Trustees of the Local 7 Tile Industry Welfare Fund et al v. Castle Stone and Tile, Inc. et al

Filing 81

ORDER, Plaintiffs' 80 renewed application for damages is GRANTED. Judgment is therefore GRANTED in favor of Plaintiffs in the amount of $2,082,630.94 against Defendants Castle Stone and Tile, Inc. and Cathedral Stone & Tile Co., Inc. Deci sion is RESERVED as to Plaintiffs' application for attorneys' fees and costs subject to recalculation. Plaintiffs are DIRECTED to file a revised calculation by Wednesday, August 10, 2022. So Ordered by Judge Nicholas G. Garaufis on 8/2/2022. (Lee, Tiffeny)

Case 1:17-cv-03187-NGG-RER Document 81 Filed 08/02/22 Page 1 of 6 PageID #: 2827

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
TRUSTEES OF THE LOCAL 7 TILE INDUSTRY
WELFARE FUND, THE LOCAL 7 TILE
INDUSTRY ANNUITY FUND, and THE TILE
LAYERS LOCAL UNION 52 PENSION FUND,
TRUSTEES OF THE BRICKLAYERS &
TROWEL TRADES INTERNATIONAL
PENSION FUND, and TRUSTEES OF THE
INTERNATIONAL MASONRY INSTITUTE,
TRUSTEES OF THE MARBLE INDUSTRY
PENSION FUND, THE MARBLE INDUSTRY
ANNUITY FUND, and THE MARBLE
INDUSTRY TRUST FUND,

ORDER
17-CV-3187 (NGG) (RER)

Plaintiffs,
-againstCASTLE STONE AND TILE, INC. and
CATHEDRAL STONE & TILE CO., INC.,
Defendants.
NICHOLAS G. GARAUFIS, United States District Judge.
Plaintiffs, trustees for various labor-management funds, 1
brought this action against Defendants Castle Stone and Tile, Inc.
and Cathedral Stone & Tile Co., Inc., asserting claims under Sections 502(a)(3) and 515 of the Employee Retirement Income
Security Act, 29 U.S.C. §§ 1132(a)(3), 1145, and Section 301 of
1

Plaintiffs are Trustees of the Local 7 Tile Industry Welfare Fund, the Local
7 Tile Industry Annuity Fund, and the Tile Layers Local Union 52 Pension
Fund; Trustees of the Bricklayers & Trowel Trades International Pension
Fund; Trustees of the International Masonry Institute; and Trustees of the
Marble Industry Pension Fund, the Marble Industry Annuity Fund, and the
Marble Industry Trust Fund.

1

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the Labor Management Relations Act of 1947, 29 U.S.C. § 185.
(See Am. Compl. (Dkt. 39).) The court conducted a one-day
bench trial and recently issued its Findings of Fact and Conclusions of Law pursuant to Federal Rule of Civil Procedure 52(a).
See Trs. of Loc. 7 Tile Indus. Welfare Fund v. Castle Stone & Tile,
Inc., No. 17-CV-3187 (NGG) (RER), 2022 WL 2063267 (E.D.N.Y.
June 8, 2022) (Dkt. 73).
Plaintiffs established that Castle and Cathedral constitute a single
employer and single bargaining unit and that Castle and Cathedral are alter egos of one another. See id. at *7-10. As a result of
their single employer/alter ego status, Cathedral is bound to the
Castle-signed CBAs, and Defendants are jointly and severally liable for their delinquent benefit contributions, interest, liquidated
damages, audit costs, and attorneys’ fees. See id. at *10. Plaintiffs
also satisfied their burden to establish damages by sufficiently
explaining how (and based on what materials) they estimated
the alleged delinquency amounts owed by Castle and Cathedral.
See id. at *14-15. “In other words, the court accept[ed] Plaintiffs’
proposed methodology to determine Defendants’ contribution
delinquency.” Id. at *15.
Plaintiffs requested damages and costs of $4,236,138.61. (See
Pls.’ Renewed Mot. (Dkt. 80) at 2.) As explained in the decision,
however, Plaintiffs’ trial and posttrial submissions concerning
damages suffered from significant defects. See Castle Stone & Tile,
Inc., 2022 WL 2063267, at *15-17. Accordingly, judgment was
reserved on awarding Plaintiffs damages, costs, and fees subject
to recalculation in accordance with the instructions detailed in
that decision. See id. at *16. The court thus directed Plaintiffs “to
resubmit a detailed accounting clearly breaking down their calculations,” reiterating that “Plaintiffs must do—and show—their
work before any judgment for damages is granted.” Id.

