Trustees for the Mason Tenders District Council Welfare Fund v. Preveza…

Background

The Funds, along with the Mason Tenders District Council of Greater New York, John J. Virga in his fiduciary capacity as director, and Robert Bonanza as Business Manager, petitioned under 29 U.S.C. § 185 to confirm an arbitration award against Preveza Construction Corp. The Funds are employee benefit plans, and the Union is a labor organization. Preveza had agreed to a 2009–2014 Project Labor Agreement covering construction for the New York City School Construction Authority. The agreement required contributions to the Funds for work performed by Union members and incorporated procedures in the Funds’ trust agreements for collecting delinquent contributions.

After a payroll audit covering January 1, 2009, through March 24, 2013, the Funds concluded that Preveza had not paid required contributions. The Funds initiated arbitration before Joseph Harris and sent Preveza notice of the arbitration hearing. Preveza did not appear, and the arbitrator found it in default. Based on the evidence submitted by the Funds, the arbitrator found that Preveza had failed to make the required payments and awarded $207,254.34, including delinquent contributions, interest, audit costs, ERISA damages, legal fees, and arbitrator fees.

Court’s review

Preveza did not formally respond to the arbitration award, move to vacate or modify it, appear in the federal action, or oppose the petitioners’ motion. The court treated the unanswered petition as an unopposed motion for summary judgment. Even when a motion is unopposed, the court must review the record and determine whether the moving party is legally entitled to judgment.

The court applied the limited judicial review used for arbitration awards. It examined the arbitration agreement, the Funds’ authority to initiate arbitration, the procedures allowing an arbitrator to proceed after proper notice when a party does not appear, and the evidence presented at the hearing. The court found no indication that the arbitrator acted arbitrarily, exceeded the authority granted by the agreement, or acted contrary to law. It therefore found no disputed material fact requiring a trial.

Disposition

The court stated that the petitioners’ motion was GRANTED. It confirmed the reduced arbitration award of $205,254.34—the amount requested in the petitioners’ complaint rather than the full $207,254.34 stated in the arbitration award—and directed the Clerk to enter judgment for that amount against Preveza Construction Corp. The court also granted post-judgment interest on the full judgment amount under 28 U.S.C. § 1961(a), directed that the motion be terminated, and closed the case.