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S.D.N.Y.Substantive rulingFiled Sept. 22, 2022

Trustees of the District Council No. 9 Painting Industry Insurance Fund v…

Full caption

Trustees of the District Council No. 9 Painting Industry Insurance Fund v. Choice of Colors, Inc.

Judge
Paul Gardephe
Docket
1:21-cv-08971
Court
U.S. District Court · Southern District of New York
Pages
7
ArbitrationSummary JudgmentContractEmployment
In one sentence

In Trustees v. Choice of Colors, Judge Gardephe granted summary judgment, confirmed an arbitration award, and denied fees without prejudice.

Who this affects

The ruling directly affects the petitioners—the trustees and union—and Choice of Colors, Inc. Choice of Colors is required to have the $11,500 arbitration award confirmed against it; the request for attorneys’ fees and costs was denied without prejudice.

What happened

In Trustees of the District Council No. 9 Painting Industry Insurance Fund v. Choice of Colors, Inc., union-affiliated trustees and the union asked the court to confirm an arbitration award against Choice of Colors. The award imposed $11,500 for 23 missing reports required by a collective bargaining agreement. Choice of Colors did not respond or appear.

The court found that the arbitration committee acted within the authority granted by the agreement and that no genuine factual dispute prevented confirmation. The court also found no evidence that the award was unlawful, arbitrary, or beyond the committee’s powers.

Judge Paul G. Gardephe granted the petitioners’ motion for summary judgment and confirmed the arbitration award. He denied the request for attorneys’ fees and costs without prejudice because the petitioners did not state the amount requested or provide supporting documents.

The detailed version

For law students, journalists, and other readers who want the full reasoning

Case
Trustees of the District Council No. 9 Painting Industry Insurance Fund v… · No. 1:21-cv-08971
Judge
Paul Gardephe
Date
Sept. 22, 2022

Background

The trustees of the District Council No. 9 Painting Industry Insurance Fund and District Council No. 9 Annuity Fund, together with the District Council No. 9 International Union of Painters and Allied Trades, A.F.L.-C.I.O., petitioned to confirm an arbitration award against Choice of Colors, Inc. The petition arose under a collective bargaining agreement and Section 301 of the Labor Management Relations Act.

The agreement required Choice of Colors to submit weekly reports to the funds identifying covered employees, hours worked, and benefit contributions. It also authorized fines of at least $1,000 for each missing report and required disputes under the agreement to be submitted to final, binding arbitration. The union charged that Choice of Colors had failed to submit 23 reports since about January 2021. It requested a fine of $500 per missing report, totaling $11,500.

The Joint Trade Committee held a hearing on July 6, 2021, but Choice of Colors did not appear. On July 23, 2021, the committee found Choice of Colors responsible for failing to submit the reports and awarded $11,500 against it, payable within 10 days. Choice of Colors did not pay the award. The petitioners filed this case on November 2, 2021, and later moved for summary judgment. Choice of Colors did not respond to the petition or motion and did not otherwise appear.

Court’s Analysis

The court explained that a petition to confirm an arbitration award is treated similarly to a motion for summary judgment. Even when the opposing party does not respond, the court must examine the petitioners’ evidence and determine whether they showed that no genuine dispute of material fact exists and that they are entitled to judgment as a matter of law.

The court determined that the award was within the powers granted to the Joint Trade Committee by the collective bargaining agreement. That agreement empowered the committee and the Joint Trade Board to decide disputes concerning the agreement and to impose remedies, damages, and penalties for violations. The court found no evidence that the committee’s decision was unlawful, arbitrary, or beyond its authority.

Disposition

The court granted the petitioners’ motion for summary judgment and confirmed the $11,500 arbitration award. The court denied the petitioners’ request for attorneys’ fees and costs without prejudice because their papers did not identify the amount requested or include supporting documentation. The court stated that any application for fees and costs was to be submitted by September 28, 2022, with appropriate documentation.

The authoritative version

Read the full 7-page opinion on CourtListener, the free public archive maintained by the Free Law Project.

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