Iron Workers Local 12 Pension Fund et al v. Tap Steel, Inc. et al

Filing 27

SUMMARY ORDER - That plaintiffs' motion to lift the stay (Dkt. No. 26) is GRANTED. That plaintiffs' motion for default judgment (Dkt. No. 20) is GRANTED. That judgment is entered against Tap Steel, Inc. in the amount of $576,747.92 p lus post-judgment interest pursuant to 28 U.S.C. § 1961(a). That judgment is entered against Timothy A. Paluck, in the amount of $315,804.12 plus post-judgment interest pursuant to 28 U.S.C. § 1961(a). That plaintiffs may submit, wit hin thirty (30) days, a supplemental affidavit of attorneys' fees and costs incurred subsequent to June 16, 2015. That plaintiffs' motion for reconsideration (Dkt. No. 24) is DENIED. Signed by Senior Judge Gary L. Sharpe on 9/8/2016. (jel, )

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
_________________________________
IRON WORKERS LOCAL 12
PENSION FUND et al.,
Plaintiffs,

1:14-cv-913
(GLS/CFH)

v.
TAP STEEL, INC. et al.,
Defendants.
_________________________________
SUMMARY ORDER
Following a September 24, 2014 entry of default against defendants
Tap Steel, Inc. and Timothy A. Paluck, (Dkt. No. 8), plaintiffs1 moved for
default judgment, alleging entitlement to $576,747.92 in fringe benefit

1

Iron Workers Local 12 Pension Fund, by William H. Eggleston, III and Henry Digeser,
Trustees; Iron Workers Local 12 Health Insurance Fund, by Eggleston and Digeser, Trustees;
Iron Workers Local 12 Joint Training and Education Fund, by Eggleston and Digeser,
Trustees; Iron Workers Local Union No. 12 and Employers Cooperative Trust, by Eggleston
and Digeser, Trustees; Iron Workers Local Union No. 12, by Eggleston, Business Manager;
Iron Workers District Council of Western New York and Vicinity Welfare Fund, by Suzanne
Ranelli, Administrative Manager; Iron Workers District Council of Western New York and
Vicinity Pension Fund, by Ranelli, Administrative Manager; Iron Workers District Council of
Western New York and Vicinity Annuity Fund, by Ranelli, Administrative Manager; Upstate
Ironworker Employers’ Association, Inc., by John Gorczynski, President; Upstate New York
District Council of Iron Workers Employers Cooperative Trust, by George Merkling and John
Linehan, Jr., Trustees; Iron Workers Local Union No. 33/440 Supplemental Benefit Fund, by
Gerry Geartz and Linehan, Trustees; Iron Workers Local No. 33 Joint Apprenticeship
Committee Apprentice Training Fund, by Geartz and Linehan, Trustees; International
Association of Bridge, Structural and Ornamental Iron Workers Local Union No. 440 Joint
Apprenticeship Training Fund, by Thomas Thomas and Gorczynski, Trustees; Iron Workers
Local Union No. 33, by Linehan, Business Manager; and Iron Workers Local Union No. 440,
by Thomas, Business Manager.

contributions, dues deductions, interest, liquidated damages, plus audit
fees, and attorneys’ fees and costs against Tap Steel, and $315,804.12 in
such damages against Paluck, (Dkt. No. 20; Dkt. No. 20, Attach. 1 at 1,
15).2
“While a party’s default is deemed to constitute a concession of all
well pleaded allegations of liability, it is not considered an admission of
damages.” Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973
F.2d 155, 158 (2d Cir. 1992). In determining the propriety of damage
claims, however, a hearing is not required where the court is able to “rely
on detailed affidavits or documentary evidence . . . to evaluate the
proposed sum.” Fustok v. ContiCommodity Servs., Inc., 873 F.2d 38, 40
(2d Cir. 1989). Upon a review of the plaintiffs’ detailed submissions and
calculations, the court finds that their claims for unpaid contributions,
interest, liquidated damages, attorneys’ fees, and costs are supported.
(See generally Dkt. No. 20, Attachs. 2-12.)

2

After plaintiffs filed their motion for default judgment, they requested the court stay the
action as to Paluck due to his filing of a Bankruptcy petition under Chapter 13 of the
Bankruptcy Code and enter judgment as to Tap Steel alone. (Dkt. No. 22.) In a Text-Only
Order, the court stayed the action in its entirety. (Dkt. No. 23.) Thereafter, plaintiffs filed a
motion for reconsideration. (Dkt. No. 24.) On December 16, 2015, plaintiffs filed a letter
motion requesting the court lift the stay in its entirety, as Paluck’s bankruptcy proceeding has
been dismissed. (Dkt. No. 26.) Accordingly, plaintiffs’ motion to lift the stay is granted, and
the motion for reconsideration is denied as moot.

2

While the presumption in ERISA cases is “that the individual officers
and shareholders are separate entities from the corporation,” Goldberg v.
Colonial Metal Spinning and Stamping Co., No. 92 Civ 3721, 1993 WL
361672, at *4 (S.D.N.Y. Sept. 14, 1993), individual liability is appropriate
where, by commingling plan assets with general corporation assets and
electing to pay creditors rather than the funds, an officer attains fiduciary
status, see LoPresti v. Terwilliger, 126 F.3d 34, 40 (2d Cir. 1997).
Accepting plaintiffs’ uncontested factual assertions as admitted, Paluck
“owned, controlled, and dominated the affairs of” Tap Steel, and
“commingled, or permitted the commingling of” corporation and fund assets
“to pay . . . creditors.” (Compl., Dkt. No. 1 ¶¶ 76-79.) Accordingly, the
court grants the requested default judgment against defendants Tap Steel,
Inc. and Paluck and awards the plaintiffs damages plus post-judgment
interest pursuant to 28 U.S.C. § 1961(a). Finally, the court grants plaintiffs’
request to file a supplemental affidavit of attorneys’ fees and costs incurred
subsequent to June 16, 2015. (Dkt. No. 20 at 2.)
ACCORDINGLY, it is hereby
ORDERED that plaintiffs’ motion to lift the stay (Dkt. No. 26) is
GRANTED; and it is further
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ORDERED that plaintiffs’ motion for default judgment (Dkt. No. 20) is
GRANTED; and it is further
ORDERED that the clerk is directed to enter judgment against Tap
Steel, Inc, in the amount of $576,747.92 plus post-judgment interest
pursuant to 28 U.S.C. § 1961(a); and it is further
ORDERED that the clerk is directed to enter judgment against
Timothy A. Paluck, in the amount of $315,804.12 plus post-judgment
interest pursuant to 28 U.S.C. § 1961(a); and it is further
ORDERED that plaintiffs may submit, within thirty (30) days, a
supplemental affidavit of attorneys’ fees and costs incurred subsequent to
June 16, 2015; and it is further
ORDERED that plaintiffs’ motion for reconsideration (DKt. No. 24) is
DENIED; and it is further
ORDERED that plaintiffs shall serve this Order upon defendants in
accordance with the Local Rules of Practice and the Federal Rules of Civil
Procedure; and it is further
ORDERED that the Clerk provide a copy of this Order to the parties.

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IT IS SO ORDERED.
September 8, 2016
Albany, New York

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