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

Background

The petitioners were the New York City District Council of Carpenters; the Trustees of the New York City District Council of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund; the Trustees of the New York City Carpenters Relief and Charity Fund; and the Carpenter Contractor Alliance of Metropolitan New York. The petitioners sought to confirm and enforce an arbitration award against Safeway Installation Corp. under Section 301(c) of the Labor Management Relations Act.

Safeway was bound by a Project Labor Agreement and related collective bargaining agreements. Those agreements required Safeway to make contributions to the funds for covered work and to permit an audit of its books and records. The agreements also required payment of estimated unpaid contributions, interest, liquidated damages, reasonable attorneys’ fees, and costs if a dispute over contributions led to litigation.

The petitioners began arbitration in 2019 after Safeway failed to submit to an audit. Safeway did not appear at the arbitration hearing. On August 19, 2019, Arbitrator Roger E. Maher found that Safeway violated the collective bargaining agreement and awarded the funds $100,394.07. That amount consisted of an estimated principal deficiency of $74,892, interest of $8,123.67, liquidated damages of $14,978.40, court costs of $400, attorneys’ fees of $1,500, and the arbitrator’s fee of $500. The award also provided for 7.5% interest from the award date. Safeway did not pay the award.

The petitioners filed this case on November 1, 2019. Safeway was served but did not answer, request more time, or otherwise appear.

Legal standard

The court explained that review of a labor arbitration award under Section 301 is very limited. A court generally confirms an award if the arbitrator was interpreting or applying the collective bargaining agreement and acted within the scope of the arbitrator’s authority, absent exceptional circumstances such as fraud or a violation of public policy.

Because Safeway did not oppose the petition, the court treated it as an unopposed motion for summary judgment rather than entering a default judgment. Summary judgment is appropriate when there is no genuine dispute about a material fact and the moving party is entitled to judgment under the law. Even an unopposed motion must be denied if the evidence does not support the requested relief.

Ruling on confirmation

The court found no genuine issue of material fact. It also found no indication that the award resulted from fraud or dishonesty, that the arbitrator disregarded the Project Labor Agreement or collective bargaining agreement, or that the arbitrator acted outside the authority granted by those agreements. The record showed that the arbitrator based the award on evidence that Safeway failed to submit to an audit and on agreement provisions authorizing interest and other costs.

The petitioners’ motion was granted, and the arbitration award was confirmed.

Attorneys’ fees and costs

The petitioners requested $825 in attorneys’ fees and $70 in filing and service costs. The court found that counsel’s hourly rate of $275 and three hours of work were reasonable based on comparable cases. The court ordered Safeway to pay the requested $825 in attorneys’ fees and $70 in costs.

Post-judgment interest and disposition

The court held that post-judgment interest is required in civil cases involving confirmed arbitration awards. It ruled that the petitioners were entitled to post-judgment interest from the date judgment was entered at the rate provided by 28 U.S.C. § 1961.

Judge Vernon S. Broderick ordered entry of judgment in favor of the petitioners and against Safeway Installation Corp. for $100,394.07, plus 7.5% interest from August 19, 2019, through the date of judgment; $825 in attorneys’ fees; $70 in costs; and post-judgment interest under 28 U.S.C. § 1961(a). The Clerk of Court was directed to close the case.