Trustees of the New York City District Council of Carpenters Pension Fund v…

Background

The petitioners included union benefit funds, a charity fund, a labor-management corporation, and a union. The benefit funds operated under the Employee Retirement Income Security Act, a federal law governing employee-benefit plans. Inner City Concepts LLC had entered into an agreement with the Union requiring it to make contributions to the funds for covered work and to provide books and payroll records for audits. The agreement also included an arbitration clause and incorporated the funds’ collection policy.

The dispute began when Inner City did not provide access to its records for an audit. The funds estimated a principal deficiency and initiated arbitration before Roger Maher. Inner City received notice of the hearing but did not appear. On July 18, 2019, Maher found that Inner City violated the agreement and awarded the petitioners $2,416,118.21. The opinion lists the award as including $1,857,121.66 in principal, $185,172.22 in interest, $361,424.33 in liquidated damages, $400 in court costs, $1,500 in attorney’s fees, and a $500 arbitrator’s fee. Maher also set interest at 7.5% from the date of the award.

Federal Court Proceedings

The petitioners filed an application to confirm the arbitration award. Inner City did not answer. The Court directed Inner City to respond after the petitioners asked that the matter be treated as an unopposed motion for summary judgment, but Inner City again did not respond.

The Court explained that confirming an arbitration award is ordinarily a streamlined proceeding and that judicial review is narrow. An award generally must be confirmed unless a recognized basis exists to vacate, modify, or correct it. Even when a petition is unopposed, the court must review the record and determine whether the petitioner is legally entitled to judgment.

Ruling

The Court found that the agreement authorized arbitration, that the arbitration was conducted before one of the arbitrators identified in the agreement, and that Maher heard evidence concerning the agreement, Inner City’s failure to provide records, and the damages calculation. The Court found no indication that the arbitrator acted arbitrarily, exceeded his authority, or acted contrary to law. It therefore concluded that there was no disputed material fact and that the award should be confirmed.

Judge Edgardo Ramos granted the petitioners’ motion. The Clerk was directed to enter judgment for the petitioners against Inner City in the amount of $2,416,118.21, with interest at 7.5% per year from July 18, 2019, until judgment was entered. The Court also awarded $880 in attorney’s fees and $75 in costs for the federal proceeding and directed that the judgment accrue post-judgment interest under 28 U.S.C. § 1961. The case was closed.