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

Background

The petitioners were the trustees of several funds and the Carpenter Contractor Alliance of Metropolitan New York. The opinion states that Robert S. Interiors, Inc. was a New York corporation, a member of an employers’ association, and bound by a collective bargaining agreement with the New York City District Council of Carpenters. The agreement required the company to make contributions to the funds for covered work and to provide books and payroll records for audits.

The agreement and the funds’ collection policy allowed the funds to estimate delinquent contributions when an employer failed to cooperate with an audit. They also required disputes about contributions to be resolved through arbitration and allowed awards of interest, liquidated damages, audit costs, attorneys’ fees, and other costs.

The funds attempted to audit Robert S. Interiors, but the company did not provide all requested records. The funds estimated that the company owed $748,421.36 in principal contributions and initiated arbitration. After receiving notice, the company did not attend the September 20, 2022 arbitration hearing, request an adjournment, or otherwise participate. Arbitrator Daniel Engelstein found the company in default, heard evidence, and issued an award.

The award required Robert S. Interiors to make its books and records available for an audit within 30 days and to pay $950,636.10. That amount consisted of $748,421.36 in estimated unpaid contributions, $50,030.47 in interest, $149,684.27 in liquidated damages, $1,500 in attorneys’ fees, and $1,000 in arbitrator’s fees. The award also provided for 6.75% interest on an unpaid balance after the specified payment period and an additional $402 court filing fee if enforcement litigation became necessary. The company did not comply with the award.

Court’s review of the arbitration award

The petitioners asked the court to confirm the award under Section 301 of the Labor Management Relations Act. Because the petition was unopposed, the court treated the petition and supporting materials like a motion for summary judgment, but it still independently examined whether the petitioners were legally entitled to judgment.

The court found that the dispute fell within the agreement’s arbitration provision. It also found that the arbitrator acted within the authority granted by the agreement, which allowed the arbitrator to decide the contribution dispute and award monetary damages, interest, fees, and costs. The court found no indication that the award resulted from fraud or dishonesty or that the arbitrator disregarded the agreement. Given the limited judicial review of labor arbitration awards, the court concluded that the award was proper.

The petition to confirm the arbitration award was GRANTED. The court confirmed the $950,636.10 award and ordered prejudgment interest at 6.75% per year from September 22, 2022, through entry of judgment.

Attorneys’ fees and costs

The petitioners requested $1,595 in attorneys’ fees and $77 in costs for the federal court case. The court found two grounds supporting an award: the collective bargaining agreement allowed recovery of reasonable fees and court costs in a confirmation action, and the company’s failure to participate in arbitration, pay the award, or oppose the petition supported a finding of bad faith.

The court found that the petitioners’ counsel reasonably spent 5.8 hours on the case. It approved associate attorney Maura Moosnick’s requested rate of $275 per hour. It reduced law clerk Matthew Vani’s rate from $275 to $225 per hour because he had not yet been admitted to the bar. The request for attorneys’ fees and costs was GRANTED, but at the reduced rate for Mr. Vani’s work. The court stated that the petitioners were entitled to $1,415 in attorneys’ fees and $77 in costs.

Post-judgment interest and final judgment

The request for post-judgment interest was GRANTED. The court ordered interest at the statutory rate under 28 U.S.C. § 1961.

In its conclusion, the court directed the clerk to enter judgment for the petitioners consisting of the $950,636.10 arbitration award, 6.75% prejudgment interest through entry of judgment, $1,492 in attorneys’ fees and costs related to the federal action, and statutory post-judgment interest. The clerk was also directed to close the case.