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

Background

Between 2009 and 2015, Biltmore General Contractors, Inc. signed letters of assent that bound it to several project labor agreements. Those agreements incorporated collective bargaining agreements with the New York City District Council of Carpenters. The agreements required Biltmore to make contributions to the petitioning pension, welfare, annuity, apprenticeship, retraining, educational, industry, relief, and charity funds for covered employee work. They also required Biltmore to submit to audits and allowed contribution disputes to be arbitrated.

The agreements and the Funds’ collection policy provided for interest, liquidated damages, attorneys’ fees, and costs when the Funds had to pursue unpaid contributions. The Funds audited Biltmore and determined that it owed contributions. Biltmore did not pay, so the Funds initiated arbitration. Biltmore received notice but did not attend the arbitration hearing.

On November 21, 2020, the arbitrator found that Biltmore had failed to make required contributions and awarded the Funds $115,791.94. The award included $75,285.91 in principal deficiency, $9,720.41 in interest, $15,057.18 in liquidated damages, $3,819.36 in non-audit late-payment interest, $129.08 for a promotional-fund delinquency, $400 in court costs, $1,500 in attorneys’ fees, a $1,000 arbitrator’s fee, and $8,880 in audit costs. The award also provided for 5.25% interest from the date of issuance. Biltmore did not pay the award.

Court’s analysis

The Trustees petitioned to confirm the arbitration award. Biltmore did not appear in the federal case, and the time to answer had expired, so the court treated the petition as unopposed. The court explained that judicial review of an arbitration award is very limited and that, under the parties’ agreement and federal law, the court must confirm the award unless it is vacated, modified, or corrected.

The court treated the unopposed petition as a motion for summary judgment, meaning a request for judgment without a trial because no material factual dispute exists. It found that the undisputed evidence established Biltmore’s obligations under the collective bargaining agreements, the arbitration provision, and the contribution requirements. The court also found that the award’s components were supported by the agreements and the collection policy. Because Biltmore had not appeared at the arbitration or opposed confirmation, it raised no factual issue for trial.

The Trustees also requested attorneys’ fees and costs incurred in bringing the confirmation petition, as well as post-judgment interest. The court found those awards authorized by the agreements and collection policy. It determined that counsel’s 5.8 hours and hourly rates were reasonable and stated that post-judgment interest under 28 U.S.C. § 1961(a) was required.

Ruling

The court GRANTED the Trustees’ motion to confirm the arbitration award. It ordered Biltmore to pay the Funds $115,791.94, with interest at 5.25% from November 21, 2020, through June 29, 2021. The court also awarded statutory post-judgment interest, $75 in costs, and $1,640 in attorneys’ fees arising from the federal proceeding. The Clerk was directed to enter judgment and close the case. Judge Paul A. Crotty signed the opinion and order.