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

Background

The New York City District Council of Carpenters funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters sued to confirm a December 11, 2019 arbitration award against JB Squared Construction Corp. The dispute arose under an Independent Building Construction Agreement requiring JB Squared to make contributions to the funds and provide books and payroll records for audits. The agreement allowed arbitration of disputes and incorporated a collection policy allowing interest, liquidated damages, attorneys’ fees, and costs for unpaid contributions.

An audit covering October 1, 2016, through December 29, 2018, found a principal contribution deficiency of $9,798.60. After notice of the arbitration hearing, JB Squared did not appear. The arbitrator found JB Squared in default, considered the petitioners’ evidence, and awarded $18,091.55, consisting of the principal deficiency, interest, liquidated damages, promotional fund contributions, court costs, attorneys’ fees, arbitrator’s fees, and audit costs. The award also provided for interest at 7.5% annually from its issuance.

JB Squared did not appear in the federal case or oppose the petitioners’ motion for summary judgment. The petitioners asked the court to confirm the award, award prejudgment interest at 7.5%, award post-judgment interest at the statutory rate, and reimburse their attorneys’ fees and costs for the confirmation proceeding.

Confirmation of the Arbitration Award

The court explained that confirmation of an arbitration award is generally a summary process that turns the award into a court judgment unless the award must be vacated, modified, or corrected. Review of a labor arbitration award under Section 301 of the Labor Management Relations Act is very limited. The court does not reconsider the arbitrator’s factual findings, contract interpretation, or remedy merely because someone might disagree with them. Instead, it asks whether the arbitrator acted within the authority granted by the collective bargaining agreement and whether the award draws its essence from that agreement.

Because the petition was unopposed, the court treated it like a summary-judgment motion and independently reviewed the petitioners’ evidence. The court found no genuine dispute of material fact. It determined that the record supported the arbitrator’s findings about the unpaid contributions and related amounts, that the grounds for the award were clear, and that the arbitrator acted within the authority granted by the agreement and collection policy. The court therefore confirmed the award.

Interest

The court granted prejudgment interest from December 11, 2019, the date of the award, through the date of judgment at an annual rate of 7.5%. It stated that this resulted in $1,278.80 in prejudgment interest. The court also awarded post-judgment interest at the statutory rate under 28 U.S.C. § 1961.

Attorneys’ Fees and Costs

The court held that the collective bargaining agreement and collection policy entitled the petitioners to reasonable attorneys’ fees and costs for collecting unpaid contributions. It also noted that JB Squared had failed to participate in the arbitration after receiving notice and had not opposed confirmation in federal court.

The petitioners requested $2,864 in attorneys’ fees and $2.63 in costs. Their counsel reported 13.9 hours of work by partner Nicole Marimon and legal assistants. The court found the hours and the legal assistants’ requested rate of $120 per hour reasonable, but found Marimon’s requested rate of $350 per hour higher than appropriate for this work. It reduced her rate to $325 per hour and awarded total attorneys’ fees of $2,734. The court also awarded the requested $2.63 in costs. The opinion’s heading describes this ruling as granting the application for attorneys’ fees and costs in part.

Disposition

Judge Katherine Polk Failla granted the petition. Judgment was entered for $22,106.98, consisting of the $18,091.55 arbitration award, $1,278.80 in prejudgment interest, $2,734 in attorneys’ fees, and $2.63 in costs. The court directed the Clerk of Court to terminate pending motions, adjourn remaining dates, and close the case.