PLAINTIFFS' MOTION FOR DEFAULT AND PROVE UP OF DAMAGES
JORGE L. ALONSO, 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 December 8, 2017, 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 First Corinthians 3:10 Custom Builders and Cement Works, Inc. ("First Corinthians"), was bound by a collective bargaining agreement to make contributions to Plaintiffs' Funds, to submit to an audit upon demand and to obtain and maintain a surety bond. In this Complaint, Plaintiffs specifically allege that Defendant failed to submit to an audit for the period from August 29, 2017 to the present. Plaintiffs requested relief include producing books and records for an audit upon plaintiffs' request, and to hold the Company liable for all amounts owed to date.
2. Plaintiffs special process server, M. Andre Smith, served Registered Agent for First Corinthians 3:10 Custom Builders and Cement Works, Inc. ("First Corinthians") at the office of the registered agent on December 14, 2017. See Exhibit 1, attached hereto.
3. More than twenty days have passed since the service of the summons and the complaint, and the Defendant has failed to plead or otherwise defend as required by the Federal Rules of Civil Procedure. Copy of this motion will be sent to the Company President, Jesse Young, at 5313 Brentgrass Avenue, Richton Park, Illinois 60471 and the Company's Registered Agent.
4. According to the Funds' Director of Financial Operations, Ryan Lacey, Richard J. Wolf and Company, Inc., examined the books and records of First Corinthians and prepared an audit report covering the period August 29, 2017 through January 31, 2018. The report reflects principal contributions owed to the Welfare, Retiree Welfare, Pension, and Training, LECET, LMCC, and CAICA Funds, and the Union for dues in the total amount of $76,101.43. A true and correct copy of the audit report is attached hereto. (Exhibit 2, Affidavit of R. Lacey and audit report).
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) the total amount of liquidated damages is $14,954.00. (Affidavit of Lacey adding $14,688.21 plus $266.04, Exhibit 2).
6. Interest has been determined for unpaid Funds' contributions in the amount of $4,704.93, for amounts owed through June 19, 2018. (Affidavit of Ryan Lacey, ¶5, Exhibit 2).
7. Audit fees charged to the Funds for the preparation of this report were $630.00. (Affidavit of Ryan Lacey, ¶6, Exhibit 2).
8. According to the collective bargaining agreement, Article IX, paragraph 1 all employers are required to procure, carry and maintain a surety bond in an amount that is satisfactory to the Union. This bond must be in excess of $5,000.00 to guarantee the payment of wages, Pension and Welfare Trust Contributions during the term of the Agreement. The Company entered into a payment plan for a cash bond which is attached hereto as Exhibit 4 and is attached to the Complaint as Exhibit B, dk# 1-2. It provides for payment of $5,000.00, by $250.00, per month payments, monthly. No payments have been received nor has a surety bond been posted. (Affidavit of Ryan Lacey, Exhibit 2, and Exhibit 4).
9. Reasonable attorneys' fees and costs are established by an affidavit of Karen I. Engelhardt, plaintiffs' counsel. This affidavit reflects that based on hourly records the amount of $3,595.00 is owed to the Funds' for counsel's attorney's fees which includes the amount of $400.00 to reimburse its costs, consisting of filing fees. (Exhibit 3, Affidavit of Karen I. Engelhardt). 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.
WHEREFORE, Plaintiffs drafted a proposed judgment order for a total judgment against the Company in the amount of $104,985.00.
Exhibit 1
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
SUMMONS IN A CIVIL CASE
Laborer& Welfare Funds et al.
CASE NUMBER: 17-CV-8861
V. ASSIGNED JUDGE;
Judge Alonso
First Corinthians 3:10 Custom Builders and DESIGNATED
Cement Works, Inc. MAGISTRATE JUDGE: Judge Valdez
TO: (Name and address of Defendant)
First Corinthians 3:10 Custom Builders and Cement Works, Inc.
Registered Agent
Ronald Rosenblum
111 W. Washington Street, Suite 1863
Chicago, IL 60602
YOU ARE HCREBY SUMMONED and required to serve upon PLAINTIFF'S ATTORNEY (name and address)
Karen Engelhardt
Allison, Slutsky & Kennedy, P.C.
230 W. Monroe Street, Suite 2600
Chicago, Illinois 60606
an answer to the complaint which is herewith served upon you, 21 days after service of this summons upon you, exclusive of the day of service. If you fail to do so, judgment by default will be taken against you for the relief demanded in the complaint. You must also file your answer with the Clerk of this Court within a reasonable period of time after service.
