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Trustees of the Pension v. C.A.S.E. Construction and Electrical Contractors, Inc., 18-cv-00956. (2018)

Court: District Court, N.D. Illinois Number: infdco20180626771 Visitors: 4
Filed: Jun. 15, 2018
Latest Update: Jun. 15, 2018
Summary: MOTION FOR JUDGMENT IN SUM CERTAIN SHARON JOHNSON COLEMAN , District Judge . NOW COME the Plaintiffs, by and through their attorneys, and, in their Motion for Default & Audit, state as follows: 1. The Plaintiff Funds filed their Complaint against Defendant on February 6, 2018, seeking a judgment on a contribution delinquency from October through December 2017, an order compelling Defendant to undergo an ERISA fringe benefit contributions audit, and for judgment on any amounts determined du
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MOTION FOR JUDGMENT IN SUM CERTAIN

NOW COME the Plaintiffs, by and through their attorneys, and, in their Motion for Default & Audit, state as follows:

1. The Plaintiff Funds filed their Complaint against Defendant on February 6, 2018, seeking a judgment on a contribution delinquency from October through December 2017, an order compelling Defendant to undergo an ERISA fringe benefit contributions audit, and for judgment on any amounts determined due by the audit.

2. Plaintiffs served Defendant on February 21, 2018.

3. The time for Defendant to answer or otherwise plead to the Complaint passed without any response from Defendant, so the Court ruled Defendant in default and commanded it to submit to an audit on March 22, 2018.

4. According to the Declaration of Richard J. Wolf (Ex. A), the resulting audit revealed the following arrearages to the Funds: $1,129.51 in contributions due, $112.95 in liquidated damages, and $525.00 in audit costs, for a total of $1,767.46.

5. During the pendency of the suit, Defendant also fell delinquent in its contributions for the months of January and February 2018. According to the Declaration of Brian Benson (Ex. B), the Plaintiffs' Funds Assistant Administrator, after crediting various payments, Defendant still owes the following amounts based on its contribution reports: $26,791.39 in contributions, $17,883.96 in liquidated damages mandated by the Collective Bargaining Agreement and Trust Agreements, and $4,183.65 in interest, also mandated by the Collective Bargaining Agreement and Trust Agreements.

6. According to the Declaration of Andrew S. Pigott (Ex. C), Plaintiffs' attorney fees in this matter total $17,112.50.

WHEREFORE, Plaintiffs ask this Court to enter the Order attached to this Motion as Exhibit D.

Exhibit A

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

TRUSTEES OF THE PENSION, WELFARE AND VACATION FRINGE BENEFIT FUNDS OF IBEW LOCAL 701, No. 18-cv-00956 Plaintiffs vs. Judge Johnson Coleman C.A.S.E. CONSTRUCTION AND ELECTRICAL Magistrate Judge Kim CONSTRUCTORS, INC., an Illinois corporation, Defendant

DECLARATION OF RICHARD J. WOLF

Richard J. Wolf, subject to the laws of perjury to 28 U.S.C. § 1746, stats as follows:

1. I am the owner and president of Richard J. Wolf & Company, Inc.

2. The Plaintiff Funds' employ my firm to perform employer payroll and records compliance reviews, frequently referred to as fringe benefit contribution audits. We have performed hundreds of audits for Plaintiffs.

3. In the course of an audit, we review the signatory employer's individual payroll records and journals, time logs and time cards, check registers, tax records, bank statements, and union contribution reports to determine if the employer complied with its contribution obligations.

4. In April 2018, Richard J. Wolf & Company audited the books and records of C.A.S.E. for the period from January 1, 2015 through March 31, 2018, revealing the following arrearages to the Plaintiff Funds: $1,129.51 in contributions due, $112.95 in liquidated damages, and $525.00 in audit costs, for a total of $1,767.46.

5. A copy of the audit report detailing our findings is attached to my Declaration.

Executed on: ____________ Date Richard J. Wolf RICHARD J. WOLF AND COMPANY, INC. Post Office Box 591 Palos Park, Illinois 60464 (708) 923-0909 Fax (708) 923-0910 May, 2, 2018 Board of Trustees of the Various Fringe Benefit Funds of the Electrical Workers Local 701 RE: C.S.A.E. Inc.

We have performed a fringe benefit contribution compliance audit of C.A.S.E. Inc., for the period from January 1, 2015 through March 31, 2018. The audit encompassed the comparison of individual earnings records to certain payroll tax and fund reports, a review of the general disbursements records and a review of the job location information.

