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

Background

The petitioners were trustees of labor-management trust funds, trustees of a charitable fund, a not-for-profit corporation, and a labor organization. Minelli Construction Co., Inc. had entered into a collective bargaining agreement with the labor organization. The agreement required Minelli to contribute to the funds for each hour worked by its employees and to provide books and records for audits.

An audit covering June 22, 2015, through December 25, 2016, found that Minelli had not made required contributions. The agreement required disputes to be submitted to arbitration and made the arbitrator’s decision final and binding. It also allowed recovery of unpaid contributions, interest, liquidated damages, attorneys’ fees, and costs.

The petitioners served Minelli with a notice of arbitration. The arbitration hearing took place on December 10, 2018, and the arbitrator issued an award on December 21, 2018. The arbitrator considered testimony from the auditor and other evidence. Minelli appeared at the arbitration hearing and did not dispute the audit findings; its principal explained that Minelli was a small contractor, had not been paid by a general contractor for work it performed, and did not have the money to pay the claims.

The arbitrator awarded the petitioners $22,036.64, consisting of $840.14 in unpaid contributions, $70.54 in interest, $157.28 in liquidated damages, $17,867.60 in late-payment interest, $400 in court costs, $1,500 in attorneys’ fees, $500 in arbitrator’s fees, and $2,380 in audit costs. The award provided for interest at 7% beginning December 21, 2018.

The petitioners filed this case seeking confirmation of the award, attorneys’ fees and costs incurred in the court action, and post-judgment interest. Minelli did not appear in this action or oppose the petition.

Court’s Analysis

The court explained that confirming an arbitration award is a limited review. Courts must give substantial deference to an arbitrator’s decision and generally may not reconsider the arbitrator’s factual or contractual conclusions. Even when a petition is unopposed, however, the court must review the petitioner’s submissions to determine whether they establish entitlement to judgment and show that no material factual dispute remains.

The court found that the petitioners had met that burden. The arbitrator had considered evidence from the hearing, including the auditor’s testimony, and had found that Minelli was delinquent under the collective bargaining agreement. The court also found that the award was within the authority granted by the agreement, which covered disputes about the agreement’s application, interpretation, effect, purpose, or breach.

The court identified the statutory grounds for vacating an arbitration award, including fraud, arbitrator bias or corruption, serious misconduct, or an arbitrator’s exceeding the granted authority. It found no evidence that the award was unlawful, arbitrary, or beyond the arbitrator’s powers. The petition to confirm the arbitration award was therefore granted.

Attorneys’ Fees, Costs, and Interest

The petitioners requested $1,017.50 in attorneys’ fees, representing 3.7 hours of work at $275 per hour, and $75 in costs. The court found those amounts reasonable because they reflected the rates paid by the petitioners and were consistent with rates awarded in comparable cases. The court granted the application for fees and costs.

The court also granted the request for post-judgment interest at the rate required by federal law. The judgment was to include the $22,036.64 arbitration award, 7% interest from December 21, 2018, until entry of judgment, $1,017.50 in attorneys’ fees, and $75 in costs. Post-judgment interest on the entire amount would accrue from the date judgment was entered. The Clerk of Court was directed to enter judgment and close the case.