Drywall Tapers and Pointers of Greater New York Local Union 1974 v. CCC Custom…

Background

Local 1974 petitioned under Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185, to confirm an arbitration award against CCC Custom Carpentry Corp. The parties’ collective bargaining agreement required employers covered by the agreement to make specified contributions to insurance and pension funds and to submit weekly reports. The agreement allowed disputes over missed remittances to be presented to a Joint Board made up of union and trade-association representatives.

Local 1974 initiated arbitration alleging that CCC failed to submit required remittance reports for 26 weekly pay periods, covering March 5, 2019 through September 10, 2019. CCC did not appear at the October 28, 2019 arbitration hearing. After hearing testimony from Local 1974’s business representatives, the arbitration panel found CCC responsible and imposed $14,000 in fines. CCC also failed to appear in or respond to the federal court proceeding.

Confirmation of the Arbitration Award

The court treated the unanswered petition as an unopposed motion for summary judgment, meaning Local 1974 still had to show that it was entitled to judgment under the law. Judicial review of an arbitration award is narrow. The court generally must confirm the award unless a recognized basis exists to vacate, modify, or correct it.

The court found evidence that CCC had failed to submit reports for 26 pay periods. Although the $14,000 fine—about $538 per missed report—was higher than the agreement’s scheduled $500 amount, the agreement described $500 fines as minimums rather than maximums. The court found no indication that the panel acted arbitrarily, exceeded its authority, or acted contrary to law. It therefore confirmed the arbitration award.

Attorneys’ Fees and Costs

Local 1974 also sought attorneys’ fees and costs. The court explained that Section 301 does not authorize fee awards in actions to confirm and enforce arbitration awards. Local 1974 relied on Article XV of the collective bargaining agreement, but the court held that provision applied to administrative charges owed to the Joint Board, not fines for violations of the agreement. The court also found that the agreement’s provisions governing arbitration-award enforcement did not authorize attorneys’ fees for a federal confirmation action.

Disposition

Judge Ramos granted in part and denied in part Local 1974’s motion. The arbitration award was confirmed, and the Clerk was directed to enter judgment for Local 1974 for $14,000 against CCC, with post-judgment interest under 28 U.S.C. § 1961. The application for attorneys’ fees and costs was denied, and the case was closed.