Trustees of the New York Hotel Trades Council and Hotel Association of New York…

Background

The petitioners are trustees for various employee-benefit funds. They alleged that 123 Washington LLC was bound by an Industry Wide Agreement between the Hotel and Gaming Trades Council, AFL-CIO, and the Hotel Association of New York City, Inc. The agreement required monthly contributions to the funds on behalf of union members and required disputes about those obligations to be resolved through arbitration.

According to the petition, 123 Washington LLC failed to make timely contributions and became indebted to the funds. The trustees initiated arbitration. 123 Washington LLC appeared in the arbitration and did not dispute that the claimed amounts were due. On March 8, 2024, the arbitrator found that 123 Washington LLC had failed to make the required contributions and issued an award for $2,567,819.36, including interest, late fees, liquidated damages, attorneys’ fees and costs, and the arbitrator’s fees.

The trustees then petitioned under Section 301 of the Labor Management Relations Act to confirm the arbitration award. 123 Washington LLC did not appear or oppose the petition in federal court.

Court’s analysis

The court explained that confirming an arbitration award is ordinarily a summary proceeding that turns the award into a court judgment. Review is very limited: the court does not reconsider the arbitrator’s factual findings or interpretation of the agreement. Instead, it asks whether the arbitrator was at least arguably interpreting or applying the agreement and acted within the authority granted by it.

Because the petition was unopposed, the court treated the petition and supporting record as an unopposed motion for summary judgment. The court found that the undisputed facts showed that the arbitrator’s award was within the scope of the arbitrator’s authority under the collective bargaining agreement.

The court also addressed interest. It granted the trustees’ request for post-award, pre-judgment interest at nine percent per year from the date of the arbitration award until entry of judgment. It awarded post-judgment interest from the date of judgment until payment at the federal rate specified by 28 U.S.C. § 1961(a).

Ruling and effect

The petition to confirm the arbitration award was granted. The court awarded judgment to the petitioners for $2,567,819.36, plus nine-percent yearly post-award, pre-judgment interest from March 8, 2024, through the date judgment was entered, and post-judgment interest thereafter at the statutory federal rate until the judgment was paid. The Clerk was directed to enter judgment for the petitioners and close the case. Judge Valerie Caproni signed the order.