United States District Court, N.D. Illinois, Eastern Division
TERRENCE J. HANCOCK, et al, Plaintiffs,
RITEWAY-HUGGINS CONSTRUCTION SERVICES, INC., an Illinois corporation, Defendant.
M. Finnegan Attorney for Plaintiffs
PLAINTIFFS' MOTION TO REOPEN CASE FOR THE LIMITED
PURPOSE OF ENFORCING THE TERMS OF THE CONSENT DECREE AND
ENTERING JUDGMENT AGAINST DEFENDANT
TERRENCE J. HANCOCK, et al., by their attorneys,
request the entry of an order reopening this action for the
limited purpose of enforcing the terms of the Consent Decree
entered by this Court on May 23, 2015. In support of this
Motion, Plaintiffs state as follows:
action was originally brought by the Plaintiffs, the Trustees
of the jointly- administered, labor-management employee
benefit plans, Health and Welfare Fund of the Excavating,
Grading and Asphalt Craft Local No. 731 and Local 731, LB. of
T., Excavators and Pavers Pension Trust Fund, alleging,
inter alia, that Defendant breached its obligations
under the terms of the collective bargaining agreement
entered into with the LB. of T. Local 731, and the Agreements
and Declarations of Trust under which the Plaintiff Funds are
maintained. Specifically, Plaintiffs allege that Defendant
failed to remit payment of contributions for work performed
on its behalf by beneficiaries of the Plaintiff Funds. The
Complaint was brought pursuant to the Employee Retirement
Income Security Act of 1974, as amended, 29 U.S.C.
§§ 1132, 1145.
May 22, 2015, this Court dismissed this cause of action
pursuant to the parties' settlement.
May 23, 2015, a Consent Decree incorporating the terms for
settlement agreed to by the parties was entered by this Court
(a copy of the Consent Decree is attached as Exhibit 1).
Defendant agreed that it owed the total amount of $112,
776.36 for contributions, liquidated damages, interest and
attorneys' fees for the time periods January 1, 2012
through June 30, 2014 (audited period) and July 1, 2014
through November 30, 2014 (unaudited period) as described in
Paragraph 3 of the Consent Decree.
Defendant also agreed that it was obligated to submit its
monthly contribution reports and fringe benefit contributions
due during the term of the payment plan.
Defendant agreed to make payment to Plaintiffs of the amount
specified in Paragraph 3, being $112, 776.36, by way of equal
monthly payments over 24 months or a monthly payment of $4,
Consent Decree provides that in the event Defendant fails to
make any payments described in the Consent Decree, including
the obligation to remain current in its reporting obligations
during the duration of the Consent Decree, the Defendant will
be considered in violation of the Consent Decree. In such an
event, the Defendant consents to the entry of judgment
against it and in favor of the Plaintiff Funds for all
amounts unpaid under Paragraph 3, an additional 10%
liquidated damages that were waived, all contributions
interest, and liquidated damages that may become due during
the time frame of the payment schedule above, and any and all
attorneys' fees and costs incurred to date, including
costs and fees incurred in bringing a motion to enforce the
July 14, 2016, Plaintiffs' counsel sent an e-mail to
Defendant's counsel regarding the failure of the
Defendant to abide by the terms of the Consent Decree.
Specifically, Defendant did not submit any monthly
installments since December 2015. Plaintiffs' counsel
further advised that as of July 15, 2016, Defendant owed
eight (8) installments of $4, 699.02 each, for a total of
$37, 592.16. Finally, Plaintiffs's counsel advised
Defendant's counsel that Defendant had 10 days to cure
its breach of the terms of the Consent Decree.
Because Defendant did not cure its breach of the terms of the
Consent Decree, on August 10, 2016, Plaintiffs' counsel
filed Plaintiffs' Motion to Reopen Case for the Limited
Purpose of Enforcing the Terms of the Consent Decree and
Entering Judgment Against Defendant.
October 21, 2016, after three continuances, Plaintiffs'
motion was heard by this Court. Pursuant to representations
made in open Court by the Defendant, Plaintiffs' motion
was extended and continued for eight (8) months (until June
2017). This Court ordered the Defendant to make two (2)
monthly installment payments of $4, 699.02 each for eight (8)
months. The failure of the Defendant to make the required
payments would result in the entry of judgment. The court
also set a status hearing for June 16, 2017 (a copy of the
Court's Notification of Docket Entry entered on October
21, 2016 is attached as Exhibit 2).
November 17, 2016, an Order was entered requiring the
Defendant to submit two (2) monthly payments of $4, 699.02
each for the time period November 15, 2016 through June 15,
2017. On July 15, 2017, the Defendant would resume submitting
one (1) installment payment of $4, 699.02 per month pursuant
to the terms of the Consent Decree (a copy of the Order
entered on November 17, 2016 is attached as Exhibit 3).
During the time period October 15, 2016 through January 15,
2017, Defendant submitted two (2) installment payments of $4,
699.02 each on October 17, 2016, November 21, 2016, December
19, 2016 and January 23, 2017. On February 27, 2017, the