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

Background

The Funds and the New York City District Council of Carpenters petitioned under the Labor Management Relations Act to confirm an April 8, 2022 arbitration award against ABBA Construction LLC. In connection with ABBA’s work on a public project for the City of New York, ABBA signed a Project Labor Agreement Letter of Assent and agreed to be bound by a project labor agreement and an Independent Building Construction Agreement. Those agreements required ABBA to make specified payments and provide books and records for audits concerning contributions.

The agreements’ collection policy allowed the Funds to conduct an estimated audit if an employer refused to provide records. The policy also required arbitration of disputes and allowed recovery of delinquent contributions, interest, liquidated damages, audit expenses, attorneys’ fees, and other collection costs.

The Funds requested an audit covering November 25, 2020, through the then-current date. ABBA did not provide its books and records, so the Funds conducted an estimated audit and calculated a principal deficiency of $254,977.90. Arbitrator J.J. Pierson held a hearing after ABBA received notice, but ABBA did not appear or request additional time. The arbitrator found that ABBA violated the agreement by refusing the audit and ordered ABBA to pay $317,642.61, consisting of the estimated principal deficiency, interest, liquidated damages, court costs, attorneys’ fees, and arbitrator fees. The arbitrator also ordered ABBA to produce its records and participate in an audit within 30 days, with ABBA responsible for the audit costs.

ABBA was served with the award but did not pay it, comply with it, or seek to vacate or modify it. The Funds filed this petition to confirm the award. The court treated the petition as a motion for summary judgment and gave ABBA multiple opportunities to respond. ABBA did not respond.

Court’s Analysis

The court explained that judicial review of an arbitration award is highly deferential. An award should generally be confirmed when the arbitrator was arguably interpreting the parties’ agreement and acting within the arbitrator’s authority. Because the petition was treated as a summary-judgment motion, the court still had to review the record and determine whether any genuine dispute over an important fact required a trial.

The court found no such dispute. The record showed that ABBA was bound by the agreements, that the collection policy authorized arbitration, and that ABBA failed to provide contributions and participate in the audit. The court concluded that there was more than a minimally sufficient contractual basis for the arbitrator’s decision and confirmed the award.

The Funds also requested $330 in attorneys’ fees and $77 in costs for the court proceeding. The court held that the agreements incorporated a policy allowing the Funds to recover reasonable attorneys’ fees and costs incurred to enforce audit rights and collect delinquent contributions. It therefore did not need to decide whether ABBA had acted in bad faith. The court also found that the Funds’ time records and requested amounts were reasonable and necessary.

Disposition

Judge Jennifer L. Rochon granted the Funds’ unopposed petition to confirm the arbitration award. The judgment confirms the April 8, 2022 award; orders ABBA to make its books and records available for an audit covering November 25, 2020, through the present within 30 days, with ABBA bearing the cost; orders ABBA to pay $317,642.61 under the award; adds interest on the $254,977.90 principal delinquency at 5.5% from April 8, 2022, through December 9, 2022; awards post-judgment interest at the statutory rate; and awards $330 in attorneys’ fees and $77 in costs.