THOMAS G. BRUTON, CLERK December 13, 20
________________________ ________________
(By) DEPUTY CLERK DATE
Exhibit 2
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
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, CATHERINE )
WENSKUS, )
Plaintiffs, )
) No. 17 C 8861
)
v. ) Judge Alonso
)
FIRST CORINTHIANS 3:10 CUSTOM )
BUILDERS and CEMENT WORKS, INC.,)
)
Defendant. )
AFFIDAVIT OF RYAN LACEY
STATE OF ILLINOIS )
)
COUNTY OF COOK )
Ryan Lacey, first duly sworn on oath, deposes and states as follows:
1. I am Director of Financial Operations 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 "Laborers' Funds"), the Plaintiffs in the above referenced action. My responsibilities include oversight of the collection of amounts owed by First Corinthians 3:10 Custom Builders and Cement Works, Inc. This affidavit is submitted in support of the Laborers' Funds' motion for a prove up of damages.
2. First Corinthians 3:10 Custom Builders and Cement Works, Inc., has been a signatory employer since August 29, 2017, as reflected by the Funds' records and as shown by the collective bargaining agreement which is a true and correct copy of the agreement between the Company and the Construction and General Laborers' District Council of Chicago and Vicinity and its affiliated local ("Union"), on file with the Funds and 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 Richard J. Wolf and Company, Inc., who prepared an audit a report dated June 19, 2018, reflecting unpaid contributions owed for the period from August 29, 2018 through January 31, 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 $76, 101.43. A true and correct copy of the audit report is attached to this motion as Exhibit A.
4, The respective Agreements and Declarations of Trust of the Laborers Funds, to which First Corinthians 3:10 Custom Builders, and Cement Works, Inc., 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 the Wolf firm liquidated damages are owed for Welfare, Retiree Welfare, Pension and Training Funds in the amount of $14, 688.21, and $266.04 for the Union dues and smaller Funds,
5. Interest has been determined for unpaid Funds' contributions in the amount of $4,704.93, through June 19, 2018.
6. Audit fees paid by the Funds in connection with this matter are $630.00.
7. This Company does not have a surety bond on file with the Funds.
FURTHER AFFIANT SAYETH NOT.
______________________
Ryan lacey
Subscribed and sworn to before me
this 1 day of June 2018.
RICHARD J. WOLF AND COMPANY, INC.
Post Office Box 591
Palos Park, Illinois 60464
(708) 923-0909
Fax (708) 923-0910
36
June 19, 2018
Board of Trustees
Pension and Welfare Funds of Construction and General
Laborers' District Council of Chicago and Vicinity
11465 Cermak Road
Westchester, Illinois 60154
RE: First Corinthians 3:10 Custom Builders (35668) - revision
We have applied certain procedures, as discussed below, to the payroll records of First Corinthians 3:10 Custom Builders, a contributing employer to the Pension and Welfare Funds of Construction and General Laborers' District Council of Chicago and Vicinity, for the period August 29, 2017 to January 31, 2018. The purpose of our inspection was to determine the accuracy of the employer's monthly contributions to the Trust Funds for the given period. The accuracy of the payroll records and reporting to the Funds is the responsibility of the [Employer].
The exceptions to employer contributions noted are detailed on the accompanying schedule. This was not a review of amounts owed for withdrawal liability under the Multi-employer Pension Plan Amendments Act.
FUND AMOUNT
WELFARE $ 27,136.04
RET WEL $ 12,030.77
PENSION $ 32,937.52
TRAINING $ 1,336.77
LECET $ 187.16
LMCC $ 454.49
CAICA $ 213.88
DUES $ 1804.80
TOTAL $ 76,101.43
The employer could not provide proof of a current wage and fringe benefit bond.
The Scope of this engagement was limited to records made available by the employer and would not necessarily disclose all exceptions in employer contributions to the Trust Funds. Any compensation paid to employees not disclosed to us or made part of the written records was not determinable by us and was not included in our review. Further, our procedures did not extend to any financial statements of the contributing employer and were substantially less in scope than an audit of the financial statements of the contributing employer, the objective of which is the expression of an opinion on the contributing employer's financial statements. Accordingly, no such opinion is expressed.
