MARGO K. BRODIE, District Judge.
Plaintiffs Edwin L. Christian, Chris Confrey, John Cronin, Don Denardo, Kenneth Klemens, John F. O'Haire, Denise M. Richardson and Ernesto Tersigni are trustees of the Annuity, Pension, Welfare and Training Funds of the International Union of Operating Engineers, Local 14-14B, AFL-CIO (collectively, the "Local 14 Trust Funds") who commenced this action on February 4, 2015, against construction company Superior Site Work, Inc. under sections 502 and 515 of the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1132(a)(3) & 1145 ("ERISA"), and section 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185 ("LMRA"). (Compl. ¶¶ 1-2, Docket Entry No. 1.) Plaintiffs seek to recover fringe benefit contributions owed to employee trust funds and statutory damages for an alleged breach of a collective bargaining agreement. (Id.) Based on additional information received during discovery, Plaintiffs filed an Amended Complaint on May 26, 2015 requesting additional contributions. (Am. Compl., Docket Entry No. 12.)
On April 5, 2016, Plaintiffs moved for summary judgment seeking a judgment in the amount of $177,636.80, consisting of a principal deficiency of $153,587.90, interest of $7760.15, and attorneys' fees and costs of $15,793.75 and $495.00, respectively, plus additional interest and statutory damages in amounts to be determined. (Pls. Mot. for Summ. J. ("Pls. Mot."), Docket Entry No. 25; Statement of Damages at 1, annexed to Pls. Mot. as Ex. 1.) Despite conferring with Plaintiffs on a briefing schedule and taking part in settlement negotiations as late as February of 2016, Defendant has not opposed Plaintiffs' motion for summary judgment and appears to have stopped defending this action. (See Joint Mot. for Extension of Time, Docket Entry No. 24.) For the reasons discussed below, the Court grants Plaintiffs' motion for summary judgment.
The Local 14 Trust Funds are multi-employer benefit plans and third-party beneficiaries to a collective bargaining agreement ("CBA") between Defendant and Local 14-14B International Union of Operating Engineers ("Local 14").
On or about November 18, 2014, Plaintiffs and their certified public accounting firm conducted an audit of Defendant's books and records. (Affidavit of Lisa Madeiras in Supp. of Pls. Mot. ("Madeiras Aff.") ¶ 3, Docket Entry No. 30.) The audit covered Defendant's payroll records from July 1, 2011 through December 7, 2014. (Id.) The initial audit report identified a deficiency of $162,750.17 in the amount due and owing to Local 14 Trust Funds.
The Local 14 Trust Funds requested that Defendant produce a contribution history report from the Local 138 Trust Funds, Batista's home funds, or other independent documentation to support Defendant's position that Batista had not operated heavy construction equipment despite having received and redeemed stamps from Defendant during that period.
On June 2, 2015, Plaintiffs served their initial disclosures on Defendant. (Pls. Initial Disclosures, annexed to Steinberg Aff. as Ex. O.) At a conference held before Magistrate Judge Viktor Pohorelsky on June 17, 2015, Defendant was ordered to "provide initial disclosures within 7 days." (Minute Entry dated June 17, 2015, Docket Entry No. 15.) Defendant never served its initial disclosures. (Steinberg Aff. ¶ 6.) Plaintiffs attempted, but were unable, to informally gather additional information from Defendant to support the alleged discrepancy regarding Batista's hours. (Id. ¶ 7.) Accordingly, Plaintiffs served their first set of discovery requests on August 10, 2015. (Pls. Interrogs., annexed to Steinberg Aff. as Ex. Q; Pls. Req. for Prod., annexed to Steinberg Aff. as Ex. R.) The requests included a demand for further information to support Defendant's objection to the audit results as to Batista's hours. (Id.; Steinberg Aff. ¶ 7.) At a status conference held on September 9, 2015, Judge Pohorelsky ordered Defendant to respond to Plaintiffs' discovery requests by September 30, 2015. (Order dated Sept. 9, 2015, Docket Entry No. 17.) Judge Pohorelsky advised Defendant that if it failed to respond by the deadline, Plaintiffs would be entitled to "move for such relief as they deem appropriate including the preclusion of evidence." (Id.) Defendant did not respond to Plaintiffs' discovery requests. (Pls. 56.1 ¶ 40; Ltr. from Pl. dated Oct. 5, 2015, annexed to Steinberg Aff. as Ex. T.)
