MOTION FOR JUDGMENT IN A SUM CERTAIN
SARA ELLIS, Magistrate Judge.
NOW COME the Plaintiffs, by and through their attorneys, and, in their Motion for Default & Audit Order, state as follows:
1. Plaintiffs filed their Complaint against all Defendants except Joseph Campisi on April 23, 2014, and obtained service on the Defendants on June 19, 2014.
2. The Complaint alleged:
3. On July 28, 2014, this Court entered a default against those Defendants, rendering Plaintiffs' allegations against those Defendants admitted, and ordered them to submit to audit.
4. Plaintiffs filed a First Amended Complaint, adding a new count against Joseph Campisi, alleging his personal liability for the other Defendants' contribution delinquency pursuant to a collective bargaining agreement provision imposing personal liability where a signatory contractor works without procuring a wage and welfare bond.
5. Plaintiffs filed the First Amended Complaint on April 6, 2015, and served Joseph Campisi on April 22, 2015.
6. This Court afforded Campisi through May 18, 2015 to respond to the Amended Complaint. But, as of the date of filing of this Motion, Defendant Campisi has failed to answer or otherwise plead. Accordingly, Joseph Campisi is now also in default.
7. According to the Affidavit of Richard Wolf, attached hereto, the audit of the records of Defendants Regency Decorating, Inc. and Regency Group of Illinois, revealed contribution arrearages in the amount of $225,093.34 for the period from June 1, 2011 through September 30, 2014. This amount consists of $194,205.08 in contributions, $29,130.76 in liquidated damages, $1,757.50 for audit costs, and $34,487.14 for unpaid liquidated damages for the period from June, 2011 through February, 2015, for a total of $257,480.48.
8. By his default, Defendant John Campisi admitted he operated Regency Decorating, Inc. since May 15, 2010 Individually in the name of a non-existent corporation, and thus rendered himself individually liable for the debts of Regency Decorating.
9. By their default, Defendants admitted Regency Group of Illinois, Inc., operated as a successor and alter ego to Regency Decorating, Inc., in both its corporate form and as John Campisi's sole proprietorship. As a matter of law, therefore, Regency Group was bound to Regency Decorating's Collective Bargaining Agreement.
10. By his default, Joseph Campisi admitted the Collective Bargaining Agreement requires employers to provide a bond in order to insure prompt payment of fringe benefit fund contributions and wages; that the failure to provide the bond imposes personal liability upon corporate officials of the company who are empowered to execute agreements or sign checks on behalf of the corporation; and that he was the president of Regency Group of Illinois, and was, thus, empowered to execute agreements.
11. According to the Affidavit of Tracy Kuntzman, attached hereto as Exhibit 2, neither Regency Decorating, Inc., nor Regency Group of Illinois provided the bonds as required by the Collective Bargaining Agreement, and therefore they are personally liable for the debts owed by the Defendant corporations.
WHEREFORE, Plaintiffs pray that this Court enter the proposed Order attached a Exhibit 3.
EXHIBIT 1
AFFIDAVIT OF RICHARD WOLF
RICHARD WOLF, upon being first duly sworn on oath, states as follows:
1. Affiant is the principal of RICHARD J. WOLF AND COMPANY, INC., an accounting firm ("the company").
2. The Plaintiffs requested the company to perform a fringe benefit fund contribution compliance job audit of the books and records of REGENCY GROUP OF ILLINOIS, for the period from June 1, 2011 through September 30, 2014.
3. The audit encompassed an examination of payroll records and comparisons to amounts reported to the Funds.
4. The audit report disclosed that $194,205.08 in contributions are owed to the Funds.
5. According to the Collective Bargaining Agreement and Trust Agreements establishing the Funds, liquidated damages are owed on delinquent contributions. I have computed the amount of liquidated damages owed to be $29,130.76.
6. The Collective Bargaining Agreement also requires that in the event there is an audit deficiency, the audit costs are to be borne by the employer. The company charged the Funds the amount of $1,757.50. to complete the audit.
7. The total amount due and owing to the Funds is $225,093.34 for this audit period, not including any interest, attorneys' fees or court costs.
8. I have also inspected the records of the Funds and find that unpaid liquidated damages in the amount of $34,487.14 are also owed to the Funds for the work months from June, 2011 through February, 2015. This amount is separate from, and in addition to, the findings on the audit referred to in paragraph 7.
