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

Background

The petitioners were trustees and organizations identified in the opinion as the Funds. They sought confirmation of an arbitration award against Earth Construction Corp. and recovery of attorneys’ fees and costs for the court proceeding.

Earth Construction performed work on public projects for the New York City School Construction Authority. The opinion states that Earth Construction became a member of the Building Contractors Association, Inc. on March 9, 2012, and was therefore bound by a collective bargaining agreement. The agreement required contributions to the Funds for covered employees, allowed the Funds to audit Earth Construction’s books and records, and permitted disputes about payments to be arbitrated.

The Funds audited Earth Construction’s records for October 14, 2010, through March 23, 2016. The audit found that Earth Construction had not paid all required contributions. After a hearing, the arbitrator issued an award on September 25, 2018, requiring payment of $132,325.46, with 7% interest accruing from the award’s issuance. The opinion states that Earth Construction had not paid any part of the award.

The Funds filed the petition to confirm the award on June 10, 2019. Earth Construction did not answer, move against the petition, or respond to the court’s order to show cause. The court treated the matter as an unopposed request for summary judgment.

Legal standard

The court explained that an arbitration award is not automatically enforceable as a court judgment. Under the Federal Arbitration Act, a court may confirm an award through a streamlined proceeding. In an unopposed confirmation matter, the court applies the summary-judgment standard: the petitioner must show that no genuine dispute about an important fact exists and that it is entitled to judgment as a matter of law. The court must examine the petitioner’s evidence even when the opposing party submits nothing.

The court also stated that arbitration awards receive substantial deference. In a collective-bargaining-agreement case, the question is whether the arbitrator acted within the authority granted by the agreement and whether the award draws its substance from that agreement. The award may be confirmed if there is at least a minimally reasonable basis for the arbitrator’s result.

Rulings

Confirmation of the award. The court confirmed the arbitration award in its entirety. It found no dispute about any important fact, concluded that the arbitrator acted within the authority granted by the collective bargaining agreement, and determined that the audit evidence supported the finding of unpaid contributions. The court also found that the award’s provisions for interest, liquidated damages, late-payment interest, promotional-fund assessments, attorneys’ fees, and court costs were supported by the agreement. The court confirmed the award for a total of $132,325.46.

Interest. The court awarded the Funds pre-judgment interest at 7%, the rate set by the arbitrator. It also awarded interest beginning on the date judgment was entered and continuing until payment, under the federal statute governing interest on civil money judgments.

Attorneys’ fees and costs. The court found that Earth Construction had neither complied with the arbitration award nor offered a justification for its failure to do so. It determined that reasonable attorneys’ fees and costs were appropriate under the collective bargaining agreement and the statute cited in the opinion. The court awarded $3,487.50 in attorneys’ fees and $75 in costs.

Disposition

The petition to confirm the arbitration award was granted. The court directed entry of judgment in favor of the petitioners against Earth Construction Corp. for $132,325.46, plus 7% pre-judgment interest, post-judgment interest as provided by federal law, $3,487.50 in attorneys’ fees, and $75 in costs.