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

Background

The Petitioners were the Trustees of several funds, the Trustees of the New York City Carpenters Relief and Charity Fund, and the New York City District Council of Carpenters. The Union was the certified bargaining representative for certain employees of Exterior Erecting Services, Inc. The opinion states that the company was bound by an agreement between the Association of Wall-Ceiling & Carpentry Industries of New York, Incorporated and the Union. That agreement required the company to make contributions to the funds and comply with fund policies.

The parties disputed the company’s failure to provide access to books and records required for an audit. The Petitioners initiated arbitration. Although the company had notice of the hearing date, it did not appear. On November 21, 2020, the arbitrator entered an award in the Petitioners’ favor.

Arbitration Award

The arbitrator found that the company violated the collective bargaining agreements by failing to remit contributions to the funds. The arbitrator ordered payment of $75,404.22, consisting of amounts for a principal deficiency, interest, liquidated damages, late-payment interest, promotional fund contributions, additional interest, audit costs, court costs, attorney’s fees, the arbitrator’s fee, and a credit for a payment received.

The arbitrator also found that the company violated the agreements by failing to make its books and records available for an audit covering June 14, 2017 through August 21, 2018. The arbitrator ordered payment of $317,202.34, consisting of an estimated principal deficiency, interest, liquidated damages, court costs, attorney’s fees, and the arbitrator’s fee.

Court’s Analysis

The Petitioners filed the federal action to confirm the arbitration award on March 19, 2021 and filed proof of service on April 1, 2021. The court later ordered the company to show cause why the petition should not be treated as unopposed. The company never appeared or responded.

The court explained that when a party does not respond to a petition to confirm an arbitration award, the petition is treated as an unopposed motion for summary judgment. Summary judgment is a decision without a trial when the court determines that the moving party is entitled to judgment under the law. The court stated that an arbitration decision should be upheld when there is a “barely colorable justification” for it.

After reviewing the Petitioners’ submissions, the court found more than a colorable justification for the award. The company had made no objections to the federal motion or to the arbitration’s conduct, and the court confirmed the award.

Disposition

The court granted the petition, confirmed the arbitration award, and entered judgment for the Petitioners. The judgment awarded $392,606.86 against the company, representing the awards plus interest from the award dates through the judgment date at an annual rate of 5.25% under the awards. It also awarded $75 in court costs and service fees, $3,714.50 in attorney’s fees for the federal proceeding, and post-judgment interest at the statutory rate. The Clerk was directed to enter judgment and close the case.