Trustees of Laborers Union Local No. 1298 of Nassau and Suffolk Counties Benefit Funds v. Tiki Industries Inc.

Filing 13

DEFAULT JUDGMENT in favor of Trustees of Laborers Union Local No. 1298 of Nassau and Suffolk Counties Benefit Funds against Tiki Industries Inc. ORDERED, ADJUDGED AND DECREED: That the Plaintiffs have judgment against the Defendant, TIKI INDUSTRIES, INC., in the liquidated amount of $709,134.98 which includes the benefit fund contributions in the principal amount of $588,822.90; interest calculated at ten percent (10%) amounting to $58,882.29; liquidated damages calculated at 10% of the principal amounting to $58,882.29; costs totaling $607.50; and reasonable attorney fees in the amount of $2,000.00. ORDERED, that the Judgment rendered by the Court on this day in favor of the Plaintiffs, be entered as a final judgment against Defendant, TIKI INDUSTRIES INC., and the Clerk of the Court is directed to enter such judgment forthwith. So Ordered by Judge Joan M. Azrack on 1/7/2022. (Coleman, Laurie)

Case 2:19-cv-06643-JMA-SIL Document 13 Filed 01/07/22 Page 1 of 4 PageID #: 169

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

For Online Publication Only

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TRUSTEES LABORERS LOCAL UNION NO.
1298 OF NASSAU & SUFFOLK COUNTIES,
BENEFIT FUNDS

Docket No. 19-CV-6643

Plaintiffs,

DEFAULT JUDGMENT
-againstTIKI INDUSTRIES INC.
Defendant,

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FILED 
CLERK 

2:05 pm, Jan 07, 2022

U.S. DISTRICT COURT 
EASTERN DISTRICT OF NEW YORK 
LONG ISLAND OFFICE 

Having reviewed all of the moving papers, I hereby find as follows:
This action having been commenced on November 25, 2019, by filing of the Summons and
Complaint, and a copy of the Summons and Complaint having been served on the Defendant, TIKI
INDUSTRIES INC., on December 16, 2019, and proof of service having been filed on January 2,
2020, and the Defendant TIKI INDUSTRIES, INC., not having appeared, answered or otherwise
moved with respect to the Complaint, and the time for appearing, answering or otherwise moving
having expired.

Service of Process and Default
The record reflects that proper service was made on defendant. Docket Entry ("DE") 2,.
According to the record, no answer, motion or other appearance was filed on behalf of
defendant.
The Clerk has properly entered notation of default pursuant to Fed. R. Civ. P. 55(a).

Case 2:19-cv-06643-JMA-SIL Document 13 Filed 01/07/22 Page 2 of 4 PageID #: 170

Liability

Defendant's default constitutes "an admission of all well-pleaded allegations against the
defaulting party." Vermont Teddy Bear Co. v. 1-800 BEARGRAM Co., 373 F.3d 241,244 (2d
Cir.2004).

Nevertheless, the Court is "required to determine whether the [plaintiffs']

allegations establish [defendant]'s liability as a matter oflaw." Finkel v. Romanowicz, 577 F.3d
79, 85 (2d Cir. 2009).

Based upon examination of the complaint and motion papers, I find that

plaintiffs have demonstrated that the uncontroverted allegations, without more, establish the
defendant's liability on the following cause(s) of action 1:
On the First and Third Causes of Action:

(a) In the sum of$588,822.90 for the period May 1, 2017, through October 4, 2020,
plus interest calculated at ten percent (10%) of the unpaid principal amount due,
and liquidated damages calculated at ten percent (10%) of the unpaid principal
amount due based on the Collective Bargaining Agreement between the
Plaintiff and Defendant.
(b) Attorneys' fees, statutory damages, court costs, audit fees and disbursements
incurred as set forth by the Policy for the Collection of Delinquent
Contributions, in the Collective Bargaining Agreement, and as mandated by
Section 502(g)(D) of BRISA, 29 U.S.C. Section 1132(g)(2)(D).
On the Second Cause of Action:

