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Laborers' Pension Fund v. Chicago Home Cleaning, Inc., 16 C 5906. (2019)

Court: District Court, N.D. Illinois Number: infdco20190207f92 Visitors: 12
Filed: Feb. 07, 2019
Latest Update: Feb. 07, 2019
Summary: PLAINTIFFS' MOTION FOR ENTRY OF JUDGMENT HARRY D. LEINENWEBER , District Judge . Plaintiffs, Laborers' Pension Fund and Welfare Fund of the Health and Welfare Fund of the Health and Welfare Department of the Construction and General Laborers' District Council of Chicago and Vicinity (collectively the "Funds"), by their attorneys, state: 1. On June 6, 2016, Plaintiffs filed a complaint under Section 301(a), Labor Management Relations Act, 29 U.S.C. 185(a), as amended, and Section 502(a)(3
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PLAINTIFFS' MOTION FOR ENTRY OF JUDGMENT

Plaintiffs, Laborers' Pension Fund and Welfare Fund of the Health and Welfare Fund of the Health and Welfare Department of the Construction and General Laborers' District Council of Chicago and Vicinity (collectively the "Funds"), by their attorneys, state:

1. On June 6, 2016, Plaintiffs filed a complaint under Section 301(a), Labor Management Relations Act, 29 U.S.C. §185(a), as amended, and Section 502(a)(3) of the Employee Retirement Income Security Act, 29 U.S.C. §1132(a)(3), as amended, alleging that at all material times Defendant Chicago Home Cleaning, Inc. (the "Company") was bound by a collective bargaining agreement to make contributions to the Funds, to submit to an audit upon demand and to obtain and maintain a surety bond. In the Complaint, Plaintiffs specifically allegeD that Defendant failed to report and pay required contributions. Plaintiffs requested relief including submitting required reports and contributions, and producing books and records for an audit upon plaintiffs' request. (Dckt. #1.)

2. Service of the Complaint was effected as of June 20, 2016. (Dckt. #4.)

3. More than twenty days passed following service of the Summons Complaint, and on August 18, 2016 the Court granted Plaintiffs' motion for an order of default, and directing the Company to submit to a complete payroll audit. (Dckt. ## 9, 10.)

4. Thereafter, inter alia, based on the Company's failure to timely comply with the Court's August 18, 2016 Order, orders to show cause were issued on November 5 and December 15, 2016 and May 25, 2017 (Dckt. ##14, 16, 17, 21); and orders for body attachments were issued on June 29, 2017 (Dckt. #22); August 29, 2017 (Dckt. ##26, 27); April 23, 2018 (Dckt. ##33, 34); and October 3, 2018 (Dckt. # 27).

5 Ultimately, the Company provided books and records to the Funds' auditors. As set forth in the Affidavit of the Funds' Field Representative, Michael Christopher, submitted contemporaneously herewith (Exhibit 1 hereto), the Fund's auditors from Legacy Professionals examined the books and records of the Company and prepared an audit report for the period from October 1, 2014 through September 30, 2018, showing that principal contributions are owed to the Welfare, Retiree Welfare, Pension, Training, LECET, LMCC, CAICA Funds and for Union dues in the total amount of $15,954.37.

5. The respective Agreements and Declarations of Trust of the Laborers Funds, to which this Company is bound require payment of liquidated damages in the amount of 20 percent of the principal for the Welfare, Retiree Welfare Pension and Training Funds and ten percent for Union dues and for the LMCC, CAICA and LECET Funds. Interest is owed at the rate of 12% on all delinquent amounts owed from the date of the delinquency forward. With respect to the audit report prepared (adding the Funds at the rate of 20% and the Union/ancillary funds at 10% penalty), liquidated damages are owed in the amount of $3,092.59, as well as $1,520.70 in accumulated liquidated damages, and $7,638.43 in accumulated interest.(Affidavit of Michael Christopher.)

6. Audit fees charged to the Funds for the preparation of this report were $1,394.70. (Affidavit of Michael Christopher.)

7. Reasonable attorneys' fees and costs are established by an affidavit of Wesley Kennedy, plaintiffs' counsel. This affidavit reflects that based on hourly records the amount of $13,169.50 is owed to the Funds' for counsel's attorney's fees, and $1,350.90 to reimburse court costs, consisting of filing fees, service fees, and fees for body attachments. (Affidavit of Wesley Kennedy). Attorneys' fees are owed pursuant to ERISA, 29 U.S.C. § 1132(g)(2), and pursuant to the terms of the collective bargaining agreements and Trust Agreements.

8. The Company remains in default.1

WHEREFORE, Plaintiffs move for the entry of judgment against the Company, based on the proposed judgment order submitted herewith, in the total amount of $42,693.49.

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LABORERS' PENSION FUND, et al., Plaintiffs, No. 16 C 5906 v. Judge Leinenweber CHICAGO HOME CLEANING, INC., Defendant.

