MOTION FOR JUDGMENT IN SUM CERTAIN
SARA L. ELLIS, 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 August 7, 2017, seeking 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, a Michigan corporation, on August 28, 2017 by serving it via certified mail pursuant to Michigan Court Rule 2.105, a procedure permitted under FRCP 4(e)(1). See Ex. A.
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 September 28, 2017.
4. According to the Declaration of Richard J. Wolf (Ex. A), the resulting audit revealed the following arrearages to the Funds: $172,748.31 in benefits, $17,274.83 in liquidated damages, $15.00 in discrepancies, and $2,240.00 in audit costs, for a total of $192,278.14.
5. According to the Declaration of Andrew S. Pigott, Plaintiffs' attorney fees in this matter total $15,193.75.
6. Plaintiffs forwarded a copy of the audit to Defendant's attorney and requested he contact Plaintiffs' counsel to discuss the findings, but Defendant's attorney made no further contact after initially indicating he would.
WHEREFORE, Plaintiffs ask this Court to enter the Order attached to this Motion as Exhibit C.
Exhibit A
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
TRUSTEES OF THE WILL COUNTY LOCAL 174
CARPENTERS PENSION TRUST FUND, et al.,
No. 17 CV 5726
Plaintiffs,
Judge Ellis
v.
Magistrate Judge Schenkier
LAKESIDE RACK INSTALLERS, INC.,
Defendant.
DECLARATION OF RICHARD J. WOLF
Richard J. Wolf, subject to the laws of perjury and pursuant to 28 U.S.C. § 1746, states 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. Between March and June 2018, Richard J. Wolf & Company audited the books and records of Lakeside Rack Installers for the period from January 1, 2016 through December 31, 2017, revealing the following arrearages to the Plaintiff Funds: $172,748.31 in benefits, $17,274.83 in liquidated damages, $15.00 in discrepancies, and $2,240.00 in audit costs for a total of $192,278.14.
5. A copy of the audit report detailing our findings is attached to my Declaration.
Executed on: 6/13/18
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
June 4, 2018
Board of Trustees of the Various
Fringe Benefit Funds of the
Carpenters Local 174
RE: Lakeside Rack Installers Inc. (6585)
We have performed a fringe benefit contribution compliance audit of Lakeside Rack Installers Inc., for the period from January 1, 2016 through December 31, 2017. The audit encompassed the comparison of individual earnings records to certain payroll tax and fund reports and a review of the general disbursement records.
The comparison and review indicate that the employer has not complied with its fringe benefit contribution requirements and owes the following amounts:
FUND AMOUNT
WELFARE $ 61,970.32
PENSION 98,246.59
WGIAT 568.54
APPR 3,256.16
ALLIANCE 103.37
INTL PROMO 516.85
LMF 1,814.73
SUPP RET 6,271.75
___________
Sub Total $172,748.31
10% Liq. Damages $ 17,274.83
___________
Sub Total $190,023.14
Discrepancy (2/2017) $ 15.00
___________
Sub Total $190,038.14
Audit Cost $ 2,240.00
___________
TOTAL $192,278.14
===========
In addition, the employer could not provide proof of a current wage and fringe benefit bond.
RICHARD J. WOLF AND COMPANY, INC.
WILL COUNTY CARPENTERS LOCAL UNION NO. 174-COMMERCIAL
LAKESIDE RACK INSTALLERS, INC. # 6585
YEAR: 2017
ADDITIONAL HOURS 1/17-12/17
S.S.# Flags Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
CECI, BRIAN # Hours - - 160.00 60.00 - - - - - - - - 220.00
XXXXX4398
CERWIN, STEVEN # Hours - - 140.00 56.00 - - - - - - - - 196.00
XXXXX6306
CHARTRAND, JIMI # Hours - - 174.00 - - - - - - - - - 174.00
XXXXX3334
ELLOITT, BRIAN # Hours - - 150.00 - 23.00 164.00 110.00 - - - - - 447.00
XXXXX4089
GRYGIEL, JERRY # Hours - - 160.00 100.00 147.00 165.00 174.00 - - - - - 746.00
XXXXX5020
HILBER, JAMES # Hours - - 160.00 60.00 - - - - - - - - 220.00
XXXXX6145
KENNEDY, JAMIE # Hours - - 160.00 50.00 - - - - - - - - 210.00
