Opinion
2:24-cv-01861-JDW
11-05-2024
PENSION BENEFIT GUARANTY CORPORATION, Plaintiff, v. STEPHEN J. FAY, et al., Defendants.
ORDER
JOSHUA D. WOLSON, J.
AND NOW, this 5th day of November, 2024, upon consideration of Plaintiff Pension Benefit Guaranty Corporation's (“PBGC”) Motion For Default Judgment (ECF No. 22), for the reasons stated in the accompanying Memorandum, it is ORDERED that the Motion is GRANTED and a judgment by default is ENTERED in favor of PBGC under FED. R. CIV. P. 55(b)(2).
It is FURTHER ORDERED that:
1. Pursuant to 29 U.S.C. § 1109, Stephen J. Fay, James S. Fay, Jr., and the Estate of Margory Ann Fay (collectively, the “Fay Fiduciaries”) are jointly and severally liable to PBGC for $1,535,524.15 of losses suffered by the Fay Construction Co., Inc. Pension Plan (the “Pension Plan”) as a result of the Fay Fiduciaries' breaches of their duties to the Pension Plan under 29 U.S.C. §§ 1104(a)(1)(A)-(C), 1105(a)(2), and 1106(a) and (b), plus pre- and postjudgment interest;
2. The Fay Fiduciaries shall restore any profits they enjoyed through use of the assets of the Pension Plan back to the Plan;
3. Pursuant to 29 U.S.C. §§ 1056(d)(4)(A)(ii) and (C)(ii), PBGC may offset benefits the Fay Fiduciaries are entitled to receive under the Pension Plan, including any rights of Karen Fay and Monique Fay to receive joint-and-survivor annuity benefits or preretirement survivor annuity benefits under the Pension Plan, against amounts the Court orders the Fay Fiduciaries to restore to the Pension Plan; and
4. PBGC is awarded all its costs of litigation in this case, pursuant to 29 U.S.C. § 1303(e)(5).