIONS. Mag. Pollak's report and recommendation dated February 4, 2016, is adopted in its entirety as the opinion of the court. The Clerk of Court is directed to enter judgment for plaintiffs in the amount of $508,155.38, plus cost of $600, in accordance with this memorandum and order. The Clerk of Court is further directed to close this case. Ordered by Judge Eric N. Vitaliano on 3/17/2016. (Piper, Francine)

FILED

IN CLERK'S OFFICE
US DISTRICT COURT E.D.N.Y.

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

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PACE INDUSTRY UNIONMANAGEMENT PENSION FUND and ·
BOARD OF TRUSTEES OF THE PACE:
INDUSTRY UNION-MANAGEMENT
PENSION FUND,

MAR 212016

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BROOKLYN OFFICE

MEMORANDUM & ORDER
15 Civ. 0159 (ENV) (CLP)

Plaintiffs,
-againstWELSH GOLD STAMPERS,
Defendant.

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VITALIANO, D.J.
Plaintiffs brought this action asserting violations of the Employee Retirement Income
Security Act ("ERISA"), 29 U.S.C. §§ I 001 et seq., by Welsh Gold Stampers ("Welsh Gold")
stemming from its alleged failure to make contributions and pay surcharges to the Pace UnionManagement Pension Fund (the "Fund") beginning in mid-2012. (Compl.

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10, ECF No.1).

After Welsh Gold failed to respond to the complaint and the Clerk of Court entered a certificate
of default, the Fund moved for default judgment. (Pis. Mot., ECF No. 18). That motion was
granted, and the matter was referred to Magistrate Judge Cheryl L. Pollak for an inquest as to
damages and to make a report and recommendation as to her findings. (Mem. and Order, ECF
No. 19).
On February 4, 2016, Magistrate Judge Pollak issued a report and recommendation
("R&R") that recommended an award of$307.47 in delinquent contributions, $204.71 in
liquidated damages and interest on the delinquent contributions, $353,281 in withdrawal liability,
$70,656.20 in liquidated damages on the withdrawal liability, $71,316.10 in prejudgment
interest, $12,389.90 in attorneys' fees, and $600 in costs, for a total award of$508,755.38. With

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notice given, no party has filed objections to the R&R. For the reasons stated below, the R&R is
adopted in its entirety.
Legal Standard
In reviewing the report and recommendation of a magistrate judge, a district judge "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)(l). A district judge is required to "determine de novo any
part of the magistrate judge's disposition that has been properly objected to." Fed. R. Civ. P.

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recommendation, "provided no clear error is apparent from the face of the record." Dafeng

Hengwei Textile Co. v. Aceco Indus. & Commercial Corp., 54 F. Supp. 3d 279, 283 (E.D.N.Y.
2014).
Discussion
In accord with tradition extending beyond the memory of man, default judgment is
appropriate when the movant complies with procedural rules following a party's failure to respond
to the complaint. See E.D.N.Y. Local Civ. R. 7.1(a), 55.2(b). Notwithstanding, the Second Circuit
has recently explained that "prior to entering default judgment, a district court is 'required to
determine whether the [plaintiffs] allegations establish [the defendant's] liability as a matter of
Jaw."' City ofNew York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 137 (2d Cir. 2011) (quoting

Finkel v. Romanowicz, 577 F.3d 79, 84 (2d Cir. 2009)). That issue was not squarely referred to

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Magistrate Judge Pollack. The Court, however, now finds, nunc pro tunc, that the complaint has
plausibly alleged defendant's liability as a matter of law.
In accordance with the Court's referral to her, Magistrate Judge Pollack took up the issue
of damages and has concluded that the Fund has plausibly pleaded and established, at inquest, the
liability of Welsh Gold.
The Court has now reviewed the R&R in accordance with the applicable clear error
standard of review, and finds it to be correct, well-reasoned, and free of any clear error. The
Court, therefore, adopts the R&R as to damages in its entirety as the opinion of the Court.
Conclusion
In line with the foregoing, Magistrate Judge Pollak's report and recommendation, dated
February 4, 2016, is adopted in its entirety as the opinion of the Court.
The Clerk of Court is directed to enter judgment for plaintiffs in the amount of
$508,155.38, plus costs of$600, in accordance with this memorandum and order. The Clerk of
Court is further directed to close this case.
So Ordered.
Dated: Brooklyn, New York
March 17,2016

s/ENV
ERIC N. VITALIANO
United States District Judge

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