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

Background

The petitioners were various trustees of employee benefit funds and the New York City District Council of Carpenters. They sued RNW Electric Corp. under Section 301 of the Labor Management Relations Act to confirm and enforce an arbitration award issued by Arbitrator J.J. Pierson on July 25, 2022.

The parties were bound by a New York City Department of Design and Construction Project Labor Agreement and an incorporated Independent Heavy Construction Agreement. Those agreements required RNW to make benefit-fund contributions for every hour its employees worked within the Union's trade and geographic jurisdiction. After an audit covering September 11, 2019, through December 16, 2020, the petitioners alleged that RNW had underpaid its required contributions.

The petitioners sought an arbitration award totaling $18,341.48. That amount included a principal audit deficiency of $2,908, interest, liquidated damages, audit costs, promotional-fund contributions, prior late-payment interest, court costs, attorney's fees, and the arbitrator's fee. Arbitrator Pierson notified RNW of the arbitration hearing, but RNW did not appear. After reviewing the audit, the arbitrator ruled for the petitioners.

Federal Court Proceedings

The petitioners filed the federal petition to confirm the award on September 27, 2022, and served RNW on September 29, 2022. The court notified RNW that the petition would be treated as unopposed if RNW did not appear by November 25, 2022. No appearance was entered for RNW, and RNW filed no response.

Under the Federal Arbitration Act, a court must confirm an arbitration award unless the award is vacated, modified, or corrected under the Act. The court explained that a party seeking to prevent confirmation faces a high standard. Even when the responding party does not appear, the court must examine the petitioner's submission to determine whether the petitioner has met its burden. The court evaluated the petition under the legal standard used for summary judgment, which requires judgment when there is no genuine dispute about an important fact and the moving party is entitled to judgment under the law.

Ruling

The court found no evidence of a genuine dispute about any material fact. It determined that the agreements allowed the petitioners to seek arbitration based on RNW's delinquency and that Arbitrator Pierson had not exceeded his authority. The arbitrator had properly notified the parties of the hearing, and RNW failed to appear. RNW presented no evidence supporting a statutory basis for vacating the award.

Judge J. Paul Oetken granted the petition to confirm the arbitration award. The Clerk of Court was directed to enter judgment for the petitioners in the amount of $18,341.48, plus interest at an annual rate of 5.5% from July 25, 2022, attorney's fees of $467.50, costs of $77.00, and post-judgment interest at the statutory rate. The court also directed the Clerk to close the case and directed the petitioners to mail RNW a copy of the order.