The findings of this audit report should not be construed as an endorsement or ratification of any of the Employer's contribution practices. The findings are based solely on those documents that the Employer provided to the auditors. This firm has not been retained to provide, and does not provide, any interpretation of advice concerning any terms of the collective bargaining agreement between the Employer and the Union of the temis of the Funds' respective Agreement and Declarations of Trust. All questions concerning the Employer's contribution practices, or any contributions or benefits-related issue, should be directed to the Union or the Fund office. No failure to note an exception to any of the employer's contribution practices should be construed as a ratification of such practice or waiver of the Union or the Funds' ability to challenge such practice in the future.
These findings are not based on observation of employees doing actual work.
MONTHLY SUMMARY OF DISCREPANCIES BY FUND
Employer Name: First Corinthians 3:10 Custom Builders Audit Period: 8/29/17 - 1/31/18
Employer Number: 35668 Auditor: Justin Po lehonki
Association: CAICA
YEAR: 6/17 to 5/.8 2017 2018
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total
Total Fringe Hours - - 1,012.25 325.25 58230 425.25 - 328.25 - - - - 2,673.50
Total Dues Hours - - 1,012.25 325.25 582.50 425.25 - 328.25 - - - - 2,673.50
Total Wages - - 18,213.00 5,860.00 10,48131 7,663.51 - 5,910.00 - - - - 48,127.82
Fund Rates
Welfare 10.15 - - 10,274.34 3,301.29 5,912.38 4,316.29 - 3,331.74 - - - - 27,136.03
Retire Welfare 4.50 - - 4,555.13 1,463.63 2,621.25 1,913.63 - 1,477.13 - - - - 12,030.75
Pension 1232 - - 12,470.92 4,007.08 7,176.40 5,239.08 - 4,044.04 - - - - 32,937.52
Training 0.50 - - 506.13 162.63 291.25 212.63 - 164.13 - - - - 1,336.75
LECET 0.07 - - 70.86 22.77 40.78 29.77 - 22.98 - - - - 187.15
LMCC 0.17 - - 172.08 55.29 99.03 72.29 - 55.80 - - - - 454.50
CAI CA 0.08 - - 80.98 26.02 46.60 34.02 - 26.26 - - - - 213.88
Dues 3.75% - - 682.99 219.75 393.05 287.38 - 221.63 - - - - 1,804.79
Totals - - 28,813.42 9,258.45 16,580.72 12,105.08 - 9,343.69 - - - - 76,101.36
LABORERS' DISTRICT COUNCIL
RECONCILIATION OF DIFFERENCES PER YEAR
Fiscal Year Ending 5/31/12 5/31/13 5/31/14 5/31/15 5/31/16 5/31/17 5131/18 Total Due
Fringe Hours Not Reported - - - - - - 2,673.00 2,673.00
Dues Hours Not Reported - - - - - - 2,673.00 2,673.00
Dues Wages Not Reported - - - - - - 48,127.82 48,127.82
Dollar Amount Due
Welfare (Active) - - - - - 27,136.04 27,136.04
Welfare (Retiree) - - - - - - 12,030.77 12,030.77
Pension - - - - - - 32,937.52 32,937.52
Training - - - - - - 1,336.77 1,336.77
LECET - - - - - - 187.16 187.16
LMCC - - - - - - 454.49 454.49
LICA - - - - - - 213.88 213.88
Working Dues - - - - - - 1,804.80 1,804.80
Totals - - - - - - 76,101.43 76,101.43
Plus previous late charges assessed by Laborers' Pension and Welfare Funds -
Plus previous underpayments incurred to Laborers' District Council Funds -
