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

Background

The petitioners were the trustees of several funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. H. Industries was an employer bound by collective bargaining agreements between the Building Contractors Association, Inc. and the Union. Those agreements required H. Industries to make contributions to the funds, provide books and payroll records for audits, and follow the funds’ collection policies. They also allowed disputes about payments to the funds to be submitted to arbitration.

The petitioners requested an audit of H. Industries’ books and records for September 8, 2017, through November 25, 2019. According to the opinion, H. Industries did not provide the records and did not make all required contributions. Arbitrator Roger E. Maher notified H. Industries of the arbitration hearing, but H. Industries did not appear. Based on the evidence presented by the petitioners, Maher issued an award on November 25, 2019, requiring H. Industries to pay $131,240.94 in delinquent contributions, interest, liquidated damages, late-payment interest, costs, and fees.

After H. Industries did not fully comply with the award, the petitioners filed this action under Section 301 of the Labor Management Relations Act to confirm it. H. Industries did not file an opposition or other documents in the case.

Confirmation of the Arbitration Award

The court treated the unopposed request to confirm the award under the standards used for summary judgment. Summary judgment is appropriate when there is no genuine dispute about a material fact and the moving party is entitled to judgment under the law. Even when a request is unopposed, the court must independently determine whether the evidence supports judgment.

The court explained that judicial review of an arbitration award is severely limited. A court generally must confirm an award unless it is vacated, modified, or corrected, and the award needs only a barely colorable justification for its result. The court found that Maher acted within the authority granted by the parties and that the award was supported by substantial and credible evidence that H. Industries owed the required payments and had failed to make them.

The court therefore granted summary judgment and confirmed the arbitration award in favor of the petitioners for $131,240.94.

Attorneys’ Fees for the Court Action

The petitioners separately requested attorneys’ fees and costs incurred in bringing the petition to confirm the award. The court held that Section 301 of the Labor Management Relations Act did not authorize those fees. Although a court may award fees under its inherent equitable powers when an opposing party acts in bad faith, the petitioners did not provide evidence supporting a finding of bad faith.

The court therefore did not award fees or costs associated with bringing the petition. This ruling was separate from the fees and costs included in the arbitration award itself.

Post-Judgment Interest and Disposition

The court held that federal law requires post-judgment interest on a money judgment in a civil case. Because a confirmed arbitration award is entered and enforced like a court judgment, the court awarded interest under 28 U.S.C. § 1961(a), beginning when judgment was entered and continuing until payment.

Judge Paul A. Engelmayer confirmed the award, entered judgment for $131,240.94 plus post-judgment interest under Section 1961(a), declined to award fees and costs for the court petition, and requested that the Clerk of Court close the case.