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

Background

The petitioners—the Health Benefits Fund, Pension Fund, Legal Fund, Scholarship Fund, and Industry Training Fund, collectively called the “Funds”—sought confirmation of an arbitration award against LuxUrban Hotels Inc. d/b/a The Washington by LuxUrban. The Funds are employee benefit and multiemployer plans under the Employee Retirement Income Security Act. LuxUrban manages and operates the Washington Hotel and was bound by an industry-wide collective bargaining agreement after assuming the prior owner’s obligations.

The agreement required LuxUrban to make monthly contributions to the Funds for covered employees. It also required disputes involving the agreement to be submitted to an Impartial Chairperson, whose decision would be final and binding. The agreement authorized the Impartial Chairperson to order delinquent contributions, interest, late fees, liquidated damages, attorneys’ fees, costs, and arbitrator’s fees.

Arbitration Award and Court Proceeding

The Funds alleged that LuxUrban failed to make required contributions for February through July 2024. Arbitration was held on September 3, 2024, before Impartial Chairperson Alvin Blyer. LuxUrban did not appear. Based on evidence submitted by the Funds, including a delinquency spreadsheet, Chairperson Blyer found that LuxUrban had failed to make contribution payments required by the agreement.

The award directed LuxUrban to pay $906,942.15 to the Health Benefits Fund, $342,598.32 to the Pension Fund, $8,742.81 to the Legal Fund, $1,317.15 to the Industry Training Fund, and $1,092.80 to the Scholarship Fund. Those amounts included interest, late fees, liquidated damages, attorneys’ fees and costs, and arbitrator’s fees. The award was emailed to LuxUrban on October 8, 2024.

The Funds filed this action under Section 301(c) of the Labor Management Relations Act and sought confirmation of the award, along with pre- and post-judgment interest. The court treated the confirmation request like a motion for summary judgment, which asks whether the evidence shows that no important factual dispute requires a trial. LuxUrban did not file an opposition.

Court’s Analysis

The court explained that arbitration awards are not automatically enforceable as court judgments. Courts generally must confirm an award unless it is vacated, modified, or corrected, and review of labor arbitration awards is especially limited and deferential. Even when a confirmation request is unopposed, the court must independently determine whether the requesting party has shown that it is entitled to judgment as a matter of law.

The court found that Chairperson Blyer acted within the authority granted by the parties’ agreement. The award relied on evidence showing the amounts due and immediately payable, and the court found no material factual dispute. It concluded that the award had at least a “barely colorable justification,” and confirmed it.

Interest and Disposition

The court granted the Funds’ request for pre-judgment interest at 9% from October 8, 2024, the date the court identified as the date of the award, through entry of judgment. It also awarded post-judgment interest under federal law, accruing from entry of judgment until LuxUrban satisfies its payment obligations.

Judge Paul A. Engelmayer confirmed the award and issued judgment for $1,260,703.23, plus 9% pre-judgment interest through the date of judgment and post-judgment interest. The Clerk was directed to terminate the pending motion and close the case.