Opinion
18-cv-3357
12-13-2024
CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND; and CHARLES A. WHOBREY, as Trustee, Plaintiffs, v. KENTRAIL LEASING, INC., a New Jersey corporation; F. P. KENNEDY LEASING, INC., a New Jersey corporation; STICKLE REALTY, INC., a New Jersey corporation; KENNEDY FAMILY LLC, a New York limited liability company; FPK, L.L.C., a New Jersey limited liability company; and 172 GARFIELD, LLC, a New Jersey limited liability company, Defendants.
PLAINTIFFS' MOTION FOR ENTRY OF CONSENT JUDGMENT AGAINST KENNEDY FAMILY LLC
HON. JEFFREY I. CUMMINGS DISTRICT JUDGE
Plaintiffs, Central States, Southeast and Southwest Areas Pension Fund (the “Pension Fund”), and Charles A. Whobrey, as Trustee, hereby move this Court to enter a consent judgment in favor of Plaintiffs and against Defendant Kennedy Family LLC. In support of this agreed motion, Plaintiffs state as follows:
1. Plaintiffs filed the Complaint to establish withdrawal liability against Defendants under the Employee Retirement Income Security Act of 1974 (“ERISA”) as amended by the Multiemployer Pension Plan Amendments Act of 1980, 29 U.S.C. § 1001 et seq.
2. On March 6, 2024, the Court previously entered a Consent Judgement against all of the Defendants except Defendant Kennedy Family LLC. (Dkt. No. 120.)
3. The parties have now agreed to the entry of a consent judgment in favor of Plaintiffs against Defendant Kennedy Family LLC.
4. With the entry of a consent judgment against Kennedy Family LLC, the litigation will be concluded and the court may strike the motion for summary judgment filing date of December 19, 2024.
5. Prior to the filing of this motion, Plaintiffs' counsel, Anthony E. Napoli, and Defendants' counsel, John M. Loalbo, agreed to the entry of the proposed consent judgment against Kennedy Family LLC.
6. A copy of the proposed Consent Judgment is attached hereto as Exhibit 1. The proposed Consent Judgment will also be submitted electronically to the Court's email address for proposed orders.
WHEREFORE, Plaintiffs, Central States, Southeast and Southwest Areas Pension Fund and Charles A. Whobrey, as Trustee, respectfully request that the Court enter the proposed Consent Judgment against Defendant Kennedy Family LLC which is attached hereto as Exhibit 1.
Exhibit 1
CONSENT JUDGMENT
WHEREAS, Plaintiffs, Central States, Southeast and Southwest Areas Pension Fund (the “Pension Fund”), and Charles A. Whobrey, as Trustee (with the Pension Fund collectively referred to as the “Plaintiffs”), filed their Complaint on May 10, 2018;
WHEREAS, Defendant were properly served by delivery of the Summons and Complaint; and
WHEREAS, there is a dispute as to whether employer liability has been established by the Pension Fund regarding Kennedy Family LLC. However, in order for the parties to conserve attorney's fees and costs and to avoid the waste of precious judicial time, the parties agree to the terms of this Consent Judgment,
WHEREAS, Plaintiffs and Defendant Kennedy Family LLC consent and stipulate to the entry of judgment against Defendant Kennedy Family LLC and in favor of Plaintiffs as set forth below.
NOW THEREFORE, Plaintiffs and Kennedy Family LLC consent and stipulate to, and the Court makes the following conclusions of law.
JURISDICTION AND VENUE
1. This action is for withdrawal liability arising under the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended by the Multiemployer Pension Plan Amendments Act of 1980 (“MPPAA”), 29 U.S.C. § 1001, et seq.
2. This Court has jurisdiction over this action under ERISA, 29 U.S.C. §§ 1132(e), 1132(f), and 1451(c).
3. Venue lies in this Court under 29 U.S.C. §§ 1132(e)(2) and 1451(d), in that the Pension Fund is administered at its principal place of business in Chicago, Illinois.
CONCLUSIONS OF LAW
4. The Pension Fund is a multiemployer plan within the meaning of 29 U.S.C. §§ 1002(37) and 1301(a)(3).
5. The Pension Fund is administered by Charles A. Whobrey and his fellow trustees at 8647 West Higgins Road in Chicago, Illinois.
