New York City District Council of Carpenters v. Tried N True Interiors LLC

Background

New York City District Council of Carpenters petitioned under Section 301(a) of the Labor Management Relations Act, a federal labor law, to confirm an arbitration award issued on December 13, 2019. Tried N True Interiors LLC did not appear or oppose the petition.

The dispute arose under a collective bargaining agreement between Carpenters and the Association of Wall-Ceiling & Carpentry Industries of New York. The opinion states that Tried N True was bound by that agreement. The agreement required unresolved grievances and other disputes to be submitted to arbitration, allowed an arbitration hearing to proceed if one party failed to appear, and provided that the prevailing party in a proceeding to confirm an award could recover court costs and reasonable counsel fees.

Two settlement agreements resolved grievances involving alleged violations of the collective bargaining agreement. One required Tried N True to pay shop steward John Jacobson for 21 hours of wages and related benefit contributions. The other required Tried N True to pay Carpenters the equivalent of 21 hours of wages and related benefit contributions at an apprentice rate. Tried N True failed to make the required payments.

After Carpenters sent notice of its intent to arbitrate, an arbitration hearing took place on November 5, 2019. Tried N True did not appear. Based on Carpenters' testimony and evidence, the arbitrator found that Tried N True violated the settlement agreements and ordered it to pay $1,238.15 to Jacobson, $1,106.26 to the New York City District Council of Carpenters Benefit Funds on Jacobson's behalf, and $2,158.89 to Carpenters. The award also included $1,000 in arbitration fees, for a total of $5,503.30.

Confirmation of the Arbitration Award

The court treated the unanswered petition as an unopposed motion for summary judgment, which is a request for judgment because no important factual dispute requires a trial. The court emphasized that judicial review of a labor arbitration award is highly deferential. An award should be confirmed when the arbitrator acted within the authority granted by the collective bargaining agreement and the award is grounded in that agreement.

The court held that the dispute fell within the arbitration provisions because the settlement agreements resolved claims arising from Tried N True's alleged violations of the collective bargaining agreement. The arbitrator therefore acted within the permitted authority. The court also held that the award of the settlement amounts, interest through the arbitration hearing, attorneys' fees and costs associated with the hearing, and arbitration fees was supported by the agreements. The court confirmed the award.

Fees and Costs for the Court Case

Carpenters separately requested reasonable attorneys' fees and costs for this court action. The court held that such fees and costs could be awarded under the court's equitable authority because Tried N True failed to participate in the arbitration, failed to satisfy the award, and failed to oppose the petition without providing a justification. The court also found support for the request in the collective bargaining and settlement agreements.

The court did not determine the amount of those additional fees and costs because Carpenters had not submitted records showing the work performed, hours worked, billing rates, or attorney qualifications. The court directed Carpenters to submit an application supported by that information within 21 days of the opinion and order.

Interest and Disposition

The court approved nine percent annual prejudgment interest on the award from December 23, 2019, through entry of judgment. It also awarded post-judgment interest at the statutory rate under 28 U.S.C. § 1961, accruing from entry of judgment until payment.

The Clerk of Court was directed to enter judgment granting the January 3, 2020 petition. The judgment was to include the $5,503.30 award, nine percent annual prejudgment interest, and statutory post-judgment interest.