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

Background

The petitioners sought confirmation of an arbitration award under Section 301 of the Labor Management Relations Act. The petitioners included a labor organization and several funds. The opinion states that the labor organization represented certain employees of Unique Contracting Corporation.

Unique Contracting was a member of the Association of Wall Ceiling & Carpentry Industries of New York, Inc., from November 18, 2014, through February 11, 2020. As a member, it agreed to be bound by agreements between the Association and the labor organization. A collective bargaining agreement covering July 1, 2017, through June 30, 2024, required Unique Contracting to make contributions to the funds for covered work.

The agreement allowed disputes concerning fund payments to be submitted to arbitration. It also allowed recovery of interest, liquidated damages, attorneys’ fees, and costs for unpaid contributions. The petitioners determined that Unique Contracting had failed to make $94,877.67 in required contributions for work performed from January 2, 2018, through October 23, 2018. They initiated arbitration, but Unique Contracting did not appear. The arbitrator considered the petitioners’ evidence, including an audit of Unique Contracting’s books and records.

The arbitrator issued the award on December 18, 2019. The award required Unique Contracting to pay $94,877.67 in principal contributions, $10,010.39 in interest, $18,975.53 in liquidated damages, $523.88 in promo funds, $400 in court costs, $1,500 in attorneys’ fees, and $500 in arbitrator’s fees, for a total of $126,787.47. The award also provided for 7.5% interest beginning on the award date. Unique Contracting did not pay any portion of the award.

Court’s analysis

Because Unique Contracting did not appear or respond, the court treated the petition as an unopposed motion for summary judgment. The court explained that confirmation of an arbitration award ordinarily turns the award into a court judgment and is required unless a valid legal basis exists to vacate, modify, or correct it.

The court emphasized that review of a labor arbitration award is very limited. It does not reconsider the arbitrator’s factual or contractual conclusions. Instead, the court asks whether the arbitrator acted within the authority granted by the collective bargaining agreement and at least arguably construed or applied that agreement.

The court reviewed the petitioners’ submissions, including the audit summary, and found undisputed evidence that Unique Contracting had failed to make the required payments. It also found that the arbitrator’s additional awards were within the arbitrator’s authority under the agreement. The court therefore granted the petition and confirmed the arbitration award.

Attorneys’ fees and interest

The petitioners also requested attorneys’ fees and costs for the court proceeding. The court found that an award of reasonable fees was justified because Unique Contracting had not participated in the arbitration, had not appeared in court, had not paid the arbitration award, and had not justified its refusal to comply. The collective bargaining agreement also authorized recovery of reasonable attorneys’ fees and costs in collection actions.

The court approved the petitioners’ counsel’s request for $945 for 2.7 hours of work preparing the petition. The court also granted the request for post-award interest at the statutory rate, stating that this interest was part of the arbitration award.

Disposition

The petition to confirm the arbitration award was granted. The court awarded judgment in the petitioners’ favor for $126,787.47, plus 7.5% post-award interest from December 18, 2019, through the date judgment was entered, and an additional $945 in attorneys’ fees for the court proceeding. The Clerk of Court was directed to enter judgment, add interest and tax costs, and terminate the case.