United States District Court, D. Maryland
INTERNATIONAL PAINTERS AND ALLIED TRADES INDUSTRY PENSION FUND et al Plaintiffs,
SRI CONSTRUCTION, et al Defendants.
REPORT AND RECOMMENDATIONS
MARK COULSON, UNITED STATES MAGISTRATE JUDGE
Report and Recommendation's addresses the Complaint for
Confession of Judgment that Plaintiff International Painters
and Allied Trades Industry Pension Fund et al
(“Plaintiffs”) filed against Defendants SRI
Construction LLC and Guru Switzoor (collectively, the
“Defendants”). (ECF No. 1). On September 6, 2019
in accordance with 28 U.S.C § 636 and Local Rules 303
and 203, Judge Russell referred this case to me to review
Plaintiff's Complaint for Judgment by Confession. (ECF
No. 2). For the reasons herein, I recommend that the Clerk of
Court enter the confessed judgment.
International Painters and Allied Trades Industry Pension
Fund (“Plaintiff” or “Funds”) are
trust funds established under 29 U.S.C. § 185(c)(5).
(ECF No. 1 at 2). Its trustees are the “named
fiduciary, ” “plan administrator, ” and
“plan sponsor, ” and each is an individual
fiduciary within the meaning of 29 U.S.C. § 1102(a),
(16), (21), for the International Painters and Allied Trades
Industry Pension Plan (“Pension Plan”).
Id. The Pension Plan is a “multiemployer plan,
” “employee benefit plans, ” and
“employee benefit pension plans” as within the
meaning of 29 U.S.C. § 1102(37), 1002(2), and (3).
Id. The Fund and Tim D. Maitland
(“Maitland”) are authorized collection
fiduciaries and agents for the Pension Plan and sue on behalf
of the Pension Plan. Id. Defendant SRI Construction
(“SRI”) is a New York limited liability
corporation and an employer in an in industry affecting
commerce within the meaning of 29 U.S.C. § 152(2), (6),
and (7), and § 1002(5), (11), and (12). (ECF No. 1 at
3). Defendant, Guru Switzoor, is an individual and an owner,
officer, agent, or managing agent of SRI. Id.
Switzoor executed a Promissory Note and Personal Guarantee
and is personally liable to the Pension Fund for the debts
and obligations of SRI. Id.
bound to a collective bargaining agreement (“CB
A”) with the International Union of Painters and Allied
Trades, District Council 9 (“Union, ”) which
required the payment of fringe benefit contributions and wage
deductions to the Fund for hour worked or wages earned by
covered workers. Id. at 3. On October 16, 2017, to
resolve the $180, 336.22 debt owed by SRI to Plaintiff (for
the period of July 2014 through April 2015), SRI and Switzoor
entered into a Settlement Agreement, Promissory Note, and
Warrant of Attorney to Confess Judgment. Id. ¶
11. In accordance with the terms and conditions of the
Agreement, Plaintiffs agreed to conditionally waive $27,
995.28 in liquidated damages owed by SRI, as long as SRI
complied with the terms of the agreement. (Id.
¶ 12; ECF No. 1-3 at 2). This would have resulted in a
balance of $152, 340.94 (“Settlement Sum”).
Id. The terms and conditions of the Note required
Defendants to submit to Plaintiffs fifteen monthly
installment payments commencing on November 15, 2017, with
the final payment to occur on or before January 15, 2019.
(ECF No. 1 ¶ 13).
defaulted on the Note by failing to submit the third through
fifteenth installments. Id. ¶ 15. In addition,
the terms and conditions required SRI to cooperate with a
payroll compliance audit by the Fund (by producing specified
documents within sixty days of executing the agreement),
which they failed to do. Id. ¶ 16. Plaintiff
filed a Complaint in this Court requesting a Confession of
Judgment on September 6, 2019. (ECF No. 1). At this time,
neither Plaintiffs nor their counsel had received the
requested payments. Id. ¶ 15. Plaintiffs
contend that under the Agreement the following amounts are
Post-agreement interest on the declining balancing
of Total Debt (8% per annum) compounding monthly
Attorneys' Fees and Costs (10/13/17 through
(ECF No. 1-8 at 1).
effect, a Judgment by Confession is a private admission to
liability for debt without trial and allows the entry of a
judgment on the admission or confession without the
formality, time, or expense, involved in an ordinary
Local Rule 108.1 requires that a plaintiff seeking the entry
of a confessed judgment file a Complaint, accompanied by:
1. [T]he written instrument that
(a) authorizes the confessed judgment; and
(b) entitles the plaintiff to a claim for liquidated damages;
2. [A]n affidavit of the plaintiff or someone on behalf of
the plaintiff, stating:
(a) the circumstances under which the defendant executed the
(b) the age and education of the defendant, if known;
(c) the amount due under the written instrument; and
(d) the defendant's post office address (including the
street address if needed to effect mail delivery).
Int'l Painters v. Kosson Glass, Inc.,
2016 WL 7383354, at *1 (D. Md. Dec. 21, 2016) (citing Loc. R.