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

Background

The petitioners—several carpenter benefit funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters—filed a petition under Section 301(a) of the Labor Management Relations Act to confirm an arbitration award against Installrite Woodworkers Inc. Installrite did not appear in the case.

Installrite had entered into a 2011–15 independent agreement with the Union. The agreement required contributions to the Funds for covered work, allowed the Funds to request books and payroll records for an audit, incorporated the Funds’ collection policy, and required arbitration of disputes. It also automatically renewed for one-year periods unless either party gave timely notice of termination; the opinion states that neither party did so.

In 2016, the Funds requested an audit, but Installrite did not provide its books and records. Under the collection policy, the Funds estimated a principal contribution deficiency of $1,281,067.52. The dispute went to arbitration before Roger E. Maher. On November 13, 2019, the arbitrator issued an award totaling $1,706,588.95, consisting of the estimated principal deficiency, $166,907.93 in interest, $256,213.50 in liquidated damages, $400 in court costs, $1,500 in attorneys’ fees, and $500 in arbitrator’s fees.

The petitioners separately requested $5,288 in attorneys’ fees and $1,107.58 in costs for litigating the confirmation petition.

Legal standard

The Federal Arbitration Act permits a party to ask a court to confirm an arbitration award. The court generally must confirm the award unless it has been vacated, modified, or corrected on one of the limited grounds listed in the Act, such as fraud, misconduct, exceeding the arbitrator’s authority, or an evident material miscalculation.

Because Installrite did not answer the petition, the court treated the petition as an unopposed motion for summary judgment. Summary judgment is a decision entered when the record shows no genuine dispute over an important fact and the moving party is entitled to judgment under the law. Even without an opposing party, the court still had to examine the petitioners’ evidence and determine whether they met their burden.

Analysis

The court confirmed the arbitration award. It found that the dispute was subject to arbitration, that the petitioners had shown at least a legally sufficient basis for the award, and that the arbitrator had held a hearing and reviewed evidence before issuing the award. The court therefore entered judgment for the full award of $1,706,588.95.

The court granted pre-judgment interest at the requested annual rate of 7.5% from November 13, 2019—the date of the arbitration award—through the date of the judgment confirming the award. It also granted post-judgment interest at the statutory rate, which applies from the date judgment is entered.

The court granted the request for attorneys’ fees and costs in part. It found that the number of hours claimed was reasonable, but concluded that the requested hourly rates for associate Marlie Blaise and partner Nicole Marimon were too high for similar work. The court reduced Blaise’s rate from $275 to $225 per hour and Marimon’s rate from $350 to $300 per hour. It approved the $120-per-hour rate for legal-assistant work. The court awarded $4,908 in attorneys’ fees and approved all $1,107.58 in requested costs.

Disposition

Judge Analisa Torres granted the petition to confirm the arbitration award. She granted the requests for pre-judgment and post-judgment interest, and granted the request for reasonable attorneys’ fees and costs in part. The clerk was directed to enter judgment against Installrite for $1,706,588.95, $4,908 in attorneys’ fees, $1,107.58 in costs, pre-judgment interest at 7.5% from November 13, 2019, through judgment, and post-judgment interest at the statutory rate. The court also directed the clerk to terminate the motion at ECF No. 20 and close the case.