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

Background

The petitioners included trustees of several funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. They sought confirmation and enforcement of an arbitration award against CEI Contractors Inc. under Section 301 of the Labor Management Relations Act.

CEI became bound by a collective bargaining agreement between the Association of Wall-Ceiling & Carpentry Industries of New York and the Union. The agreement required CEI to make contributions to the funds for covered work and to provide its books and payroll records for an audit. The agreement and the funds’ Collection Policy also provided for arbitration and allowed recovery of delinquent contributions, interest, liquidated damages, reasonable attorneys’ fees, and costs.

The funds requested an audit covering December 28, 2017, through the present, but CEI refused to provide its records. Arbitrator Roger E. Maher held a hearing on April 8, 2021. CEI had notice but did not appear or request an adjournment. On April 10, 2021, the arbitrator found that CEI violated the collective bargaining agreement and awarded $366,255.78, consisting of an estimated principal deficiency of $277,510.13, interest of $30,343.62, liquidated damages of $55,502.03, court costs of $400, attorneys’ fees of $1,500, and arbitrator’s fees of $1,000. The award also provided for 5.25% interest from its issuance.

The petitioners filed the federal petition to confirm the award on September 21, 2021. They served CEI, but CEI did not oppose the petition or otherwise appear.

Confirmation of the Arbitration Award

The court explained that confirmation of an arbitration award is ordinarily a summary proceeding. Judicial review is limited: the court must determine whether the arbitrator was at least arguably interpreting and applying the contract, acted within the authority granted by the agreement, and did not disregard the agreement’s plain language. An unopposed confirmation petition is treated similarly to a motion for summary judgment, meaning the undisputed facts still must show that the petitioners were entitled to judgment as a matter of law.

The court concluded that the petitioners met that standard. The arbitrator found that CEI was bound by the collective bargaining agreement, had legally sufficient notice of the arbitration, and failed to make its books and records available as required. The arbitrator considered uncontroverted testimony and substantial, credible evidence before issuing the award. The court found that these findings followed the agreement and were within the arbitrator’s authority.

The court also found that the award was proper under the collective bargaining agreement and Collection Policy. Nothing suggested that the arbitrator acted arbitrarily, exceeded jurisdiction, or acted contrary to law. The court therefore confirmed the arbitration award.

Attorneys’ Fees, Costs, and Interest

The petitioners requested $812.50 in attorneys’ fees and $77 in costs for the federal confirmation proceeding. The court held that fees and costs were proper because CEI had not appeared or justified its failure to comply with the arbitration award, and the agreement authorized recovery of reasonable fees and costs when the funds prevailed in collection litigation.

The court found that counsel reasonably spent 2.9 hours on the case. It reduced Nicole Marimon’s requested hourly rate from $350 to $325 for 0.2 hours of partner time. It reduced Adrianna R. Grancio’s requested hourly rate from $275 to $250 for 2.7 hours of associate time. The court therefore granted $740 in attorneys’ fees and granted the requested $77 in costs. The court did not rule on legal-assistant rates because the billing history contained no legal-assistant entries.

The court also awarded interest at 5.25% on the arbitration award from April 10, 2021, through the date of judgment, and post-judgment interest at the statutory rate.

Disposition

The Petition was granted. The Clerk was directed to enter judgment for $367,072.78, consisting of the $366,255.78 arbitration award, $740 in attorneys’ fees, and $77 in costs. The Clerk was also directed to close the case and enter judgment.