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

Background

The petitioners were the New York City District Council of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund; the Trustees of the New York City Carpenters Relief and Charity Fund; the New York City and Vicinity Carpenters Labor-Management Corporation; and the New York City District Council of Carpenters. The petitioners sought to confirm and enforce an arbitration award against Vista Engineering Corp. under section 301 of the Labor Management Relations Act.

Vista had entered an agreement with the United Brotherhood of Carpenters and Joiners of America requiring payments to local funds in the amounts set by the applicable collective bargaining agreement. The agreement automatically renewed because neither Vista nor the union provided notice of termination. The court found that Vista was therefore bound by the applicable local agreement for work performed from August 11, 2011, through September 22, 2013.

The collective bargaining agreement required Vista to make contributions for covered employee work and to provide books and records for contribution audits. An audit found that Vista had not paid all required contributions. After Vista failed to pay following a demand, the petitioners initiated arbitration before Roger Maher. Vista did not attend the arbitration hearing, request an adjournment, or request more time to appear.

The arbitrator found that Vista violated the collective bargaining agreement and ordered it to pay $129,111.96. That amount included $82,620.00 in principal contributions, $26,196.71 in interest, $16,524.00 in liquidated damages, $170.00 in promotional funds, $400.00 in court costs, $1,500.00 in attorneys’ fees, $500.00 in arbitrator’s fees, and $1,201.25 in audit costs. The award also provided for 7.5% interest from the date of issuance. The petitioners stated that Vista had paid none of the award.

The petitioners filed the court action on June 5, 2019, and served Vista on June 10, 2019. Vista did not answer, request additional time, or otherwise appear. Because an unanswered petition to confirm an arbitration award is treated as an unopposed motion for summary judgment—not as a request for a default judgment—the court evaluated whether the undisputed record entitled the petitioners to judgment.

Court’s Analysis

The court explained that review of a labor arbitration award is very limited. A court generally must confirm an award if the arbitrator was interpreting or applying the collective bargaining agreement and acted within the scope of the arbitrator’s authority, absent exceptional circumstances such as fraud or a violation of public policy.

The court found no genuine issue of material fact. It also found no indication that the award was obtained through fraud or dishonesty, that the arbitrator disregarded the collective bargaining agreement, or that the arbitrator acted outside the authority granted to resolve the dispute. The record showed that the arbitrator relied on undisputed evidence, including the audit and the evidence that Vista remained delinquent after demand. The court also found that the interest and costs awarded by the arbitrator were based on the collective bargaining agreement and related agreements.

The court separately considered attorneys’ fees and costs for the court proceeding. Although section 301 does not automatically provide attorneys’ fees in an action to confirm an arbitration award, the court found fees appropriate because Vista had not complied with the award and had offered no justification for its failure to do so. The court found the requested $275 hourly rates and the documented four hours of work reasonable, awarding $1,100 in attorneys’ fees. It also granted the requested $400 filing cost.

The court held that post-judgment interest was required by federal law on the judgment confirming the arbitration award. It awarded post-judgment interest at the rate provided by 28 U.S.C. § 1961(a), beginning when judgment was entered.

Disposition

Judge Vernon S. Broderick granted the petitioners’ motion and confirmed the arbitration award. The court directed the Clerk to enter judgment for the petitioners and against Vista Engineering Corp. for $129,111.96, plus 7.5% interest from the date of the award through the date of judgment. It further awarded $1,100 in attorneys’ fees, $400 in costs, and post-judgment interest under 28 U.S.C. § 1961(a). The Clerk was directed to close the case.