XXXXX2936
LOFTIS, RANDY # Hours - - 155.00 40.00 - - - - - - - - 195.00
XXXXX2581
MEDLIN, ADAM # Hours - - 150.00 60.00 20.00 100.00 198.00 - - - - - 528.00
XXXXX4498
PIEL, PHILLIP # Hours - - 200.00 40.00 176.00 180.00 174.00 - - - - - 770.00
XXXXX6528
WARD, HAYDEN # Hours - - 40.00 - - - - - - - - - 40.00
XXXXX7954
WILLIAMS, DELBERT # Hours - - 158.00 50.00 - - - - - - - - 208.00
XXXXX1114
TOTAL HOURS - - 1,807.00 516.00 366.00 609.00 656.00 - - - - - 3,954.00
AMOUNT DUE TO FUNDS: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
WELFARE $ - $ - $21,665.93 $ 6,186.84 $ 4,388.34 $ 7,301.91 $ 7,865.44 $ - $ - $ - $ - $ - $ 47,408.46
PENSION $ - $ - $33,754.76 $ 9,638.88 $ 6,836.88 $11,845.05 $12,759.20 $ - $ - $ - $ - $ - $ 74,834.77
WGIAT $ - $ - $ 198.77 $ 56.76 $ 40.26 $ 66.99 $ 72.16 $ - $ - $ - $ - $ - $ 434.94
APPR $ - $ - $ 1,138.41 $ 325.08 $ 230.58 $ 383.67 $ 413.28 $ - $ - $ - $ - $ - $ 2,491.02
ALLIANCE $ - $ - $ 36.14 $ 10.32 $ 7.32 $ 12.18 $ 13.12 $ - $ - $ - $ - $ - $ 79.08
INTL PROMO $ - $ - $ 180.70 $ 51.60 $ 36.60 $ 60.90 $ 65.60 $ - $ - $ - $ - $ - $ 395.40
LMF $ - $ - $ 487.89 $ 139.32 $ 98.82 $ 280.14 $ 301.76 $ - $ - $ - $ - $ - $ 1,307.93
SUPP RET $ - $ - $ 1,807.00 $ 516.00 $ 366.00 $ 913.50 $ 984.00 $ - $ - $ - $ - $ - $ 4,586.50
______________________________________________________________________________________________________________________________________________
TOTAL $ - $ - $59,269.60 $16,924.80 $12,004.80 $20,864.34 $22,474.56 $ - $ - $ - $ - $ - $131,538.10
Rates: 6/1/16 to 5/31/17 Rates: 6/1/17 to 5/31/18
WELFARE 11.99 ALLIANCE 0.02 WELFARE 11.99 ALLIANCE 0.02
PENSION 18.68 INTL PRO 0.10 PENSION 19.45 INTL PRO 0.10
WGIAT 0.11 LMF 0.27 WGIAT 0.11 LMF 0.46
APPR 0.63 DUES APPR 0.63 DUES
SUPP RET 1.00 SUPP RET 1.50
WILL COUNTY CARPENTERS LOCAL UNION NO. 174-COMMERCIAL
LAKESIDE RACK INSTALLERS, INC. # 6586
YEAR: 2017
UNREPORTED HOURS 1/17-12/17
S.S.# Flags Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
ELLOITT, RYAN 46.35 Hours - - - - - - 151.50 - - - - - 151.50
XXXXX7682
HEATH, DALTON 34.21 Hours - - - - - 40.00 56.00 - - - - - 96.00
XXXXX4283
MAKSYMOWICZ, MICHAL 46.35 Hours - - - 40.00 160.00 180.00 196.00 - - - - - 576.00
XXXXX7697
PEREYRA, JERRY 22.68 Hours - - - - 73.00 168.00 150.00 - - - - - 391.00
XXXXX7834
TOTAL HOURS - - - 40.00 233.00 388.00 553.50 - - - - - 1,214.50
AMOUNT DUE TO FUNDS: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
WELFARE $ - $ - $ - $ 479.60 $2,793.67 $ 4,652.12 $ 6,636.47 $ - $ - $ - $ - $ - $14,561.86
PENSION $ - $ - $ - $ 747.20 $4,352.44 $ 7,546.60 $10,765.58 $ - $ - $ - $ - $ - $23,411.82
WGIAT $ - $ - $ - $ 4.40 $ 25.63 $ 42.68 $ 60.89 $ - $ - $ - $ - $ - $ 133.60
APPR $ - $ - $ - $ 25.20 $ 146.79 $ 244.44 $ 348.71 $ - $ - $ - $ - $ - $ 765.14
ALLIANCE $ - $ - $ - $ 0.80 $ 4.66 $ 7.76 $ 11.07 $ - $ - $ - $ - $ - $ 24.29
INTL PROMO $ - $ - $ - $ 4.00 $ 23.30 $ 38.80 $ 55.35 $ - $ - $ - $ - $ - $ 121.45
LMF $ - $ - $ - $ 10.80 $ 62.91 $ 178.48 $ 254.61 $ - $ - $ - $ - $ - $ 506.80
SUPP RET $ - $ - $ - $ 40.00 $ 233.00 $ 582.00 $ 830.25 $ - $ - $ - $ - $ - $ 1,685.25
____________________________________________________________________________________________________________________________________
TOTAL $ - $ - $ - $1,312.00 $7,642.40 $13,292.88 $18,962.93 $ - $ - $ - $ - $ - $41,210.21
____________________________________________________________________________________________________________________________________
Rates: 6/1/16 to 5/31/17 Rates: 6/1/17 to 5/31/18
WELFARE 11.99 ALLIANCE 0.02 WELFARE 11.99 ALLIANCE 0.02
PENSION 18.68 INTL PRO 0.10 PENSION 19.45 INTL PRO 0.10
WGIAT 0.11 LMF 0.27 WGIAT 0.11 LMF 0.46
APPR 0.63 DUES APPR 0.63 DUES
SUPP RET 1.00 SUPP RET 1.50
WILL COUNTY CARPENTERS LOCAL UNION NO. 174 - COMMERCIAL
LAKESIDE RACK INSTALLERS, INC. # 6585
RICHARD J. WOLF AND COMPANY, INC.