The comparison and review indicate that the employer has not complied with its fringe benefit contribution requirements and owed the following amounts:

FUND AMOUNT __________ ___________ WELFARE $ 333.65 PENSION 55.68 H/P 294.20 APPR 18.35 DUES 7.12 VACATION 133.21 NEBF 31.82 ANNUITY 214.76 A.M.F. 4.24 LMCC 5.04 P.E.F. 1.20 NL 0.24 ___________ TOTAL $ 1,129.51 =========== RICHARD J. WOLF AND COMPANY, INC. I.B.E.W. LOCAL UNION #701 - FRINGE BENEFIT FUNDS C.A.S.E., INC. YEAR: 2017 ADDITIONAL HOURS & EARNINGS 1/17 to 12/17 S.S. # Flags Tyle Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total POKORNY, JAMES # Hours - - - - - - - - - - 24.00 - 24.00 1439 - - - - - - - - - - - - - Gross $ - - - - - - - - - - 1,060.56 - $1,060.56 TOTAL HOURS - - - - - - - - - - 24.00 - 24.00 TOTAL GROSS $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $1,060.56 $ - $1,060.56 Amount Due To Funds: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total WELFARE $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 333.65 $ - $ 333.65 PENSION $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 55.68 $ - $ 55.68 H/P $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 294.20 $ - $ 294.20 APPR $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,35 $ - $ 18,35 DUES $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 37.12 $ - $ 37.12 VACATION $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 133.21 $ - $ 133.21 NEBF $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 31.82 $ - $ 31.82 ANNUITY $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 214.76 $ - $ 214.76 A.M.F. $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4.24 $ - $ 4.24 LMCC $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5.04 $ - $ 5.04 P.E.F. $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1.20 $ - $ 1.20 NL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 0.24 $ - $ 0.24 _________________________________________________________________________________________________________________ TOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,129.51 $ - $ 1,229.51 ================================================================================================================= Rates: 6/1/17 to 5/31/18 WELFARE 31.46% ANNUTY 20.25% PENSION 5.25% A.M.F. 0.40% H/P 27.74% LMCC 0.21 APPR 1.73% P.E.F. 0.05 DUES 3.50% SUB FUND VACATION 12.56% NL 0.01 NEBF 3.00% I.B.E.W. LOCAL UNION #701 - FRINGE BENEFIT FUNDS C.A.S.E., INC. RICHARD J. WOLF AND COMPANY, INC. SUMMARY REPORT TOTAL ADDITIONAL UNREPORTED TOTAL WELFARE $ 333.65 $ - $ 333.65 PENSION $ 55.68 $ - $ 55.68 H/P $ 294.20 $ - $ 294.20 APPR $ 18.35 $ - $ 18.35 DUES $ 37.12 $ - $ 37.12 VACATION $ 133.21 $ - $ 133.21 NEBF $ 31.82 $ - $ 31.82 ANNUITY $ 214.76 $ - $ 214.76 A.M.F. $ 4.24 $ - $ 4.24 LMCC $ 5.04 $ - $ 5.04 P.E.F. $ 1.20 $ - $ 1.20 NL $ 0.24 $ - $ 0.24 ____________ ___________ __________ TOTAL $ 1,129.51 $ - $ 1,229.51 ============ =========== ===========

I.B.E.W. LOCAL UNION #701 — FRINGE BENEFIT FUNDS

C.A.S.E., INC.

RICHARD J. WOLF AND COMPANY, INC.

** GRAND TOTAL **

WELFARE $ 333.65 PENSION $ 55.68 H/P $ 294.20 APPR $ 18.35 DUES $ 37.12 VACATION $ 133.21 NEBF $ 31.82 ANNUITY $ 214.76 A.M.F. $ 4.24 LMCC $ 5.04 P.E.F. $ 1.20 NL $ 0.24 _________ TOTAL $1,129.51 =========

Exhibit B

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION TRUSTEES OF THE PENSION, WELFARE AND VACATION FRINGE BENEFIT FUNDS OF IBEW LOCAL 701, No. 18-cv-00956 Plaintiffs vs. Judge Johnson Coleman C.A.S.E. CONSTRUCTION AND ELECTRICAL Magistrate Judge Kim CONTRACTORS, INC., an Illinois corporation, Defendant.

DECLARATION OF BRIAN BENSON

Brian Benson, subject to the laws of perjury and pursuant to 28 U.S.C. § 1746, states as follows:

1. I am the Assistant Administrator for the IBEW Local 701 Benefit Funds.

2. As Assistant Administrator, my duties include monitoring contributing employers' submission and payment of monthly contribution reports.

3. Between October 2017 and February 2018, C.A.S.E. Construction & Electrical Contractors, a controlling employer, tendered contribution reports reflecting the following amounts due:

Oct. 2017 $66,272.97 Nov. 2017 $31,052.04 Dec. 2017 $31,925.49 Jan. 2018 $37,908.62 Feb. 2018 $11,680.52.

