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

Background

The petitioners were trustees of several funds and the Carpenter Contractor Alliance of Metropolitan New York. They sought confirmation of an arbitration award against 809 Solutions LLC d/b/a Erector Masters under Section 301 of the Labor Management Relations Act.

The dispute arose from work 809 Solutions performed on a New York School Construction Authority project in the Bronx. A subcontractor affidavit subjected 809 Solutions to a project labor agreement, which bound it to a collective bargaining agreement with the New York City District Council of Carpenters. That agreement required covered employer payments to the funds and required compliance with fund policies. The collection policy allowed disputes to be resolved through arbitration.

An audit covering December 3, 2020 through December 26, 2021 found that 809 Solutions had failed to pay $9,454.08 in contributions. After 809 Solutions did not pay, the petitioners gave notice of arbitration. 809 Solutions did not attend the September 20, 2022 hearing or request more time. The arbitrator found 809 Solutions in default but heard evidence on the merits.

The arbitrator awarded $19,649.72, consisting of unpaid contributions, auditor fees, liquidated damages, attorneys’ fees, arbitration costs, accrued interest, non-audit late-payment interest, and promotional-fund contributions. The award also provided for 6.75% interest and conditionally included a $402 filing fee if the petitioners sought judicial enforcement. 809 Solutions did not appear in the federal case or file opposition papers.

Court’s analysis

For an unopposed petition to confirm an arbitration award, the court treated the petition and supporting materials as similar to an unopposed summary-judgment motion. The petitioners still had to show that no genuine dispute about an important fact existed. The court explained that it could not reconsider the arbitrator’s decision on its merits; it could determine only whether the arbitrator acted within the authority granted by the collective bargaining agreement and whether there was a legally sufficient basis for the award.

The court found that the parties had agreed to arbitrate disputes about payments to the funds. It also found sufficient evidence that 809 Solutions was bound by the project labor agreement and collective bargaining agreement, that those agreements required payments to the funds, and that 809 Solutions failed to make all required payments. The court concluded that the arbitrator acted within his authority and that the award had more than a minimally adequate justification. Because 809 Solutions did not challenge the findings or the award, the court held that it was required to confirm the award.

The petitioners also sought attorneys’ fees and costs for enforcing the award. The court held that the collective bargaining agreement allowed recovery of those amounts and noted that courts also routinely award fees when a party refuses to comply with an arbitration award without asking a court to vacate it. Applying the method that multiplies reasonable hours by a reasonable hourly rate, the court reduced the billed hours and reduced the associates’ hourly rates from $275 to $225. It calculated $1,665 in attorneys’ fees and separately granted $75 in costs.

Disposition

Judge Lewis J. Liman granted the petition and confirmed the arbitration award. The Clerk was directed to enter judgment for the petitioners against 809 Solutions in the amount of $20,049.72 in damages, plus 6.75% interest from September 20, 2022 through the date of judgment, and $1,665 in attorneys’ fees and costs. The court also stated that the petitioners were entitled to post-judgment interest at the statutory rate under 28 U.S.C. § 1961(a). The Clerk was directed to close the case and terminate all pending motions.