Mastropietro v. Burbank Electrical Contractor, Inc.
1:21-cv-01129-BKS-ML
N.D.N.Y.Oct 17, 2022Background
- Plaintiffs (trustees of I.B.E.W. Local 236 Health & Benefit Fund, Annuity Fund, and the Union) sued Burbank Electrical Contractor, Inc. and Dean Burbank for failing to remit required contributions/dues and for conversion, asserting ERISA, LMRA, and state-law claims.
- Defendants were served but never answered or appeared; Plaintiffs obtained a clerk’s entry of default and moved for default judgment.
- Plaintiffs allege Burbank failed to pay required contributions and dues for April 2019–February 2020 and sought monetary relief (roughly $25,000 in fund arrears plus interest, dues, J.A.T.C. contributions, costs, and $3,500 in attorney’s fees).
- Plaintiffs also allege Dean Burbank, as company president/controller, exercised control over corporate payments and thus is a fiduciary liable under ERISA.
- The court denied the default-judgment motion without prejudice because Plaintiffs failed to submit the underlying collective-bargaining and trust agreements and did not provide admissible evidence supporting the damages, attorney’s fees, or costs requested.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entry of default / procedural sufficiency | Plaintiffs complied with service and obtained clerk's entry; entitled to default judgment | No opposition/appearance | Clerk’s entry of default proper; court still must assess sufficiency of claims before entering judgment |
| Employer liability under ERISA §515 (failure to remit contributions) | Burbank agreed to be bound by the Agreement and failed to remit monthly contributions for Apr 2019–Feb 2020 | No appearance; court notes absence of the Agreement’s terms in the record | Court declined to find liability at this time—Plaintiffs must produce the Agreement and supporting documents |
| Individual fiduciary liability (Dean Burbank) under ERISA | Dean exercised control over company payments and diverted funds, making him a fiduciary responsible for unpaid contributions | No appearance; court requires proof that unpaid contributions were plan assets per agreement | Complaint alleges sufficient control to plead fiduciary status, but court refused to enter judgment until Plaintiffs submit agreements showing when unpaid contributions became plan assets |
| Damages, interest, fees, costs | Plaintiffs provided affidavits asserting specific amounts owed, interest, and attorney’s fees | No opposing evidence; court found submitted affidavits lacked the agreement terms and adequate calculations or contemporaneous billing | Court denied damages and fee awards for lack of admissible evidence and clear calculations; directed Plaintiffs to submit agreements, documentary support, and fee records on renewal |
Key Cases Cited
- Priestly v. Headminder, Inc., 647 F.3d 497 (2d Cir. 2011) (two-step Rule 55 entry-of-default and entry-of-judgment process)
- City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114 (2d Cir. 2011) (a defaulting defendant admits well-pleaded factual allegations)
- Finkel v. Romanowicz, 577 F.3d 79 (2d Cir. 2009) (court must review sufficiency of complaint before entering default judgment)
- In re Halpin, 566 F.3d 286 (2d Cir. 2009) (to impose fiduciary liability, unpaid contributions must be plan assets and the defendant must have controlled them)
- Bricklayers & Allied Craftworkers Local 2 v. Moulton Masonry & Constr., LLC, 779 F.3d 182 (2d Cir. 2015) (individuals who control payment priorities may qualify as ERISA fiduciaries)
- Cement & Concrete Workers Dist. Council Welfare Fund v. Metro Found. Contractors Inc., 699 F.3d 230 (2d Cir. 2012) (default does not establish damages; damages must be supported by admissible evidence)
- Trs. of Metal Polishers Local 8A-28A Funds v. Prestige Restoration & Maint., LLC, 986 F. Supp. 2d 159 (E.D.N.Y. 2013) (denying damages where calculations and authentication of records were inadequate)
- Int’l Ass’n of Sheet Metal, Air, Rail & Transp. Workers, Local Union No. 71 v. Lovejoy Metals, Inc., 495 F. Supp. 3d 174 (W.D.N.Y. 2020) (requiring clear explanation and documentation for damages and fee awards)