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

Background

The petitioners, consisting of several funds, The Carpenters Contractor Alliance of Metropolitan New York, and The New York City District Council of Carpenters, sought confirmation of a September 28, 2019 arbitration award under Section 301 of the Labor Management Relations Act. All Flooring Solutions, LLC and the Union were parties to an Independent Resilient Floor Coverers Agreement. The agreement required All Flooring Solutions to make contributions to the funds and to provide its books and payroll records for audits.

The funds requested an audit, but All Flooring Solutions did not provide its books and records. Under the funds’ collection policy, the funds estimated a principal contribution deficiency of $283,492.05. The funds then initiated arbitration. Although All Flooring Solutions received legally sufficient notice, it did not appear at the September 12, 2019 arbitration hearing. The arbitrator found that the company violated the agreement by failing to permit the audit and awarded $389,210.31, consisting of the estimated principal deficiency, interest, liquidated damages, court costs, attorneys’ fees, and the arbitrator’s fee. The award also provided for interest at 7.5% from the award’s issuance.

The petitioners filed the court action to confirm the award and sought additional attorneys’ fees and costs. All Flooring Solutions did not appear in the case or oppose the petitioners’ motion for summary judgment.

Court’s analysis

The court explained that review of a labor arbitration award is very limited. A court generally must confirm an award when the arbitrator interpreted and applied the collective bargaining agreement and acted within the authority granted by that agreement. The court may not reconsider the arbitrator’s factual findings, contract interpretation, or remedies merely because a party might believe the arbitrator made an error.

Because the petition was unopposed, the court treated it similarly to a motion for summary judgment but still examined the petitioners’ evidence. The court found no genuine dispute about any material fact. It concluded that the arbitrator’s decision had a clear basis in the collective bargaining agreement and that the arbitrator had acted within the scope of his authority.

The court also granted prejudgment interest at 7.5% from September 28, 2019, through the date of judgment, totaling $18,794.06. It awarded post-judgment interest at the statutory rate under 28 U.S.C. § 1961. The court further determined that the collective bargaining agreement allowed recovery of attorneys’ fees and costs in these circumstances and that the requested amounts were reasonable.

Ruling

Judge Katherine Polk Failla granted the petitioners’ motion for summary judgment on their petition to confirm the arbitration award. The court entered judgment for $410,653.65, consisting of the $389,210.31 arbitration award, $18,794.06 in prejudgment interest, $2,545 in attorneys’ fees, and $104.28 in costs. The court directed the Clerk of Court to terminate pending motions, adjourn remaining dates, and close the case.