4. During the pendency of this lawsuit, the Funds received the following payments for C.A.S.E.:

$60,000.00 on Feb. 28, 2018 $37,748.24 on Feb. 28, 2018 $16,385.72 on Feb. 28, 2018 $12,483.12 on March 2, 2018 $25,462.05 on April 13, 2018.

5. C.A.S.E., therefore, remains delinquent to the Funds for contributions in the amount of $26,791.39.

6. The IBEW Local 701 Collective Bargaining Agreement and the Funds Trust Agreements impose liquidated damages of ten percent of the amount reflected due on any late-paid report. C.A.S.E., therefore, also owes the following liquidated damages:

Oct. 2017 $6,627.30 Nov. 2017 $3,105.20 Dec. 2017 $3,192.55 Jan. 2018 $3,790.86 Feb. 2018 $1,168.05 __________ $17.883.96

7. In addition to liquidated damages, the CBA also calls for interest on outstanding contributions at 10% APR. Thus, C.A.S.E. also owes the following interest:

Oct. 2017 $1,888.33 Nov. 2017 $629.55 Dec. 2017 $414.69 Jan. 2018 $908.67 Feb. 2018 $342.41 _________ $4,183.65 Executed on: 6/14/2018 Date Brian Benson

Exhibit C

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION TRUSTEES OF THE PENSION, WELFARE AND VACATION FRINGE BENEFIT FUNDS OF IBEW LOCAL 701, No. 18-cv-00956 Plaintiffs vs. Judge Johnson Coleman C.A.S.E. CONSTRUCTION AND ELECTRICAL Magistrate Judge Kim CONTRACTORS, INC., an Illinois corporation, Defendant.

DECLARATION OF ANDREW S. PIGOTT

Andrew S. Pigott, subject to the laws of perjury and pursuant to 28 U.S.C. § 1746, states as follows:

1. I am employed at the law firm of Arnold and Kadjan as an associate attorney, and have handled the instant case from referral to the present judgment motion.

2. Arnold & Kadjan spent at least 68.45 hours in litigation of this matter.

3. Arnold & Kadjan charges the Plaintiffs $250.00 per hour.

4. Plaintiffs regularly pay Arnold & Kadjan's hourly rate, which is well within the market-norm for work on ERISA collection cases.

5. Arnold & Kadjan has billed or will bill Plaintiffs $17,112.50 for its work in this matter.

Executed on: 4/15/18 Andrew S. Pigott

Exhibit D

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION TRUSTEES OF THE PENSION, WELFARE AND VACATION FRINGE BENEFIT FUNDS OF IBEW LOCAL 701, No. 18-cv-00956 Plaintiffs vs. Judge Johnson Coleman C.A.S.E. CONSTRUCTION AND ELECTRICAL Magistrate Judge Kim CONTRACTORS, INC., an Illinois corporation, Defendant.

JUDGMENT ORDER

THE CAUSE coming before the Court on Plaintiffs' Motion for Judgment in Sum Certain, due notice given, and the Court fully advised in the premises, the Court makes the following findings and HEREBY ORDERS:

2. The Plaintiff Funds filed their Complaint against Defendant on February 6, 2018, seeking a judgment on a contribution delinquency from October through December 2017, an order compelling Defendant to undergo an ERISA fringe benefit contributions audit, and for judgment on any amounts determined due by the audit.

2. Plaintiffs served Defendant on February 21, 2018.

3. The time for Defendant to answer or otherwise plead to the Complaint passed without any response from Defendant, so the Court ruled Defendant in default and commanded it to submit to an audit on March 22, 2018.

4. According to the Declaration of Richard J. Wolf (Ex. A), the resulting audit revealed the following arrearages to the Funds: $1,129.51 in contributions due, $112.95 in liquidated damages, and $525.00 in audit costs, for a total of $1,767.46.

5. During the pendency of the suit, Defendant also fell delinquent in its contributions for the months of January and February 2018. According to the Declaration of Brian Benson (Ex. B), the Plaintiffs' Funds Assistant Administrator, after crediting various payments, Defendants still owes the following amounts based on its contribution reports: $26,791.39 in contributions, $17,883.96 in liquidated damages mandated by the Collective Bargaining Agreement and Trust Agreements, and $4,183.65 in interest, also mandated by the Collective Bargaining Agreement and Trust Agreements.

6. According to the Declaration of Andrew S. Pigott (Ex. C), Plaintiffs' attorney fees in this matter total $17,112.50.

WHEREFORE, the Court enters judgment in favor of Plaintiffs and against Defendant, C.A.S.E. CONSTRUCTION & ELECTRICAL CONTRACTORS, INC., in the amount of $67,738.96.

SO ORDERED.

Entered: _________________________ Dated By: ______________________________ Hon. Sharon Johnson Coleman U.S. District Judge
Source:  Leagle

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