6. The Pension Fund determined that on or about October 8, 2011, Defendant Kennedy Family LLC jointly and severally incurred withdrawal liability to the Pension Fund in the principal amount of $5,255,876.58, as determined under 29 U.S.C. § 1381(b).
7. Pursuant to ERISA, 29 U.S.C. § 1132(g)(2), Plaintiffs are entitled to judgment in its favor for:
(a) the unpaid withdrawal liability;
(b) interest on the unpaid withdrawal liability;
(c) an amount equal to the greater of: (1) the interest on the unpaid withdrawal liability, or (2) liquidated damages as provided under the Plan in an amount not in excess of 20 percent of the unpaid withdrawal liability;
(d) reasonable attorney's fees and costs; and
(e) such other relief the Court deems appropriate.
An award of these amounts is mandatory. Cent. States, Se. & Sw. Areas Pension Fund v. Gerber Truck Serv., 870 F.2d 1148, 1156 (7th Cir. 1989) (en banc).
8. Pursuant to 29 U.S.C. § 1132(g)(2), interest on the unpaid withdrawal liability is computed and charged at the rate set by the plan.
9. Under the Pension Fund Trust Agreement, interest on delinquent withdrawal liability payments is computed and charged at an annualized interest rate equal to two percent (2%) plus the prime interest rate established by JPMorgan Chase Bank, NA for the fifteenth (15th) day of the month for which interest is charged.
10. Accordingly, Defendant Kennedy Family LLC owes Plaintiffs interest in the amount of $4,316,989.09on the unpaid Withdrawal Liability.
11. Pursuant to 29 U.S.C. § 1132(g)(2), Plaintiffs are entitled to the greater of interest on the delinquent withdrawal liability or liquidated damages of up to 20% of the delinquent withdrawal liability as provided under the plan.
12. The Pension Fund Trust Agreement provides for liquidated damages in the amount of interest on the delinquent withdrawal liability (and this is greater than the liquidated damages of up to 20% of the delinquent withdrawal liability as discussed above).
13. Accordingly, Defendant Kennedy Family LLC owes Plaintiffs liquidated damages in the amount of $4,316,989.09, which represents interest on the unpaid Withdrawal Liability.
14. Pursuant to 29 U.S.C. § 1132(g)(2), Defendant Kennedy Family LLC is also required to pay all reasonable attorney's fees and costs incurred in connection with Plaintiffs' claim. Plaintiffs have incurred $146,375.88 in attorneys' fees and $3,654.12 in costs with respect to its claim for the withdrawal liability against Defendant Kennedy Family LLC .
15. Pursuant to the terms of the Pension Fund Trust Agreement, Plaintiffs are entitled to post-judgment interest on the judgment balance at an annualized interest rate equal to two percent (2%) plus the prime interest rate established by JPMorgan Chase Bank, NA for the fifteenth (15th) day of the month for which interest is charged, compounded annually.
IT IS THEREFORE ORDERED, ADJUDGED AND DECREED:
A. That a judgment is entered in favor of Plaintiffs and against Defendant Kennedy Family LLC.
B. That Plaintiffs, Central States, Southeast and Southwest Areas Pension Fund and Charles A. Whobrey, trustee, have and recover judgment from and against Defendant Kennedy Family LLC in the total amount of $14,039,854.76. This amount consists of: (i) $5,255,876.58 in withdrawal liability; (ii) $4,316,989.09 in interest; (iii) $4,316,989.09 in liquidated damages; (iv) $146,345.88 in attorneys' fees; and (v) $3,654.12 in costs for prosecuting this suit as allowed pursuant to 29 U.S.C. §§ 1132(g)(2), 1451(b).
C. That Plaintiffs are awarded post-judgment interest on the withdrawal liability judgment balance at an annualized interest rate equal to two percent (2%) plus the prime interest rate established by JPMorgan Chase Bank, NA for the fifteenth (15th) day of the month for which interest is charged, compounded annually.
D. That Plaintiffs are awarded execution for collection of the judgment and costs granted.