Plus previous penalties incurred to Laborers's District Council Funds -
Audit Fee (5/24/18 AUDIT) 630.00
Total Amount Due 76,731.43
Employer Name: First Corinthians 3:10 Custom Bldrs Contact Person: Jesse Young
Employer Number: 35668 Telephone: 815-592-2191
Date of Audit: 2/15/2018 Auditor: Justin Polehonki
Audit Period: 8/29/17 - 1/31/18 Association: CAICA
LABORERS DISTRICT COUNCIL OF CHICAGO -*CAICA ASSOCIATION
FIRST CORINTHIANS 3:10 CUSTOM BUILDERS #35668
UNREPORTED HOURS and/or WORK DUES 6/17 - 5/18
S. S. # Flags Type Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total
Armando, Andre CH18 Hours - - 39.00 - - 36.00 - - - - - - 75.00
XXXXXX - - - - - - - - - - - - -
Gross $ - - 700.00 - - 650.00 - - - - - - $ 1,350.00
ATM Withdrawal CH18 Hours - - 72.25 50.00 - 27.75 - 33.25 - - - - 183.25
XXXXxxx - - - - - - - - - - - - -
Gross $ - - 1,300.00 900.00 - 500.00 - 600.00 - - - - $ 3,300.00
Bell, Diamante CH18 Hours - - 33.25 83.25 91.75 66.50 - - - - - - 274.75
XXXXXXxx - - - - - - - - - - - - -
Gross $ - - 600.00 1,500.00 1,650.00 1,200.00 - - - - - - $ 4,950.00
Carmona, Ruben CHI8 Hours - - 27.75 25.50 - - - - - - - - 53.25
xxxxxxxxxx - - - - - - - - - - - -
Gross $ - - 500.00 460.00 - - - - - - - - $ 960.00
Garcia, Cesar CH18 Hours - - 50.00 - - - - - - - - - 50.00
xxxxxxxxxx - - - - - - - - - - - - -
Gross $ - - 900.00 - - - - - - - - - $ 900.00
Gheril, Don CH18 Hours - - - - - 27.75 - - - - - - 27.75
xxxxxxxxxx - - - - - - - - - - - - -
Gross $ - - - - - 500.00 - - - - - - $ 500.00
IBS Transfer To DDA 4973049 CH18 Hours - - 245.25 133.25 91.25 11.00 - 59.00 - - - - 539.75
xxxxxxXXXX - - - - - - - - - - - -
Gross $ - - 4,413.00 2,400.00 1,645.00 200.00 - 1,060.00 - - - $ 91718.00
Martinez, Jorge CH18 Hours - - 19.50 - - - - - - - - - 19.50
XXXXXXXXX - - - - - - - - - - - - -
Gross $ - - 350.00 - - - - - - - - - $ 350.00
Phone Transfer CH18 Hours - - 39.00 33.25 36.75 - - - - - - - 109.00
xxxxxxxxxX - - - - - - - - - - - - -
Gross $ - - 700.00 600.00 660.00 - - - - - - - $ 1,960.00
Square Inc CH18 Hours - - 236.25 - 223.75 256.25 - 236.00 - - - - 952.25
XXXXXxxxxx - - - - - - - - - - - - -
Gross $ - - 4,250.00 - 4,026.31 4,613.51 - 4,250.00 - - - - $ 17,139.82
Trufillo, Alfredo CH18 Hours - - - - 139.00 - - - - - - - 139.00
XXXXXxX - - - - - - - - - - - - -
Gross $ - - - - 2,500.00 - - - - - - - $ 2,500.00
Wire Transfer Caterpiller CH18 Hours - - 250.00 - - - - - - - - - 250.00
Financial - - - - - - - - - - - - -
Xxxxxxxxxx Gross $ - - 4,500.00 - - - - - - - - - $ 4,500.00
LABORERS DISTRICT COUNCIL OF CHICAGO — *CAICA ASSOCIATION
FIRST CORINTHIANS 3:10 CUSTOM BUILDERS #35668
UNREPORTED HOURS and/or WORK DUES 6/17 - 5/18
TOTAL HOURS - - 1,012.25 325.25 582.50 425.25 - 328.25 - - - - 2,673.50
TOTAL GROSS $ $ - $ - $ 18,213.00 $ 5,860.00 $ 10,481.31 $ 7,663.51 $ - $5,910.00 $ - $ - $ - $ - $ 48,127.82
Amount Due To Funds: Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total
WELFARE $ - $ - $ 10,274.34 $ 3,301.29 $ 5,912.38 $ 4,316.29 $ - $3,331.74 $ - $ - $ - $ - $ 27,136.04
