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

Background

The Funds and the Union petitioned under Section 301 of the Labor Management Relations Act to confirm a November 21, 2020 arbitration award against Three Guys. The parties were bound by a collective bargaining agreement that required Three Guys to make contributions to the Funds and provide its books and payroll records for audits. The agreement and the Funds’ Collection Policy also allowed recovery of interest, liquidated damages, attorneys’ fees, and costs in disputes over unpaid contributions.

The Funds requested an audit covering September 25, 2015, through the present. Three Guys did not make its books and records available. The Funds then initiated arbitration before Roger E. Maher. Although Three Guys received notice of the hearing, it did not appear. The arbitrator found Three Guys in default, considered the Funds’ evidence, and found that Three Guys had violated the collective bargaining agreement by refusing to permit the audit.

The arbitrator awarded $353,149.58, consisting of $251,934.48 in estimated unpaid contributions, $47,928.20 in interest, $50,386.90 in liquidated damages, $400 in court costs, $1,500 in attorneys’ fees, and $1,000 for the arbitrator’s fee. The arbitrator also provided for interest at 5.25% annually from the award’s issuance.

Three Guys did not oppose the federal petition or the Funds’ summary-judgment motion and did not otherwise appear in the case.

Court’s Analysis

The court explained that judicial review of a labor arbitration award is very limited. The court generally must confirm an award if it draws its substance from the collective bargaining agreement and the arbitrator acted within the authority granted by that agreement. Because the petition was unopposed, the court still examined the petitioners’ evidence to determine whether there was no genuine dispute over a material fact and whether the petitioners were entitled to judgment as a matter of law.

The court found that the record established that Three Guys was bound by the collective bargaining agreement, was required to permit an audit, failed to provide its records, and was properly subject to arbitration. The arbitrator’s written decision showed the basis for the award, and the award was consistent with the agreement, the Collection Policy, and the evidence submitted. The court therefore confirmed the arbitration award.

The court also granted prejudgment interest at 5.25% from the date of the award through the date of judgment. It awarded post-judgment interest at the statutory rate under 28 U.S.C. § 1961.

Attorneys’ Fees and Costs

The court held that the collective bargaining agreement and Collection Policy authorized recovery of reasonable attorneys’ fees and costs incurred to collect unpaid contributions. The petitioners requested $3,254 in attorneys’ fees and $75 in costs.

The court found that the 12.8 hours billed were reasonable but reduced the hourly rates for two attorneys. It approved a rate of $325 per hour for partner Nicole Marimon instead of the requested $350 rate, a rate of $250 per hour for associate Adrianna R. Grancio instead of the requested $275 rate, and $120 per hour for legal assistants. These rates produced an attorneys’ fee award of $2,989. The court also awarded the requested $75 in costs.

Disposition

Judge Katherine Polk Failla granted the petition and directed the Clerk of Court to enter judgment for $373,026.89. That amount consisted of the $353,149.58 arbitration award, $16,813.31 in prejudgment interest, $2,989 in attorneys’ fees, and $75 in costs. Post-judgment interest will accrue at the statutory rate. The court directed the Clerk to terminate pending motions, adjourn remaining dates, and close the case.