Trustees Of The New York City District Council Of Carpenters Pension Fund v…

Background

The Trustees of the New York City District Council of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund; the Trustees of the New York City Carpenters Relief and Charity Fund; and the Carpenter Contractor Alliance of Metropolitan New York, collectively called the Funds, sued Rici Corp. to confirm a final arbitration award.

Rici and the District Council of New York City and Vicinity of the United Brotherhood of Carpenters and Joiners of America had a collective bargaining agreement effective July 1, 2017. The agreement required Rici to make contributions for covered employees, provide books and payroll records for audits, and follow the Funds’ collection policies. When Rici refused to provide records for an April 2022 audit, the Funds conducted an estimated audit and calculated delinquent contributions of $378,374.02.

Arbitration and Court Proceedings

The Funds began arbitration on October 30, 2023. Rici did not appear. On November 25, 2023, the arbitrator found that Rici violated the collective bargaining agreement, ordered Rici to comply with the outstanding audit request within 30 days, and awarded $482,379.11. That amount included the estimated contribution deficiency, $25,428.29 in interest, $75,674.80 in liquidated damages, audit costs, prospective court costs including a $402 filing fee, $1,500 in attorneys’ fees, and a $1,000 arbitrator’s fee.

The Funds filed the petition to confirm the award on March 12, 2024. Rici was served but did not respond, and a certificate of default was entered. The court treated the unopposed petition as an unopposed motion for summary judgment and accepted the Funds’ factual assertions as true.

Court’s Analysis

Under the Federal Arbitration Act, a court must confirm an arbitration award when the parties agreed that judgment could be entered on the award, unless the award has been vacated, modified, or corrected under the statute. The court found that the collection policy required arbitration, the collective bargaining agreement made the arbitrator’s decision final and binding, and the Funds filed their petition within one year of the award.

The court found no evidence of corruption, partiality, misconduct, or action by the arbitrator beyond the arbitrator’s authority. It also found that the award had more than the required justification because the collective bargaining agreement and collection policy authorized the awarded contributions, interest, liquidated damages, audit costs, attorneys’ fees, and other expenses. The court further found that the arbitrator properly ordered Rici to provide its books and records for the audit.

Fees, Judgment, and Disposition

The court found reasonable the Funds’ request for $78 in costs and $1,240 in attorneys’ fees for four hours of work. It also ruled that post-judgment interest on the full judgment amount was proper under 28 U.S.C. § 1961(a).

Judge Valerie Caproni granted the petition to confirm the arbitration award. The Clerk was directed to enter judgment for the petitioner in the amount of $483,697.11, impose post-judgment interest at the statutory rate, terminate all open motions, and close the case.