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Midwest Operating Engineers Welfare Fund v. Burke, : 19-CV-02070. (2020)

Court: District Court, N.D. Illinois Number: infdco20200213d82 Visitors: 2
Filed: Feb. 12, 2020
Latest Update: Feb. 12, 2020
Summary: MOTION FOR ENTRY OF DEFAULT AND JUDGMENT VIRGINIA M. KENDALL , District Judge . Plaintiffs Midwest Operating Engineers Welfare Fund, Midwest Operating Engineers Pension Trust Fund, Midwest Operating Engineers Retirement Enhancement Fund, Operating Engineers Local 150 Apprenticeship Fund, Local 150 IUOE Vacation Savings Plan (together "the Funds"), Construction Industry Research and Service Trust Fund ("CRF"), and International Union of Operating Engineers, Local 150, AFL-CIO, ("Local 150")
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MOTION FOR ENTRY OF DEFAULT AND JUDGMENT

Plaintiffs Midwest Operating Engineers Welfare Fund, Midwest Operating Engineers Pension Trust Fund, Midwest Operating Engineers Retirement Enhancement Fund, Operating Engineers Local 150 Apprenticeship Fund, Local 150 IUOE Vacation Savings Plan (together "the Funds"), Construction Industry Research and Service Trust Fund ("CRF"), and International Union of Operating Engineers, Local 150, AFL-CIO, ("Local 150") (collectively "the Plaintiffs"), move pursuant to Rule 55, Fed. R. Civ. P. for entry of judgment by default against Defendants, Burkes Hauling, Inc., an Illinois corporation and Brian Burke, individually. In support of their motion, Plaintiffs state as follows:

1. On March 26, 2019, the Plaintiffs filed this action pursuant to § 301 of the Labor-Management Relations Act ("LMRA"), 29 U.S.C. § 185; and the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended, 29 U.S.C. §§ 1132, 1145, for claims brought by the Plaintiffs.

2. On April 17, 2018, Brian Burke, individually and Burkes Hauling executed a Payment Plan Agreement. In the Agreement, Burkes Hauling agreed to make installment payments of the delinquent sums that it owed the Funds, the Union, and CRF. Brian Burke agreed to be personally liable for such payments. Both Burkes Hauling and Brian Burke have breached the Payment Plan and become delinquent in the submission of reports and contributions due to the Funds and CRF, and reports, dues and PAC monies to the Union.

3. On April 3, 2019, the Plaintiffs filed a First Amended Complaint, adding "Burke's Hauling" as a Defendant.

4. On April 24, 2019, the Plaintiffs filed a Second Amended Complaint correcting the name of the Defendant to "Burkes Hauling."

5. On April 26, 2019, the Plaintiffs served Brian Burke with the Alias Summons and Second Amended Complaint. Brian Burke's answers were due on or before May 17, 2019. On June 15, 2019, the Plaintiffs served Burke Hauling with an Alias Summons and Second Amended Complaint. Service was perfected and the company's answers were due on July 5, 2019. To date, neither Defendant has answered or otherwise pled in response to the Second Amended Complaint.

6. After numerous exchanges in the course of this lawsuit, the Funds and CRF have successfully completed an audit, and the amounts found to be due in the audit have been added to the existing debt owed by Burkes Hauling and Brian Burke, individually. Likewise, the Union has calculated additional sums due in the form of administrative dues based on the audit.

7. As of the date of this motion, the Funds and CRF are owed a combined total of $399,417.00 in contributions, liquidated damages, and interest (see Certification of Thomas Bernstein attached hereto as Exhibit A). Local 150 is owed $6,897.61 in dues and PAC monies (see Certification of Alicia Schnell attached hereto as Exhibit B). Plaintiffs have expended $22,033.21 in attorneys' fees and $889.46 in costs (see Certification of Dale D. Pierson attached hereto as Exhibit C).

WHEREFORE, the Funds, CRF and Local 150 respectfully request that this Court enter judgment by default against Defendants Burkes Hauling, Inc.; an Illinois corporation, and Brian Burke, individually, and in favor of the Funds and CRF in the amount of $399,417.00; in favor of Local 150 in the amount of $6,897.61; and in favor of Plaintiffs in the amount of $22,922.67 for attorneys' fees and costs.

EXHIBIT A

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Midwest Operating Engineers Welfare Fund, et al. Plaintiffs, CIVIL ACTION No.: 19-CV-02070 v. Brian Burke, individually and Burkes Hauling, Inc., Judge Virginia M. Kendall an Illinois corporation, Magistrate Judge: Maria Valdez Defendants.

