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

Background

The petitioners included trustees of several funds, 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 case arose under the Employee Retirement Income Security Act, the Labor Management Relations Act, and the Federal Arbitration Act.

North Star was bound by a collective bargaining agreement between the Association of Concrete Contractors of New York, Inc. and the Union. The agreement required North Star to make contributions for covered employee work and to provide books and payroll records for audits. An audit covering March 29, 2013, through June 26, 2015, found that North Star had not paid $24,926.86 in required contributions.

The petitioners initiated arbitration under the agreement. North Star did not appear at the February 16, 2017 arbitration hearing. On February 17, 2017, the arbitrator found that North Star violated the agreement and awarded $48,707.88. That amount included principal contributions, interest, liquidated damages, other charges, court costs, attorneys’ fees, the arbitrator’s fee, and audit costs. The arbitrator also provided for 5.75% interest on the principal deficiency from the award date. North Star did not comply with the award and did not appear in the court case.

Court’s analysis

The court treated the unanswered petition to confirm the arbitration award as an unopposed motion for summary judgment. Summary judgment is a ruling entered when the record shows no genuine dispute over an important fact and the moving party is entitled to judgment under the law. Even when such a motion is unopposed, the court must review the submission and determine whether the moving party met its legal burden.

The court explained that judicial confirmation generally converts a final arbitration award into a court judgment. Review of an arbitration award is limited. The court found sufficient justification for the arbitrator’s decision because the arbitrator reviewed the collective bargaining agreement and evidence showing that North Star owed contributions and interest. The court found no indication that the decision was arbitrary, exceeded the arbitrator’s authority, or was contrary to law.

The court also found the attorneys’ fees and costs in the arbitration award appropriate because North Star had refused to comply with the award without appearing or seeking to modify or vacate it. The court separately granted post-judgment interest under 28 U.S.C. § 1961(a).

Ruling

Judge Edgardo Ramos granted the petition and confirmed the arbitration award. The Clerk was directed to enter judgment for the petitioners against North Star in the amount of $48,707.88, plus 5.75% annual interest from February 17, 2017, through the judgment date. North Star was also ordered to pay $3,292.50 in attorneys’ fees and $75 in costs arising from the petition. The judgment would accrue post-judgment interest, and the case was closed.