In support of their motion for summary judgment, Plaintiffs have submitted a final audit report identifying a deficiency of $161,348.05, which reflects specific amounts owed for ERISA and non-ERISA contributions. (Affidavit of Edwin L. Christian in Supp. of Pls. Mot. ("Christian Aff.") ¶ 9, Docket Entry No. 28; Final Audit Report dated Dec. 9, 2015 ("Final Report"), annexed to Steinberg Aff. as Ex. V.) The Final Report reflects an amount that includes sixpercent interest on the ERISA funds for welfare, pension, annuity and training;
Summary judgment is proper only when, construing the evidence in the light most favorable to the non-movant, "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a); Davis v. Shah, 821 F.3d 231, 243 (2d Cir. 2016); see also Cortes v. MTA NYC Transit, 802 F.3d 226, 230 (2d Cir. 2015); Tolbert v. Smith, 790 F.3d 427, 434 (2d Cir. 2015); Zann Kwan v. Andalex Grp. LLC, 737 F.3d 834, 843 (2d Cir. 2013). The role of the court "is not to resolve disputed questions of fact but only to determine whether, as to any material issue, a genuine factual dispute exists." Rogoz v. City of Hartford, 796 F.3d 236, 245 (2d Cir. 2015) (first quoting Kaytor v. Elec. Boat Corp., 609 F.3d 537, 545 (2d Cir. 2010); and then citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50 (1986)). A genuine issue of fact exists when there is sufficient "evidence on which the jury could reasonably find for the plaintiff." Anderson, 477 U.S. at 252. The "mere existence of a scintilla of evidence" is not sufficient to defeat summary judgment. Id. The court's function is to decide "whether, after resolving all ambiguities and drawing all inferences in favor of the non-moving party, a rational juror could find in favor of that party." Pinto v. Allstate Ins. Co., 221 F.3d 394, 398 (2d Cir. 2000).
Where, as here, a motion for summary judgment is unopposed, "the district court may not grant the motion without first examining the moving party's submission to determine if it has met its burden of demonstrating that no material issue of fact remains for trial." Amaker v. Foley, 274 F.3d 677, 681 (2d Cir. 2001). "Before summary judgment may be entered, the district court must ensure that each statement of material fact is supported by record evidence sufficient to satisfy the movant's burden of production even if the statement is unopposed." Jackson v. Fed. Exp., 766 F.3d 189, 194 (2d Cir. 2014) (citing Vt. Teddy Bear Co., Inc. v. 1-800 Beargram Co., 373 F.3d 241, 244 (2d Cir. 2004)). "In doing so, the court may rely on other evidence in the record even if uncited." Id. (citing Fed. R. Civ. P. 56(c)(3)).
Section 515 of ERISA provides:
29 U.S.C. § 1145. Similarly, the LMRA authorizes federal "[s]uits for violation of contracts between an employer and a labor organization representing employees." Id. § 185(a); see also Brown v. C. Volante Corp., 194 F.3d 351, 354 (2d Cir. 1999) (explaining lawsuit for failure to abide by a collective bargaining agreement is governed by 29 U.S.C. § 185(a)).
Here, the facts establish that Defendant failed to make required contributions pursuant to the CBA, violating ERISA. Local 14 and Defendant are parties to a CBA for the period covered by the auditor's report. Pursuant to that CBA and the GCA Contracts, Defendant purchased stamps for work performed by its employees between July 1, 2011 and December 7, 2014. The auditor reviewed Defendant's books and records and discovered that Defendant had failed to purchase the required number of stamps for all hours worked by employees covered under the CBA and GCA Contracts.
Plaintiffs request that the Court accept their damages calculations and award damages as listed in their Statement of Damages. (Pls. Mem. 17.) Ordinarily, claims for damages must be established in an evidentiary proceeding at which a defendant is afforded an opportunity to contest the amount claimed. See Fustok v. Conticommodity Servs., Inc., 873 F.2d 38, 40 (2d Cir. 1989). However, a court may make this determination based upon evidence presented at a hearing or upon a review of detailed affidavits and documentary evidence submitted by the plaintiffs. See Action S.A. v. March Rich & Co., Inc., 951 F.2d 504, 508 (2d Cir. 1991); Fustok, 873 F.2d at 40. Here, Defendant has been on notice of the damages Plaintiffs sought since the filing of the Complaint, (Compl. ¶ 25), and it has not disputed Plaintiffs' documentary evidence. The Court will therefore determine damages based on the documentary record before it.