RET WEL $ - $ - $ 4,555.13 $ 1,463.63 $ 2,621.25 $ 1,913.63 $ - $1,477.13 $ - $ - $ - $ - $ 12,030.77
PENSION $ - $ - $ 12,470.92 $ 4,007.08 $ 7,176.40 $ 5,239.08 $ - $4,044.04 $ - $ - $ - $ - $ 32,937.52
TRAINING $ - $ - $ 506.13 $ 162.63 $ 291.25 $ 212.63 $ - $ 164.13 $ - $ - $ - $ - $ 1,336.77
LECET $ - $ - $ 70.86 $ 22.77 $ 40.78 $ 29.77 $ - $ 22.98 $ - $ - $ - $ - $ 187.16
LMCC $ - $ - $ 172.08 $ 55.29 $ 99.03 $ 72.29 $ - $ 55.80 $ - $ - $ - $ - $ 454.49
CAICA $ - $ - $ 80.98 $ 26.02 $ 46.60 $ 34.02 $ - $ 26.26 $ - $ - $ - $ - $ 213.88
DUES $ - $ - $ 682.99 $ 219.75 $ 393.05 $ 287.38 $ - $ 221.63 $ - $ - $ - $ - $ 1,804.80
TOTAL $ - $ - $ 28,813.43 $ 9,258.46 $ 16,580.74 $ 12,105.09 $ - $9,343.71 $ - $ - $ - $ - $ 76,101.43
Rates: 6/1/17 to 5/31/18
WELFARE 10.15 LMCC 0.17
PENSION 12.32 CAICA 0.08
TRAINING 0.50 DUES 3.75%
LECET 0.07 RET WEL 4.50
LABORERS DISTRICT COUNCIL OF CHICAGO — *CAICA ASSOCIATION
FIRST CORINTHIANS 3:10 CUSTOM BUILDERS #35668
RICHARD J. WOLF AND COMPANY, INC.
SUMMARY REPORT TOTAL
ADDITIONAL UNREPORTED TOTAL
WELFARE $ - $ 27,136.04 $ 27,136.04
RET WEL $ - $ 12,030.77 $ 12,030.17
PENSION $ - $ 32,937.52 $ 32,937.52
TRAINING $ - $ 1,336.77 $ 1,336.77
LECET $ - $ 187.16 $ 187.16
LMCC $ - $ 454.49 $ 454.49
CAICA $ - $ 213.88 $ 213.88
DUES $ - $ 1,804.80 $ 1,804.80
TOTAL $ - $ 76,101.43 $ 76,101.43
LABORERS DISTRICT COUNCIL OF CHICAGO — *CAICA ASSOCIATION
FIRST CORINTHIANS 3:10 CUSTOM BUILDERS #35668
RICHARD J. WOLF AND COMPANY, INC.
** GRAND TOTAL **
WELFARE $ 27,136.04
RET WEL $ 12,030.77
PENSION $ 32,937.52
TRAINING $ 1,336.77
LECET $ 187.16
LMCC $ 454.49
CAICA $ 213.88
DUES $ 1,804.80
TOTAL $ 76,101.43
Exhibit 3
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
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, CATHERINE )
WENSKUS, )
Plaintiffs, )
) No. 17 C 8861
)
v. ) Judge Alonso
)
FIRST CORINTHIANS 3:10 CUSTOM )
BUILDERS and CEMENT WORKS, INC., )
)
Defendant. )
AFFIDAVIT OF KAREN I. ENGELHARDT
STATE OF ILLINOIS )
)
COUNTY OF COOK )
I, Karen I. Engelhardt 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 Laborers' Pension Fund and the Laborers' Welfare Fund of the Health and Welfare Department of the Construction and General Laborers' District Council of Chicago and Vicinity, and Catherine Wenskus, Administrator. 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 December 7, 2017 through the present.
2. For all attorney time from December 7, 2017 forward, services were rendered to the Funds at the rate of $225.00 per hour for shareholder, $195.00 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 December 7, 2017 through June 18, 2018, 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 $3,195.00.
4. In addition, the Plaintiffs have incurred the following costs in the prosecution of this matter totaling $400.00, which include filing and service fees.
5. A total of $3,595.00, is owed to the Funds for attorneys' fees and costs.
FURTHER AFFIANT SAYETH NOT.
