MIDWEST OPERATING ENGINEERS WELFARE TRUST FUND v. DREDGE

Case No. 15 C 4446.

Midwest Operating Engineers Welfare Trust Fund and Midwest Operating Engineers Pension Trust Fund, Plaintiffs, v. Cordova Dredge, a division of RiverStone Group, Inc., an Illinois corporxtion, Defendant.

United States District Court, N.D. Illinois.

December 9, 2015.


Attorney(s) appearing for the Case

Midwest Operating Engineers Welfare Fund, Plaintiff, represented by Robert A Paszta , Steven A. Davidson , International Union of Operating Engineers & Dale D. Pierson , International Union of Operating Engineers.

Midwest Operating Engineers Pension Trust Fund, Plaintiff, represented by Robert A Paszta , Steven A. Davidson , International Union of Operating Engineers & Dale D. Pierson , International Union of Operating Engineers.

Cordova Dredge, Defendant, represented by Andrew J Martone , Hesse Martone, P.C., John Kenneth Kallman , Law Offices of John Kenneth Kallman & Matthew Blanton Robinson , Hesse Martone, P.c..


MOTION TO ENTER JUDGMENT

Plaintiffs Midwest Operating Engineers Welfare Trust Fund and Midwest Operating Engineers Pension Trust Fund (collectively, "the Funds"), move to enter judgment for unpaid contributions owed, interest, liquidated damages, costs, and attorneys' fees under Section 515 of the Employee Retirement Income Security Act (ERISA) of 1974, 29 U.S.C. § 1145. In support of this Motion, the Funds state that:

1. On May 20, 2015, the Funds filed suit against Cordova Dredge for unpaid contributions, interest, liquidated damages, and attorneys' fees and costs owed under a collective bargaining agreement with Local 150 of the International Union of Operating Engineers, AFCIO ("Local 150" or "the Union"), which was effective from May 3, 2010, through May 3, 2015 (Complaint ¶ 2, Ex. A, Doc. #1-1, filed 05/20/15, PagelD #5-33).

2. On December 1, 2015, this Court entered its "Memorandum Opinion and Order," denying the Funds' Motion for Summary Judgment as to the preclusive effect of Midwest Operating Engineers Welfare Fund, et al. v. Cleveland Quarry, 40 F.Supp.3d 1033, 1034 (N.D. 2014); but granting the Funds' summary judgment "as it relates to Cordova's liability for contributions to the Funds under 29 U.S.C. § 1145" (Doc. #29, filed 12/01/15, at Page 32 of 32, PagelD #1457).

3. Pursuant to the Court's instructions, Cordova Dredge has reported to Fund counsel the hours worked by its employees from March 2015 through May 2015 (Exhibit A, Certification of Thomas M. Bernstein (hereinafter "Bernstein Cert."), ¶ 3, Attachment 1). Counsel for Cordova Dredge has stated that the Company will stipulate to the accuracy of these hours worked.

4. Based upon the hours worked as reported by Cordova Dredge, the MOE Funds have calculated unpaid contributions owed for the entire timeframe to be $18,710.03 (Ex. A, Bernstein Cert. ¶ 4).

5. Pursuant to Section 502(g) of ERISA, the Funds are entitled to recover interest on those unpaid contributions. 29 U.S.C. § 1132(g)(2)(B). The Funds have calculated interest based upon an annual rate of 8 percent to be $935.40 (Ex. A, Bernstein Cert. ¶ 4).

6. Pursuant to Section 502(g) of ERISA, the Funds are entitled to liquidated damages not to exceed 20 percent. 29 U.S.C. § 1132(g)(2)(C)(ii). The Funds have calculated liquidated damages for the unpaid contributions in the amount of $3,742.01 (Ex. A, Bernstein Cert. ¶ 4).

7. Pursuant to Section 502(g) of ERISA, the Funds are entitled to an award of reasonable attorneys' fees and costs. 29 U.S.C. § 1132(g)(1). The Funds have incurred costs in this action in the total amount of $400.00 (Ex. A, Bernstein Cert. ¶ 4).

8. The Funds have incurred attorneys' fees in this action in the total amount of $14,889.10 (Ex. A, Bernstein Cert. ¶ 5).

WHEREFORE, the Midwest Operating Engineers Welfare Trust Fund and the Midwest Operating Engineers Pension Trust Fund respectfully request that the Court enter judgment for unpaid contributions, interest, liquidated damages, and attorneys' fees and costs in the amounts set forth below (a Proposed Order to this effect is attached hereto as Exhibit B):

Unpaid contributions for hours worked March 2015 through May 2015: $18,710.03 Interest on unpaid contributions based upon annual interest rate of 8 percent: $935.40 Liquidated damages for unpaid contributions: $3,742.01 Costs: $400.00 Attorneys' fees: $14,889.10 Total: $38,676.54

EXHIBIT A

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

Midwest Operating Engineers Welfare Trust Fund and Midwest Operating Engineers Pension Trust Fund, Plaintiffs, v. Case No. 15 C 4446 Cordova Dredge, a division of RiverStone Group, Inc., an Illinois corporation, Defendant.