9. The total amount owed to the Plaintiffs is $257,480.48, not including any attorneys' fees, or interest.
10. I am competent to testify to the truth of the foregoing statements.
EXHIBIT 2
AFFIDAVIT OF TRACY KUNTZMAN
TRACY KUNTZMAN, upon being first duly sworn on oath, deposes and states:
1. I am the executive secretary to the Secretary-Treasurer of the Painters' District Council No. 14 (the "Union").
2. As part of my duties, I am responsible to keep and maintain the records of the Union that identify employers that have become signatory to the Collective Bargaining Agreement with the Union. According to the Union's records, Regency Decorating Service, Inc ("Regency") by and through its president, John Campsi ("John Campisi") executed a Memorandum of Agreement with the Union that is dated June 20, 1987. A copy is attached as Exhibit "A."
3. As part of my duties, I am familiar with the provisions of the Collective Bargaining Agreements between the Union and certain multi-employer associations, including the Painting and Decorating Contractors' Association ("PDCA") and the FINISHING CONTRACTORS ASSOCIATION OF CHICAGO.
4. As a signatory to the Agreement, Regency agreed to be bound by the provisions of the Collective Bargaining Agreement between the Union and the PDCA. and is also bound to the Collective Bargaining Agreement between the Union and the FCA.
5. Article 15, Section 1 of the Collective Bargaining Agreement requires employers to post a bond for the prompt payment of wages and fringe benefit fund contributions prior to commencing any work covered by the Agreement. Employers that employ up to six employees are required to provide a bond in the amount of Ten Thousand Dollars ($10,000.00). Article 15, Section 1(b)(2) of the Collective Bargaining Agreement provides that in the event an employer fails to satisfy the bonding requirement, the employer shall be liable and each individual official empowered to execute agreements shall be personally liable to the Funds in the amount of
6. I have reviewed the Union's records pertaining to bonds. According to those records, neither Regency, nor Regency Decorating, Inc., nor the Regency Group of Illinois, at have ever supplied any bond as required by the Collective Bargaining Agreement. Regency Decorating, Inc. and Regency Group of Illinois, Inc. acknowledged they are the same company as Regency and/or have have adopted Regency's Collective Bargaining Agreement by paying fringe benefit fund contributions using the report forms bearing the name of Regency Decorating Service, Inc. Accordingly, pursuant to Article 15, Section 1(b)(2), Regency, Regency Decorating, Inc., and Regency Group of Illinois, Inc. and its corporate officials, John Campisi and Joseph Campisi, that have authority to execute agreements, are required to pay
7. Affiant is not currently suffering any infirmities and is competent to testify to the foregoing and would testify to the foregoing if called upon.
SUBSCRIBED AND SWORN TO before me this
Exhibit A
PAINTERS' DISTRICT COUNCIL 114
"MEMORANDUM OF JOINT WORKING AGREEMENT
It is hereby stipulated and agreed by and between
1. The Employer hereby recognizes the Union as the sole and exclusive bargaining representative of all the Employer's employees performing work within the craft and geographical jurisdiction of the Union as the same exists as of the date hereof and including any such additional work or geographic area over which the Union may hereafter acquire jurisdiction with respect; to wages, hours, and other terms and conditions of employment.
2. The Employer affirms and adopts the Collective Bargaining Agreements between the Union and either the PAINTING DECORATING CONTRACTORS ASSOCIATION, CHICAGO CHAPTER, or CHICAGOLAND ASSOCIATION OF WALL AND CEILING CONTRACTORS/GYPSUM URYWALL CONTRACTORS OF NORTHERN ILLINOIS, and hereby reaffirms and reestablishes his continuing obligation with respect to all such provisions together with all Amendments thereto.
3. The Employer agrees to pay the amounts which (he) (it) is bound to pay under said Collective Bargaining Agreements to the CHICAGO PAINTERS & DECORATORS WELFARE FUND, CHICAGO PAINTERS & DECORATORS PENSION FUND, CHICAGO PAINTERS & DECORATORS DEFERRED SAVING PLAN FUND, THE CHICAGO PAINTERS AND DECORATORS APPRENTICESHIP FUND, or CHICAGO DRYWALL FINISHERS JOINT APPRENTICESHIP FUNDS, to become bound by and be considered a part of the Agreements and Declarations, of Trust creating said TRUST instrument of the Employer Trustees who shall together with their successor Trustees designated in the manner provided in said Agreements and Declarations of Trust and jointly with an equal number of Trustees appointed by the Union, carry out the terms and conditions of the Trust instruments.