______________________________
Karen I. Engelhardt
Selection Criteria
Slip.Classification Open
Clie.Selection Include: Labrs P&W 1
Refe.Selection Include: First Corinthians
Rate Info - identifies rate source and level
Slip ID Attorney Units Rate Slip Value
Dates and Time Activity DNB Time Rate Info
Posting Status Client Est. Time Bill Status
Description Reference Variance
305434 TIME K. Engelhardt 0.80 225.00 180.00
12/7/2017 Legal Services 0.00 C@1
Billed G:12534 1/3/2018 Labrs P&W 1 0.00
Draft complaint, summons; obtain secretary of First Corinthians 0.00
state information sheet
305965 TIME Andre Smith 1.30 110.00 143.00
12/8/2017 Legal Services 0.00 C@3
Billed G:12534 1/3/2018 Labrs P&W 1 0.00
File new lawsuit: prepare file, complaint, civil cover First Corinthians 0.00
sheet, appearances, exhibits
305968 TIME Andre Smith 0.75 110.00 82.50
12/14/2017 Legal Services 0.00 C@3
Billed G:1253.4 1/3/2018 Labrs P&W 1 0.00
Serve summons and complaint; draft return of First Corinthians 0.00
service and e-file
306014 TIME K. Engelhardt 0.40 225.00 90.00
12/27/2017 Legal Services 0.00 C@1
Billed G:12534 1/3/2018 Labrs P&W 1 0.00
Report to Trustees; letter to R.Lacey First Corinthians 0.00
306588 TIME K. Engelhardt 0.20 225.00 45.00
1/10/2018 Legal Services 0.00 C
Billed G:12560 2/7/2018 Labrs P&W 1 0.00
Report to Trustees First Corinthians 0.00
307052 TIME K. Engelhardt 1.20 225.00 270.00
1/25/2018 Legal Services 0.00 C@1
Billed G:12560 2/7/2018 Labrs P&W 1 0.00
Draft motion for default, order and notice of motion; First Corinthians 0.00
call w/ J. Young
307290 TIME K. Engelhardt 0.20 225.00 45.00
1/26/2018 Legal Services 0.00 C@1
Billed G:12560 2/7/2018 Labrs P&W 1 0.00
Email to R. Wolf First Corinthians 0.00
307473 TIME K. Engelhardt 0.10 225.00 22.50
1/31/2018 Legal Services 0.00 C@1
Billed G:12560 2/7/2018 Labrs P&W 1 0.00
Receive order from court First Corinthians 0.00
308031 TIME K. Engelhardt 0.20 225.00 45.00
2/13/2018 Legal Services 0.00 C@1
Billed G:12579 3/5/2018 Labrs P&W 1 0.00
Call w/ D. Coakley; prepare for court appearance First Corinthians 0.00
308036 TIME K. Engelhardt 1.70 225.00 382.50
2/14/2018 Legal Services 0.00 C@1
Billed G:12579 3/5/2018 Labrs P&W 1 0.00
Court appearance First Corinthians 0.00
308050 TIME K. Engelhardt 0.10 225.00 22.50
2/15/2018 Legal Services 0.00 C@1
Billed G:12579 3/5/2018 Labrs P&W 1 0.00
Call w/ D. Coakley First Corinthians 0.00
309337 TIME K. Engelhardt 0.20 225.00 45.00
3/22/2018 Legal Services 0.00 C@1
Billed G:12594 4/4/2018 Labrs P&W 1 0.00
Calls w/ R. Wolf; First Corinthians 0.00
309419 TIME K. Engelhardt 0.40 225.00 90.00
3/27/2018 Legal Services 0.00 C@1
Billed G:12594 4/4/2018 Labrs P&W 1 0.00
Calls w/ R. Wolf & Associates First Corinthians 0.00
310607 TIME K. Engelhardt 0.50 225.00 112.50
4/23/2018 Legal Services 0.00 C@1
Billed G:12613 5/4/2018 Labrs P&W 1 0.00
Call w/ R. Wolf; letter to R. Wolf First Corinthians 0.00
310619 TIME K. Engelhardt 1.00 225.00 225.00
4/24/2018 Legal Services 0.00 C@1
Billed G:12613 5/4/2018 Labrs P&W 1 0.00
Court appearance First Corinthians 0.00
310632 TIME K. Engelhardt 1.00 225.00 225.00
4/25/2018 Legal Services 0.00 C@1
Billed G:12613 5/4/2018 Labrs P&W 1 0.00
Email to J. Polehonki; locate bank, draft subpoena; First Corinthians 0.00
letter to E. Proctor
311169 TIME K. Engelhardt 0.20 225.00 45.00
5/2/2018 Legal Services 0.00 C@1
Billed G:12636 6/5/2018 Labrs P&W 1 0.00
Call w/ H. Campbell First Corinthians 0.00
311252 TIME K. Engelhardt 0.10 225.00 22.50
5/8/2018 Legal Services 0.00 C@1
Billed G:12636 6/5/2018 Labrs P&W 1 0.00
Rececive bank documents First Corinthians 0.00
311430 TIME K. Engelhardt 0.50 225.00 112.50
5/9/2018 Legal Services 0.00 C@1
Billed G:12636 6/5/2018 Labrs P&W 1 0.00
Review documents received from Bank; letter to J. First Corinthians 0.00
Polehonki
311764 TIME K. Engelhardt 0.20 225.00 45.00
5/21/2018 Legal Services 0.00 C@1
Billed G:12636 6/5/2018 Labrs P&W 1 0.00
