Unite Here Health v. Galaxy Management Company Claims $200,927.38 in unpaid contributions and damages
The welfare-benefit plan UNITE HERE HEALTH and its fiduciary Matthew Walker sued Galaxy Management Company, LLC, doing business as Courtyard by Marriott Mahwah, and two of its agents in the United States District Court for the Northern District of Illinois on July 17, 2026, alleging the hotel operator failed to pay $200,927.38 in employee fringe-benefit contributions, interest, liquidated damages, and audit costs owed under collective-bargaining agreements and the Employee Retirement Income Security Act. "This action arises under the laws of the United States and is brought pursuant to the Employee Retirement Income Security Act of 1974, as amended ('ERISA')," the complaint states (Compl. ¶1).
Mechanism of Unpaid Contributions and Conversion Under Collective Bargaining Agreements
Under collective bargaining agreements, the complaint alleges, Galaxy Management Company, LLC agreed to pay employee fringe benefits as monthly contributions to the UNITE HERE HEALTH Welfare Fund. The defendant executed an Assumption Agreement binding it to the Greater Regional Industry-Wide Agreement requiring contributions to the Welfare Fund for eligible employees. The complaint states that contributions required by these agreements are plan assets under the Welfare Trust Indenture (Compl. ¶6, ¶7, ¶29).
Despite these obligations, the complaint alleges Galaxy Management failed to submit payments for eligible employees for the audit period from March 1, 2024, to December 31, 2025, and for subsequent months, including December 2025 through March 2026, May 2026, and June 2026. The complaint specifically identifies these work months as periods during which unpaid contributions and late payments occurred. "Defendant has failed to submit payments to the Welfare Fund for benefits for the eligible employees identified on the audit report," the complaint states (Compl. ¶12). Late payments during these periods are also alleged, resulting in unpaid interest and liquidated damages. The complaint further alleges that Galaxy Management is required to pay interest at a rate of prime plus two percent per annum and liquidated damages at a rate of twenty percent of the delinquent amount for unpaid contributions (Compl. ¶8).
The complaint alleges that Galaxy Management deducted employee portions of contributions from wages but did not pay them to the Fund. The complaint asserts that "it has also retained, and converted to it own use, the employee portions of the contributions" (Compl. ¶22). It further states that employee portions of contributions are plan assets by operation of law (Compl. ¶24).
According to the complaint, defendants Ayush Srivastava and Cynthia M. Amaro, as agents of Galaxy Management, used plan assets for their own use, breaching their fiduciary duties. The complaint alleges that Srivastava and Amaro "have thereby used plan assets in a manner prohibited by ERISA, for their own use, and not for the use of the participants and beneficiaries" (Compl. ¶26).
Breakdown of $200,927.38 in Unpaid Contributions, Interest, and Damages
The complaint alleges Galaxy Management Company LLC, doing business as Courtyard by Marriott Mahwah, owes $200,927.38 in unpaid contributions, interest, liquidated damages, and audit costs to the UNITE HERE HEALTH Welfare Fund. The total consists of two distinct periods: an audit period spanning March 1, 2024, to December 31, 2025, during which unpaid contributions, liquidated damages, interest, and audit costs are claimed, and a subsequent delinquency period from December 2025 through June 2026, during which unpaid contributions and late payments are alleged (Compl. ¶¶ events section).
For the audit period, the complaint alleges $20,682.94 in unpaid principal contributions, $24.79 in interest calculated at the prime rate plus two percent per annum, and $4,136.59 in liquidated damages set at twenty percent of the delinquent amount. Audit costs of $5,631.52 are also claimed, bringing the total for this period to $30,475.84 (Compl. ¶8).
The bulk of the alleged debt arises from unpaid contributions between December 2025 and June 2026. The complaint alleges $139,215.90 in unpaid principal contributions for these months, along with $3,205.22 in interest at the prime rate plus two percent per annum and $28,030.42 in liquidated damages at twenty percent of the delinquent amount. This period totals $170,451.54.
The complaint further alleges that Galaxy Management Company LLC deducted employee portions of contributions from wages but did not pay them to the Welfare Fund. The complaint states that "it has also retained, and converted to it own use, the employee portions of the contributions" (Compl. ¶22). Employee portions of contributions are plan assets by operation of law, making their use for non-plan purposes a breach of fiduciary duty by the individual defendants (Compl. ¶24).
The complaint seeks an accounting of all covered employees' wages and hours to determine the full extent of amounts due, along with reasonable attorneys’ fees and costs, and any other legal or equitable relief the court deems just and proper.
Parties and Their Roles in the Alleged Violations
The complaint names two plaintiffs and three defendants, each assigned distinct roles under the Employee Retirement Income Security Act of 1974. UNITE HERE HEALTH, identified as the Welfare Fund, is the plaintiff welfare plan established to provide benefits to covered employees. Matthew Walker, a fiduciary of the Welfare Fund, joins as co-plaintiff to enforce the plan's rights (Compl. ¶ parties section).
