Argila et al v. Mach Group, Inc. et al

Filing 45

ORDER granting in part Plaintiffs' 36 motion for default judgment. For the reasons stated in the attached Memorandum and Order, Plaintiffs' motion is granted in part and denied in part.The Clerk of Court is respectfully requested to e nter a default judgment in favor of Plaintiffs and against Defendant Mach Group, Inc., in the amount of $511,212.54 (comprising $117,013.19 in unpaid sums, $305,661.05 in interest, $28,237.85 in liquidated damages, $41 ,665.20 in attorney fees, $1,660.25 in litigation costs, and $16,975.00 in audit costs) and to close this case.Plaintiffs are ordered to serve a copy of this Memorandum and Order and the Judgment on Defendant Mach Group, Inc., and to file a declaration of service within two days after the Clerk enters the Judgment. Ordered by Judge Kiyo A. Matsumoto on 6/3/2024. (MJF)

United States District Court
Eastern District of New York
-----------------------------------X
Jack Argila, et al.,
Plaintiffs,
- against -

Memorandum and Order
No. 22-cv-4374 (KAM) (MMH)

Mach Group, Inc.,
Defendant.
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Kiyo A. Matsumoto, United States District Judge:
Jack Argila, the president of the Bricklayers and Allied
Craftworkers Local Union No. 1 and trustee of several employee
benefit funds that cover the union’s workers, and the trustees
of the Bricklayers and Trowel Trades International Pension Fund
and the International Masonry Institute brought this action
against Mach Group, Inc., for violating its contractual
obligations to contribute to the funds and remit union dues and
thereby also violating the Employment Retirement Income Security
Act (“ERISA”) and Labor Management Relations Act (“LMRA”).

(ECF

No. 1, Compl.) *
The plaintiffs moved the Court to enter a default judgment
against Mach based on its failure to timely answer or otherwise
* The Court assumes familiarity with the factual and procedural background,
set forth at length in Magistrate Judge Henry’s Report and Recommendation on
the plaintiffs’ motion for a default judgment. See Argila v. Mach Grp. Inc.,
No. 22-cr-4374 (KAM) (MMH), 2024 WL 1007012 (E.D.N.Y. Mar. 8, 2024).

respond to the Complaint.

(ECF No. 36, Notice Mot. Default J.)

The Court then adopted Magistrate Judge Henry’s Report and
Recommendation to grant the motion in part and deny it in part
while reducing the recommended attorney fee award.

Argila v.

Mach Grp., Inc., No. 22-cr-4374 (KAM) (MMH), 2024 WL 1235611, at
*2 (E.D.N.Y. Mar. 23, 2024).

Although the Court found that the

plaintiffs established Mach’s liability, the Court declined to
enter a default judgment due to erroneous and inadequately
explained calculations in the plaintiffs’ damages submission.
Id.

Instead, adopting Magistrate Judge Henry’s recommendation,

the Court granted the plaintiffs leave to file a supplemental
submission rectifying the errors and explaining their
calculations.

Id.

Magistrate Judge Henry’s Report and Recommendation first
noted that the plaintiffs incorrectly subtracted the settlement
payments from the total delinquencies set forth in their 2022
audit report and in their delinquency and omissions schedule,
which also affected the plaintiffs’ interest and liquidated
damages calculations on those sums.

Argila v. Mach Grp. Inc.,

No. 22-cr-4374 (KAM) (MMH), 2024 WL 1007012, at *8–9 (E.D.N.Y.
Mar. 8, 2024).

The Report and Recommendation further noted that

the plaintiffs failed to support their use of a 92% multiplier
to determine the amount of unpaid contributions.

Id.

Similar

errors (and the same unexplained 92% multiplier) appeared in the
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plaintiff’s calculations regarding unpaid dues and assessments,
which similarly affected the interest and liquidated damages
calculations on those sums.

Id. at *9.

The plaintiffs have submitted a supplemental declaration
providing additional clarity regarding their calculations and
revising them in part.

(ECF No. 44, Suppl. Decl. Supp. Pls.’

Mot. Default J (“Suppl. Decl.”).)

First, the plaintiffs

corrected a calculation error regarding one of the settlement
payments by another contractor.

(Id. ¶ 7.)

Second, the

plaintiffs clarified that the ratio they used to determine the
amount of unpaid contributions from ERISA and non-ERISA
contributions derives from the funds’ respective shares of the
total benefit package, as set forth in the funds’ rate sheet.
(Id. ¶ 6; see ECF No. 37-7 (rate sheet).)

Third, the plaintiffs

explained the various delinquencies by category and revised the
interest calculations on those payments accordingly.
Decl. ¶¶ 8–9.)

(Suppl.

After reviewing the plaintiffs’ explanations and

revised damages spreadsheets, the Court finds that the
plaintiffs now have proven their damages with reasonable
certainty.

Thus, the plaintiffs’ motion for a default judgment

is granted in part and denied in part.
With respect to unpaid contributions for March 1, 2017,
through June 30, 2021, the plaintiffs are entitled to a
principal balance of $27,108.81, interest of $136,376.02, and
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additional interest of $134,899.87.

With respect to unpaid dues

and assessments for March 1, 2017, through June 30, 2021, the
plaintiffs are entitled to a principal balance of $1,955.13 plus
interest of $9,712.56.

With respect to unpaid contributions

from July 1, 2021, through October 27, 2022, the plaintiffs are
entitled to a principal balance of $82,027.81, interest of
$23,154.14, and liquidated damages of $28,237.85.

With respect

to unpaid dues and assessments from July 1, 2021, through
October 27, 2022, the plaintiffs are entitled to a principal
balance of $5,921.44 plus interest of $1,518.46.

The plaintiffs

are further entitled to audit costs of $16,975.00, litigation
costs of $1,660.25, attorney fees of $41,665.20, and postjudgment interest at the federal statutory rate.

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The Clerk of Court is respectfully requested to enter a
default judgment in favor of the plaintiffs and against Mach
Group, Inc., in the amount of $511,212.54 (comprising
$117,013.19 in unpaid sums, $305,661.05 in interest, $28,237.85
in liquidated damages, $41,665.20 in attorney fees, $1,660.25 in
litigation costs, and $16,975.00 in audit costs) and to close
this case.

The plaintiffs are ordered to serve a copy of this

Memorandum and Order and the Judgment on Mach Group, Inc., and
to file a declaration of service within two days after the Clerk
of Court enters the Judgment.

So ordered.
Dated:

June 3, 2024
Brooklyn, New York

_______________________________
Kiyo A. Matsumoto
United States District Judge
Eastern District of New York

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