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S.D.N.Y.Substantive rulingFiled May 26, 2023

Trustees of the District Council No. 9 Painting Industry Annuity Fund v…

Full caption

Trustees of the District Council No. 9 Painting Industry Annuity Fund v. Trustees of the District Council No. 9 Painting Industry Insurance Fund

Judge
Andrew Carter
Docket
1:22-cv-07688
Court
U.S. District Court · Southern District of New York
Pages
6
ArbitrationSummary JudgmentContract
In one sentence

In Trustees v. Madison, Judge Carter granted summary judgment, confirmed a labor-arbitration award, and entered judgment for the petitioners.

Who this affects

The Trustees, the Union, and the affected workers obtained a judgment confirming the arbitration award; Madison Painting & Decorating Group was ordered to pay the wages, benefit contributions, and liquidated damages awarded by the Joint Trade Board.

What happened

Trustees of the District Council No. 9 Painting Industry Insurance Fund, et al. v. Madison Painting & Decorating Group concerned Madison’s failure to pay wages and benefit contributions required by its collective bargaining agreement with District Council No. 9. A joint labor board ordered Madison to pay the amounts, but Madison did not comply, respond to the case, or appear.

The petitioners asked the court to confirm the arbitration award through summary judgment, which asks whether undisputed facts require judgment as a matter of law. The court explained that review of a labor-arbitration award is very limited and found that the arbitrator acted within the authority granted by the agreement. Nothing in the record showed fraud, dishonesty, or an incorrect damages amount.

Judge Andrew L. Carter, Jr. granted the motion for summary judgment, confirmed the arbitration award, entered judgment for the petitioners, and directed the clerk to close the case.

The detailed version

For law students, journalists, and other readers who want the full reasoning

Case
Trustees of the District Council No. 9 Painting Industry Annuity Fund v… · No. 1:22-cv-07688
Judge
Andrew Carter
Date
May 26, 2023

Background

The Trustees of the District Council No. 9 Painting Industry Insurance Fund and the Trustees of the District Council No. 9 Painting Industry Annuity Fund, together with District Council No. 9 International Union of Painters and Allied Trades, brought the case under Section 301 of the Labor Management Relations Act. They sought to confirm and enforce an arbitration award against Madison Painting & Decorating Group.

Madison was party to a collective bargaining agreement with the Union. The agreement required disputes to be decided through arbitration. The petitioners asserted that Madison failed to submit required wages and benefit contributions for Union members. The dispute went to the Joint Trade Board for binding arbitration, and the Board issued an award in the petitioners’ favor after a May 23, 2022 hearing.

The award directed Madison to pay $23,220.00 in wages, $19,286.03 in benefit contributions, and $4,000.00 in liquidated damages. Madison received the award but did not comply. It also did not begin a proceeding to modify or vacate the award. Madison did not respond to the petition, the motion for summary judgment, or the court’s order directing it to explain why the motion should not be treated as unopposed.

Legal standard

Section 301 gives federal courts authority to consider petitions to confirm labor-arbitration awards. Judicial review is very limited. The court generally may not reconsider the arbitrator’s factual findings, contract interpretation, or remedies. Instead, it asks whether the arbitrator acted within the authority granted by the collective bargaining agreement and whether the award draws its basis from that agreement.

Because Madison did not oppose the petition, the court treated it as an unopposed motion for summary judgment. Even an unopposed motion must be granted only if the undisputed facts show that the moving party is entitled to judgment as a matter of law.

Court’s analysis

The court found that the collective bargaining agreement authorized the Joint Trade Committee and Joint Trade Board to decide disputes about interpreting or applying the agreement and to impose remedies, damages, and penalties for violations. The court determined that the dispute over Madison’s failure to submit wages and benefits fell within that authority.

The court also found that the petitioners provided uncontested evidence supporting the award. Madison had not challenged the damages, and nothing in the record suggested that the award was incorrect or obtained through fraud or dishonesty. The court therefore found no basis to refuse confirmation.

Disposition

Judge Andrew L. Carter, Jr. granted the petitioners’ motion for summary judgment, confirmed the arbitration award, and entered judgment in the petitioners’ favor. The clerk was directed to enter judgment, terminate all pending motions, and close the case.

The authoritative version

Read the full 6-page opinion on CourtListener, the free public archive maintained by the Free Law Project.

Open opinion PDF →
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