Trustees of the New York City District Council of Carpenters Pension Fund v…

Background

The petitioners were trustees of several funds, 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. They petitioned under Section 301 of the Labor Management Relations Act to confirm an arbitration award against M.C.F. Associates, Inc. The opinion states that the trustees of the pension, welfare, annuity, and apprenticeship-related funds administered multiemployer funds governed by the Employee Retirement Income Security Act.

M.C.F. was bound by an agreement with the United Brotherhood of Carpenters and Joiners and an applicable collective bargaining agreement. The collective bargaining agreement required M.C.F. to make contributions to the funds for covered work and to provide books and payroll records for compliance audits. It also allowed arbitration of disputes about unpaid contributions and permitted recovery of interest, liquidated damages, costs, and attorneys’ fees.

An audit covering January 1, 2011, through September 26, 2017, found that M.C.F. had not paid all required contributions. Arbitrator Roger E. Maher issued an award on May 28, 2019, finding that M.C.F. violated the collective bargaining agreement. He ordered M.C.F. to pay $48,277.36, consisting of the principal deficiency, interest, liquidated damages, various other contribution-related amounts, court costs, attorneys’ fees, the arbitrator’s fee, and audit costs. The award also provided for interest at 7.5% annually from the date of the award. The opinion states that M.C.F. had not paid any part of the award.

Court’s analysis

M.C.F. did not respond to the petition, even after the Court extended its time to do so. The Court explained that confirmation proceedings are not resolved by simply entering a default judgment because the petition and supporting record are treated like a motion for summary judgment. Summary judgment is appropriate when there is no genuine dispute about a fact that could affect the result and the moving party is entitled to judgment under the law.

The Court also explained that judicial review of an arbitration award is extremely limited. A court may not reconsider the award’s factual or contractual merits if the award draws its essence from the collective bargaining agreement and has at least a barely colorable justification.

The Court found that the arbitrator’s award was not an improper exercise of personal judgment. The record showed that M.C.F. was bound by the collective bargaining agreement, failed to make required contributions, and owed the awarded amount. The Court credited the auditor’s testimony and the accounting method used in the audit. Because there was no genuine dispute of material fact, the Court determined that the petition to confirm the award should be granted.

Ruling

Judge John G. Koeltl directed the Clerk of Court to enter judgment granting the petition to confirm the May 28, 2019 arbitration award for $48,277.36, plus interest accruing from the award date at 7.5% annually until the date of judgment. The Court also directed entry of judgment for the petitioners for $1,030 in attorneys’ fees and $75 in costs incurred in the court proceeding. Post-judgment interest on the entire judgment was ordered at the rate provided by 28 U.S.C. § 1961(a), and the Clerk was directed to close the case.