Trustees for the Mason Tenders District Council Welfare Fund v. Contracting

Background

The petitioners were Trustees for the Mason Tenders District Council Welfare Fund, Pension Fund, Annuity Fund and Training Program Fund, Anna Gutsin, and Mike Hellstrom. They sought confirmation of an arbitration award under Section 301 of the Labor Management Relations Act.

Koko Contracting, Inc. was a contractor and signatory to a New York City School Construction Authority Project Labor Agreement with the Mason Tenders District Council of Greater New York. Under that agreement and related trust agreements, Koko was required to make payments to employee-benefit plans. The petitioners alleged that Koko failed to make required payments for the period from December 31, 2017, through March 28, 2020.

The petitioners initiated arbitration. Koko did not appear at the arbitration hearings, so the arbitration proceeded as a default. On May 21, 2021, the arbitrator found that Koko had violated the agreement by failing to make required payments for fringe benefits, dues, and the political action committee. The arbitrator ordered Koko to pay a total of $33,492.54, including delinquent payments, interest, liquidated damages, an amount related to an incorrect payment rate, attorneys’ fees, and arbitrator fees.

Court’s analysis

The court explained that federal courts generally must confirm a labor-arbitration award unless the award is vacated, modified, or corrected. Judicial review is very limited. The court does not reconsider the arbitrator’s factual or contractual conclusions; instead, it asks whether the arbitrator acted within the authority granted by the parties’ agreement and at least arguably construed or applied that agreement.

Because Koko did not oppose the petition, the court treated the petition and supporting record as an unopposed motion for summary judgment. The court stated that an unopposed motion still must be supported by evidence sufficient to show that the moving party is entitled to judgment as a matter of law.

Ruling

The court found that the undisputed facts showed that the arbitrator’s award was within the scope of the arbitrator’s authority. The petition to confirm the arbitration award was GRANTED. The court entered judgment in the petitioners’ favor for $33,492.54, plus statutory interest accruing from July 28, 2022, until Koko paid the full award. Judge Valerie Caproni directed the Clerk of Court to close the case.