Trustees of the Leather Goods, Plastics, Handbags & Novelty Workers Union Local 1 Joint Retirement Fund v. Key Handling Systems Inc. et al

Filing 10

MEMORANDUM & ORDER ADOPTING REPORT AND RECOMMENDATION; Judge Lindsay's R&R (Docket Entry 9) is ADOPTED in its entirety. The Clerk of the Court is directed to enter judgment in favor of Plaintiffs and against defendant Key Handling. Plaintiffs a re awarded damages against Key Handling as set forth herein. In addition, the Complaint is DISMISSED against the unidentified XYZ defendants. Plaintiff is directed to serve a copy of this Memorandum & Order on Key Handling and file proof of service. The Clerk of the Court is further directed to mark this matter CLOSED. So Ordered by Judge Joanna Seybert on 9/23/2015. C/ECF (Valle, Christine)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
---------------------------------------X
TRUSTEES OF THE LEATHER GOODS,
PLASTICS, HANDBAGS & NOVELTY
WORKERS UNION LOCAL 1 JOINT
RETIREMENT FUND,
Plaintiffs,
-against-

MEMORANDUM & ORDER
14-CV-2675(JS)(ARL)

KEY HANDLING SYSTEMS INC. and
XYZ CORPORATIONS 1-10,
Defendant.
---------------------------------------X
APPEARANCES
For Plaintiffs:
Anthony S. Cacace, Esq.
Proskauer Rose LLP
11 Times Square
New York, NY 10036
For Defendants:

No appearances.

SEYBERT, District Judge:
Pending before the Court is Magistrate Judge Arlene R.
Lindsay’s Report and Recommendation (“R&R”), recommending that
this Court grant plaintiffs’ motion for a default judgment and
award damages, and grant certain other relief.

(Docket Entry 9.)

For the following reasons, the Court ADOPTS Judge Lindsay’s R&R in
its entirety.
BACKGROUND
This action was commenced on April 29, 2014 by plaintiffs
Trustees of the Leather Goods, Plastics, Handbags & Novelty Workers
Union Local 1 Joint Retirement Fund, (collectively, “Plaintiffs”)

against defendants KEY HANDLING SYSTEMS INC. (“Key Handling”) and
XYZ Corporations 1-10 (together with Key Handling “Defendants”).
Plaintiffs seek to recover withdrawal liability and attendant
damages owed by Key Handling pursuant to the Employees Retirement
Income

Security

Act

of

1974

(“ERISA”),

as

amended

by

the

Multiemployer Pension Plan Amendments Act of 1980, 29 U.S.C.
§ 1381, et seq. (“MPPAA”).
On November 21, 2014, Plaintiffs moved for a default
judgment. (Docket Entry 7.) On November 26, 2014, the undersigned
referred Plaintiffs’ motion to Magistrate Judge Lindsay for an R&R
on whether the motion should be granted.

(Docket Entry 8.)

On June 5, 2015, Judge Lindsay issued her R&R.
Entry 9.)

(Docket

The R&R recommends that the Court: (1) dismiss the

Complaint against the unidentified XYZ defendants, (2) grant a
default judgment in favor of Plaintiffs against Key Handling, and
(3)

award

Plaintiffs

$107,107.00

in

withdrawal

liability;

$8,945.88 in interest through November 21, 2014, plus additional
interest at a daily rate of $17.61 per day from that date through
the date judgment is entered; $21,421.40 in liquidated damages;
$6,228.75 in attorneys’ fees, and costs in the amount of $600.00.
(R&R at 1.)
DISCUSSION
In reviewing an R&R, a district court “may accept,
reject,

or

modify,

in

whole

or
2

in

part,

the

findings

and

recommendations made by the magistrate judge.”
(1)(C).

28 U.S.C. § 636(b)

If no timely objections have been made, the “court need

only satisfy itself that there is no clear error on the face of
the record.”

Urena v. New York, 160 F. Supp. 2d 606, 609-10

(S.D.N.Y. 2001) (internal quotation marks and citation omitted).
Objections were due within fourteen days of service of
the R&R.

The time for filing objections has expired, and no party

has objected.

Accordingly, all objections are hereby deemed to

have been waived.
Upon careful review and consideration, the Court finds
Judge Lindsay’s R&R to be comprehensive, well-reasoned, and free
of clear error, and it ADOPTS the R&R in its entirety.
CONCLUSION
Judge Lindsay’s R&R (Docket Entry 9) is ADOPTED in its
entirety.

The Clerk of the Court is directed to enter judgment in

favor of Plaintiffs and against defendant Key Handling. Plaintiffs
are awarded damages against Key Handling as follows:
$107,107.00 in damages based on Key Handling’s
withdrawal liability;
$8,945.88 in interest through November 21, 2014,
plus additional interest at a daily rate of $17.61
per day from that date through the date judgment is
entered;
$21,421.40 in liquidated damages;
$6,228.75 in attorneys’ fees; and

3

costs in the amount of $600.00.
In addition, the Complaint is DISMISSED against the
unidentified XYZ defendants.

Plaintiff is directed to serve a

copy of this Memorandum & Order on Key Handling and file proof of
service.

The Clerk of the Court is further directed to mark this

matter CLOSED.

SO ORDERED.
/s/ JOANNA SEYBERT______
Joanna Seybert, U.S.D.J.
Dated:

September
23 , 2015
Central Islip, New York

4