Section 502(g) of ERISA provides that upon finding a violation of section 515, "the court shall award the plan" the following:
Id. § 1132(g). In other words, the "special remedy against employers who are delinquent in meeting their contractual obligations that is created by § 502(g)(2) includes a mandatory award of prejudgment interest plus liquidated damages in an amount at least equal to that interest, as well as attorney's fees and costs." Int'l Ass'n of Heat & Frost Insulators v. CAC of N.Y., Inc., No. 13-CV-39, 2015 WL 691192, at *2 (S.D.N.Y. Feb. 18, 2015) (quoting Laborers Health & Welfare Tr. Fund v. Adv. Lightweight Concrete Co., Inc., 484 U.S. 539, 547 (1988)).
Plaintiffs seek $120,897.55 in delinquent ERISA contributions and $32,690.35 in delinquent non-ERISA contributions. (Statement of Damages at 1.) As explained above, the auditors arrived at these sums by taking the number of regular and overtime hours worked by covered employees during each of the relevant time periods and multiplying those categories of hours by their respective fringe benefit contribution rates. (See Wage Scales, annexed to Steinberg Aff. as Ex. H; Final Report at Summary; see also Monterroso Aff. ¶¶ 7-9.) The Court is satisfied that the evidence substantiates the amount of unpaid principal reflected in the auditor's Final Report and in Plaintiffs' Statement of Damages.
Plaintiffs also seek interest on unpaid contributions to the ERISA plans. (Statement of Damages at 1.) ERISA provides that interest will be calculated using the rate in the relevant benefit plan, or if the plan sets no such rate, a prescribed statutory rate. 29 U.S.C. § 1132(g)(2); 26 U.S.C. § 6621. Under the Trust Agreements establishing the Local 14 Trust Funds, a sixpercent (6%) interest rate applies to late and unpaid ERISA plan contributions.
Plaintiffs request an additional sum equal to the amount of prejudgment interest on the delinquent ERISA contributions. (Pls. Mem. 19.) Under section 502(g)(2) of ERISA, Plaintiffs are entitled to interest on the delinquent contributions and are also entitled to statutory damages at "an amount equal to the greater of interest on the unpaid contributions, or liquidated damages provided for under the plan." See 29 U.S.C. § 1132(g)(2). The Trust Agreements do not provide for liquidated damages, therefore Plaintiffs are entitled to statutory damages in an amount equal to that of the interest calculated in the section above.
Plaintiffs also seek to recover attorneys' fees in the amount of $15,793.75 and costs in the amount of $495.00. (Statement of Damages at 1.) A district court must award attorneys' fees and costs in a successful ERISA action that results in judgment in favor of the plan. See 29 U.S.C. § 1132(g)(2)(D); Labarbera v. Clestra Hauserman, Inc., 369 F.3d 225, 226 (2d Cir. 2004) ("In that case, the statute renders fees and costs mandatory: `the court shall award the plan' reasonable fees and costs." (quoting 29 U.S.C. § 1132(g)(2))).
In deciding what fees are due to a plaintiff's attorneys, the Court must consider "what a reasonable client would be willing to pay to determine the `presumptively reasonable fee.'" Trs. of Local 813 Ins. Trust Fund v. Bradley Funeral Serv., Inc., No. 11-CV-2885, 2012 WL 3871759, at *5 (E.D.N.Y. Aug. 10, 2012), report and recommendation adopted, 2012 WL 3871755 (E.D.N.Y. Sept. 4, 2012); see also Arbor Hill Concerned Citizens Neighborhood Ass'n v. Cty. of Albany, 522 F.3d 182, 183-84 (2d Cir. 2007). To calculate the amount of a "presumptively reasonable fee," the court multiplies a reasonable hourly rate by the number of hours reasonably expended on the matter. Simmons v. N.Y.C. Transit Auth., 575 F.3d 170, 174 (2d Cir. 2009) (explaining the "substance of" the traditional lodestar approach and a twelvefactor "reasonableness" approach to determining fees informed the "presumptively reasonable fee" test). When determining whether the presumptively reasonable fee is ultimately reasonable, a court must "bear in mind all of the case-specific variables that we and other courts have identified as relevant to the reasonableness of attorneys' fees . . . ."
