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Albany new York Pension Fund v. Northeastern Specialty Systems, Inc.

United States District Court, N.D. New York

August 30, 2017

BRICKLAYERS AND ALLIED CRAFTWORKERS LOCAL 2, ALBANY NEW YORK PENSION FUND, by its Administrator, Stephen J. O'Sick; BRICKLAYERS AND ALLIED CRAFTWORKERS LOCAL 2, ALBANY NEW YORK HEALTH BENEFIT FUND, by its Administrator, Stephen J. O'Sick; BRICKLAYERS AND ALLIED CRAFTSMAN LOCAL 2 ANNUITY FUND, by its Administrator, Stephen J. O'Sick; BRICKLAYERS AND ALLIED CRAFTWORKERS LOCAL 2 ALBANY, NEW YORK EDUCATION & TRAINING FUND, by its Trustees, Robert Mantello, Pasquale Tirino, Kevin Potter, Luke Renna, Thomas Marinello, Todd Helfrich and Laura Regan; BRICKLAYERS AND TROWEL TRADES INT'L PENSION FUND, by David Stupar, Executive Director; and BRICKLAYERS AND ALLIED CRAFTWORKERS LOCAL 2, ALBANY NEW YORK, AFL-CIO, by Robert Mantello, President, Plaintiffs,
v.
NORTHEASTERN SPECIALTY SYSTEMS, INC.; GREGORY EARHART, individually and as an Officer of Northeastern Specialty Systems, Inc.; NORTHEASTERN SURFACING INC.; and CHRISTY L. BARTON, individually and as an Officer of Northeastern Surfacing, Inc., Defendants.

          BLITMAN & KING Counsel for Plaintiffs

          JENNIFER A. CLARK, ESQ.

          DECISION AND ORDER

          Hon. Glenn T. Suddaby Chief U.S. District Judge.

         Currently pending before the Court, in this civil action filed by the six above-captioned entities (“Plaintiffs”) against the four above-captioned entities and individuals (“Defendants”), is Plaintiffs' motion for default judgment pursuant to Fed.R.Civ.P. 55(b). (Dkt. No. 21.) For the reasons stated below, Plaintiffs' motion is granted.

         I. RELEVANT BACKGROUND

         A. Plaintiffs' Complaint

         Liberally construed, Plaintiffs' Complaint asserts the following claims against Defendants: (1) a claim that Defendants are delinquent on payments according to the Collective Bargaining Agreements that they entered into with Plaintiffs; (2) a claim that Defendant Northeastern Specialty Systems, Inc. (“NSSI”) and Defendant Northeastern Surfacing Inc. (“NSI”) are liable to Plaintiffs in the amount of $349, 434.36; (3) a claim that Defendants Gregory Earhart and Christy Barton are liable to Plaintiffs in the amount of $138, 084.10; and (4) a claim that Plaintiffs are entitled to an order directing Defendants to produce their books and records for audit. (See generally Dkt. No. 1.)

         Generally, in support of those claims, Plaintiffs' Complaint alleges as follows: (1) Defendant NSSI entered into four Collective Bargaining Agreements with Plaintiffs starting in June of 2000; (2) Defendant NSSI was required to submit reports and remit contributions to Plaintiffs' funds for each hour of work performed by NSSI employees as per the Agreements; (3) Defendant NSSI failed to remit the proper fringe benefit contributions, deductions, and reports to Plaintiffs; (4) Defendant NSI entered into a Collective Bargaining Agreement with Plaintiffs in May of 2005; (5) Defendant NSI was required to submit reports and remit contributions to Plaintiffs' funds for each hour of work performed by NSI employees as per the Agreement; (6) Defendant NSI failed to remit the proper fringe benefit contributions, deductions, and reports to Plaintiffs; (7) Defendants NSSI and NSI are liable for each others debts because NSSI and NSI are alter egos of each other; (8) Defendants Gregory Earhart and Christy Barton had managerial discretion over Defendants NSSI and NSI, and made decisions to withhold monies form Plaintiffs' funds; and (9) Defendants Earhart and Barton withheld monies from Plaintiffs' funds and used such money to pay other debts and for their own personal benefit. (Id.)

         B. Plaintiffs' Service of Their Complaint and Defendants' Failure to Answer

         On June 14, June 20, and June 29, 2016 Plaintiffs served their Complaint on Defendants. (Dkt. Nos. 5-8.) As of the date of this Decision and Order, Defendants have filed no Answer to that Complaint. (See generally Docket Sheet.)

         C. Clerk's Office's Entry of Default and Defendants' Non-Appearance

         On August 1, 2016, Plaintiffs filed a request for a Clek's entry of default. (Dkt. No. 10.) On August 2, 2016, the Clerk of the Court entered default against Defendants, pursuant to Fed.R.Civ.P. 55(a). (Dkt. No. 12.) As of the date of this Decision and Order, Defendants have not appeared and attempted to cure that entry of default. (See generally Docket Sheet.)

         D. Plaintiffs' Motion for Default Judgment and Defendants' Non-Response

         On February 1, 2017, Plaintiffs filed a motion for default judgment against Defendants, pursuant to Fed.R.Civ.P. 55(b). (Dkt. No. 21.) As of the date of this Decision and Order, Defendants have ...


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