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

Background

The petitioners sought confirmation of a June 26, 2019 arbitration award against Skyeco Group LLC. In December 2016, Skyeco signed a Letter of Assent binding it to a project labor agreement. Under that agreement and the related collective bargaining agreement, Skyeco agreed to make benefit-fund contributions and to provide records for audits. The agreement allowed the petitioners to pursue arbitration for delinquent amounts and authorized the arbitrator to award damages, interest, attorneys’ fees, and costs.

An audit found that Skyeco was delinquent in making required benefit contributions for the period from August 13, 2017, through April 1, 2018. The petitioners demanded interest on the late payments. After Skyeco did not pay the demanded interest, the petitioners initiated arbitration. Skyeco received notice of the arbitration hearing but did not appear or contact the arbitrator. The arbitrator therefore held a default hearing and found that Skyeco had failed to pay sufficient interest on the delinquent contributions.

The arbitrator ordered Skyeco to pay $4,048.18, plus interest accruing at 7.5% from June 26, 2019. The petitioners then filed this federal action to confirm the award. Skyeco did not appear or respond.

Confirmation of the Arbitration Award

The court explained that an unanswered petition to confirm an arbitration award is generally treated as an unopposed motion for summary judgment. Summary judgment is a decision entered when the record shows no genuine dispute requiring a trial. Although the court applied that standard, it emphasized that judicial review of a labor arbitration award is highly deferential.

The court found no genuine issue of material fact. The evidence supported the arbitrator’s finding that Skyeco failed to pay the required interest, and the award was based on the collective bargaining agreement. Because the agreement required contributions, allowed arbitration, and authorized the arbitrator to award money damages, interest, and attorneys’ fees, the court concluded that the petitioners were entitled to confirmation of the award.

Attorneys’ Fees and Costs

The petitioners separately requested $568 in attorneys’ fees and $75 in service costs for the federal confirmation proceeding. The court stated that the Labor Management Relations Act does not automatically provide attorneys’ fees for an action confirming an arbitration award, but that a court may award fees and costs under its equitable powers when a party unjustifiably refuses to comply with an arbitration decision.

The court found that Skyeco had agreed to arbitrate, failed to participate after receiving notice, failed to satisfy the award, and failed to oppose the petition. The court therefore awarded the requested $568 in attorneys’ fees and $75 in costs, finding the billing rates, hours, and costs reasonable.

Post-Judgment Interest and Disposition

The court held that post-judgment interest is required on civil judgments from the date judgment is entered, at the rate provided by 28 U.S.C. § 1961(a).

Judge Lorna G. Schofield granted the petitioners’ motion to confirm the arbitration award. The court entered a total amount of $4,824.27, consisting of $1,648.18 in late-payment interest, $400 in arbitration court costs, $500 in arbitrator fees, $1,500 in attorneys’ fees awarded in arbitration, $133.09 in pre-judgment interest, $568 in attorneys’ fees for the federal petition, and $75 in costs. Post-judgment interest was to accrue on the entire judgment at the rate provided by 28 U.S.C. § 1961(a). The Clerk of Court was directed to close pending motions and the case.