Email to J. Polehonki; prepare for Court First Corinthians 0.00
appearance
311772 TIME K. Engelhardt 1.00 225.00 225.00
5/22/2018 Legal Services 0.00 C@1
Billed G:12636 6/5/2018 Labrs P&W 1 0.00
Court appearance First Corinthians 0.00
311948 TIME K. Engelhardt 0.60 225.00 135.00
5/25/2018 Legal Services 0.00 C@1
Billed G:12636 6/5/2018 Labrs P&W 1 0.00
Review audit report; letter to J. Young First Corinthians 0.00
312656 TIME K. Engelhardt 0.60 225.00 135.00
6/15/2018 Legal Services 0.00 C@1
WIP Labrs P&W 1 0.00
Draft affidavit for R. Lacey; email to R. Lacey First Corinthians 0.00
312660 TIME K. Engelhardt 2.00 225.00 450.00
6/18/2018 Legal Services 0.00 C@1
WIP Labrs P&W 1 0.00
Complete motion; draft shareholders' affidavit; First Corinthians 0.00
proposed judgment order, notice of motion
Grand Total
Billable 15.25 3195.50
Unbillable 0.00 0.00
Total 15.25 3195.50
Exhibit 4
CONTRACT FOR CASH BOND
This agreement is entered into by The Laborers Pension Fund, the Health and Welfare Department of the Construction and General Laborers District Council ofChicago and Vicinity and the following contributing employer to the Funds:
FIRST CORINTHIANS 3:10 COMENT WORKS, INC.
5313 BENTORASS
RICHTON PARK, IL 60471
WHEREAS Article VII, Section 2 and Article VI, Section 2 of the agreements and declarations of trust establishing the aforementioned Pension Fund and Health and Welfare Fund to authorize the Funds to accept cash bonds as guarantees for the payment of monthly contributions to the Funds; and
WHEREAS contributing employers under the terms of the applicable collective bargaining agreement are required to post surety bonds or cash bonds in a form acceptable to the Construction and General Laborers District Council of Chicago and Vicinity;
WHEREAS the Union has agreed to the establishment by the Funds of a bank account or money-market account or other account for the holding of cash bonds pursuant to contractors approved by the Boards of Trustees of the Funds; and
WHEREAS the Boards of Trustees of the Funds have approved the establishment by the Funds of a bank account or money-market account or other account for the holding of cash bonds by contributing employers;
NOW therefore, the parties hereby agree that:
A. Procedures For Filing a Cash Bond and Use of the Bond
The Employer named above shall pay the amount listed below to the Funds as a cash bond to guarantee payment of employee wages, pension and welfare contributions owed to the Employer to employees of the Employer and/or to the Funds for work performed by the employees under the terms of a collective bargaining agreement between the Employer and the Construction and General Laborers District Council of Chicago and Vicinity;
The cash bond shall be used to satisfy on a pro rata basis amounts due for unpaid wages and/or unpaid contributions to the Funds, including liquidated damages and interest owed to the Funds; and
The Administrator of the Funds is authorized to deposit the cash payment listed below in an interest-bearing account, money-market account or other account for deposit of such funds to be selected at the discretion of the Administrator, to retain the interest earned on a said cash deposit to defray the expenses of the Funds for the administration of cash bonds and for the collection of delinquencies; and
To deduct from said account and pay to employees and/or to the Funds any amounts determined by the Administrator, based upon reasonably reliable information provided by representatives of the Union, the Field Representatives of the Funds or compliance auditors of the Funds or Union, the full amount of any unpaid wages or unpaid contributions, liquidated damages or interest,
The Administrator shall provide written notice at least ten (10) days in advance to the Employer of a determination by the Administrator to deduct sums from the cash bond to satisfy the claims for wages and/or unpaid contributions, liquidated damages or interest.