CERTIFICATION OF THOMAS M. BERNSTEIN

I, Thomas M. Bernstein, state and certify pursuant to 28 U.S.C. § 1746 as follows:

1. 1 am now, and at all relevant times hereto have been employed by the Trustees of the Midwest Operating Engineers Welfare Fund, Midwest Operating Engineers Pension Trust Fund, Midwest Operating Engineers Retirement Enhancement Fund, Operating Engineers Local 150 Apprenticeship Fund, Local 150 IUOE Vacation Savings Plan, and Construction Industry Research and Service Trust Fund (collectively "the Funds") as Administrative Manager, and in such capacity, I have personal knowledge of the matters hereinafter set forth and if called as a witness in the instant proceedings am competent to testify in respect thereto.

2. I know from my own personal knowledge the contents of the collective bargaining agreement as it relates to the Funds and Agreements and Declarations of Trust and all facts alleged therein, and if called and sworn as a witness I am competent to testify thereto.

3. I assist with keeping and maintaining records of contributions received by the Funds; maintain individual records on each person, firm, and corporation required to make contributions to the Funds; receive and record contribution reports made by such persons, firms, or corporations; and have under my supervision and direction all books, records, documents, and papers relating to the Funds.

4. I have examined the account in this matter, and state that Burkes Hauling, Inc., an Illinois corporation ("company"):

(a) is required to make monthly contribution reports under the terms of the aforesaid collective bargaining agreements; and (b) has submitted monthly contribution reports due on behalf of regular employees, but without the corresponding payment for the months of October 2017 through March 2018, and August 2018 through December 2018 and an audit identifies additional amounts due during the year of 2018, all as set forth below: Contributions Welfare Fund $127,734.04 Pension Fund $81,403.46 Retirement Enhancement Fund $16,261.56 Apprenticeship Fund $9,012.98 Vacation Savings Plan $12,098.13 Construction Industry Research Fund $7,230.68 Contribution Total $253,740.85

5. Pursuant to the Trust Agreements, a liquidated damages surcharge has been assessed against the Company in the amount of twenty (20%) percent for all contributions paid late for the months of July through December 2015, January through December 2016, January through April 2017, July through December 2017, January through December 2018, as set forth below:

Contributions Welfare Fund $45,751.02 Pension Fund $29,473.62 Retirement Enhancement Fund $5,580.78 Apprenticeship Fund $3,300.37 Vacation Savings Plan $4,409.41 Construction Industry Research Fund $2,522.17 Funds Total $91,037.3

6. Pursuant to the Trust Agreements, interest in the amount of twelve percent (12%) per annum is payable to the Funds by Defendant for contributions due and unpaid and all contributions paid late for the months of September 2017 through December 2018 in the amount of $51,319.43.

7. Pursuant to the Trust Agreements, Burkes Hauling, Inc. is required to pay the audit fee in this case of $3,319.35 after receiving $2,000.00 credit which was applied to the balance owed.

8. When all of the aforementioned amounts are taken into account, the total amount known to be due to the Funds is $399,417.00. Brian Burke is personally liable for this amount as he accepted such liability pursuant to a payment plan agreement.

9. I am duly authorized by the Funds in this behalf, have personal knowledge of the matters set forth above and if called as a witness in this cause, am competent to testify thereto.

10. I make this statement in support of the motion of Plaintiffs for entry of default judgment and request that this Court consider the same as proof in support of the allegations contained in the Complaint of the Plaintiffs and such other facts herein set forth.

I certify under penalty of perjury that the foregoing is true and correct.

Date: 2/12/2020. ______________________________ THOMAS M. BERNS FEIN

EXHIBIT B

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Midwest Operating Engineers Welfare Fund, et al. Plaintiffs, CIVIL ACTION No.: 19-CV-02070 v. Brian Burke, individually and Burkes Hauling, Inc., Judge Virginia M. Kendall an Illinois corporation, Magistrate Judge: Maria Valdez Defendants.

CERTIFICATION OF ALICIA SCHNELL

I, ALICIA SCHNELL, state and certify pursuant to 28 U.S.C. § 1746 as follows:

1. I am now, and at all relevant times hereto, have been employed by the International Union of Operating Engineers, Local 150, AFL-CIO ("Union") as Administrative Dues Supervisor, and in such capacity, I have personal knowledge of the matters hereinafter set forth and if called as a witness in the instant proceedings I am competent to testify in respect thereto.

2. I know from my own personal knowledge the contents of the collective bargaining agreements as those documents relate to the collection of administrative dues, and if called and sworn as a witness I am competent to testify thereto.

