Class Action Settlement – Failure to Pay Prevailing Wages

Maracallo et als. v. Patriots Environmental Corp. et als.

Worcester Superior Court

In this case, three closely-held asbestos abatement contractors and their common owners (the defendants) operated an employee retirement fund into which a certain percentage of prevailing wages earned by employees (our clients) was supposed to be deposited.  These wages were earned by our clients from work they performed on public construction projects throughout Massachusetts.

Instead, the defendants withheld these wages while indicating on employee payroll statements that the deposits had, in fact, been made. As a result, our clients were deprived of more than $320,000 in retirement contributions, plus interest.

Our office filed a putative class action in April of 2015, and, shortly thereafter, a payment of $120,000 was made to the plaintiff class representatives and certain other members of the putative class. A class action was certified by the Worcester Superior Court in September 2015.

In April 2016, the Court approved a class action settlement proposed by the parties, which called for additional payments totaling $262,000 to be made to our clients.

After the defendants failed to consummate settlement pursuant to the Court’s order, our office obtained a real estate attachment on a piece of commercial property owned by the defendants’ real estate holding company, which was added to the class action suit.  This property was sold in December of 2016, resulting in full payment to our clients pursuant to the Court’s settlement order.