Cornerstone Builders

407 309 NLRB No. 60 CORNERSTONE BUILDERS 1 302 NLRB 581. 2 In a letter dated June 17, 1992, Respondents’ attorney advised the Acting Regional Director that the Respondents have gone out of business, that neither Respondent has had any employees for a sub- stantial period of time, and that neither corporation has any assets from which financial payments may be made. 3 In her Motion for Default Summary Judgment, counsel for the General Counsel avers that the Respondent’s attorney in a telephone conversation of September 24, 1992, reiterated the Respondent’s ear- lier assertion that the Respondent was no longer in business and ad- vised that the Respondent did not intend to file an answer to the compliance specification. Cornerstone Builders, Inc., and its alter ego Miracle Construction Services, Limited, d/b/a M.C.S., Ltd. and Painters District Council No. 2, a/w International Brotherhood of Painters and Al- lied Trades, AFL–CIO and Joseph Shatro, as Managing Trustee of the Painters District Council No. 2 Pension, Welfare, Group Insur- ance, Vacation and Apprenticeship and Jour- neyman Training Trusts. Cases 14–CA–20825 and 14–CA–20825–2 October 30, 1992 SUPPLEMENTAL DECISION AND ORDER BY CHAIRMAN STEPHENS AND MEMBERS DEVANEY AND RAUDABAUGH On April 15, 1991,1 the National Labor Relations Board issued a Decision and Order, inter alia, adopting the recommended Order of the administrative law judge ordering Cornerstone Builders, Inc., and its alter ego Miracle Construction Services, Limited, d/b/a M.C.S., Ltd., to comply with all terms of the collec- tive-bargaining agreement, make whole the unit em- ployees for any loss of wages and benefits owed since March 1, 1990, make all contractually required pay- ments to fringe benefit funds pursuant to the terms of the collective bargaining agreement; and reimburse unit employees for any expenses incurred from the failure to make such payments. On May 26, 1992, the United States Court of Appeals for the Eighth Circuit enforced the Board’s Order.2 A controversy having arisen over the amount of backpay due discriminatees, on August 26, 1992, the Regional Director for Region 7 issued a compliance specification and notice of hearing alleging the amount due under the Board’s Order, and notifying the Re- spondent that it should file a timely answer complying with the Board’s Rules and Regulations. Although properly served with a copy of the compliance speci- fication, the Respondent has failed to file an answer. By letter dated September 24, 1992,3 counsel for the General Counsel advised the Respondent’s attorney that no answer to the compliance specification had been received and that unless an appropriate answer was filed by close of business on September 28, 1992, summary judgment would be sought. The Respondent filed no answer. On October 8, 1992, the General Counsel filed with the Board a Motion for Default Summary Judgment on compliance specification for failing to file an answer, with exhibits attached. On October 13, 1992, 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 again filed no response. The allegations in the motion and in the compliance 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 Summary Judgment Section 102.56(fiMDBUfl*ERR17*fiMDNMfla)fiMDBUfl*ERR17*fiM tions provides that the Respondent shall file an answer within 21 days from service of a compliance specifica- tion. Section 102.56(fiMDBUfl*ERR17*fiMDNMflc)fiMDBUfl*ERR17* lations states: 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 allegations 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 Motion for Default Summary Judgment, the Respond- ent, despite having been advised of the filing require- ments, has failed to file an answer to the compliance specification. In the absence of good cause for the Re- spondent’s failure to file an answer, we deem the alle- gations in the compliance specification to be admitted as true, and grant the General Counsel’s Motion for Summary Judgment. Accordingly, we conclude that the net backpay due the discriminatees is as stated in the compliance specification and we will order payment by the Respondent to the discriminatees. 408 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD ORDER The National Labor Relations Board orders that the Respondent, Cornerstone Builders, Inc., and its alter ego Miracle Construction Services, Limited, d/b/a M.C.S., Ltd., its officers, agents, successors, and as- signs, shall make whole the individuals and benefit funds named below, by paying them the amounts fol- lowing their names, with interest to be computed in the manner prescribed in New Horizons for the Retarded, 283 NLRB 1173 (fiMDBUfl*ERR17*fiMDNMfl1987)fiMDBUfl*ERR1 quired by Federal and state laws: Lee Lollar $ 7,339.20 Kevin Whitney 14,216.80 Welfare, Pension, Apprenticeship 27,984.00 and Journeyman Training and Vacation Funds (fiMDBUfl*ERR17*fiMDNMflpayments on behalf of employees named in the compliance specification)fiMDBUfl*ERR17*fiMDNMfl