The Employer, within ten (10) days of the date of the notice sent by the Administrator, may make other arrangements to pay the wages and/or contributions determined to be owed by the Administrator and shall provide written evidence to the Administrator of such arrangements.
An objection by the Employer that the claimed wages and/or contributions are not due and owing shall not prevent the Administrator from directing the payment of claimed wages and/or contributions, If a determination is made at a later date that the wages paid to employees or the contributions, liquidated damages or interest paid to the Funds was not due and owing, the sole liability of the Funds shall be to restore the cash bond of any Employer to the extent of the contributions, liquidated damages and interest paid as contributions on behalf of the Employer that should not have been paid. Any claim of the Employer for wages improperly paid to employees shall be made against the employees who received the payments and not against the Funds or Administrator as long as the Administrator based the payments on information received from a source that the Administrator considered to be reasonably reliable, An auditor's report or employee affidavits shall be conclusive proof of such a reasonably reliable source.
B. Procedures for, Reepesting a Reftind of a Cash Bond
The Employer may request and obtain a refund of any balance of the cash bond being held by the Funds if the Employer ceases to do business for which contributions would be owed to the Funds under the terms of a collective bargaining agreement with the Union or during any period in which the Employer would be required to maintain existing terms and conditions of employment while negotiating over the terms to be included in a new collective bargaining agreement, The refund will be provided upon completion of an audit which verifies that there are no outstanding contributions, interest, liquidated damages and/or audit costs revealed as due and owing for the period of time under which the Funds have held the Cash Bond. The Cash Bond may be refunded prior to the completion of any audit if the shareholders of the Company personally guarantee any indebtedness that may be revealed pursuant to an audit of the Company's books and records for the time period during which the Funds held the Cash Bond.
An Employer may obtain a refund of the cash bond if the Employer provides a surety bond written by an insurance carrier with reserves in excess of $1,000,000 authorized, licensed, or permitted to do business in the state of Illinois; provided that the amount of said surety bond is in compliance with the terms of the Employer's collective bargaining agreement with the Union or any amount previously, prescribed by the Trustees for a delinquent employer equal to three times the monthly contributions of such Employer, as estimated by the Trustees, in accordance with the terms of the agreements and declarations of trust of the Funds,
No cash refund shall be paid to the Employer until the Employer has provided the necessary surety bond or evidence satisfactory to the Administrator that the employer has ceased doing business that would require contributions to the Funds. If the Employer fails to provide a refund request along with the necessary supporting information within three years of the date on which the Employer last contributed to the Funds, the Employer shall forfeit its right to a refund and the Administrator shall trasfer any balance credited to the Employee to the general to the accounts of the Funds to defray the costs of employer delinquence,
C. Amount of Cash Bond
This agreement for the payment and deposit of a cash bond in the amount $5,000.00 pursuant to monthly payments in the amount of $ 250.00 made on the first day of each month commencing of 10/1/17 and continuing up and through 5/1/19> is entered into this 8/29/17, by the undersigned representative of the Emplyer and Funds"
For the Employer: For the Funds;
_____________ _____________________________
Administrator
Position____________ Date_________________
Administrator shall transfer any balance credited to the Employer to the general accounts of the
Date; 08/29\17
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
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, CATHERINE )
WENSKUS, )
Plaintiffs, )
) No. 17 C 8861
)
v. ) Judge Alonso
)
FIRST CORINTHIANS 3:10 CUSTOM )
BUILDERS and CEMENT WORKS, INC., )
)
Defendant. )
ORDER
This cause coming before the Court on the Plaintiffs' Motion for Default and Prove Up of Damages, due notice having been given to the Defendant, and the Court having found that the Defendant has been properly served with summons and complaint.
IT IS HEREBY ORDERED:
Judgment is entered on behalf of the Laborers' Pension and Welfare Funds and against Defendant First Corinthians 3:10 Custom Builders and Cement Works, Inc., in the total amount of $104,985.00, which consists of:
Principal contributions $ 76,101.43
Liquidated damages $ 14,954.00
Interest $ 4,704.93
Audit costs $ 630.00
Attorneys' fees and costs $ 3,595.00
Cash bond $ 5,000.00
2nd page of Laborers' Pension Funds et al., v.
First Corinthians 3:10 Custom Builders and
Cement Works, Inc., Order
TOTAL AMOUNT $ 104,985.00
ENTERED
DATE: ____________ ____________________________
U.S. DISTRICT COURT
