Trustees of the Mason Tenders Distrcit Council Welfare Fund v. Restoration

Background

The petitioners were the trustees of four Mason Tenders District Council funds, along with Mike Hellstrom, identified as the union’s business manager, and Anna Gustin, identified as a director acting in a fiduciary capacity. The respondent was Ameri Restoration, Inc.

The parties had signed a Project Labor Agreement with the New York City Building and Construction Trades Council. The agreement required Ameri to make payments to certain employee-benefit funds and incorporated the funds’ Trust Agreements. Those Trust Agreements allowed the funds to examine Ameri’s records and to start arbitration proceedings concerning delinquent payments.

The petitioners began arbitration on April 9, 2021, alleging that Ameri had not paid fringe-benefit contributions, dues, and political-action-committee contributions for periods between June 5, 2017, and June 28, 2020. Arbitrator Joseph Harris held a hearing on May 3, 2021. No representative of Ameri appeared, and the arbitrator proceeded after finding that Ameri had received proper notice.

The petitioners presented an auditor’s report and a deficiency report. On May 21, 2021, Harris issued an award requiring Ameri to pay $83,675.32. The award included unpaid fringe benefits, unpaid dues and political-action contributions, interest, audit costs, an Employee Retirement Income Security Act penalty, additional interest, legal costs, and arbitration fees. Ameri had not paid any part of the award.

Court’s review

The petitioners filed a petition asking the court to confirm the arbitration award under Section 301 of the Labor Management Relations Act. The court treated the unopposed petition and supporting record like a motion for summary judgment, which is granted when the evidence shows no genuine dispute over an important fact and the moving party is entitled to judgment under the law.

The court explained that judicial review of a labor arbitration award is highly limited. The court’s role was not to reconsider the underlying dispute, but to determine whether the arbitrator was at least plausibly interpreting and applying the parties’ agreement and acting within the authority granted by that agreement.

The court found that the petitioners’ evidence showed that Ameri was required to make the payments, failed to do so, and had agreed to arbitrate disputes concerning its contribution obligations. The court also found a sufficient factual basis for the award.

The court found no statutory ground for vacating the award. Specifically, the record did not show corruption, fraud, undue means, arbitrator bias, prejudicial misconduct, or that the arbitrator exceeded his authority. The court also found no evidence that Harris acted in disregard of the law. Because the award stated a definite amount, the court concluded that no additional inquiry into damages was required.

Ruling

Judge Katherine Polk Failla granted the petitioners’ motion for summary judgment on their petition to confirm the arbitration award. The Clerk was directed to enter judgment for the petitioners in the amount of $83,675.32, plus statutory interest accruing from May 21, 2021, through the date of judgment. The court also directed the Clerk to terminate pending motions, adjourn remaining dates, and close the case.