Paragon Custom Homes

National Labor Relations Board - Board Decisions

Jul 30, 2007

350 N.L.R.B. 39 (N.L.R.B. 2007)

350 NLRB No. 39
Paragon Custom Homes, Inc. and Carpenters Union
Local 587. Case 18–CA–17312
July 30, 2007
SUPPLEMENTAL DECISION AND ORDER
BY MEMBERS SCHAUMBER , KIRSANOW, AND WALSH
The General Counsel seeks a default judgment in this
case on the ground that the Respondent has failed to file
an answer to the compliance specification.
On October 29, 2004, the Board issued a Decision and
Order1 that, among other things, ordered the Respondent
to make whole employees Thomas Bennett, Patrick
Dreyer, Leland Emery, William Hadrath, Allen Loehr,
and Jeremy Walker2 for any loss of earnings and other
benefits suffered as a result of their discriminatory per-
manent layoffs by the Respondent and the Respondent’s
failure to notify and give the Union an opportunity to
bargain about the effects of the layoffs, in violation of
Section 8(a)(1), (3) and (5) of the Act. On December 21,
2004, the United States Court of Appeals for the Eighth
Circuit entered its judgment enforcing in full the Board’s
Order.
A controversy having arisen over the amount of back-
pay due the discriminatees under the terms of the
Board’s Order, on May 8, 2007, the Regional Director
issued a compliance specification and notice of hearing
alleging the amount due under the Board's Order. The
compliance specification notified the Respondent that it
should file an answer by May 29, 2007, complying with
the Board's Rules and Regulations. Although properly
served with a copy of the compliance specification, the
Respondent failed to file an answer.
By letter dated June 1, 2007, the Region advised the
Respondent that no answer to the compliance specifica-
tion had been received and that unless an answer was
filed by June 8, 2007, a motion for default judgment
would be filed. To date, the Respondent has not filed an
answer.
On June 15, 2007, the General Counsel filed with the
Board a Motion for Default Judgment and brief in sup-
port, with exhibits attached. On June 25, 2007, the
Board issued an order transferring the proceeding to the
Board and a Notice to Show Cause why the motion
should not be granted. The Respondent did not file a

1 343 NLRB No. 62 (2004)(not included in bound volumes).
2 The General Counsel’s Brief in Support of Motion for Default
Judgment and the Compliance Specification refer to a Jeremy “Walter.”
However, in the Board’s Decision and Order and the Eighth Circuit
Court’s Judgment enforcing the the Board’s Order, this discriminatee is
referred to as Jeremy “Walker.” Accordingly, we will refer to this
discriminatee as Jeremy “Walker.”
response. The allegations in the motion and in the com-
pliance specification are therefore undisputed.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
Ruling on the Motion for Default Judgment
Section 102.56(a) of the Board's Rules and Regula-
tions provides that a respondent shall file an answer
within 21 days from service of a compliance specifica-
tion. Section 102.56(c) provides that if the respondent
fails to file any answer to the specification within the
time prescribed by this section, the Board may, either
with or without taking evidence in support of the allega-
tions of the specification and without further notice to the
respondent, find the specification to be true and enter
such order as may be appropriate.
According to the uncontroverted allegations of the Mo-
tion for Default Judgment, the Respondent, despite hav-
ing been advised of the filing requirements, has failed to
file an answer to the compliance specification. In the
absence of good cause for the Respondent’s failure to file
an answer, we deem the allegations in the compliance
specification to be admitted as true, and grant the Gen-
eral Counsel's Motion for Default Judgment. Accord-
ingly, we conclude that the net backpay due the discrimi-
natees is as stated in the compliance specification and we
will order the Respondent to pay those amounts to the
discriminatees, plus interest accrued on the amounts to
the date of payment.
ORDER
The National Labor Relations Board orders that the
Respondent, Paragon Custom Homes, Inc., Madison,
South Dakota, its officers, agents, successors, and as-
signs, shall make whole the individuals named below, by
paying them the amounts following their names, plus
interest accrued to the date of payment, as prescribed in
New Horizons for the Retarded, 283 NLRB 1173 (1987),
minus tax withholdings required by Federal and State
laws:
Thomas Bennett $1,633
Patrick Dreyer 1,633
Leland Emery 1,633
William Hadrath 1,633
Allen Loehr 1,462
Jeremy Walker 1,462
TOTAL BACKPAY: $9,456