Buffalo Laborers Welfare Fund et al v. H&M Plumbing and Mechanical Contracting, Inc.

Filing 11

DECISION AND ORDER GRANTING Plaintiffs' 9 Motion for Default Judgment; DIRECTING the Clerk of the Court to enter judgment in favor of Plaintiffs Buffalo Laborers Welfare Fund, Buffalo Laborers Pension Fund, Buffalo Laborers Training Fund, and Buffalo Laborers Security Fund, by Thomas L. Panek, in his fiduciary capacity as administrator, in the amount of $304,458.81; DIRECTING the Clerk of the Court to enter judgment in favor of Plaintiff Laborers' Local 210, Laborers Intern ational Union of North America in the amount of $15,470.87; DISMISSING without prejudice as abandoned Plaintiffs' fourth and fifth causes of action; DIRECTING the Clerk of the Court to close this case. Signed by William M. Skretny, Chief Judge on 4/13/2015. (MEAL) - CLERK TO FOLLOW UP -

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NEW YORK
BUFFALO LABORERS WELFARE FUND,
BUFFALO LABORERS PENSION FUND,
BUFFALO LABORERS TRAINING FUND and
BUFFALO LABORERS SECURITY FUND, by
THOMAS L. PANEK, in his fiduciary capacity
as ADMINISTRATOR, and LABORERS’
LOCAL 210, LABORERS INTERNATIONAL
UNION OF NORTH AMERICA,
Plaintiffs,
v.

DECISION AND ORDER
14-CV-960S

H&M PLUMBING AND MECHANICAL
CONTRACTING INC.,
Defendant.

I. INTRODUCTION
Plaintiffs commenced this action in November 2014 against Defendant H&M
Plumbing and Mechanical Contracting Inc. pursuant to sections 502(a)(3), 515, and
4301(a) of the Employee Retirement Income Security Act, as amended (“ERISA”), 29
U.S.C. §§ 1132(a)(3), 1145, and 1451; and Section 301 of the Labor-Management
Relations Act of 1947, 29 U.S.C. § 185. Defendant was served with the summons and
complaint on November 14, 2014, but failed to answer or otherwise appear in this action.
Following Plaintiffs’ request, the Clerk of the Court filed an entry of default against
Defendant on February 13, 2015. Presently before this Court is Plaintiffs’ motion for a
default judgment pursuant to Federal Rule of Civil Procedure 55(b)(2).
II. DISCUSSION
Before obtaining default judgment, a party must first secure a Clerk’s Entry of
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Default by demonstrating, by affidavit or otherwise, that the opposing party is in default.
See Fed. R. Civ. P. 55(a). Once a default has been entered, the allegations of the
complaint that establish the defendant’s liability are accepted as true, except for those
relating to the amount of damages. Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp.,
973 F.2d 155, 158 (2d Cir. 1992), cert denied, 506 U.S. 1080 (1993).
In considering whether to enter a default judgment, a court must determine whether
the facts alleged in the complaint are sufficient to state a claim for relief as to each cause
of action for which a plaintiff seeks default judgment. Further, where the damages sought
are not for a sum certain, the court must determine the propriety and amount of the default
judgment. See Fed. R. Civ. P. 55(b)(2). Damages must be established by proof, unless
the damages are liquidated or “susceptible of mathematical computation.” Flaks v. Koegel,
504 F.2d 702, 707 (2d Cir. 1974). All reasonable inferences from the evidence presented
are drawn in the moving party’s favor. See Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61,
65 (2d Cir. 1981).
Plaintiffs Buffalo Laborers Welfare Fund, Buffalo Laborers Pension Fund, Buffalo
Laborers Training Fund, and Buffalo Laborers Security Fund (“the Funds”) are jointly
administered, multi-employer, labor management trust funds established and maintained
pursuant to collective bargaining agreements. In Plaintiffs’ first and second causes of
action, the Funds seek to recover unpaid employee benefit contributions, as well as
interest, liquidated damages, and associated attorneys’ fees and costs associated with this
delinquency. (Compl ¶¶ 43-51 (first claim alleging breach of the governing CBA); ¶¶ 52-61
(second claim alternatively alleges Defendant is liable for the same under ERISA).) The
third cause of action alleges Defendant breached the CBA by failing to pay Plaintiff
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Laborers’ Local 210, Labors International of North America (“the Union”) union dues, New
York Laborers’ Political Action Committee (“NYLPAC”) contributions, and Construction
Industry Fund contributions due under that agreement. (Compl ¶¶ 62-66.)
Plaintiffs also asserted a fourth and fifth cause of action in their Complaint seeking
a declaratory judgment with respect to withdrawal liability and recovery of the Funds’ audit
costs. Plaintiffs’ motion for a default judgment, however, does not request the relief
associated with either of these causes of action. Plaintiffs’ fourth and fifth causes of action
are therefore deemed abandoned. See Am. Home Mortgage Corp. v. America's Choice
Mktg., Inc., No. 07-CV-384(JS)(AKT), 2008 WL 919598, *4 (E.D.N.Y. Mar. 20, 2008) (claim
for attorneys' fees included in complaint but omitted from proposed default judgment
deemed abandoned); Garden City Boxing Club, Inc. v. Conway, No. 06 Civ.
3145(BSJ)(HBP), 2009 WL 125434, *3 n. 3 (S.D.N.Y. Jan. 20, 2009).
After a review of the Complaint and attached exhibits, this Court finds that Plaintiffs
have stated sufficient allegations to establish Defendant’s liability with respect to the first
three causes of action. The Court has also reviewed the documentation in support of the
calculations for damages and reasonable attorneys’ fees, and finds that Plaintiffs are
entitled to the default judgment requested. The Fund Plaintiffs are therefore entitled to
$195,398.70 in delinquent fringe benefit contributions, $51,767.27 in interest, $51,767.27
in liquidated damages, and $5,525.57 in attorneys’ fees and costs as a result of the first
and second causes of action.

The Union is entitled to recover $9,326.94 in dues

checkoffs, $1,055.10 in NYLPAC contributions, and $2,110.20 in Construction Industry
Fund contributions, as well as $2,978.63 in interest, as a result of the third cause of action.

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III. ORDERS
IT HEREBY IS ORDERED, that Plaintiffs’ Motion for a Default Judgment (Docket
No. 9) is GRANTED;
FURTHER, that the Clerk of the Court is directed to enter judgment in favor of
Plaintiffs Buffalo Laborers Welfare Fund, Buffalo Laborers Pension Fund, Buffalo Laborers
Training Fund, and Buffalo Laborers Security Fund, by Thomas L. Panek, in his fiduciary
capacity as administrator, in the amount of $304,458.81;
FURTHER, that the Clerk of the Court is directed to enter judgment in favor of
Plaintiff Laborers’ Local 210, Laborers International Union of North America in the amount
of $15,470.87;
FURTHER, that Plaintiffs’ fourth and fifth causes of action are dismissed without
prejudice as abandoned;
FURTHER, that the Clerk of the Court is directed to close this case.
SO ORDERED.
Dated: April 13, 2015
Buffalo, New York
/s/William M. Skretny
WILLIAM M. SKRETNY
Senior United States District Judge

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