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

Background

The petitioners included trustees of several funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. The opinion states that the funds were governed by the Employee Retirement Income Security Act and that the Union represented certain employees of Associated Environmental Services Ltd. The Union and Associated Environmental Services were parties to a collective bargaining agreement that required the company to make contributions to the funds and submit to audits.

Audits covering October 6, 2016, through December 31, 2018, and January 1, 2019, through September 30, 2021, identified unpaid contributions totaling $37,266.34. After the company refused to pay the audit findings, the petitioners initiated arbitration. The arbitrator held a hearing on June 16, 2022, at which neither Associated Environmental Services nor its representative appeared, and issued an award on June 30, 2022.

The award ordered Associated Environmental Services to pay $83,904.85, consisting of $37,266.34 in principal, $8,495.59 in interest, $11,020.01 in liquidated damages, $21,323 in audit costs, $3,000 in attorneys’ fees, $2,000 in arbitrator’s fees, and $800 in court costs. The petitioners stated that they sought only $400 in court costs actually incurred in the present case as part of the award. Associated Environmental Services did not seek to vacate or modify the award.

Procedural History and Standard

The petitioners filed the petition to confirm the award on October 19, 2022. Associated Environmental Services was served but did not answer or otherwise appear. The court therefore treated the petition as unopposed. Under the Labor Management Relations Act, the court explained, an unopposed petition to confirm an arbitration award is treated like an unopposed motion for summary judgment. The court still had to determine whether the undisputed facts showed that the petitioners were entitled to judgment as a matter of law.

The court also explained that review of a labor arbitration award is very limited. It could not reconsider the arbitrator’s decision on the merits. Instead, it examined whether the arbitrator acted within the authority granted by the collective bargaining agreement and whether the award was grounded in that agreement rather than being the arbitrator’s own personal version of an appropriate result.

Ruling on Confirmation

The court confirmed the arbitration award. It found that the collective bargaining agreement authorized arbitration of disputes about payments to the funds and authorized the arbitrator to decide the issues submitted and award monetary damages. The dispute over Associated Environmental Services’ unpaid contributions therefore fell within the arbitrator’s authority.

The court found that the arbitrator determined that Associated Environmental Services was bound by the agreement, was delinquent in its contributions, and owed the delinquency assessment, fees, and costs. The court also found that the agreement specifically authorized monetary damages, interest, fees, and costs. Because the company did not contest the amount and the record contained no indication of fraud or dishonesty, the court concluded that the arbitrator had not exceeded his authority.

Attorneys’ Fees, Costs, and Interest

The petitioners requested $577.50 in attorneys’ fees for 2.1 hours of work at $275 per hour and $77 in service costs incurred in the court action. The court held that Associated Environmental Services had refused to comply with the award without justification after receiving the award and a demand for payment. It also found that the collective bargaining agreement entitled the petitioners to reasonable fees and costs. The court found the requested amounts reasonable and granted the request.

The court further stated that post-judgment interest was mandatory under 28 U.S.C. § 1961(a). Interest would accrue on the full judgment from the date judgment was entered until payment at the statutory rate.

Disposition

The petition was GRANTED. The court awarded the petitioners $83,504.85 under the arbitration award, plus $577.50 in attorneys’ fees and $77 in costs. The court directed the Clerk to enter judgment, apply post-judgment interest at the statutory rate, and close the case.