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Plaintiffs heeded these instructions and submitted a clear, thorough calculation that supports both Castle’s and Cathedral’s
delinquent contributions, interest, liquidated damages, and audit
costs. (See generally Pls.’ Renewed Mot. at 3-21; Sarosy Decl.
(Dkt. 77); Gonzalez Decl. (Dkt. 78); Harras Decl. (Dkt. 79).)
Plaintiffs’ renewed application requests damages of
$2,082,630.94—about $2 million less than the original ask.2 The
requested award breaks down as follows: delinquent contributions: $1,222,539.85; 3 interest: $641,605.08; 4 liquidated
damages: $212,406.01; 5 and audit costs: $6,080.6 Plaintiffs’ renewed application for damages addresses each issue raised in the
Findings of Fact and Conclusions of Law. (See Pls.’ Renewed Mot.
2

This delinquent contribution amount includes revised (narrowed and
better supported) subcontractor-related damages of $160,509.97 based on
a theory of contractual compensatory damages. See Trs. of Local 7 Tile Indus. Welfare Fund v. All Flooring Solutions, LLC, No. 19-CV-126 (ENV)
(RLM), 2020 WL 9814088, at *7 (E.D.N.Y. Feb. 12, 2020); (Sarosy Decl.
¶¶ 79-89). But this amount does not include interest or liquidated damages
related to subcontractors because Plaintiffs apply a 10% and 15% interest
rate rather than the directed 9% rate, see Castle Stone & Tile, Inc., 2022 WL
2063267, at*16 n.18, and Plaintiffs wrongly assess liquidated damages.
3

Plaintiffs, as directed, removed delinquencies from non-fringe benefit,
non-Plaintiff funds from the revised submission. (See Pls.’ Renewed Mot.
at 3-7.)
4

Plaintiffs, as directed, applied a simple interest formula. (See id. at 9-10.)
In addition, Plaintiffs provided sufficient support to apply the 15% interest
rate for both the Tile and Marble international funds. (See id. at 9-11.)
5

Plaintiffs, as directed, applied a consistent liquidated damages formula
for both the Tile and Marble funds. (See id. 11-12.)
6

The court considers the originally requested audit costs of $6,080 rather
than the renewed request for $6,160. (Compare Pls.’ First Mot. (Dkt. 67)
at 28, with Pls.’ Renewed Mot. at 21-22.) The auditors billed their work at
$80 per hour. (See Sarosy Decl. ¶ 33.) The court finds these audit costs
reasonable. See, e.g., Trs. of Local 7 Tile Indus. Welfare Fund v. AM Tile Specialty Constr., No. 19-CV-1809 (RPK) (SJB), 2020 WL 7034025, at *11
(E.D.N.Y. Sept. 23, 2020), report and recommendation adopted, 2020 WL
7021646 (E.D.N.Y. Nov. 30, 2020).

