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

Background

The petitioners sought confirmation of an arbitration award under Section 301 of the Labor Management Relations Act. Buildtask entered into an agreement that bound it to the applicable local collective bargaining agreements. Those agreements required contributions to employee-benefit funds for each hour worked by a covered union employee and allowed the Funds to audit Buildtask’s records.

Buildtask did not provide its books and records for an audit covering January 1, 2013, through the filing of the petition. Under the Funds’ collection policy, the Funds calculated an estimated principal deficiency of $461,537.25 and initiated arbitration.

On January 8, 2021, the arbitrator found that Buildtask violated the collective bargaining agreements by failing to permit the audit. The arbitrator awarded $692,120.39, consisting of $461,537.25 in estimated unpaid contributions, $135,375.69 in interest, $92,307.45 in liquidated damages, $400 in court costs, $1,500 in attorneys’ fees, and $1,000 for the arbitrator’s fee. The award had not been vacated or modified, and payment remained outstanding.

The petitioners filed their petition on March 16, 2021. Buildtask was served with the summons and petition on April 26, 2021, but did not respond or participate.

Court’s analysis

The court explained that confirmation of an arbitration award is ordinarily a limited proceeding that converts the award into a court judgment unless the award is vacated, modified, or corrected. The court does not reconsider the arbitrator’s factual or contract interpretations. Instead, it asks whether the arbitrator acted within the authority granted by the collective bargaining agreement and was at least arguably construing or applying that agreement.

Because Buildtask did not oppose the petition, the court treated the petition and supporting record as an unopposed motion for summary judgment. The court nevertheless required the petitioners to provide enough evidence to establish their entitlement to judgment. It found that they met that burden and that the undisputed facts showed the award was within the arbitrator’s authority.

The petitioners also requested attorneys’ fees and costs for the court proceeding. The court found those amounts justified because Buildtask had not participated in the arbitration or court case and had not paid the award. The collective bargaining agreements and collection policy also authorized reasonable fees and costs for collecting delinquent contributions. The court found the requested $595 in attorneys’ fees for 1.7 hours of work and $77 in service fees reasonable.

Ruling

Judge Valerie Caproni granted the petition to confirm the arbitration award. The court entered judgment for the petitioners in the amount of $692,120.39, plus 5.25% prejudgment interest from January 8, 2021, through the date of judgment; $672 in attorneys’ fees and costs for the court proceeding; and post-judgment interest at the statutory rate under 28 U.S.C. § 1961 until payment. The Clerk was directed to terminate all open motions and close the case.