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

Background

The petitioners—the Funds and the New York City District Council of Carpenters—asked the court to confirm an arbitration award against Dreamworks Contracting LLC under section 301 of the Labor Management Relations Act. They also requested interest, attorneys’ fees, and costs.

Dreamworks executed an administration form with the Union in 2017 and later executed a collective bargaining agreement covering July 1, 2011, through May 31, 2017. That agreement required contributions to the Funds for covered employees and required Dreamworks to make its books and records available for audits. After the agreement’s stated period ended, Dreamworks continued reporting and remitting contributions through the Funds’ electronic I-Remit system during 2018 and 2019. The system’s terms required the employer to acknowledge that its contribution obligations were governed by the applicable collective bargaining agreement and related collection policies.

The Funds sought to audit Dreamworks’s records. Dreamworks initially cooperated but later refused after a dispute between the parties. The Funds conducted an estimated audit and concluded that Dreamworks had failed to remit $1,194,038.46 in principal contributions. The Funds then initiated arbitration under the collective bargaining agreement. Dreamworks did not appear at the arbitration hearing, and the arbitrator issued an award in default.

Court’s analysis

Because Dreamworks did not appear or respond, the court treated the petition as an unopposed motion for summary judgment. The court still examined the petitioners’ evidence to determine whether they met their burden and whether any genuine dispute of material fact existed.

The court first addressed whether Dreamworks intended to remain bound by the collective bargaining agreement, including its arbitration clause, after the agreement’s formal expiration. The court relied on Dreamworks’s continued reporting and remitting of contributions, its assent to the I-Remit terms, and its initial cooperation with the audit. The court concluded that this conduct demonstrated Dreamworks’s intent to be bound by the agreement for the relevant audit period.

The court also found that the dispute—whether Dreamworks failed to make required contributions to the Funds—fell within the agreement’s arbitration clause. The agreement gave the arbitrator authority to decide issues concerning payments allegedly owed to the Funds and to award appropriate damages. The court found no issue of fact suggesting that the arbitrator exceeded that authority.

The arbitration award required Dreamworks to pay $1,547,742.25, consisting of $1,194,038.46 in estimated principal contributions, $111,996.10 in interest, $238,807.69 in liquidated damages, $400 in court costs, $1,500 in attorneys’ fees, and a $1,000 arbitrator’s fee. The award also imposed interest at an annual rate of 5.25% from the date of issuance. The court noted that the award did not specify the end date of the audit period, but found no evidence that the amount or the auditor’s methods were incorrect.

Attorneys’ fees and costs

The court held that an award of reasonable attorneys’ fees and costs was justified because Dreamworks did not participate in the arbitration, did not appear in the court case, and had not paid any part of the arbitration award. The collective bargaining agreement and collection policy also allowed recovery of reasonable fees and costs.

Using the lodestar method—reasonable hours multiplied by a reasonable hourly rate—the court found that 6.1 hours of work were reasonable. It awarded $35 for 0.1 hours billed by Nicole Marimon, $650 for 2.6 hours billed by Adrianna Grancio at $250 per hour, and $765 for 3.4 hours billed by Maura Moosnick at $225 per hour. The total attorneys’ fee award was $1,450. The court also awarded $77 in costs.

Disposition

Judge Laura Taylor Swain granted the petition to confirm the July 14, 2021, arbitration award. The court directed entry of judgment for $1,547,742.25, plus interest at 5.25% annually from July 14, 2021, through the date of judgment, $1,450 in attorneys’ fees, and $77 in costs. Post-judgment interest will accrue under 28 U.S.C. section 1961. The clerk was directed to close the case.