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

Background

The petitioners were the New York City District Council of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund; the Trustees of the New York City Carpenters Relief and Charity Fund; the New York City and Vicinity Carpenters Labor-Management Corporation; and the New York City District Council of Carpenters. The court referred to them collectively as the Petitioners. Cornerstone Carpentry Limited was a New York corporation and a member of the Association of Wall-Ceiling & Carpentry Industries of New York.

Through that membership, Cornerstone was bound by a collective bargaining agreement with the New York City District Council of Carpenters. The agreement required covered employers to make contributions and related payments to the funds and allowed disputes over those payments to be arbitrated. It also allowed interest, liquidated damages, costs, and attorneys’ fees under specified circumstances.

The dispute concerned $7,085.08 in unpaid late-payment interest for the period from November 26, 2013, through June 26, 2018. Arbitrator Roger Maher held a hearing on November 14, 2018, after giving notice. Cornerstone did not appear, request more time, or request an adjournment. The arbitrator found that Cornerstone violated the agreement and awarded $9,485.08: $7,085.08 in late-payment interest, $400 in court costs, $1,500 in attorneys’ fees, and $500 for the arbitrator’s fee. The award also provided for 7% interest from the date of the award. The Petitioners stated that Cornerstone had paid $2,844.00, leaving $6,641.08 unpaid.

The Petitioners filed this action under section 301(c) of the Labor Management Relations Act to confirm and enforce the award. Cornerstone was served but did not answer, seek more time, or otherwise appear.

Court’s Review of the Arbitration Award

The court treated the unanswered petition as an unopposed motion for summary judgment rather than entering a default judgment. Summary judgment is appropriate when the record shows no genuine dispute about a fact that could affect the outcome. The court explained that review of a labor arbitration award is very limited and that an award generally must be confirmed when the arbitrator was interpreting the collective bargaining agreement and acting within the arbitrator’s authority, absent exceptional circumstances such as fraud or a public-policy violation.

Judge Vernon S. Broderick found no genuine issue of material fact. He also found no indication that the award was obtained through fraud or dishonesty, that the arbitrator disregarded the collective bargaining agreement, or that the arbitrator acted outside the scope of authority. The record showed that the arbitrator relied on evidence of delinquent interest payments and on the collective bargaining agreement and related agreements when awarding interest, fees, and costs.

Attorneys’ Fees and Costs

The court held that attorneys’ fees were appropriate because Cornerstone had not complied with the award and had offered no justification for failing to do so. The Petitioners requested $1,567.50 for 5.7 hours of work by two attorneys, both billed at $275 per hour.

The court found Nicole Marimon’s $275 hourly rate reasonable. It found Kelly Malloy’s $275 rate unreasonable because she had been out of law school for less than one year when she began work on the matter. The court instead used a rate of $225 per hour for Malloy’s five hours. It awarded $1,317.50 in attorneys’ fees. The court also awarded $128.22 in costs, consisting of $75.00 in service fees and $53.22 in postage.

Disposition

The court granted in part and denied in part the Petitioners’ request for attorneys’ fees, costs, and post-judgment interest. It confirmed the arbitration award, less the amount Cornerstone had already paid, and directed the clerk to enter judgment for $6,641.08. The judgment also included 7% interest from the date of the award through the date of judgment, $1,317.50 in attorneys’ fees, $128.22 in costs, and post-judgment interest at the rate provided by 28 U.S.C. § 1961(a). The clerk was directed to close the case.