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Bricklayers and Allied Craftworkers Local 2, Albany, New York Pension Fund v. Mainstream Specialties Inc.
1:20-cv-00463
N.D.N.Y.
Nov 18, 2020
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Background

  • Plaintiffs are a union and multiple multiemployer benefit funds that allege Mainstream Specialties Inc. failed to submit required contributions and deductions under collective-bargaining agreements and trust agreements; Peter Stevens was the company president/officer.
  • Plaintiffs sued under ERISA and the LMRA and served Mainstream Specialties and Stevens; neither appeared and the clerk entered defaults.
  • Plaintiffs sought a default judgment for unpaid contributions, interest, liquidated damages, audit fees, and attorneys' fees/costs.
  • The Court treated well‑pleaded allegations as admitted by default, reviewed plaintiffs' supporting audits/invoices/time records, and exercised its duty to verify damages.
  • The Court found Mainstream Specialties liable for unpaid contributions and Stevens personally liable as a fiduciary under ERISA, awarded specified contributions, interest, liquidated damages, audit fees, and reduced attorneys' fees to district‑customary rates.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Liability of Mainstream Specialties for unpaid ERISA contributions Mainstream bound by CBA/trusts and failed to remit required contributions and dues Default/no opposing argument Default admitted well‑pleaded allegations; Mainstream liable for unpaid contributions
Quantum of unpaid contributions owed by Mainstream Audits/remittance reports show $73,866.41 unpaid Default/no opposition Court awarded $73,866.41 in unpaid contributions and deductions
Personal fiduciary liability of Peter Stevens Stevens controlled company payments; trusts treat withheld amounts as plan assets, so Stevens is a fiduciary liable for plan losses Default/no opposition Court found Halpin factors satisfied; Stevens personally liable and liable for $58,904.01 in unpaid contributions
Remedies: interest, liquidated damages, audit fees, attorneys' fees/costs Requested specific amounts (interest $32,500.76; liquidated damages $26,681.94; audit $7,810; attorneys $13,490.30 at higher hourly rates) Default/no opposition Court awarded prejudgment interest, 20% liquidated damages, audit fees, and attorneys' fees but reduced hourly rates to $240 for attorneys and $95 for paralegals; total fee/cost awards reflected those rates

Key Cases Cited

  • Bravado Int'l Grp. Merch. Servs., Inc. v. Ninna, Inc., 655 F. Supp. 2d 177 (E.D.N.Y. 2009) (default admits well‑pleaded factual allegations on liability)
  • Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (default judgment principles)
  • Flaks v. Koegel, 504 F.2d 702 (2d Cir. 1974) (damages must be established even after default)
  • Credit Lyonnais Sec. (USA), Inc. v. Alcantara, 183 F.3d 151 (2d Cir. 1999) (court must ensure basis for damages in default judgment)
  • Diduck v. Kaszycki & Sons Contractors, Inc., 974 F.2d 270 (2d Cir. 1992) (prejudgment interest principles and compensating plan for lost use of funds)
  • Bricklayers & Allied Craftworkers Local 2 v. Moulton Masonry & Const., LLC, 779 F.3d 182 (2d Cir. 2015) (fiduciary liability for unlawfully withholding plan assets)
  • In re Halpin, 566 F.3d 286 (2d Cir. 2009) (two‑part test for individual fiduciary liability over unpaid contributions)
  • Toussaint v. JJ Weiser, Inc., 648 F.3d 108 (2d Cir. 2011) (attorney's fees under ERISA §1132(g)(1) require some success on the merits)
  • Hardt v. Reliance Standard Life Ins. Co., 560 U.S. 242 (2010) (clarifying the standard for awarding attorney's fees)
  • Arbor Hill Concerned Citizens Neighborhood Ass'n v. County of Albany, 522 F.3d 182 (2d Cir. 2008) (lodestar/hourly‑rate reasonableness factors)
Read the full case

Case Details

Case Name: Bricklayers and Allied Craftworkers Local 2, Albany, New York Pension Fund v. Mainstream Specialties Inc.
Court Name: District Court, N.D. New York
Date Published: Nov 18, 2020
Docket Number: 1:20-cv-00463
Court Abbreviation: N.D.N.Y.