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

Background

The petitioners were four groups: the trustees of several funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. They sought confirmation of an arbitration award under Section 301 of the Labor Management Relations Act. The opinion states that Dreamland Construction, Inc. is a New York corporation and an employer covered by the Employee Retirement Income Security Act.

Dreamland entered into a project labor agreement that incorporated a collective bargaining agreement. That agreement required covered employers to make contributions to the funds and provide books and records for audits. It also incorporated the funds’ collection policy. Under that policy, if an employer refused to permit an audit, the funds could estimate the delinquent contributions. The agreements provided for interest, liquidated damages, and collection costs and attorney’s fees when unpaid contributions led to arbitration or litigation.

Arbitration award

Dreamland failed to provide its books and records for an audit covering a period beginning March 28, 2015. The funds estimated the delinquent contributions at $63,631.68 and initiated arbitration before Roger E. Maher. Dreamland did not appear at the July 10, 2019 hearing.

On July 15, 2019, the arbitrator ordered Dreamland to pay $88,141.92: $63,631.68 in principal, $9,383.90 in interest, $12,726.34 in liquidated damages, $400 in court costs, $1,500 in attorney’s fees, and $500 in arbitrator’s fees. The arbitrator also provided for interest at an annual rate of 7.5% from the date of the award. The petitioners stated that Dreamland had not paid any part of the award.

Court’s analysis

The court explained that judicial review of an arbitration award is very limited. A court may not reconsider the award’s factual or contract merits if the award is based on the collective bargaining agreement and has at least a minimally reasonable basis. Because a petition to confirm an arbitration award is supported by documents such as the arbitration agreement and award, the court treated the unopposed petition and record similarly to a summary-judgment motion rather than entering a default judgment solely because Dreamland did not respond.

The court found that the evidence showed Dreamland was bound by the collective bargaining agreement, failed to make its records available for an audit, and violated the agreement. The arbitrator’s award was based on the collective bargaining agreement and collection policy, including the provision allowing liquidated damages equal to 20% of the unpaid contributions. The court found no basis in the award showing that it was illegitimate and concluded that there was no genuine dispute of material fact.

Additional fees, costs, and judgment

The court granted the petitioners’ request for $1,567.50 in attorney’s fees for the court proceeding. It found reasonable the attorneys’ reported 5.7 hours of work at $275 per hour. The court also granted $70 in court costs and disbursements.

The court stated that the petitioners were entitled to post-judgment interest under 28 U.S.C. § 1961(a). Its conclusion directed the Clerk to enter judgment enforcing the $88,141.92 arbitration award, with interest from July 15, 2019, at 7.5% annually until the judgment date. It also directed entry of judgment for $1,567.50 in attorney’s fees and $70 in costs, with statutory post-judgment interest on the entire judgment from the date of judgment. The court directed the Clerk to close the case.

Disposition

Judge John G. Koeltl granted the petition to enforce the July 15, 2019 arbitration award and granted the requests for attorney’s fees, costs, and post-judgment interest as specified in the conclusion.