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

Background

The petitioners were 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. The opinion describes the petitioners as including employee-benefit funds governed by the Employee Retirement Income Security Act, a charitable fund, and a New York not-for-profit corporation associated with the New York City District Council of Carpenters.

Baroco Contracting Corporation was party to a collective bargaining agreement with the Union. The agreement required Baroco to make contributions to the petitioners for covered work and to provide books and payroll records for audits. After Baroco refused to submit to an audit, the petitioners conducted an estimated audit that found an alleged principal contribution deficiency of $3,068,149.25.

Arbitration Award and Confirmation

The petitioners initiated arbitration under the collective bargaining agreement. The arbitrator found that Baroco violated the agreement by failing to permit an audit and ordered Baroco to pay $4,047,686.87. That amount consisted of $3,068,149.25 in estimated principal deficiency, $383,007.77 in interest, $613,629.85 in liquidated damages, $402 in court costs, $1,500 in attorneys’ fees, and $1,000 for the arbitrator’s fee.

The petitioners sought judicial confirmation of the award. Baroco did not appear. The court therefore treated the petition as an unopposed motion for summary judgment. Applying the Federal Arbitration Act’s highly deferential standard of review, the court explained that an award should be confirmed when there is at least a minimally reasonable basis for the arbitrator’s decision. The court found that the collective bargaining agreement required the contributions and audit access, and that Baroco had not contested either its failure to comply or the estimated audit. The court concluded that there was more than a minimally reasonable basis for the award.

The petition to confirm the arbitration award was GRANTED, and the $4,047,686.87 Arbitration Award was CONFIRMED.

Attorneys’ Fees and Costs

The petitioners also requested attorneys’ fees and costs incurred in the federal proceeding. The court explained that fees generally require statutory authority, but a court may award them under its equitable powers when a party refuses without justification to comply with an arbitration decision. The court found that Baroco had agreed to arbitrate disputes, failed to appear in arbitration, failed to comply with the award without explanation, and failed to appear in the federal proceeding.

The petitioners requested compensation for 5.4 hours of associate-attorney work at $310 per hour. The court found that $300 per hour was reasonable and that 5.4 hours was reasonable, resulting in $1,620 in attorneys’ fees. It also awarded the requested $81 in service fees and court costs. The total award for attorneys’ fees and costs was $1,701.00.

Post-Judgment Interest and Case Status

The court awarded the petitioners post-judgment interest on the full judgment amount beginning when judgment is entered, at the rate provided by federal law. The court directed the petitioners to file a revised proposed judgment within fourteen days after entry of the order and directed the Clerk of Court to close the case.