Trustees for The Mason Tenders District Council Welfare Fund v. Concrete…

Background

The petitioners were trustees of employee-benefit and multiemployer plans governed by the Employee Retirement Income Security Act (ERISA). Their relationship with Concrete Industries One Corp. was governed by a collective bargaining agreement, which required the company to make periodic contributions to the Funds.

After an audit covering October 1, 2014, through December 25, 2018, the petitioners claimed that the company had failed to make required payments. They began arbitration seeking $235,113.50 in delinquent contributions, dues, special political contributions, statutory interest, and audit fees. Arbitrator Joseph A. Harris notified the company of the arbitration, but the company did not respond or appear. After reviewing the audit and the evidence presented by the petitioners, the arbitrator awarded the requested amounts, along with additional statutory damages and fees allowed by ERISA and the collective bargaining agreement.

The petitioners filed this federal action to confirm and enforce the award under Section 301 of the Labor Management Relations Act. The company was served, but it did not appear or file a response. The petitioners moved to confirm the award.

Court’s analysis

The court explained that federal courts generally must confirm an arbitration award unless a legally recognized ground exists to vacate, modify, or correct it. Such grounds include fraud, partiality, specified misconduct, exceeding the arbitrator’s authority, or a clear disregard of the law. Even when the opposing party does not appear, the court must review the moving party’s submission and determine whether it has established its entitlement to relief. The court evaluated the petition under the standard used for summary judgment, which asks whether there is a genuine dispute about an important fact and whether the moving party is entitled to judgment under the law.

The court found no genuine dispute about any material fact. It determined that the trust agreements and collective bargaining agreement authorized the petitioners to pursue arbitration over the company’s delinquency. The court also concluded that the arbitrator did not exceed his authority by awarding damages.

The court did find an error in the calculation of liquidated damages. The arbitrator had mistakenly doubled the interest amount when calculating those damages. Under the Federal Arbitration Act, a court may modify an award when there is an evident material miscalculation. The court therefore reduced liquidated damages to $30,489.26, the amount of the outstanding interest identified by the petitioners.

Disposition

The court modified the arbitration award to reduce liquidated damages to $30,489.26 and granted the petition to confirm the award. It directed the Clerk of Court to enter judgment for the petitioners in the amount of $268,302.76 plus statutory interest, close the motion at Docket Number 10, and close the case. The petitioners were directed to mail the order to the respondent.