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

Background

The Trustees of several New York City carpenters’ funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters brought a petition under Section 301 of the Labor Management Relations Act to confirm an arbitration award against P&J Wood Floors, Inc. The Union was the certified bargaining representative for certain P&J employees. P&J entered into a collective bargaining agreement with the Union on March 11, 2020.

The agreement required P&J to make contributions to the funds for covered employee work and to provide books and payroll records for audits. It also allowed disputes about fund payments to be submitted to arbitration. The agreement and the funds’ collection policy provided for interest, liquidated damages, attorneys’ fees, and other collection costs when contributions were delinquent.

After an audit, the arbitrator determined that P&J had failed to make accurate and timely contributions for pay periods from March 11, 2020, through June 25, 2021. The arbitrator awarded $115,264.89, consisting of $84,312.40 in principal, $7,546.91 in interest, $16,862.48 in liquidated damages, $698.10 in promotional fund contributions, $400 in court costs, $1,500 in attorneys’ fees, a $1,000 arbitrator’s fee, and $2,945 in audit costs. P&J did not appear at the arbitration hearing and did not enter an appearance or file anything in the federal case, although the opinion states that it was properly served.

Court’s Review of the Award

The petitioners moved for summary judgment, a procedure for deciding a case when the relevant facts are not genuinely disputed. The court explained that its review of a labor arbitration award is very limited. It was not deciding the dispute anew; it was determining whether the arbitrator acted within the authority granted by the collective bargaining agreement and based the award on that agreement.

The court found no indication that the award was obtained through fraud or dishonesty, that the arbitrator disregarded the agreement, or that the arbitrator acted outside the assigned authority. The record showed that the arbitrator relied on the audit, the agreement’s provisions, and undisputed testimony. The court therefore granted the petitioners’ motion and confirmed the arbitration award.

Interest, Attorneys’ Fees, and Costs

The court granted the request for prejudgment interest at an annual rate of 6.75 percent from the date of the arbitration award through the date of judgment. It also granted the request for post-judgment interest at the statutory rate under 28 U.S.C. § 1961, beginning when judgment was entered and continuing until P&J paid in full.

The court also found that an award of attorneys’ fees and costs for the federal petition was justified. It relied on P&J’s failure to fully comply with the arbitration award or provide a justification, as well as provisions in the collective bargaining agreement and collection policy allowing recovery of reasonable fees and costs.

The petitioners requested $3,918 in attorneys’ fees for 15.6 hours of work and $86.55 in costs. The court approved the $120 hourly rate for legal assistants but reduced the attorneys’ rates: Maura Moosnick’s rate from $275 to $225 per hour and Matthew Vani’s rate from $275 to $150 per hour. The court awarded $2,391 in attorneys’ fees and $86.55 in costs.

Disposition

Judge Gregory H. Woods granted the petition to confirm the arbitration award. The Clerk was directed to enter judgment for $117,742.44, consisting of the $115,264.89 arbitration award, $2,391 in attorneys’ fees, and $86.55 in costs, with post-judgment interest at the statutory rate. The court directed the Clerk to terminate the pending motion and close the case.