The Employer affirms and reestablishes that all prior contributions paid to the Welfare & Pension Funds were made by duly authorized agents of the Employer at the proper rates for the appropriate periods of time and that by making said prior contributions, the Employer evidences the Bargaining Agreements which were operative at the time the contributions were made, acknowledging the report form to be a sufficient instrument in writing to bind the Employer to the applicable Agreements.
4. The Employer agrees to pay the following hourly rates for the period June 1, 1987 through May 31, 1988 and all changes thereafter as negotiated between the Union and the Associations:
5. The parties agree that the Employer is part of a single bargaining unit made up of all Employers party to the master Agreement adopted herein.
6. The Agreement shall remain in full force and effect through 12:00 MIDNIGHT on the 31st day of May, 1988, and shall continue thereafter unless there has been given not less than sixty (60) days nor more than ninety (90) days written notice by Registered or Certified Mail, by either party hereto, of the desire to modify and amend this Agreement through negotiations.
7. In the absence of such notice, the Employer and the Union agree to be bound by the area-wide negotiated contracts with the various Associations, incorporating them into, this Memorandum of Joint Working Agreement and extending this Agreement for the life of the newly negotiated contract.
8. The Employer acknowledges and accepts the facsimile signatures on this contract as if they were the original signatures. The Employer further acknowledges receipt of a copy of the complete Joint Working Agreement.
IN WITNESS WHEREOF, and in consideration of the mutual promise of the parties hereto, and with any good and valuable consideration, this Memorandum of Joint Working Agreement was entered into this
Exhibit B
penalties as may be assessed by the Trustees. The Employer's liability for payment under this Article shall not be subject to or covered by any grievance or arbitration procedure or any "no-strike" clause which may be provided or set forth elsewhere in this Agreement.
ARTICLE 15
INSURANCE, TAXES, AND SURETY BOND
(a)(1) All Employers shall contribute ten cents (10¢) per hour for each hour worked for the life of this agreement for an industry bonding program as described in Article 19.
(a)(2) An Employer may satisfy the bonding provisions set forth below by paying a $250.00 application fee, signing and agreeing to be bound to the terms of the bond application and trust agreement establishing the program. The Union may in its sole discretion vary the contribution rate or elect to terminate the program. If the contribution rate is reduced, the difference in rates shall revert to the Union's total economic package. Upon program termination, any balance of funds will be used to fund the program through dissolution. If terminated, the Employer shall receive notice and be required to obtain independent surety bonds as set forth in Paragraph (b)(1) below within Thirty (30) days of receipt of said notice.
(a)(3) Alternatively, the Employer may independently maintain its own bond through a surety company as outlined below. This does not relieve the above contribution requirement.
(b)(1). Before commencing any work covered by this Agreement, the Employer shall provide a performance or surety bond, in the amount and under the terms set forth below, to insure the prompt and full payment of all contributions, dues/assessments, and wages due in accordance with this Agreement:
If, for any reason, the amount or value of the security provided by the Employer should decrease below the amount specified above, the Employer agrees to provide such additional security as may be necessary to restore it to the proper sum upon the written request of the Trustees of any of the Funds.
(b)(2). In the event an Employer fails for any reason to satisfy the bonding requirement of paragraph (b)(1) above in whole or in part, the Employer shall be personally liable for wages, dues/assessments and fringe benefits to the Funds named in paragraph (b)(1) in the amount of Thirty Thousand Dollars ($30,000.00) plus all unpaid amounts in excess of that sum which are due by that Employer. In the event the Employer is a corporation, LLC, joint venture, partnership or sole proprietor, liability under this paragraph shall be imposed not only on the entity, but also personally on each individual official of that Employer entity empowered to execute agreements or sign checks on its behalf, or to designate the persons empowered to do so. The provisions of this paragraph shall in no way relieve or excuse any Employer of the obligation to provide the bond described in paragraph (b)(1) above, nor shall this provision limit the personal liability of said corporate officers based on operation of law.
(b)(3). Any Employer commencing work in violation of the requirements set forth above shall be in violation of this Fringe Benefit Fund contribution payment provision of this Agreement.
EXHIBIT 3
JUDGMENT ORDER
This cause, coming to be heard upon Plaintiffs' Motion for Judgment in a Sum Certain, all parties having notice,
IT IS HEREBY ORDERED THAT:
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