AFFIDAVIT OF MICHAEL CHRISTOPHER

STATE OF ILLINOIS COUNTY OF COOK

Michael Christopher, being first duly sworn on oath, deposes and states as follows:

1. I am A Field Representative employed by the Laborers' Pension Fund and Laborers' Welfare Fund of the Health and Welfare Department of the Construction and General Laborers' District Council of Chicago and Vicinity (the `'Funds''), Plaintiffs in the above referenced action. My responsibilities include oversight of the collection of amounts owed by Chicago Home Cleaning, Inc. (the "Company"). This affidavit is submitted in support of the Funds' motion for entry of judgment.

2. The Company has been a signatory employer since February 14, 2014, as reflected by the Funds' records and as shown by the collective bargaining agreement between the Company and the Construction and General Laborers' District Council of Chicago and Vicinity and its affiliated local ("Union"), on tile with the Funds and a time and correct copy of which is attached to the Complaint as Exhibit A.

3. I am aware that the Company submitted its books and records to the Funds' designated auditors from the firm of Legacy Professionals, ("Legacy") who prepared an audit a report dated December 17, 2018, reflecting unpaid contributions owed for the period from October 1, 2014 through September 30, 2018. I reviewed the report which shows that principal contributions are owed to the Welfare, Retiree Welfare, Pension, Training, LECET, LMCC, CAICA Funds and for Union dues in the total amount of $15,954.37. A true and correct copy of the audit report is attached hereto as Exhibit A.

4. The respective Agreements and Declarations of Trust of the Laborers Funds, to which the Company is bound require payment of penalties or liquidated damages in the amount of 20 percent of the principal for the Welfare, Retiree Welfare, Pension and Training Funds and ten percent for the LMCC, CAICA, and LECET and for Union dues. Interest is owed at the rate of 12% on all delinquent amounts owed from the date of the delinquency forward. It is my responsibility to prepare the damage and interest calculation for audit reports. With respect to the report prepared by Legacy liquidated damages are owed for Welfare, Retiree Welfare, Pension and Training Funds in the amount of $3,092.59, as well as $1,520.70 in accumulated liquidated damages, and $7,638.43 in accumulated interest.

5. Audit fees paid by the Funds in connection with this matter are $1,394.70.

FURTHER AFFIANT SAYETH NOT.

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LABORERS' PENSION FUND, et al., Plaintiffs, No. 16 C 5906 v. Judge Leinenweber CHICAGO HOME CLEANING, INC., Defendant.

AFFIDAVIT OF MICHAEL CHRISTOPHER

STATE OF ILLINOIS COUNTY OF COOK

I, Wesley Kennedy, declare under oath and under the penalty of perjury the following:

1. I am an attorney and a shareholder at the law firm of Allison, Slutsky & Kennedy, P.C., counsel for Plaintiffs. This affidavit is submitted to document attorneys' fees and costs incurred by the Plaintiffs for work performed in connection with the above captioned lawsuit filed under Section 502(a)(3) of the Employee Retirement Income Security Act, 29 U.S.C. § 1132(a)(3), as amended, covering the period from June 1, 2016 through the present.

2. For all attorney time from June 1, 2016 through August 31, 2018, services were rendered to the Funds at the rate of $225.00 per hour for shareholders, $195.00 per hour for associates, and $110.00 per hour for clerks/paralegals. From September 1, 2018 forward, services were rendered to the Funds at the rate of $265.00 per hour for shareholders, $220.000 per hour for associates, and $110.00 per hour for clerks/paralegals. In this cause, records for legal work on this matter were kept contemporaneously and are attached hereto as Exhibit 1.

3. Exhibit 1 hereto sets forth the time expended from June 1, 2016 through February 7, 2019, by the firm's attorneys and paralegals in this matter. As set forth in that Exhibit, the Laborers' Funds have incurred legal fees to my firm in this matter in the amount of $13,169.50.

4. In addition, the Plaintiffs have incurred the following costs in the prosecution of this matter totaling $1,350.90, which include the filing fee in the amount of $400.00 service fees totaling $376.00, and the cost of body attachments and bench currents totaling $574.90.

5. A total of $14,520.40 is owed to the Funds for attorneys' fees and costs.

FURTHER AFFIANT SAYETH NOT.

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LABORERS' PENSION FUND, et al., Plaintiffs, No. 16 C 5906 v. Judge Leinenweber CHICAGO HOME CLEANING, INC., Defendant.

ORDER

This cause coming before the Court on the Plaintiffs' Motion for Entry of Judgment, due notice having been given to the Defendant, and the Court having found that the Defendant has been properly served with summons and complaint, and having been found in default;

IT IS HEREBY ORDERED:

Judgment is entered on behalf of the Laborers' Pension and Welfare Funds and against Defendant Chicago Home Cleaning, Inc., in the total amount of $ ________, which consists of:

Principal contributions $ 15,954.37 Liquidated damages $ 3,092.59 Accumulated post liquidated damages $ 1,520.70 Interest $ 7,638.43 Audit costs $ 1,394.70 Attorneys' fees and costs $ 14,250.40 TOTAL AMOUNT $ 42,693.49

FootNotes


1. Demand has been made based on the auditors' report at the reported address for the Company's principal and registered agent. That demand was returned as undeliverable. The present Motion has been served by mail directed to the same address. Entry of judgment is appropriate in light of that long-standing default.
Source:  Leagle

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