Galaxy Management Company, LLC, doing business as Courtyard by Marriott Mahwah, is the employer defendant. The complaint alleges that Galaxy entered into collective bargaining agreements requiring it to make monthly contributions to the Welfare Fund for employee fringe benefits. It further executed an Assumption Agreement binding it to the Greater Regional Industry-Wide Agreement, which obligates contributions to the Welfare Fund. The complaint contends that Galaxy failed to submit payments for eligible employees during the audit period from March 1, 2024, to December 31, 2025, and for subsequent months, including December 2025 through March 2026, May 2026, and June 2026, resulting in unpaid contributions totaling $139,215.90, plus interest at the prime rate plus two percent per annum and liquidated damages at twenty percent of the delinquent amount (Compl. ¶¶12, 13). "By failing to make the appropriate contributions to the Welfare Fund, Defendant has breached the Agreements and ERISA §§515," the complaint states (Compl. ¶18).
Ayush Srivastava and Cynthia M. Amaro are named as individual defendants in their capacities as agent and General Manager of Courtyard by Marriott Mahwah, respectively. The complaint alleges that Galaxy deducted employee portions of contributions from wages but did not remit them to the Welfare Fund. The complaint asserts that employee portions of contributions are plan assets by operation of law, and that Srivastava and Amaro "have thereby used plan assets in a manner prohibited by ERISA, for their own use, and not for the use of the participants and beneficiaries," breaching their fiduciary duties (Compl. ¶26).
Counts I and II: Delinquencies and Conversion Against Galaxy Management Company, LLC
The complaint alleges that Galaxy Management Company, LLC, doing business as Courtyard by Marriott Mahwah, breached its obligations by failing to remit required contributions to the UNITE HERE HEALTH Welfare Fund. Count I, titled "Welfare Fund Delinquencies," is brought under ERISA §§515 and 29 U.S.C. §1145 against Galaxy Management Company, LLC. The complaint alleges that by failing to make the appropriate contributions, Galaxy Management breached the agreements and applicable law by withholding payments for eligible employees during the audit period from March 1, 2024, to December 31, 2025, and in subsequent months. "By failing to make the appropriate contributions to the Welfare Fund, Defendant has breached the Agreements and ERISA §§515," the complaint states (Compl. ¶18).
The unpaid principal for the audit period alone is alleged to be $20,682.94, with an additional $139,215.90 in unpaid contributions for later months. Under the agreements, Galaxy Management is also liable for interest at the prime rate plus two percent per annum and liquidated damages at twenty percent of the delinquent amount, which the complaint calculates at $4,136.59 for the audit period and $28,030.42 for unpaid contributions (Compl. ¶8).
Count II charges Galaxy Management with conversion, alleging that the company deducted employee portions of contributions from wages but did not pay them to the Welfare Fund. The complaint asserts that these employee portions are plan assets by operation of law. The complaint cites provisions defining plan assets and fiduciary duties, as well as laws governing the administration of employee benefit funds (Compl. ¶21, ¶24). The complaint alleges that "it has also retained, and converted to it own use, the employee portions of the contributions" (Compl. ¶22).
The complaint seeks an accounting of all covered employees' wages and hours to determine the full extent of amounts due, as well as reasonable attorneys' fees and costs under applicable law.
Counts III and IV: Breach of Fiduciary Duty Against Srivastava and Amaro
The complaint alleges that Ayush Srivastava and Cynthia M. Amaro, as agents of Galaxy Management Company, LLC, breached their fiduciary duties by failing to ensure contributions designated for the UNITE HERE HEALTH Welfare Fund were properly remitted. Count III and Count IV are both brought under ERISA for "Breach of Fiduciary Duty," with Count III addressing the prohibited use of the employee portion of contributions and Count IV addressing the prohibited use of the employer portion of contributions.
The complaint alleges that Galaxy Management deducted employee contributions from wages but failed to pay them to the Welfare Fund. This conduct, the complaint alleges, violates fiduciary duty provisions, which prohibit the misuse of plan assets. The complaint states that "it has also retained, and converted to it own use, the employee portions of the contributions," and that Srivastava and Amaro "have thereby used plan assets in a manner prohibited by ERISA, for their own use, and not for the use of the participants and beneficiaries" (Compl. ¶22, ¶26).
The legal framework for these claims rests on the definition of fiduciary duties and the treatment of contributions as plan assets. Under applicable law, contributions required by collective bargaining agreements are considered plan assets, and individuals who exercise discretionary control over those assets are fiduciaries. The complaint alleges that Srivastava and Amaro, as agents of Galaxy Management, breached their fiduciary duties by using plan assets for purposes other than those intended for the Welfare Fund (Compl. ¶29).
