Free Complaint - District Court of Delaware - Delaware

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 1 of 12

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE PLUMBERS AND PIPEFITTERS LOCAL UNION NO.74 ANNUITY PLAN, PLUMBERS AND PIPEFITTERS LOCAL NO.74 WELFARE PLAN, AND PLUMBERS AND PIPEFITTERS LOCAL UNION NO.74 PENSION PLAN (formerly the PIPEFITTERS : LOCAL UNION NO. 80 AND EMPLOYERS JOINT PENSION FUND), and SCHOLARSHIP FUND OF THE PLUMBERS AND PIPEFITTERS : LOCAL UNION NO.74 c/o Gem Group Brandywine Corporate Center 650 Naamans Road, Suite 303 Claymont, DE 19703 and PLUMBERS AND PIPEFITTERS LOCAL NO.74 APPRENTICESHIP FUND, PIPEFITTERS LOCAL UNION NO.74 EDUCATIONAL/PAC FUND, AND LOCAL UNION NO.74 OF THE UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPEFITTING INDUSTRY OF THE UNITED STATES AND CANADA, AFL-CIO (formerly Pipefitters Local No. 80) 3200 Old Capital Trial Wilmington, DE 19808 Plaintiffs, v. CTI FIELD SERVICES, INC. a/k/a CTI Field Services 6100 Center Grove Road Edwardsville, IL 62025 Defendant. COMPLAINT Plaintiffs, by undersigned counsel, complain about Defendant as follows: CIVIL ACTION NO. 07-CV-

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 2 of 12

JURISDICTION This Court has jurisdiction over the subject matter of this action under 29 U.S.C. 1. §§185(a) or 1132(e)(2). 2. A copy of this Complaint has been served on the Secretary of Labor and the

Secretary of Treasury of the United States by certified mail. VENUE 3. Venue lies in the District of Delaware under 29 U.S.C. § 185(a) or 1132(e)(2). PARTIES Plaintiffs, Plumbers and Pipefitters Local Union No. 74 Annuity Plan, Plumbers 4. and Pipefitters Local No. 74 Welfare Plan, Plumbers and Pipefitters Local Union No. 74 Pension Plan (formerly, The Pipefitters Local Union No. 80 and Employers Joint Pension Fund), Scholarship Fund of the Plumbers and Pipefitters Local Union No. 74, Plumbers and Pipefitters Local No. 74 Apprenticeship Fund (respectively, "Annuity Fund," "Welfare Fund," "Pension Fund", "Scholarship Fund", and "Apprenticeship Fund", and, jointly, "Funds"), are trust funds established under 29 U.S.C. §186(c)(5) and "multiemployer plans" and "employee benefit plans" within the meaning of 29 U.S.C. §1002(37),(1),(2) and (3). The Funds are administered from offices located at the address(es) listed in the caption. 5. Plaintiff, Pipefitters Local No. 74 Educational/PAC Fund ("PAC"), is an

unincorporated association established pursuant to 2 U.S.C. §431 et seq. for the purpose of advancing the political interests of the members of the union by lawfully influencing the selection, nomination, election and/or appointment of individuals for political office. The PAC is administered from offices located at the address in the caption. 6. Plaintiff, Local Union No. 74 of the United Association of Journeymen and

Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO 2

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 3 of 12

(formerly Pipefitters Local No. 80) ("Union"), is an unincorporated association commonly referred to as a labor union, and is an employee organization that represents, for purposes of collective bargaining, employees of CTI Field Services, Inc. a/k/a CTI Field Services who are and/or were employed in an industry affecting interstate commerce within the meaning of 29 U.S.C. §§152(5), (6) and (7), 185(a) and 1002(4), (11) and (12). The Union maintains its principal place of business at the address listed in the caption. 7. Defendant, CTI Field Services, Inc. a/k/a CTI Field Services ("Company"), is a

Delaware corporation and an employer in an industry affecting commerce within the meaning of 29 U.S.C. §§1152(2), (6) and (7), 1002(5), (11) and (12) with a business office at the address listed in the caption. COMMON FACTS 8. At all times relevant to this action, the Company was party to a collective

bargaining agreement(s) with the Union (singly or jointly, "Labor Contract"). 9. The Company also signed or agreed to abide by the terns of agreements and

declarations of trust of the Funds ("Trust Agreements") made between certain employers and employee representatives in an industry(ies) affecting interstate commerce to promote stable and peaceful labor relations. 10. Under the Labor Contract or Trust Agreements, the Company agreed: (a) To make full and timely payments on a monthly basis to the Funds, Union

and PAC as required by the Labor Contracts; (b) To file monthly remittance reports with the Funds, Union and PAC

detailing all employees or work for which contributions and work dues were required on the Labor Contract. (c) To produce, upon request by the Funds, Union and PAC, individually or 3