SUMMARY REPORT TOTAL
ADDITIONAL UNREPORTED TOTAL
WELFARE $ 47,408.46 $ 14,561.86 $ 61,970.32
PENSION $ 74,834.77 $ 23,411.82 $ 98,246.59
WGIAT $ 434.94 $ 133.60 $ 568.54
APPR $ 2,491.02 $ 765.14 $ 3,256.16
ALLIANCE $ 79.08 $ 24.29 $ 103.37
INTL PROMO $ 395.40 $ 121.45 $ 516.85
LMF $ 1,307.93 $ 506.80 $ 1,814.73
SUPP RET $ 4,586.50 $ 1,685.25 $ 6,271.75
____________ ___________ ____________
TOTAL $ 131,538.10 $ 41,210.21 $ 172,748.31
============ =========== ============
WILL COUNTY CARPENTERS LOCAL UNION NO. 174 - COMMERCIAL
LAKESIDE RACK INSTALLERS, INC. # 6585
RICHARD J. WOLF AND COMPANY, INC.
** GRAND TOTAL **
WELFARE $ 61,970.32
PENSION $ 98,246.59
WGIAT $ 568.54
APPR $ 3,256.16
ALLIANCE $ 103.37
INTL PROMO $ 516.85
LMF $ 1,814.73
SUPP RET $ 6,271.75
____________
TOTAL $ 172,748.31
============
From: Amy Suffecool <asuffecool@local174benefits.com>
Sent: Thursday, May 24, 2018 8:33 AM
To: Laura
Subject: RE: LAKESIDE RACK INSTALLERS
Hi Laura,
Lakeside rack has no LDs and 1 outstanding discrepancy:
2/2017 $15.00
Thank you,
Amy Suffecool
Will County Carpenters Local 174 Benefit Funds
1403 Essington Rd Ste 100 Joliet, IL 60435
Phone: 815-741-4737
Fax: 815-741-3147
Email: asuffecool@local 174benefits.com
Exhibit B
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
TRUSTEES OF THE WILL COUNTY LOCAL 174
CARPENTERS PENSION TRUST FUND, et al.,
No. 17 CV 5726
Plaintiffs,
Judge Ellis
v.
Magistrate Judge Schenkier
LAKESIDE RACK INSTALLERS, INC.,
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. I have spent at least 55.25 hours in litigation of this matter, resulting primarily from Defendant's failure to comply with Plaintiffs' audit, ultimately mandated by this Court.
3. Arnold & Kadjan charges the Plaintiffs $275.00 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 $15,193.75 for its work in this matter.
Exectued on: 6/13/18
Andrew S. Pigott
Exhibit C
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
TRUSTEES OF THE WILL COUNTY LOCAL 174
CARPENTERS PENSION TRUST FUND, et al.,
No. 17 CV 5726
Plaintiffs,
Judge Ellis
v.
Magistrate Judge Schenkier
LAKESIDE RACK INSTALLERS, INC.,
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:
1. Plaintiffs filed their Complaint, seeking an order compelling an ERISA fringe benefit contributions audit of Defendant, and a judgment for any amounts determined due by the audit, on August 7, 2017. Defendant never appeared, nor answered or otherwise pled to the Complaint.
2. Therefore, on September 28, 2017, this Court entered an order finding Defendant, LAKESIDE RACK INSTALLERS in default, and ordering it to comply with the requested audit.
3. According to the Declaration of Richard J. Wolf (Ex. A), the resulting audit revealed the following arrearages to the Funds: $172,748.31 in benefits, $17,274.83 in liquidated damages, $15.00 in discrepancies, and $2,240.00 in audit costs, for a total of $192,278.14.
4. According to the Declaration of Andrew S. Pigott, Plaintiffs' attorney fees in this matter total $15,193.75. The Court finds these fees reasonable.
5. Defendant still has not appeared in this action, nor responded to the audit report after its provision by Plaintiffs.
WHEREFORE, the Court enters judgment in favor of Plaintiffs and against Defendant, LAKESIDE RACK INSTALLERS, INC., in the amount of $207,471.89.
SO ORDERED.
Entered: ________________________
Date
By: _____________________________
Hon. Sara L. Ellis
U.S. District Judge