In reviewing a fee application, courts may review the expenditure of hours submitted by counsel, and adjust to a reasonable amount, as determined in light of the particulars of the case. Gayle v. Harry's Nurses Registry, Inc., No. 07-CV-4672, 2013 WL 5502951, at *7 (E.D.N.Y. Aug. 26, 2013) report and recommendation adopted, No. 07-CV-4672, 2013 WL 5502950 (E.D.N.Y. Sept. 30, 2013). To obtain an award of attorneys' fees, a plaintiff must provide contemporaneous time records which support the date work was performed, the nature of the hours expended, and the work done. See Scott v. City of New York, 643 F.3d 56, 58-59 (2d. Cir. 2011); Pilitz v. Inc. Vill. of Freeport, No. 07-CV-4078, 2011 WL 5825138, at *4 (E.D.N.Y. Nov. 17, 2011) ("The burden is on the party seeking attorney's fees to submit sufficient evidence to support the hours worked and the rates claimed . . . . Accordingly, the party seeking an award of attorney's fees must support its application by providing contemporaneous time records that detail `for each attorney, the date, the hours expended, and the nature of the work done.'" (first citing Hensley v. Eckerhart, 461 U.S. 424, 453 (1983) and then citing Cho v. Koam Med. Servs. P.C., 524 F.Supp.2d 202, 209 (E.D.N.Y. 2007); quoting N.Y. Ass'n for Retarded Children, Inc. v. Carey, 711 F.2d 1136, 48 (2d Cir. 1983))).
Here, although Plaintiffs do not support their fee request with contemporaneous time records, Plaintiffs' counsel has submitted a summary of his time records.
Plaintiffs' costs — $400.00 for filing fees and $95.00 for service of process — are also reasonable. (See Statement of Damages at 1; Pls. Mem. 22.) Accordingly, Plaintiffs will be awarded the requested $15,793.75 in attorneys' fees and $495.00 in costs.
Finally, Plaintiffs seek prejudgment interest on the delinquent non-ERISA contributions. (Statement of Damages at 1.) Plaintiffs request that the Court apply a nine-percent annual interest rate derived from New York C.P.L.R. section 5004 to an intermediate date between July 1, 2011 and December 15, 2014. (Pls. Mem. 24.)
The Second Circuit permits an award of prejudgment interest for LMRA claims at the Court's discretion and at a rate within the Court's discretion. See Finkel, 543 F. Supp. 2d at 162 (citing Lodges 743 & 1746, Int'l Ass'n of Machinists & Aerospace Workers, AFL-CIO v. United Aircraft Corp., 534 F.2d 422, 446-47 (2d Cir. 1975)); see also Taaffe v. Life Ins. Co. of N. Am., 769 F.Supp.2d 530, 538 (S.D.N.Y. 2011) ("Choosing an interest rate, as noted above is a matter `confided to the district court's broad discretion.'" (quoting Sec. & Exch. Comm'n v. First Jersey Sec., Inc., 101 F.3d 1450, 1476 (2d Cir. 1996))).
New York C.P.L.R. section 5004 applies a nine-percent annual interest rate for judgments arising under New York law. N.Y. C.P.L.R. § 5004 (applying a nine-percent annual rate "except where otherwise provided by statute"). Because Plaintiffs seek to recover the delinquent non-ERISA contributions under the LMRA, which allows them to sue in federal court for breaches of state-law labor contracts, the rate under section 5004 is appropriate here.
Moreover, courts in this district regularly apply the section 5004 rate to non-ERISA delinquencies. See Bricklayers Ins. & Welfare Fund v. J.K. Merillin Builders, Inc., No. 13-CV-1048, 2014 WL 6674404, at *7 (E.D.N.Y. Oct. 6, 2014); Flanagan v. Marson Grp., Ltd., No. 11-CV-2896, 2014 WL 4426277, at *5 (E.D.N.Y. Aug. 11, 2014); Trs. of Steamfitters' Local Union No. 638 v. Nexus Mech., Inc., No. 08-CV-3214, 2014 WL 1338377, at *6 (E.D.N.Y. Apr. 2, 2014); Bricklayers Ins. & Welfare Fund v. Verse Inc., No. 12-CV-4271, 2013 WL 4883966, at *7 (E.D.N.Y. Sept. 11, 2013); Taaffe, 769 F. Supp. 2d at 538-39; but see Omega Commc'n Servs, Inc., 543 F. Supp. 2d at 162 ("In the absence of an agreement between the parties [regarding the non-ERISA rate], I see no reason to award a higher interest rate to the Non-ERISA Plans than that allotted to the ERISA Plans . . . ."); Finkel v. Fervent Elec. Corp., No. 13-CV-3289, 2015 WL 1469650, at *5 (E.D.N.Y. Feb. 23, 2015) (applying the same interest rate governing ERISA contributions to non-ERISA contributions under the parties' contract). Because Defendant has not disputed Plaintiffs' proposed interest rate and the Court finds it reasonable, the Court awards Plaintiffs nine-percent per year on the outstanding non-ERISA deficiency.