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 4 of 12

jointly, all books and records deemed necessary to conduct an audit of the Company's records concerning its obligations to the Funds, Union and PAC; and (d) To pay liquidated damages and costs of litigation, including attorneys'

fees, expended by the Funds, Union and PAC to collect any amounts due as a consequence of the Company's failure to comply with its contractual obligations described in Subparagraphs (a), (b) and (c). COUNTI -AMOUNTS DUE UNDER CONTRACT -SUMCERTAIN FUNDS, UNION AND PAC v. COMPANY 11. fully restated. 12. On infoiination and belief, the Company owes the Funds, Union and PAC the The allegations of Paragraphs 1 through 10 are incorporated by reference as if

sum of at least $91,008.79 in outstanding contributions, interest and liquidated damages as detailed on Exhibit 1. 13. Despite request(s) for payment, the Company has not paid the Funds, Union and

PAC as required by the Labor Contract or Trust Agreements. WHEREFORE, Plaintiffs ask that the Court: (1) Enter judgment against the Company in favor of the Funds, Union and PAC

individually for at least $91,008.79 plus any amounts which become due during the pendency of this lawsuit or as a result of an audit of Company's records together with interest, liquidated damages and costs, including reasonable attorneys' fees incurred in this action or the collection or enforcement of any judgment, as provided in the Labor Contract or Trust Agreements. (2) Grant such other or further relief, legal or equitable, as may be just, necessary or 4

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 5 of 12

appropriate. COUNTII -AMOUNTS DUE UNDERERISA - SUM CERTAIN FUNDS v. COMPANY 14. fully restated. 15. On information and belief, the Company has failed to timely pay contributions, The allegations of Paragraphs 1 through 13 are incorporated by reference as if

interest and liquidated damages to the Funds in violation of 29 U.S.C. §1145 in at least the sum of $91,008.79 as detailed on Exhibit 1. 16. The Funds have been damaged by the Company's violation of 29 U.S.C. §1145.

WHEREFORE, the Funds ask that the Court: (1) Enter judgment against the Company and in favor of the Funds, individually, for

$91,008.79 plus any amounts which become due during the pendency of this lawsuit or as a result of an audit of Company's records together with interest at the rate prescribed by 26 U.S.C. §6621 from the due date for payment until the date of actual payment, liquidated damages equal to the greater of the interest on the unpaid contributions or liquidated damages provided by the plan document or statute and reasonable attorneys' fees and costs incurred in this action or the collection or enforcement of any judgment as provided in the Trust Agreements and applicable law. (2) appropriate. Grant such other or further relief, legal or equitable, as may be just, necessary or

5

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 6 of 12

COUNT III -AUDIT FUNDS, UNION AND PAC v. COMPANY The allegations of Paragraphs 1 through 16 are incorporated by reference as if 17. fully restated. 18. The Funds, Union and PAC are without sufficient information or knowledge to

plead the precise nature, extent and amount of the Company's delinquency since the books, records and information necessary to determine this liability are in the exclusive possession, custody and control or knowledge of the Company. 19. Computation of the precise amounts of an employer's delinquency is normally

achieved by an audit of the employer's books and records and/or calculated from contractually required remittance reports submitted by the employer. 20. There has been no audit of the Company's books and records and the Company

has failed and/or refused to submit the contractually-required remittance reports from August 2006 to the present. The Funds, however, have and continue to receive copies of paystubs from employees of the Company showing they worked during this period and that contributions should have been paid to the Funds, Union and PAC. 21. The Company is required by the Labor Contract, Trust Agreements or applicable

law to permit the Plaintiffs to audit its records and to cooperate in determining the contributions due the Plaintiffs. 22. The Plaintiffs have no adequate remedy at law for the calculation of any

additional damages suffered as a result of the breach itself requires an audit. 23. All conditions precedent to equitable relief have been satisfied. 6

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 7 of 12

WHEREFORE, the Plaintiffs ask that the Court: (1) Enjoin the Company, its officers, agents, servants, employees, attorneys and all

others in active concert or participation with them to permit an audit of all records under the actual or constructive control of the Company and, in the absence of records, to cooperate in alternative methods for the determination of work for which contributions are due, and (2) appropriate. COUNT IV - CONTRIBUTIONS UNDER CONTRACT AFTERAUDIT FUNDS, UNION AND PAC v. COMPANY 24. fully restated. 25. On information and belief, the Company has failed to make contributions and The allegations of Paragraphs 1 through 23 are incorporated by reference as if Grant such other or further relief, legal or equitable, as may be just, necessary or

work dues payments to the Plaintiffs as required by its Labor Contract or Trust Agreements in a period not barred by any applicable statue of limitations or similar bar. 26. On information and belief, the Plaintiffs have been damaged by the failure of the

Company to make contributions as required by its Labor Contract or Trust Agreements. WHEREFORE, Plaintiffs ask that the Court: (1) After an audit, enter judgment against the Company in favor of the Plaintiffs

individually for the amount of contributions and work dues found due and owing by an audit together with liquidated damages, interest and costs, including reasonable attorneys' fees incurred in this action or the collection and enforcement of any judgment as provided in the Labor Contract or Trust Agreements. 7

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 8 of 12

(2) appropriate.

