Trustees for The Mason Tenders District Council Welfare Fund v. Tri State…

Background

The petitioners were the Mason Tenders District Council benefit funds and Robert Bonanza, acting as the union's business manager. The Funds provide benefits to eligible employees when employers make contributions required by collective bargaining agreements. Tri-State Construction & Masonry Inc. was bound by a project labor agreement that required covered employers to make timely benefit contributions.

The Funds alleged that Tri-State had not made all required payments for covered work performed from September 1, 2013, through December 31, 2016. They initiated arbitration after serving Tri-State with a notice of arbitration. Tri-State did not appear at the arbitration hearing. After finding that Tri-State had adequate notice, the arbitrator proceeded without Tri-State's participation.

The arbitrator found that Tri-State owed unpaid benefit contributions, dues and political-action-committee contributions, interest, audit costs, liquidated damages under the Employee Retirement Income Security Act, interest on late payments, attorneys' fees, and arbitration fees. The award ordered Tri-State to pay $166,443.34. The opinion states in different places that the award was issued on March 30, 2019, and March 30, 2020.

Legal standard

The petitioners sought confirmation of the arbitration award through summary judgment. Summary judgment is appropriate when there is no genuine dispute about a fact that could affect the result and the moving party is entitled to judgment under the law. Courts give substantial deference to labor-arbitration awards and generally confirm an award if the arbitrator was interpreting and applying the labor agreement and provided at least a minimally reasonable explanation.

Court's analysis

Judge Failla concluded that the arbitration award was supported by the evidentiary record, including an audit report and deficiency report. The project labor agreement permitted the union to pursue arbitration over an employer's failure to make required payments to the Funds. The court found no basis to set aside the award.

The court also concluded that the arbitrator provided more than the required minimally reasonable justification for the total award. The itemized amounts included $73,826.38 in delinquent fringe-benefit contributions, $6,007.28 in dues and political-action-committee contributions, $20,439.22 in current interest, $19,687.04 in audit costs, $40,878.44 in an Employee Retirement Income Security Act penalty, $3,004.98 in interest on late payments, $500 in attorneys' fees, and $2,100 in arbitrator fees.

Disposition

The petition and the related motion for summary judgment were granted in the petitioners' favor. The court ordered the petitioners to submit a proposed final judgment by August 14, 2020.