3. I assist with keeping and maintaining records of administrative dues and IUOE PAC monies received by the Union, maintain individual records on each person, firm and corporation required to submit administrative dues and PAC monies, receive and record administrative dues and PAC monies submitted by such persons, firms or corporations, and have under my supervision and direction all hooks, records, documents and papers relating to such dues and PAC monies.

4. I have examined the account of Burkes Hauling, and state that Burkes Hauling is required to submit monthly administrative dues and PAC remittance reports under the terms of the aforesaid collective bargaining agreements. Burkes Hauling has submitted monthly reports for the months of October 2017 through December 2018, but has failed to submit all required dues and PAC monies as set forth below.

Payee Amount Administrative Dues $6,836.28 PAC $61.33 TOTAL: $6,897.61

7. I am duly authorized by the Union in this behalf, have personal knowledge of the matters set forth above and if called as a witness in this cause, am competent to testify thereto.

8. I make this Certification in support of the application of Plaintiffs for entry of default and judgment and request this Court to consider the same as proof in support of the allegations contained in the Complaint of the Plaintiffs and such other facts herein set forth.

9. I certify under penalty of perjury that the foregoing is true and correct.

Dated: 2-11-2020 _________________________ ALICIA SCHNELL

EXHIBIT B

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Midwest Operating Engineers Welfare Fund, et al. Plaintiffs, CIVIL ACTION No.: 19-CV-02070 v. Brian Burke, individually and Burkes Hauling, Inc., Judge Virginia M. Kendall an Illinois corporation, Magistrate Judge: Maria Valdez Defendants.

CERTIFICATION OF DALE D. PIERSON

I, DALE D. PIERSON, state and certify pursuant to 28 U.S.C. § 1746 as follows:

1. I am one of the attorneys for the Plaintiffs in the above-entitled action. I have personal knowledge of the facts regarding this matter and the time expended in the prosecution of this action now pending in the United States District Court and, if called as a witness, I am competent to testify in respect thereto.

2. My colleagues and I have expended 49.75 hours in the prosecution of the above-entitled action, including the initial investigation and preparation of the Complaint, telephone conversations with representatives of the Plaintiff Funds and Union, preparation of correspondence to the Defendants, office conferences, legal research, review of Plaintiffs' files to determine amounts due from Defendants, and preparing and filing of the instant motion for entry of default and judgment, including Certifications in support thereof.

3. My colleagues and I routinely spend between three-quarters of an hour, to an hour and a half appearing for an in-court hearing on a motion for default judgment. Based on this experience, I estimate that the Funds will incur one (1) additional hour of attorneys' fees to appear for the hearing on the instant motion for default judgment.

4. I have in my possession a complete written record of the hours expended and costs incurred in the prosecution of this action in the form of client billing records which specify the various activities of Counsel required in the litigation of this matter and confirms the number of hours expended and costs incurred as set forth above.

5. The usual and normal hourly charges by Affiant and my colleagues for Federal Court litigation under the Labor-Management Relations Act ("LMRA") and the Employee Retirement Income Security Act ("ERISA") of 1974 range from $300 to $425 per hour for attorneys based on their level of experience and $450 per hour for me as lead counsel.

6. To the best of my knowledge and belief, the rates charged per hour arc less than or equal to the usual and customary rates charged by law firms doing similar work in the United States District Court for the Northern District of Illinois. Those rates, moreover, have been deemed reasonable in prior attorney fees litigation in this Court.

7. Plaintiffs have incurred costs related to the prosecution of this action consisting of $400.00 for their court filing fee and $375.00 to serve Defendants with the summons and complaint, along with travel cost to attend court hearings totaling an amount of $114.46.

8. Section 502(g)(2) of ERISA, as amended, 29 U.S.C. Section 1132(g)(2) provides that the Court must award a Plaintiff its costs and reasonable attorneys' fees:

In any action under this title by a fiduciary for or on behalf of a plan to enforce Section 515 in which a judgment in favor of the plan is awarded, the Court shall award the plan... (D) reasonable attorneys' fees and costs of the action, to be paid by the defendant....

9. Furthermore, the Trust Agreements governing the Funds, and to which Burkes Hauling is bound, provide for payment by the Defendant of all costs of collection, including audit and attorneys' fees incurred by the Plaintiffs.

10. I make this Certification in support of the Plaintiffs' Motion for Entry of Default and Judgment and an award of Plaintiffs' costs totaling $889.46 and the Funds' reasonable attorneys' fees in the sum of $21,143.75, for a total of $22,033.21.

I certify under penalty of perjury that the foregoin is true and correct.

Source:  Leagle

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