The opinion of the court was delivered by: KEVIN FOX, Magistrate Judge
REPORT AND RECOMMENDATION
TO THE HONORABLE RICHARD M. BERMAN, UNITED STATES DISTRICT
In this action, Trustees of the Local 210 Health and Insurance
Fund, Local 210 Pension Fund, Local 210 Scholarship Fund and
Local 210 Legal Service Fund (collectively "the Funds" or
"plaintiffs") allege that Chemicraft Corporation, Chemicraft
International, Leedall Products, Inc. and Mellon Corporation
(collectively "defendants") failed to make monetary contributions
to the Funds as required by a collective bargaining agreement and
the Employment Retirement Insurance Security Act ("ERISA"),
29 U.S.C. § 1001, et seq.
Upon defendants' failure to file an answer or otherwise respond
to the Complaint, United States District Judge Richard M. Berman
ordered that a default judgment be entered against the defendants. Judge Berman then referred the matter to the
undersigned to conduct an inquest and to report and recommend the
amount of damages, if any, to be awarded plaintiffs against
The Court directed plaintiffs to serve and file proposed
findings of fact and conclusions of law, and an inquest
memorandum setting forth their proof of damages, costs of this
action, and their attorney's fees. Defendants were directed by
the Court to serve and file opposing memoranda, affidavits and
exhibits, as well as any alternative findings of fact and
conclusions of law they deemed appropriate. Defendants failed to
Plaintiffs' submissions aver that they are entitled to $13,932
in unpaid fringe benefit contributions, $2,786.40 in interest and
$1,184.22 in liquidated damages from defendant Chemicraft
Corporation; $109,693 in unpaid fringe benefit contributions,
$9,323.88 in interest and $21,938.60 in liquidated damages from
defendant Chemicraft International; $30,893 in unpaid fringe
benefit contributions, $2,625.88 in interest and $6,178.60 in
liquidated damages from defendant Leedall Products, Inc.; and
$15,993 in unpaid fringe benefit contributions, $1,359.38 in
interest and $3,198.60 in liquidated damages from defendant
Mellon Corporation. In addition, plaintiffs seek $5,678.75 in
attorney's fees and $423 in costs.
For the reasons set forth below, I recommend that the Funds be
awarded $170,511 in unpaid fringe benefit contributions; interest
on this sum in an amount to be computed by the Clerk of the Court
applying the rates and standards set forth in this report;
statutory penalties in an amount equal to the award of interest
made herein; and $6,101.75 in costs and attorney's fees.
Based on submissions by the plaintiffs, the Complaint filed in
the instant action the allegations of which, perforce of defendants' default, must be
accepted as true, except those relating to damages, see Cotton
v. Slone, 4 F.3d 176, 181 (2d Cir. 1993); Greyhound
Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155, 158
(2d Cir. 1993) and the Court's review of the entire court filed
maintained in this action, the following findings of fact are
The Funds are jointly-administered, multiemployer,
labor-management trust Funds.*fn1 The Funds have their
business offices at 345 West 44th Street, New York, New York.
Defendants are for-profit domestic corporations, organized and
existing under the laws of New York. Id. Defendants maintain
their offices at 351 West 35th Street, New York, New
The purpose of the Funds is to provide medical and other
benefits and retirement income to eligible employees on whose
behalf employers contribute to the Funds. Contributions to the
Funds are made pursuant to collective bargaining agreements
between the Service, Production, Merchandising, Wholesale,
Distribution, Clerical and Health Related Services, Airline,
Airport and Aerospace Employees Union, Local 210 International
Brotherhood of Teamsters, AFL-CIO, CLC ("Local 210") and
employers in those industries.
Defendants entered into a collective bargaining agreement ("the
Agreement") with Local 210 through which, among other things, defendants became
obligated to pay the required monetary contributions to the Funds
for all work performed by each employee who was a member of Local
210. The Agreement, a copy of which has been provided by the
plaintiffs in support of their application, covers the period
January 1, 2000, through December 31, 2004.
Pursuant to the terms of the Agreement, as a result of work
performed by employees of the defendants during, inter alia,
the period July 2000 through and including December 2001, benefit
contributions became due and owing to the Funds. Plaintiffs'
assessment of the amount of the benefit contributions owed for
that period is based on reports and records maintained at the
office of Kevin O. McCulloch ("McCulloch"), a director of the
Funds and the Assistant to the Secretary Treasurer for Local 210.
According to McCulloch, who has submitted an affidavit in support
of the plaintiffs' damages claim, the subject reports and records
reflect information provided to the Funds by the defendants
concerning the number of persons who were employed by each
defendant during the time period relevant to this action.
Attached to the affidavit is a chart which indicates, for each
defendant except Mellon Corporation, the amount of unpaid
contributions on a month-by-month basis beginning in July 2000
and concluding in December 2001. Defendants failed to make the
required contributions for the relevant period; as a result, the
Funds were damaged.
Under the terms of the Agreement, defendants' failure to pay
timely the required contributions to the Funds obligated them to
pay interest on the outstanding amount of the contributions.
However, the Agreement does not fix a rate of interest to be
applied in calculating the amount of interest due. Additionally,
although defendants' failure to make the requisite contribution
payments also triggered a liquidated damages provision of the
Agreement that requires defendants to pay the Funds ...