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at 2-21.) Accordingly, for reasons discussed in that decision,
Plaintiffs’ application for damages in the amount of
$2,082,630.94 is GRANTED. See Castle Stone & Tile, Inc., 2022
WL 2063267, at *10-15.7
Plaintiffs also renewed their application for attorneys’ fees and
costs of $230,590.58. Relying on their prior submission, (see Pls.’
Renewed Mot. at 18-19), Plaintiffs assert that this figure represents 743.8 hours of work billed at hourly rates for partners at
$300 per hour in 2017 and $350 per hour from 2018 to 2021;
for associates at a rate of $200 in 2017 and $265 in 2018; and
for legal assistants at a rate of $90 in 2017 and $115 per hour in
2018-2021. (See Pls.’ Reply (Dkt. 70) at 10; Harras Reply Decl.
(Dkt. 71) ¶¶ 5-14.)
Alas, those hourly rates are inaccurate as applied. Plaintiffs’ contemporaneous time records demonstrate that three associates,
Nicole Marimon (or “NM”), Paige Davis (or “PD”), and Louis
Leon (or “LL”) billed at $265 per hour in 2017 for the Tile funds.
(See, e.g., Tile Billing Records (Dkt. 71-1) at 1-8.) Similarly, a
partner, Martin Fojas (or “MF”), billed at $350 per hour in 2017.
(See, e.g., id. at 4-7.) And a legal assistant, Maura Moosnick (or
“MM”), billed at $115 per hour in 2017. (See id.) These inaccuracies were obvious from the first page of the Tile billing records.
(See id. at 1.) The Marble records, at least, do accurately reflect
the billing rates presented to the court. (See generally Marble Billing Records (Dkt. 71-2).)
As a result, the court must once again reserve judgment on attorneys’ fees. First, rather than providing a lump sum of hours
worked (i.e., 743.8), Plaintiffs are DIRECTED to submit updated
7

Even after Defendants’ near-complete failure to produce evidence to rebut Plaintiffs’ proposed damages (both at and after trial), see Castle Stone
& Tile, Inc., 2022 WL 2063267, at*14-15, Defendants have declined the
opportunity “to provide Plaintiffs with additional information to permit a
more accurate damages calculation,” id. at *18.

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Tile and Marble billing records that separately break down hours
worked by partner, associate, and legal assistant. Second, Plaintiffs may then apply the hourly rates presented to the court and
described above, which, based on the detailed records and favorable result for Plaintiffs—achieved after motion practice, a bench
trial, and posttrial briefing (as opposed to default judgment)—
the court finds reasonable. 8 See, e.g., Trs. of N.Y. City Dist. Council
of Carpenters Pension Fund, Welfare Fund, Annuity Fund, & Apprenticeship, Journeyman Retraining, Educ. & Indus. Fund v.
Concrete Bros. Constr. LLC, No. 20-CV-2196 (JGK), 2020 WL
3578200, at *4 (S.D.N.Y. July 1, 2020); Trs. of N.Y. City Dist.
Council of Carpenters Pension Fund v. Earth Constr. Corp., No. 19CV-5411 (ALC), 2020 WL 614740, at *3 (S.D.N.Y. Feb. 10,
2020).
Separately, the court finds the supported and unopposed costs of
$7,297.08 both reasonable and compensable. (See Harras Reply
Decl. ¶¶ 5-6, 15; Tile Billing Records at 50-51; Marble Billing Records at 36-37); see also, e.g., Trs. of Pavers & Road Builders Dist.
Counsel Welfare, Pension, Annuity and Apprenticeship, Skill Improvement and Safety Funds v. Genrus Corp., No. 18-CV-4232
(AMD) (CLP), 2019 WL 4604972, at *9 (E.D.N.Y. Sept. 6, 2019),
report and recommendation adopted, 2019 WL 4602880
(E.D.N.Y. Sept. 23, 2019). Because of the hourly-rates error,
however, decision on Plaintiffs’ renewed application for attorneys’ fees and costs is RESERVED subject to revision.
*

*

8

*

This reasonableness finding also accounts for the quality of the renewed
damages submission, which Plaintiffs, as directed, did not include in their
attorneys’ fees. (See Harras Decl. ¶ 55.)

5

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For the reasons discussed above, Plaintiffs' renewed application
for damages is GRANTED. Judgment is therefore GRANTED in
favor of Plaintiffs in the amount of $2,082,630.94 against Defendants Castle Stone and Tile, Inc. and Cathedral Stone & Tile
Co., Inc.
Decision is RESERVED as to Plaintiffs' application for attorneys'
fees and costs subject to recalculation. Plaintiffs are DIRECTED
to file a revised calculation by Wednesday, August 10, 2022.

SO ORDERED.

Dated:

Brooklyn, New York
August .J..,.2022

s/Nicholas G. Garaufis
ICHOLAS G. GARAUFIS (
nited States District Judge

6