(a) In the sum of$588,822.90 for the period May 1, 2017, through October 4, 2020,
plus interest calculated at ten percent ( 10%) of the unpaid principal an10unt due,
and liquidated damages calculated at ten percent (10%) of the unpaid principal
amount due based Section 502 of BRISA (29 U.S.C. Section 1132) which
provides that, upon an Employer violation of Section 515 ofERISA (29 U.S.C.
1145), which requires employers to pay fringe benefit contributions in
accordance with collective bargaining agreements and trust indentures, a court
must award payment to a fund of the unpaid fringe benefit contributions, plus
statutory damages and interest on the unpaid principal, both computed at a rate
set forth in the United States Internal Revenue Code (26 U.S.C. Section 6621),

1 The

Plaintiffs are not seeking relief for the Fourth Causes of Action in the Complaint which are for an injunction.

Case 2:19-cv-06643-JMA-SIL Document 13 Filed 01/07/22 Page 3 of 4 PageID #: 171

together with reasonable accountant fees, attorney fees, audit fees, and costs
and disbursements.
(b) Attorneys' fees, statutory damages, court costs, audit fees and disbursements
incurred as set forth by the Policy for the Collection of Delinquent
Contributions, in the Collective Bargaining Agreement, and as mandated by
Section 502(g)(D) ofERISA, 29 U.S.C. Section 1132(g)(2)(D).
DE_L

Damages
Based upon a review of affidavits and other documentary evidence, see Transatl. Marine
Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105, 111 (2d Cir. 1997) (holding a court
may rely upon affidavits and documents in calculating damages upon default), I find that the
plaintiff has established damages in the following amounts:
Principal Damages, DE 1 and DE 9

$588,822.90

Basis:
An audit as attached to the Affidavit of James Cornell.
Pre-judgment interest: not applicable

DE not applicable

Attorneys' Fees

$2,000.002

Provider
Type

Presumptive
Maximum
Rate

Rate
Sought

Paralegal

$110

NIA

Associate
Attorney

$100-295 3

$200

Partner

$200-375

N?A

Hours
Requested

Documented
in

Fees

DE - 10

DE.1Q_

$2,000.00

DE - -

Millea v. Metro-North R.R. Co., 658 F.3d 154, 166 (2d Cir. 2011) (the lodestar creates the
"presumptivelyreasonable fee").
2

3

Gesualdi v. Seacoast Petroleum Prods., Inc., 97 F. Supp. 3d 87, 105-06 (E.D.N.Y. 2015).

Case 2:19-cv-06643-JMA-SIL Document 13 Filed 01/07/22 Page 4 of 4 PageID #: 172

$ 607.504

Costs, DE 10 and DE 12
1. Filing Fee:

$400

2. Process Server Fee:

$207.50

3. Other: none
TOTAL

$607.50

Conclusion
For the foregoing reasons, plaintiffs' motion is granted, and plaintiffs are awarded
damages in a manner consistent with this opinion.

ORDERED, ADJUDGED AND DECREED: That the Plaintiffs have judgment against
the Defendant, TIKI INDUSTRIES, INC., in the liquidated amount of $709,134.98 which
includes the benefit fund contributions in the principal amount of $588,822.90; interest
calculated at ten percent (10%) amounting to $58,882.29; liquidated damages calculated at
10% of the principal amounting to $58,882.29; costs totaling $607.50; and reasonable attorney
fees in the amount of $2,000.00.
ORDERED, that the Judgment rendered by the Court on this day in favor of the
Plaintiffs, be entered as a final judgment against Defendant, TIKI INDUSTRIES INC., and the
Clerk of the Court is directed to enter such judgment forthwith
SO ORDERED.
/s/ JMA
Hon. Joan M. Azrack, United States District Judge
4

1/7/2022
Date
Central Islip, New York

A/land v. Consumers Credit Corp., 476 F.2d 951 (2d Cir. 1973) ("costs" generally include such expenses as
filingfees).