Grant such other or further relief, legal or equitable as may be just, necessary or

COUNT V - CONTRIBUTIONS UNDERERISA AFTERAUDIT FUNDS v. COMPANY 27. fully restated. 28. On information and belief, the Company has failed to make contributions to the The allegations of Paragraphs 1 through 26 are incorporated by reference as if

Funds in violation of 29 U.S.C. §1145 in a period not barred by any applicable statue of limitations or similar bar. 29. The Plaintiffs are without sufficient information or knowledge to plead the precise

nature, extent and amount of the Company's delinquency because the books, records and information necessary to determine this liability are in the possession, control or knowledge of the Company. 30. On information and belief, the Funds have been damaged by the Company's

violation of 29 U.S.C. §1145. WHEREFORE, the Funds ask that the Court: (1) After an audit, enter judgment against the Company in favor of the Funds

individually for the contributions found due and owing by the audit, together with interest at the rate prescribed by 26 U.S.C. §6621 from the due date for payment until the date of actual payment, liquidated damages equal to the greater of the interest on the unpaid contributions or liquidated damages provided by the plan document or statute and reasonable attorneys' fees and costs incurred in this action and in connection with any proceedings to enforce or collect any 8

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 9 of 12

judgment. (2) appropriate. COUNT VI - INJUNCTION FUNDS v. COMPANY 31. fully restated. 32. A money judgment or other remedy available at law is inadequate because the The allegations of Paragraphs 1 through 30 are incorporated by reference as if Grant such or further relief, legal or equitable, as may be just, necessary or

Company has shown its disregard of its contractual and legal obligations by a consistent pattern of delinquencies. 33. Unless ordered to do otherwise by this Court, Company will continue to refuse to

submit remittance reports and pay the contributions presently due and owing or which become due and owing in the future, and the Funds and their participants will suffer immediate, continuing and irreparable damage by, among other matters, the loss of investment earnings, the inability to properly determine eligibility and calculate benefits, and a substantial increase in the administrative costs of the Funds with a diminution of the assets otherwise available to pay benefits to company's employees and employees of other employers who fully and timely pay their contributory obligations. 34. All other conditions precedent to equitable relief have been satisfied.

WHEREFORE, the Funds ask that the Court: (1) Permanently restrain and enjoin the Company, its officers, agents, servants,

employees, attorneys and all others in active concert or participation with them from continuing 9

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 10 of 12

to violate the terms of the current collective bargaining agreement(s) between the Company and the Union and from violating such other collective bargaining agreements as may from time to time be entered by the said parties providing for the timely filing of remittance reports with complete, accurate and proper information and timely payment of contributions to the Funds for so long as the Company is contractually-required to do so. (2) appropriate. YO CONAWAY, STARGATT & TAYLOR, LLP Grant such other or further relief, legal or equitable, as may be just, necessary or

i otayJ u" g The Brand Floor eet, 1000 Wes Wilmington, DE 19801 Telephone: (302) 571-6645 Telefax: (302) 576-3336 Email: [email protected]

r

OF COUNSEL: Sanford G. Rosenthal, Esquire Shanna M. Cramer, Esquire Jennings Sigmond, P.C. The Penn Mutual Towers, 16 t1i Floor 510 Walnut Street Philadelphia, PA 19106-3683 (215) 351-0611/0674 Attorneys for Plaintiffs Dated: VAV\e4Y

74)7

10

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007

Page 11 of 12

EXHIBIT 1

Case 1:07-cv-00042-SLR

Document 1

Filed 01/22/2007
i

Page 12 of 12

trustee r,mpioyer Status
MGroup

epurt

Plumbers & Pipefitters Local 74 All Funds
Page 1 of 6

December 2006
MA --

d :e'ru Invoice Number 159151 159696 159697 161294 Work Month 07/2006 08/2006 08/2006 09/2006 Postmark Date 09/19/2006 Date Received Description Status Liquidated Damage/ Interest 31,372.58 0.00 25,393.15 17,893.23 Discrepancy Amount 0.00 16,349.83 0.00 0.00

ub Troup IND IND IND IND

09/19/2006 Liquidated Damages 10/09/2006 Shortage

1 10/06/2006
10/06/2006 11/13/2006

10/09/2006 Liquidated Damages 11/14/2006 Liquidated Damages

Case 1:07-cv-00042-SLR

Document 1-2

Filed 01/22/2007

Page 1 of 1

Case 1:07-cv-00042-SLR

Document 1-3

Filed 01/22/2007

Page 1 of 1