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

Background

The petitioners were trustees of labor-management funds, the Trustees of the New York City Carpenters Relief and Charity Fund, The Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. Eclipse was a member of The Association of Wall-Ceiling & Carpentries Industries of New York, Inc., whose collective bargaining agreements with the Union governed Eclipse’s relationship with the petitioners.

The agreements required covered employers to make contributions to the Funds and to provide books and payroll records for audits. The agreements also incorporated the Funds’ Collection Policy. That policy provided that, when an employer refused an audit, the Funds could estimate delinquent contributions using the highest average weekly hours reported during any four-week period in the audit period.

The petitioners requested an audit covering June 24, 2017, through the date of the request. The opinion states that Eclipse failed to provide its books and records. The Funds estimated missing contributions, initiated arbitration, and received an award dated April 10, 2021. Eclipse did not appear at the arbitration hearing and did not pay the award. Eclipse also did not enter an appearance or file papers in the federal case, although the opinion states that it was properly served.

Court’s review of the arbitration award

Under Section 301 of the Labor Management Relations Act, the court explained that its review of a labor arbitration award is very limited. The court does not reconsider the arbitrator’s decision on the merits. Instead, it determines whether the arbitrator acted within the authority granted by the collective bargaining agreements and whether the award drew its basis from those agreements.

The court treated the unopposed petition and supporting record similarly to an unopposed summary-judgment motion. It concluded that the evidence showed that the petitioners attempted to audit Eclipse, that Eclipse denied the requests in violation of the agreements and Collection Policy, and that the arbitrator based the award’s principal, interest, liquidated damages, and costs on the agreements and undisputed testimony. The court found no reason to believe that the award resulted from fraud or dishonesty or that the arbitrator acted outside the scope of his authority.

The court granted the petitioners’ motion and confirmed the arbitration award. The confirmed award included prejudgment interest at 5.25% per year from the award date through the date of judgment.

Interest, attorneys’ fees, and costs

The court granted the petitioners’ request for post-judgment interest under 28 U.S.C. § 1961. That interest was to accrue at the statutory rate from the date judgment was entered until Eclipse paid the judgment in full.

The court also granted the petitioners’ request for attorneys’ fees and costs, but reduced the requested hourly rate for associate Adrianna R. Grancio from $275 to $225. The court found that Eclipse had agreed to binding arbitration, had not complied with the award, and had offered no justification for its failure to do so. It also relied on the agreements and Collection Policy, which entitled the petitioners to recover fees incurred in enforcing their audit rights.

Using the method that multiplies reasonable hours by a reasonable hourly rate, the court found that 10 hours of work and the documented rates were reasonable after the reduction. It awarded $2,132 in attorneys’ fees and $84.63 in costs, for a combined fees-and-costs amount of $2,216.63.

Disposition

Judge Gregory H. Woods ordered the Clerk of Court to enter judgment for the petitioners in the amount of $180,957.56, plus prejudgment interest at 5.25% per year from April 10, 2021, through the date of judgment, and $2,216.63 in attorneys’ fees and costs. The judgment would also accrue post-judgment interest at the statutory rate until paid in full. The court directed the Clerk to close the case.