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

Background

The petitioners brought the action under Section 301 of the Labor Management Relations Act to confirm an arbitration award issued under a collective bargaining agreement. The agreement and related collection policy required National Retail Installation to make contributions to the Funds for covered employee work within the New York City District Council of Carpenters’ trade and geographic jurisdiction.

An audit found a principal contribution deficiency of $46,710.41. The petitioners initiated arbitration under the collection policy. National Retail Installation did not appear at the May 16, 2022 hearing. The arbitrator, Daniel Engelstein, heard testimony from the auditor about the review of the company’s payroll and other records. The arbitrator found that National Retail Installation was delinquent and issued an award totaling $67,909.01, including the principal deficiency, interest, liquidated damages, promotional fund contributions, audit costs, attorney’s fees, and the arbitrator’s fee. The opinion states that the company told the Funds’ office that it would not pay because it had gone out of business.

Court’s Analysis

The court explained that an arbitration award must be converted into a court judgment to be enforced. Under the Federal Arbitration Act, a court must confirm an award unless it is vacated, modified, or corrected. Because National Retail Installation did not oppose the petition, the court treated the request as an unopposed motion for summary judgment, but still examined whether the petitioners showed that no genuine dispute of material fact existed.

The court found that the petitioners met that burden. The collective bargaining agreement and collection policy made arbitration an appropriate method for collecting delinquencies and authorized the arbitrator to act. The court found no reason to question the accuracy of the award, particularly because National Retail Installation did not oppose the motion despite being aware of it. The court therefore confirmed the award.

The court also considered the request for attorney’s fees and costs. It found an independent basis for fees in the collective bargaining agreement and collection policy, which provided for fees when the Funds took legal action to recover delinquent contributions. The court also noted that National Retail Installation had not complied with the award or provided a justification for its failure to do so. Applying the lodestar method—reasonable hours multiplied by a reasonable hourly rate—the court found the requested fees and costs reasonable.

Disposition

Judge Ronnie Abrams granted the petitioners’ motion to confirm the $67,909.01 arbitration award. The court also granted the petitioners’ motion for attorney’s fees and costs, awarding $1,776 in attorney’s fees and $77.57 in costs. The Clerk was directed to enter judgment for $67,909.01 plus those fees and costs, pre-judgment interest from May 11, 2022 through the date of judgment at 5.25%, and post-judgment interest at the statutory rate. The Clerk was also directed to close the case.