CERTIFICATION OF THOMAS M. BERNSTEIN

I, Thomas M. Bernstein, state and certify pursuant to 28 U.S.C. § 1746 as follows:

1. My name is Thomas M. Bernstein. I am currently employed as the Administrative Manager of the Midwest Operating Engineers (MOE) Fringe Benefit Funds, including the MOE Health and Welfare Fund and the MOE Pension Fund. I have full personal knowledge of the facts stated herein and could so testify in Court if called upon to do so.

2. Since 2005, I have worked for the MOE Fringe Benefit Funds. Since August 2013, I have served as Administrative Manager of the Funds. In that capacity, I am responsible for administering benefits under the various benefit plans, the management of Fund employees, and keeping and maintaining records of the Funds. One of my responsibilities is oversight of the Funds' Delinquency Department which calculates and seeks to collect unpaid contributions owed the Funds.

3. I am familiar with an employer known as Cordova Dredge, a division of RiverStone Group, Inc., which had been signatory to a collective bargaining agreement with Local 150 of the International Union of Operating Engineers, AFL-CIO, and which the Funds sued to collect unpaid contributions to the MOE Health and Welfare and Pension Funds. It is my understanding that pursuant to instructions from the Court in that lawsuit, the Employer has been submitting to the Funds' counsel a report of the hours worked by its employees during the disputed time period who would be participants in the Health and Welfare and Pension Funds and upon whom contributions are owed. A true and correct copy of the most recent report is attached hereto as Attachment 1.

4. Based upon the hours worked reported by Cordova Dredge, the MOE Delinquency Department has calculated contributions owed under federal law, the terms of the collective bargaining agreement between the Union and Cordova Dredge, as well as the Funds' established rates for calculating interest and liquidated damages. A true and correct copy of the calculations made by our Delinquency Department for all amounts owed by Cordova Dredge is attached hereto as Attachment 2.

5. The Funds have incurred costs in this action in the total amount of $400.00 for the Complaint-filing fee.

6. The Funds have incurred attorneys' fees in this action in the total amount of $14,889.10. A true and accurate summary of attorney hours and rates is attached hereto as Attachment 3. ATTACHMENT 1

8819 RETRO FUND PAYMENTS CORDOVA DREDGE 1701 5TH AVENUE MOUNE IL 61265 HOURS HOURS TOTALS SOCIAL SECURITY # EMPLOYEE 3/15 4/15 PHILLIP BARAJAS 145.50 309.83 NICHOLAS BROLINE 84.00 305.83 THOMAS CARROLL JR-QUIT 3/18/15 59.00 0.00 TIMOTHY DECOCK-QUIT 3/18/15 59.00 0.00 WARD FULLER-QUIT 3/18/15 59.00 0.00 GARY GRIFFIN 51.00 268.06 457.50 883.72 FUND CONTRIBUTION RATES 5/14 THROUGH 5/15 WELFARE $ 8.35 $ 3,820.13 $ 7,379.06 $11,199.19 PENSION $ 5.40 $ 2,470.50 $ 4,772.09 $7,242.59 RMSP $ 0.20 $ 91.50 $ 176.74 $268.24 $18,710.02

ATTACHMENT 2

MONTH WELFARE PENSION REF APPR VACATION CRF TOTAL "NR" REPORTS W/O $ Mar-15 $3,911.63 $2,470.50 $6,382.13 Apr-15 $7,555.81 $4,772.09 $12,327.90 TOTAL $11,467.44 $7,242.59 $0.00 $0.00 $0.00 $0.00 $18,710.03 Apr-15 $1,511.16" $954.42 $2,465.58 "NR" 20% LIQUIDATED DAMAGES Mar-15 $782.33 $494.10 $1,276.43 Apr-15 $1,511.16" $954.42 $2,465.58 TOTAL $2,293.49 $1,448.52 $0.00 $0.00 $0.00 $0.00 $3,742.01 "NR" 8% INTEREST FOR 3-4/15: (Through Decenber 2015) $935.40 TOTAL "FRINGE BENEFITS": $23,387.44 ADMINISTRATIVE DUES TOTAL $0.00 TOTAL ADMINISTRATIVE DUES: $0.00 TOTAL: 823,387.44

