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

Background

The petitioners were trustees of labor-management and charitable funds, a contractor alliance, and a labor organization. TWI Construction Corp. was bound by collective bargaining agreements with the Union. Those agreements required TWI to make contributions to the Funds for covered work and to provide books and records for audits.

The Funds determined that TWI had failed to provide records for an audit and had not made required contributions for the period from April 1, 2016, through May 13, 2020. The agreements required disputes about payments to the Funds to be arbitrated and allowed the arbitrator to award damages. They also allowed recovery of unpaid contributions, interest, liquidated damages, costs, and attorneys’ fees.

The petitioners initiated arbitration on April 17, 2020. TWI did not appear at the May 13, 2020 hearing. Based on the evidence presented, the arbitrator found TWI in violation of the agreements and awarded $682,005.74: $486,011.13 in delinquent contributions, $96,392.38 in interest, $97,202.23 in liquidated damages, $400 in costs, $1,500 in attorneys’ fees, and $500 for the arbitrator’s fee. Interest was to accrue at 6.75% from May 15, 2020.

Court’s analysis

The court explained that confirmation of an arbitration award is a limited proceeding that turns the award into a court judgment. Even when a petition is unopposed, the court must examine the petitioners’ submissions to determine whether they showed that no material factual dispute prevented judgment.

The court found that the arbitrator considered the hearing evidence, applied the relevant collective bargaining provisions, and acted within the authority granted by those agreements. The court found no evidence that the award was unlawful, arbitrary, or beyond the arbitrator’s powers. It also noted that courts generally may not review an arbitrator’s decision on the merits.

Ruling

Judge Paul G. Gardephe granted the unopposed petition to confirm all aspects of the arbitration award. The Clerk was directed to enter judgment for $682,005.74, with 6.75% interest from May 15, 2020, until entry of judgment. The court also granted the petitioners’ request for $2,232.50 in attorneys’ fees and $70 in costs for the court action. Post-judgment interest was ordered at the statutory federal rate from the date of judgment, and the Clerk was directed to close the case.