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

Background

The petitioners were employee-benefit funds, trustees of a charitable organization, a not-for-profit corporation, and a labor union. Talico Contracting Inc. was an employer covered by the Employee Retirement Income Security Act and a New York corporation. Through project labor agreements, Talico agreed to follow a collective bargaining agreement between the Hoisting and Scaffolding Trade Association and the New York City District Council of Carpenters.

The collective bargaining agreement required Talico to make contributions to the funds for covered employee work and to provide payroll and other records for audits. It also allowed disputes about fund payments to be submitted to arbitration. Under the funds’ collection policy, if an employer refused an audit or access to records, the funds could estimate the contributions owed.

Talico failed to comply with a requested audit. The petitioners estimated that $578,214.04 was owed and initiated arbitration. Although Talico received notice of the arbitration hearing, it did not appear. The arbitrator found that Talico violated the collective bargaining agreement and awarded the petitioners $755,054.49, consisting of estimated unpaid contributions, interest, liquidated damages, attorneys’ fees, and costs. The arbitrator also provided for 7.5% annual interest from the award’s issuance date. Talico did not pay any part of the award.

Court’s Review of the Award

The petitioners asked the court to confirm the arbitration award under the Federal Arbitration Act, which allows a court to turn an arbitration award into an enforceable court judgment. Talico did not oppose the petition. The court treated the unanswered petition as an unopposed motion for summary judgment, meaning a request for judgment without a trial when the submitted evidence shows that no important factual dispute requires one. The court nevertheless reviewed the petitioners’ submissions before ruling.

The court found that the parties had agreed to arbitrate this dispute. The collective bargaining agreement covered disputes concerning payments to the funds, and the dispute arose from Talico’s failure to provide records needed to assess its contributions. The court also found that the arbitrator acted within the authority granted by the agreement, which authorized the arbitrator to decide the issues raised and award monetary damages. The court therefore confirmed the arbitration award.

Attorneys’ Fees and Costs

The petitioners requested $1,542 in attorneys’ fees for 4.8 hours of work and costs connected with filing the petition. The court concluded that fees and costs were appropriate because Talico had agreed to arbitration, failed to participate in the arbitration and court proceedings, and provided no justification for failing to comply with the award.

The court reduced the requested hourly rate for attorney Nicole Marimon from $350 to $325, finding the lower rate reasonable for this type of work. It found the $120 hourly rate for the firm’s legal assistant reasonable and found that the hours billed were reasonable. The court granted $1,437 in attorneys’ fees and $70 in service costs.

Post-Judgment Interest and Disposition

The court granted the petition to confirm the arbitration award. It directed the Clerk to enter judgment for $755,054.49, plus prejudgment interest at 7.5% annually from December 18, 2019, through the date of judgment. The court also granted $1,437 in attorneys’ fees, $70 in costs, and post-judgment interest at the statutory rate, calculated from the date judgment was entered. The Clerk was directed to close the case.