Trustees of the Metal Polishers Local 8a-28a Funds v. Prestige Restoration & Maintenance, LLC
2013 U.S. Dist. LEXIS 168571
E.D.N.Y2013Background
- Trustees of the Metal Polishers Local 8A-28A Funds sued Prestige Restoration & Maintenance, LLC for unpaid contributions under ERISA and LMRA; defendant was served but did not respond, and default was entered.
- Plaintiff moved for default judgment; earlier motions were found deficient for lack of admissible evidence (missing authenticated audit, incomplete affidavits, and inadequate fee documentation).
- Magistrate Judge Mann recommended default as to liability but denied damages and attorneys’ fees because prior submissions failed to authenticate the audit and relied on counsel’s conclusory affidavit.
- Plaintiff filed an amended motion on the R&R deadline supplying a new affidavit by auditor Kimesha Hines and attaching for the first time the Trust Agreement; plaintiff did not renew its attorneys’ fees request.
- District Court adopted the R&R as to liability and denial of attorneys’ fees, but — in the interest of judicial economy — considered the late amended evidence and awarded damages (principal, interest under 26 U.S.C. § 6621, and liquidated damages) plus costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default establishes liability | Default and pleadings show ERISA/LMRA liability | No response; defaulted | Court granted default judgment as to liability |
| Whether plaintiff proved damages with admissible evidence | Provided auditor affidavit and audit (in amended filing) and Trust/CBA to support damages | No opposition (default) but earlier deficiencies noted | Court initially agreed R&R denial but ultimately accepted amended auditor affidavit and Trust Agreement and awarded damages |
| Proper measure/rates for interest | Auditor applied 10% interest per Trustees’ directive | No opposition | Court rejected unsupported 10% rate; awarded interest per 26 U.S.C. § 6621(a)(2) (federal short-term +3%) compounded |
| Entitlement to attorneys’ fees and costs | Sought fees and costs; later abandoned fees request in amended filing | No opposition | Court denied attorneys’ fees with prejudice for failure to submit contemporaneous time records; awarded $430 in costs |
Key Cases Cited
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir.) (default does not establish damages; damages must be proved by admissible evidence)
- Cement & Concrete Workers Dist. Council v. Metro Found. Contractors Inc., 699 F.3d 230 (2d Cir.) (district court may rely on affidavits and documentary evidence to determine damages on default)
- Fustok v. ContiCommodity Servs., Inc., 873 F.2d 38 (2d Cir.) (district court may base default-judgment damages on detailed affidavits and documents)
- Wagner & Wagner, LLP v. Atkinson, Haskins, Nellis, Brittingham, Gladd & Carwile, P.C., 596 F.3d 84 (2d Cir.) (failure to timely object to magistrate judge R&R can waive appellate review)
- In re World Trade Ctr. Disaster Site Litig., 722 F.3d 483 (2d Cir.) (28 U.S.C. § 1746 unsworn declarations treated as sworn if they follow statutory form)