ATTACHMENT 3

MOE, et al. v. Cordova Dredge

Case No. 15-cv-4446

Time for Bryan Diemer

Date Description Time 6/29/2015 Review Complaint; review Defendant's Motion to Dismiss and brief; review cases cited in brief; review Judge Shadur's decision in Cleveland 4.5 7/1/2015 Meeting with DDP re: response; continue review of Defendant's filing and cases cited therein 1.5 7/15/2015 Legal research on preclusion/prior judgments; review ERISA cases; continue review of cases and materials cited in Defendant's brief; outline argument 3.5 7/16/2015 Continue review of cases; additional legal research; drafting of Memo of Law 6 7/17/2015 Drafting of Memo of Law 4 7/20/2015 Edit memo; review cites; review 56.1 statement 3.5 7/21/2015 Edit/draft Memo and 56.1; prepare docs for filing 3 8/17/2015 Review Defendant's Reply and cases cited therein; legal research in preparation for filing; begin outline of argument 2 8/18/2015 Drafting of Reply Memo 6 8/19/2015 Drafting of Reply Memo 3.5 8/20/2015 Drafting/editing of Memo 3 8/21/2015 Drafting/editing brief/Statement of Additional Facts 4 12/2/2015 Review Memorandum and Opinion .5 TOTAL: 45 45 hours * $81.98/hour: $3,689.10

CORDOVA TIME

Date Description Atty Time 5/19/2015 Review/file complaint DDP 0.5 6/29/2015 Prep for court appearance DDP 0.25 6/30/2015 Travel to/attend Initial court status DDP 1.75 7/1/2015 Meet w/ BPD re: response brief DDP 0.25 7/17/2015 Begin to review file for MSJ/Response RAP 1 7/19/2015 Draft Motion for Summary Judgment RAP 8 7/20/2015 Edit Motion for Summary Judgment; 56.1 RAP 2.5 7/20/2015 Email w/ LMS re: MSJ and 56.1 DDP 0.25 7/21/2015 Edit Motion for Summary Judgment; 56.1; prepare for filing RAP 3 8/4/2015 Call Robinson to discuss briefing schedule; get dates together, call clerk; email Robinson RAP 1.5 8/17/2015 Work on Reply brief DDP 0.5 8/18/2015 Work on Reply brief DDP 1.5 8/19/2015 Work on 56.1 Response to additional facts DDP 1.25 8/20/2015 Work on Response to additional facts and meet w/ clerk re: Reply briefs records sites DDP 1 8/21/2015 Review Reply brief, additional facts for filing DDP 1 8/25/2015 Follow up on court filings DDP 0.25 8/25/2015 Draft requests for production; begin response to requests for production; call with DDP to discuss RAP 3 8/25/2015 Draft Requests for production; begin response to requests for production; call with DDP to discuss RAP 3 9/9/2015 Review discovery responses w/ RAP DDP 0.75 9/9/2015 Draft responses and gather info to respond to request for production RAP 2 9/10/2015 Update research on pension credits RAP 1 TOTAL: 76.25 Individual Totals DDP 9.25 $400.00/hour $3,700.00 RAP 25 $300.00/hour $7,500.00 TOTAL: $11,200.00

EXHIBIT B

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

Midwest Operating Engineers Welfare Trust Fund and Midwest Operating Engineers Pension Trust Fund, Plaintiffs, Case No. 15 C 4446 v. Cordova Dredge, a division of RiverStone Group, Inc., an Illinois corporation, Defendant.

PROPOSED JUDGMENT ORDER

This matter coming on to be heard upon Plaintiffs Midwest Operating Engineers Welfare and Pension Funds' ("the Funds") Motion to Enter Judgment, it appearing to the Court that Defendant Cordova Dredge, a division of RiverStone Group, Inc., an Illinois Corporation ("Cordova"), is obligated to contribute to the Funds, and the Court, first being fully advised in the premises and upon further evidence submitted herewith, FINDS:

The Court has jurisdiction of the subject matter herein and of the parties hereto pursuant to 29 U.S.C. §§ 1132 and 1145.

Cordova was bound to a collective bargaining agreement with Local 150 of the International Union of Operating Engineers, AFL-CIO, and the Agreements and Declarations of Trust that govern the Funds from May 3, 2010, through May 3, 2015.

Cordova is obligated to make contributions to the Funds, pay interest on unpaid contributions, and liquidated damages and costs as follows:

Unpaid contributions for hours worked March 2015 through May 2015: $18,710.03 Interest on unpaid contributions based upon annual interest rate of 8 percent: $935.40 Liquidated damages for unpaid contributions: $3,742.01 Costs: $400.00 Attorneys' fees: $14,889.10 Total: $38,676.54

Plaintiff Funds' claims for attorneys' fees shall be considered pursuant to Local Rule 54.3 and 29 U.S.C. § 1132(g)(1).

Under Rule 54(b), F. R. Civ. P., there is no just reason for delay in the entry of a Judgment Order as to the sum of $458,910.65 owed to the Plaintiff Funds from Defendant Cordova.

IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREED THAT:

Plaintiff Funds shall recover from Defendant Cordova the amount of $23,387.44; Plaintiffs shall recover costs in the amount of $400.00; Plaintiffs shall recover from Defendant Cordova Dredge, a division of RiverStone Group, Inc., an Illinois corporation, the total amount of $38,676.54, which includes unpaid benefit contributions, liquidated damages, costs, attorneys' fees, and interest.

Plaintiff Funds are awarded execution for the collection of the Judgment granted hereunder.

The Court hereby retains jurisdiction of this cause and all of the parties hereto for the purpose of enforcing this Order.


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