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

Background

The petitioners were the trustees of several New York City District Council of Carpenters funds, the trustees of the New York City Carpenters Relief and Charity Fund, and the Carpenter Contractor Alliance of Metropolitan New York. The opinion refers to them collectively as the Funds. HERA Sports Surfaces LLC was bound by a collective-bargaining agreement with the New York City District Council of Carpenters. That agreement required HERA to make contributions for certain employee work and to resolve contribution disputes through arbitration.

The Funds audited HERA’s contributions for November 28, 2021 through December 31, 2022. The audit found a contribution deficiency of $62,676.02. After HERA did not pay the delinquent contributions, the Funds initiated arbitration. Arbitrator J.J. Pierson held a hearing on September 19, 2023, and issued an award on November 25, 2023. The award required HERA to pay $90,462.98, consisting of the principal deficiency, interest, late interest, liquidated damages, audit costs, promotional fund contributions, attorneys’ fees, the arbitrator’s fee, and court costs. The award also provided for 10.5% annual interest from the award date through entry of judgment.

HERA was served with a demand for payment but did not comply with the award. The Funds filed the petition to confirm the award on December 12, 2023. After the court authorized alternative service and warned that it would treat the petition as unopposed if HERA did not respond by February 21, 2025, HERA still did not respond.

Legal standard

The court explained that federal courts have authority under Section 301 of the Labor-Management Relations Act to confirm labor arbitration awards. Judicial review of such awards is very limited. A court generally must confirm an award if the arbitrator was interpreting or applying the collective-bargaining agreement and acted within the arbitrator’s authority, absent exceptional circumstances such as fraud or a violation of public policy.

Because HERA did not answer, the court treated the petition as an unopposed motion for summary judgment rather than entering a default judgment. Summary judgment is appropriate when there is no genuine dispute about a material fact and the moving party is entitled to judgment under the law. Even an unopposed motion must be supported by facts showing that the moving party is entitled to relief.

Court’s analysis

Judge Vernon S. Broderick found no genuine issue of material fact. The record showed that the arbitrator relied on undisputed evidence that HERA failed to report all hours worked and therefore failed to make contributions required by the collective-bargaining agreement and related agreements. The amounts awarded were based on those agreements.

The court also found no indication that the award was obtained through fraud or dishonesty, that the arbitrator disregarded the collective-bargaining agreement, or that the arbitrator acted outside the broad authority granted by the agreement. The court therefore confirmed the award and granted the request for interest after judgment.

Attorneys’ fees and judgment

The Funds requested attorneys’ fees and costs for the federal confirmation proceeding. Their counsel submitted billing records showing 5.9 hours of work at an hourly rate of $310, for $1,829 in fees, plus $78 in service-related costs. The court approved those amounts.

The court granted the petition and directed the Clerk of Court to enter judgment as follows:

- The November 25, 2023 arbitration award is confirmed in all respects. - The Funds are awarded $90,462.98, plus 10.5% annual interest from November 25, 2023 through the date judgment is entered. - The Funds are awarded $78 in costs for the federal proceeding. - The Funds are awarded $1,829 in attorneys’ fees for the federal proceeding. - Statutory post-judgment interest under 28 U.S.C. § 1961 accrues from entry of judgment until payment is made in full.