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, related pension and charity funds, and a related nonprofit corporation. They sought confirmation of an arbitration award against Choice of Colors, Inc., along with attorney’s fees and costs. Choice of Colors did not appear in the case.

Choice of Colors signed two Letters of Assent agreeing to be bound by project labor agreements. Those agreements incorporated collective bargaining agreements requiring Choice of Colors to make contributions to the Funds for covered employees’ hours and to provide books and payroll records upon request. The agreements and the Funds’ collection policy required disputes over unpaid contributions to be arbitrated and allowed recovery of interest, liquidated damages, and attorney’s fees and costs.

The Funds audited Choice of Colors’ contribution practices for March 10, 2017, through May 8, 2018. After Choice of Colors did not pay the amount identified as due, the Funds initiated arbitration. On November 21, 2020, the arbitrator awarded the petitioners $5,409.14 in deficient contributions, $1,055.51 in interest, $1,081.83 in liquidated damages, and attorney’s fees and costs, for a total of $11,528.01. The arbitrator also provided for 5.25% interest beginning on the award date. Choice of Colors did not pay the award and did not seek to vacate or modify it.

Court’s Analysis

Choice of Colors’ failure to appear resulted in a Clerk’s Certificate of Default, but the court explained that default judgments are generally inappropriate in proceedings to confirm or vacate arbitration awards. Instead, the court treated the unopposed petition as similar to a motion for summary judgment. Summary judgment is appropriate when the submissions show that there is no genuine dispute about a material fact and the moving party is entitled to judgment under the law.

The court also explained that confirmation of an arbitration award is a limited proceeding that turns an existing final award into a court judgment. Judicial review of an arbitrator’s decision is narrow, and an award should be confirmed if the record provides even a barely colorable justification for the arbitrator’s result.

The court found that the petitioners sufficiently supported their petition and showed that no material factual dispute existed. It therefore granted the petition to confirm the arbitration award. The court also found the request for $965 in attorney’s fees and $75 in costs for the confirmation proceeding reasonable and granted it.

Disposition

Judge Denise Cote granted the petition to confirm the arbitration award and entered judgment for the petitioners in the amount of $11,528.01. The judgment includes interest at an annual rate of 5.25% from November 20, 2020, and statutory post-judgment interest. The court also awarded $1,040 in attorney’s fees and costs for the confirmation proceeding. The Clerk of Court was directed to enter judgment and close the case.