District Council No. 9 International Union of Painters and Allied Trades…
District Council No. 9 International Union of Painters and Allied Trades AFL-CIO v. Speedo Corp.
- John Cronan
- 1:21-cv-04780
- U.S. District Court · Southern District of New York
- 6
In District Council No. 9 v. Speedo Corp., Judge Cronan confirmed a $13,000 arbitration award against Speedo.
District Council No. 9 obtained confirmation of a $13,000 arbitration award against Speedo Corp.; Speedo was subject to the resulting judgment.
What happened
District Council No. 9 International Union of Painters and Allied Trades, AFL-CIO v. Speedo Corp. involved a union’s request to enforce an arbitration award against Speedo under a labor agreement. Speedo did not appear or oppose the request.
The agreement required Speedo to hire union employees for covered work and allowed disputes to be arbitrated. An arbitration committee found that Speedo had hired a nonunion worker in violation of the agreement and that this was Speedo’s second offense. It ordered Speedo to pay a $10,000 penalty and $3,000 in liquidated damages.
Judge John P. Cronan granted the union’s petition, confirmed the arbitration award, directed entry of a $13,000 judgment, and closed the case. The court declined to award the union attorney’s fees and other expenses.
The detailed version
- District Council No. 9 International Union of Painters and Allied Trades… · No. 1:21-cv-04780
- John Cronan
- Feb. 9, 2022
Background
District Council No. 9 International Union of Painters and Allied Trades, AFL-CIO, brought the action under Section 301 of the Labor Management Relations Act to confirm and enforce an arbitration award against Speedo Corp. The petition was unopposed because Speedo neither appeared in the case nor submitted an opposition.
The parties were bound by a collective bargaining agreement that required Speedo to hire union employees for work within the agreement’s scope and geographic jurisdiction. The agreement required disputes about its interpretation or application to be resolved through arbitration. It provided that a second offense involving the hiring of nonunion labor could result in a $10,000 penalty for each nonunion worker and $3,000 in liquidated damages.
A union business agent observed a nonunion employee performing covered work for Speedo on January 20, 2021. The Joint Trade Committee held an arbitration hearing on February 2, 2021, attended by representatives of both sides. On February 16, 2021, the committee found Speedo guilty of violating the collective bargaining agreement, determined that the violation was Speedo’s second offense, and ordered Speedo to pay $10,000 plus $3,000 in liquidated damages. Speedo did not pay the award and did not bring an action to vacate or modify it.
Court’s Analysis
The union moved for summary judgment, which asks whether the undisputed facts require judgment for the moving party. The court explained that judicial review of an arbitration award is limited. A court generally must confirm an award if the arbitrator was at least arguably interpreting and applying the agreement, acted within the authority granted by the agreement, and did not disregard the agreement’s plain language.
The court found no genuine dispute of material fact. It determined that the Joint Trade Committee reasonably interpreted the agreement, acted within its authority, provided notice of the arbitration, and considered the parties’ contentions. The court also found that the award matched the agreement’s stated penalty for a second offense involving nonunion labor. Nothing in the record showed that the award was arbitrary, exceeded the committee’s authority, or violated the law.
Disposition
The court granted the petition and confirmed the arbitration award. It directed the Clerk of Court to enter a $13,000 judgment, consisting of the $10,000 penalty and $3,000 in liquidated damages, and to close the case.
The court declined to award attorney’s fees and other expenses. It noted that the union had not requested those amounts in the petition itself, had not provided a legal basis or supporting records for a specific award, and had not shown the bad faith or other circumstances that could support fees under the court’s equitable authority.
Read the full 6-page opinion on CourtListener, the free public archive maintained by the Free Law Project.