Paragon Custom Homes

350 NLRB No. 39 Paragon Custom Homes, Inc. and Carpenters Union Local 587. Case 18–CA–17312 July 30, 2007 SUPPLEMENTAL DECISION AND ORDER BY MEMBERS SCHAUMBER , KIRSANOW, AND WALSH The General Counsel seeks a default judgment in this case on the ground that the Respondent has failed to file an answer to the compliance specification. On October 29, 2004, the Board issued a Decision and Order1 that, among other things, ordered the Respondent to make whole employees Thomas Bennett, Patrick Dreyer, Leland Emery, William Hadrath, Allen Loehr, and Jeremy Walker2 for any loss of earnings and other benefits suffered as a result of their discriminatory per- manent layoffs by the Respondent and the Respondent’s failure to notify and give the Union an opportunity to bargain about the effects of the layoffs, in violation of Section 8(a)(1), (3) and (5) of the Act. On December 21, 2004, the United States Court of Appeals for the Eighth Circuit entered its judgment enforcing in full the Board’s Order. A controversy having arisen over the amount of back- pay due the discriminatees under the terms of the Board’s Order, on May 8, 2007, the Regional Director issued a compliance specification and notice of hearing alleging the amount due under the Board's Order. The compliance specification notified the Respondent that it should file an answer by May 29, 2007, complying with the Board's Rules and Regulations. Although properly served with a copy of the compliance specification, the Respondent failed to file an answer. By letter dated June 1, 2007, the Region advised the Respondent that no answer to the compliance specifica- tion had been received and that unless an answer was filed by June 8, 2007, a motion for default judgment would be filed. To date, the Respondent has not filed an answer. On June 15, 2007, the General Counsel filed with the Board a Motion for Default Judgment and brief in sup- port, with exhibits attached. On June 25, 2007, 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 did not file a 1 343 NLRB No. 62 (2004)(not included in bound volumes). 2 The General Counsel’s Brief in Support of Motion for Default Judgment and the Compliance Specification refer to a Jeremy “Walter.” However, in the Board’s Decision and Order and the Eighth Circuit Court’s Judgment enforcing the the Board’s Order, this discriminatee is referred to as Jeremy “Walker.” Accordingly, we will refer to this discriminatee as Jeremy “Walker.” response. The allegations in the motion and in the com- pliance 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 Default Judgment Section 102.56(a) of the Board's Rules and Regula- tions provides that a respondent shall file an answer within 21 days from service of a compliance specifica- tion. Section 102.56(c) provides that 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 allega- tions 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 Mo- tion for Default Judgment, the Respondent, despite hav- ing been advised of the filing requirements, has failed to file an answer to the compliance specification. In the absence of good cause for the Respondent’s failure to file an answer, we deem the allegations in the compliance specification to be admitted as true, and grant the Gen- eral Counsel's Motion for Default Judgment. Accord- ingly, we conclude that the net backpay due the discrimi- natees is as stated in the compliance specification and we will order the Respondent to pay those amounts to the discriminatees, plus interest accrued on the amounts to the date of payment. ORDER The National Labor Relations Board orders that the Respondent, Paragon Custom Homes, Inc., Madison, South Dakota, its officers, agents, successors, and as- signs, shall make whole the individuals named below, by paying them the amounts following their names, plus interest accrued to the date of payment, as prescribed in New Horizons for the Retarded, 283 NLRB 1173 (1987), minus tax withholdings required by Federal and State laws: Thomas Bennett $1,633 Patrick Dreyer 1,633 Leland Emery 1,633 William Hadrath 1,633 Allen Loehr 1,462 Jeremy Walker 1,462 TOTAL BACKPAY: $9,456