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

Background

The petitioners were trustees and multiemployer labor-management trust funds, along with the Carpenter Contractor Alliance of Metropolitan New York. Prime Contractors was bound by a collective bargaining agreement with the New York City District Council of Carpenters. Under that agreement and related agreements, Prime Contractors had to make timely contributions to employee-benefit funds for covered work and provide books and payroll records for audits. The agreements required disputes to be resolved through arbitration and allowed recovery of interest, liquidated damages, audit costs, attorneys’ fees, and other specified amounts when unpaid contributions led to arbitration or litigation.

An audit covering March 23, 2020, through December 26, 2021, found that Prime Contractors had not paid required contributions. After Prime Contractors refused to pay the audit findings, the petitioners initiated arbitration before Jeffrey G. Stein. On October 31, 2022, the arbitrator found that Prime Contractors had violated the collective bargaining agreement and awarded the petitioners $572,408.38. The award included $422,599.27 in unpaid principal, $37,533.06 in interest through October 20, 2022, $24,010.75 in audit costs, $893.45 in promotional fund contributions, $84,511.85 in liquidated damages, $400 in court costs, $1,500 in attorneys’ fees, and a $1,000 arbitrator fee. The award also provided for interest at 5.25% from the date it was issued.

By February 2, 2023, Prime Contractors had paid $72,415.28 toward the award, with an interest credit of $803.70, leaving a stated balance of $499,189.39 at that time. Prime Contractors was served in the court action but did not oppose the petition or otherwise appear. The opinion also states that counsel for Prime Contractors had appeared at the arbitration hearing.

Court’s Analysis

The court treated the request to confirm the arbitration award as a motion for summary judgment because Prime Contractors had not appeared. 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 when a motion is unopposed, the court must independently determine whether the evidence supports judgment.

The court explained that judicial review of an arbitration award is very limited. A court ordinarily must confirm an award unless it is vacated, modified, or corrected, and an award should be enforced if there is at least a barely colorable justification for the result. Based on the award and the parties’ agreements, the court found that the arbitrator acted within the authority granted by the collective bargaining agreement and related agreements. The arbitrator had held a hearing, found the petitioners’ presentation unrefuted, and issued the award based on substantial and credible evidence. The court therefore found summary judgment warranted and confirmed the award.

Attorneys’ Fees, Costs, and Interest

The petitioners also sought fees and costs for bringing the court action. The court found an award appropriate because Prime Contractors had not complied with the arbitration award and had not responded to the request for summary judgment. The petitioners documented 3.6 hours of legal work, attorney and legal-assistant rates, and $77 in service and filing costs. The court awarded $1,115.50 in attorneys’ fees and costs.

The court also awarded post-judgment interest under 28 U.S.C. § 1961(a), which sets the interest rate for money judgments in civil cases. The interest was to accrue from the date judgment was entered until payment was made.

Disposition

Judge Paul A. Engelmayer confirmed the arbitration award in favor of the petitioners. The Clerk was directed to enter judgment for the petitioners against Prime Contractors for the remaining principal amount of $422,599.27, plus post-judgment interest under 28 U.S.C. § 1961(a), and $1,115.50 in attorneys’ fees and costs. The Clerk was also directed to close the case.