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

Background

The petitioners were 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; the New York City and Vicinity Carpenters Labor-Management Corporation; and the New York City District Council of Carpenters. The opinion states that these organizations functioned for the benefit of carpenters in the New York City area.

Win Belleville, LLC, also identified in the opinion as Win Development Inc., recognized the Council of Carpenters as the exclusive bargaining agent for carpenters working on a Walgreens construction project in Belleville, New Jersey. The agreement required Win Belleville to make contributions to the funds for covered employees, allowed inspection of its records, and established procedures for collecting unpaid amounts. The agreement also required arbitration of disputes.

After auditing Win Belleville’s records, the petitioners determined that the company had not made proper payments from June through September 2017. Arbitrator Roger Maher notified Win Belleville of a hearing by regular and certified mail. Win Belleville did not attend, and the arbitrator treated it as being in default. The petitioners presented the agreement, auditor testimony, and evidence about the amounts owed.

On May 10, 2018, the arbitrator awarded $28,333.80 in principal, $956.98 in interest, $5,666.76 in liquidated damages, $25.03 in late-payment interest, $37.77 for a promotional fund, $400 in court costs, $1,500 in attorney’s fees, and $500 in arbitrator’s fees, for a total of $37,420.34. The award provided for interest at 5.75% from the award date. Win Belleville did not pay the award or ask a court to vacate or modify it.

Jurisdiction and procedural posture

The petitioners asked the court to confirm the arbitration award and enter judgment. Although Win Belleville was served in the court case, it did not appear. The court converted the petition into an unopposed motion for summary judgment, meaning the court considered whether the petitioners were entitled to judgment based on the record even without a response from Win Belleville.

Before deciding the petition, the court ordered the petitioners to explain why the case should not be dismissed for lack of personal jurisdiction. The court concluded that it had personal jurisdiction over Win Belleville. It found that Win Belleville had been properly served through its registered agent, had a contractual relationship with New York entities, and had sent payments into New York under that relationship. The court also stated that Win Belleville had likely consented to jurisdiction through a forum-selection provision allowing the arbitration award to be entered in New York state court or another appropriate court.

Confirmation of the award

A court normally confirms an arbitration award unless the award has been vacated, modified, or corrected. Judicial review is narrow. The court explained that an award should be enforced if the record provides even a barely colorable justification for the arbitrator’s result.

The court found that the parties’ agreements required arbitration, authorized the arbitrator to hold a hearing when a party failed to appear, and allowed the arbitrator to decide the matter based on the evidence presented. The arbitrator had received notice of the proceeding and heard evidence about the agreement, the payment deficiencies, and the damages. The court found no indication that the arbitrator acted arbitrarily, exceeded the authority granted by the agreement, or acted contrary to law. It therefore found no disputed material fact and concluded that the award should be confirmed.

Fees, costs, and judgment

The court awarded the petitioners attorney’s fees for the court proceeding because Win Belleville had not complied with the arbitration award and had not challenged it. The court found reasonable the claimed fees for 2.1 hours at $275 per hour and 0.2 hours at $70 per hour, totaling $572.50, and added $75 in costs. Together, the additional attorney’s fees and costs totaled $647.50 in attorney’s fees and $75 in costs.

The court also granted interest on the judgment as required by federal law. The final order confirmed the arbitration award and directed the Clerk to enter judgment for $37,420.34 against Win Belleville, LLC, identified in the conclusion as doing business as Win Development Inc., plus interest at 5.75% per year from May 10, 2018, through the date judgment was entered. The judgment was also to accrue post-judgment interest under 28 U.S.C. § 1961. The court directed the Clerk to close the case.

Disposition

The petitioners’ motion was GRANTED. The arbitration award was confirmed, judgment was entered as described above, and the case was closed.