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

Background

The petitioners were trustees of several carpenter benefit funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. The respondent was Cornerstone Carpentry Limited, doing business as Cornerstone Carpentry. Cornerstone was bound by a collective bargaining agreement between the Association of Wall-Ceiling & Carpentry Industries of New York, Inc. and the Union.

The agreement required covered employers to make contributions to the Funds for covered employees, provide books and payroll records for audits, and follow the Funds’ collection policies. The agreement and collection policy also addressed unpaid contributions, interest, liquidated damages, attorneys’ fees, and costs.

Arbitration Award

The Funds audited Cornerstone’s books and records for the period from September 28, 2016, through September 18, 2018. The audit found that Cornerstone had not made all required contributions. The petitioners began arbitration before Roger E. Maher. Cornerstone received notice of the arbitration hearing but did not appear.

On August 23, 2019, the arbitrator found, based on substantial and credible evidence, that Cornerstone owed the Funds delinquent contributions. He awarded a total of $26,090.02, consisting of delinquent contributions, interest, liquidated damages, late-payment interest, costs, and fees.

Court Proceedings and Legal Standard

The petitioners filed this action under Section 301 of the Labor Management Relations Act to confirm the arbitration award after Cornerstone failed to pay it. Cornerstone did not oppose the petition or otherwise appear in the case.

The court explained that an arbitration award must generally be converted into a court judgment to be enforced. Because Cornerstone did not appear, the court evaluated the request under the standards for summary judgment, which asks whether there is any genuine dispute about an important fact and whether the requesting party is entitled to judgment under the law. Even when a request is unopposed, the court must independently determine whether the evidence supports judgment.

Review of an arbitration award is highly limited. The court must confirm the award if there is at least a barely colorable justification for the arbitrator’s result and no indication that the arbitrator acted arbitrarily, exceeded his authority, or acted contrary to law.

Rulings

The court found that summary judgment was warranted because the petitioners showed that no material factual dispute existed. It found that the arbitrator acted within the authority granted by the parties and that the evidence supported the finding that Cornerstone owed and failed to pay the required contributions. The court therefore confirmed the award for $26,090.02.

The court did not award attorneys’ fees and costs incurred in bringing the petition. It explained that Section 301 does not authorize such an award and that the petitioners had not provided evidence showing that Cornerstone acted in bad faith.

The court awarded post-judgment interest beginning when judgment was entered and continuing until payment, under 28 U.S.C. § 1961(a). The court requested that the Clerk of Court close the case.