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Chicago Regional Council of Carpenters Pension Fund v. MSM Solutions, Inc.

United States District Court, N.D. Illinois, Eastern Division

December 22, 2016

CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND, et al. Plaintiffs,
v.
MSM SOLUTIONS, INC., an Illinois corporation, Defendant.

          CHICAGO REGIONAL COUNCIL OF CARPENTERS PENSION FUND BY:KEVIN P. MCJESSY ONE OF THEIR ATTORNEYS

          PLAINTIFFS' MOTION FOR ENTRY OF JUDGMENT

          Robert M. Dow Judge

         Plaintiffs Chicago Regional Council of Carpenters Pension Fund et al. 's ("Trust Funds") hereby move this Court to enter a judgment by default against defendant MSM SOLUTIONS, INC. ("Defendant" or "MSM SOLUTIONS"). In support of their Motion, Trust Funds state as follows.

         I. SUMMARY OF DAMAGES.

         For the reasons explained more fully below, this Court should award the Trust Funds $43, 835.22 in damages as follows:

(A) Unpaid Fringe Benefit Contributions

$21, 943.55

(B) Interest

$1, 513.16

(C) Liquidated Damages

$4, 388.71

(D) Auditors' Fees

$13, 322.50

(E) Attorneys' Fees and Costs

$2, 667.40

Total

$43, 835.22

         II. ARGUMENT.

         A. Defendant's Default.

         On October 18, 2016, the Trust Funds filed a complaint against the Defendant under ERISA for unpaid fringe benefit contributions owed by Defendant pursuant to an audit conducted by the Trust Funds' designated auditor, Legacy Professionals, LLP ("Legacy") for the period July 1, 2011 through December 31, 2014.

         The Trust Funds' complaint also seeks a judgment for all unpaid contributions, interest and liquidated damages, attorneys' fees and costs and auditors' fees pursuant to the Employee Retirement Income Security Act ("ERISA"), Area Agreements and the trust agreements to which Defendant is signatory.

         The complaint was served on Defendant on or about October 24, 2016.

         The affidavit of service was filed with the Clerk of Court on or about October 27, 2016. See Affidavit of Service, Exhibit A.

         Defendant has failed to answer or appear.

         On December 13, 2016, this Court granted the Trust Funds' motion for entry of an order of default. See Order, Dec. 13, 2016, Docket No. 7.

         B. Damages for Unpaid Fringe Benefit Contributions.

         MSM SOLUTIONS is bound by the Area Agreement with the Chicago Regional Council of Carpenters ("Union"). See Declaration of J. Libby |3, Exhibit B. The Trust Funds conducted an audit of MSM SOLUTIONS's books and records which revealed unpaid fringe benefit contributions in the amount of $21, 943.55. See Declaration of J. Libby f|[4-8, Exhibit A.

         Under ERISA, MSM SOLUTIONS is liable to the Trust Funds for any unpaid fringe benefit contributions. ERISA states as follows:

In any action under this subchapter by a fiduciary for or on behalf of a plan to enforce section 1145 of this title in which a judgment in favor of the plan is awarded, the court shall ...

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