In the absence of a specific interest rate to apply, Plaintiffs' auditor did not calculate interest on the non-ERISA deficiencies. (See Final Report.) Because those amounts came due at different times, Plaintiffs encourage the Court to apply an intermediate date as the interest accrual date. (Pls. Mem. 24.) Under New York law, where damages "were incurred at various times, interest shall be computed upon each item from the date it was incurred or upon all of the damages from a single reasonable intermediate date." N.Y. C.P.L.R. § 5001(b). Accordingly, courts in ERISA cases "routinely calculate prejudgment interest from a midpoint date in the delinquency period." Alston v. Northstar La Guardia LLC, No. 10-CV-3611, 2010 WL 3432307, at *3 (S.D.N.Y. Sept. 3, 2010) (citing Finkel v. Triple A Grp. Inc., 708 F.Supp.2d 277, 287-88 (E.D.N.Y. 2010)); Tr. of the Plumbers Local Union No. 1 Welfare Fund v. Manhattan Plumbing Corp., 2009 WL 5821676, at *5 n.4 (E.D.N.Y. Oct. 8, 2009) ("New York law, which federal courts frequently apply in calculating interest in ERISA cases, provides that when damages are incurred over a period of time, prejudgment interest may be calculated from a `single reasonable intermediate date.'" (quoting N.Y. C.P.L.R. § 5001(b))).
In this case, the delinquency period extended from July 1, 2011 until December 15, 2014. (See Pls. 56.1 ¶ 16.) The intermediate date of the delinquency period is March 23, 2013. Multiplying the amount Defendant owed in non-ERISA contributions ($32,690.35) by the annual interest rate of nine percent, and dividing that amount by 365, the daily interest rate on Defendant's non-ERISA delinquency is $8.06. Accordingly, Defendant owes Plaintiffs $11,501.62 in prejudgment interest from March 23, 2013 through the date of this Memorandum and Order.
For the reasons set forth above, the Court grants Plaintiffs' motion for summary judgment and directs the Clerk of Court to award judgment in the amount of $228,417.47 as detailed above and below, and as calculated through the date of this Memorandum and Order:
If judgment is entered after the date of this Memorandum and Order, the Clerk of Court should add to the ERISA and non-ERISA deficiencies additional per-day interest rates in the amounts identified above.
SO ORDERED.
Finkel v. Rico Elec., Inc., No. 11-CV-4232, 2012 WL 6569779, at *12-14 (E.D.N.Y. Oct. 1, 2012) (quoting Arbor Hill Concerned Citizens Neighborhood Ass'n v. Cty. of Albany, 522 F.3d 182, 187 n.3 (2d Cir. 2007)) (internal quotation marks omitted) report and recommendation adopted, No. 11-CV-4232, 2012 WL 6561270 (E.D.N.Y. Dec. 17, 2012). In addition, courts are also instructed to evaluate the complexity and difficulty of the case, the availability and expertise of the client's other counsel, the resources necessary to effectively litigate the case, the timing demands of the case, the attorney's interest in achieving the ends of the litigation and whether the attorney may have initially aced pro bono, and other returns the attorney may expect from representation. Arbor Hill, 522 F.3d at 184. While the traditional "lodestar" method, which does not consider the above factors, has "achieved dominance in the federal courts," courts in this Circuit continue to take the Arbor Hill factors into consideration when determining what constitutes a reasonable fee. See Finkel, 2012 WL 6569779, at *13. In any event, determining the "presumptively reasonable fee" and adjusting it based on the above factors produces the same result as applying the traditional "lodestar" analysis in this case.
Taaffe, 769 F.Supp.2d 530, 538 (S.D.N.Y. 2011) (quoting Alfano, No. 07-CV-9961, 2009 WL 890626, at *7 (S.D.N.Y. Apr. 2, 2009)).