Employee Contributions as Plan Assets and Prohibited Transactions
The complaint alleges that employee portions of fringe-benefit contributions became plan assets by operation of law the moment they were withheld from wages, subjecting them to strict fiduciary duties. Once those dollars were deducted from paychecks, the complaint contends, they ceased to belong to the employer and instead became assets of the UNITE HERE HEALTH Welfare Fund (Compl. ¶24).
According to the complaint, defendants Ayush Srivastava and Cynthia M. Amaro, as agents of Galaxy Management Company, LLC, then used those plan assets for their own use. The complaint alleges that "it has also retained, and converted to it own use, the employee portions of the contributions" (Compl. ¶22). The complaint cites the Welfare Trust Indenture, which provides that contributions required by the collective bargaining agreements are plan assets, reinforcing the argument that the employer’s obligation to remit the full contribution amount was fiduciary in nature (Compl. ¶29).
The distinction matters: if the employee-share contributions are plan assets, then any use of them by the employer or its agents is a breach of the duty of loyalty, exposing Srivastava and Amaro to personal liability. The complaint alleges that Srivastava and Amaro "have thereby used plan assets in a manner prohibited by ERISA, for their own use, and not for the use of the participants and beneficiaries" (Compl. ¶26).
Relief Sought and Procedural Posture: $200,927.38, Accounting, Fees, and Equitable Relief
The complaint seeks a total of $200,927.38 currently due and owing from Galaxy Management Company, LLC, d/b/a Courtyard by Marriott Mahwah, for unpaid contributions, interest, and liquidated damages. This amount includes $30,475.84 attributable to an audit period spanning March 1, 2024, to December 31, 2025, during which unpaid contributions, liquidated damages at twenty percent of the delinquent amount, interest at the prime rate plus two percent per annum, and audit costs are claimed. Additionally, $170,451.54 is sought for unpaid contributions from December 2025 through June 2026, including late payments for those months (Compl. ¶¶ events section).
The plaintiffs demand an accounting of all covered employees' wages and hours to determine the full extent of amounts due under the collective bargaining agreements. According to the filing, such an accounting is necessary to ensure compliance with applicable law and the terms of the Greater Regional Industry-Wide Agreement.
The complaint also requests reasonable attorneys’ fees and costs, as well as other legal or equitable relief deemed just and proper. The plaintiffs contend that these remedies are warranted given the defendants' alleged failure to remit contributions and the resulting breach of fiduciary duties by Srivastava and Amaro.
The case was filed on July 17, 2026, in the United States District Court for the Northern District of Illinois.
The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.
The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.
David Brunk is a civil litigation attorney. He can be reached at david@newmanbrunk.com.
From the Complaint Public Court Record
IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION UNITE HERE HEALTH, ) ) MATTHEW WALKER, as fiduciary of ) UNITE HERE HEALTH, ) ) CIVIL ACTION Plaintiffs, ) ) NO. 26 C 8510 vs. ) ) JUDGE GALAXY MANAGEMENT COMPANY, LLC, ) d/b/a COURTYARD BY MARRIOTT MAHWAH, ) ) AYUSH SRIVASTAVA, ) ) CYNTHIA M. AMARO, GENERAL MANAGER ) OF COURTYARD BY MARRIOTT MAHWAH, ) ) Defendants. ) COMPLAINT The Plaintiffs, UNITE HERE HEALTH (“Welfare Fund”) and MATTHEW WALKER, as fiduciary of UNITE HERE HEALTH (collectively “Plaintiffs”), by their attorneys, complaining of the Defendants, GALAXY MANAGEMENT COMPANY, LLC, d/b/a COURTYARD BY MARRIOTT MAHWAH, AYUSH SRIVASTAVA and CYNTHIA M. AMARO, GENERAL MANAGER OF COURTYARD BY MARRIOTT MAHWAH, and, allege as follows: JURISDICTION 1. This action arises under the laws of the United States and is brought pursuant to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), §§502(a)(3) and 515, 29 U.S.C. §§1132(a)(3) and 1145. Jurisdiction is based upon the existence of questions arising thereunder, as hereinafter more fully appears. Case: 1:26-cv-08510 Document #: 1 Filed: 07/17/26 Page 1 of 9 PageID #:1
2 PARTIES 2. Plaintiff Welfare Fund is a “welfare plan” pursuant to ERISA §§3(1) and 3(37), 29 U.S.C. §§1002(1) and 1002(37) and an “employee benefit trust fund” under the LMRA §302(c)(5) and 29 U.S.C. §186(c)(5). The Welfare Fund brings this action in such capacity as an entity pursuant to ERISA §502(d)(1) and §§502(e)(1) and (2) and 29 U.S.C. §§1132(d)(1) and 1132(e)(1). 3. The Trustees of the Welfare Fund and the Seventh Amended and Restated Agreements and Declarations of Trusts (“Welfare Fund Trust Indenture”) governing the Welfare Fund’s establishment and operation authorize the Welfare Fund’s Plan Administrator to initiate litigation on the Welfare Fund’s behalf. Matthew Walker, as Plan Administrator, brings this action pur
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