District Council of New York City and Vicinity of the United Brotherhood of…

Background

Prime Contractors became bound to a project labor agreement after signing a letter of assent for a project at MTA Avenue X in Brooklyn, New York. The agreement required disputes to be resolved through arbitration and designated Richard Adelman as arbitrator.

The parties disputed whether Prime Contractors complied with the agreement when dismantling scaffolding at the project. The District Council alleged that Prime Contractors did not hire workers represented by the District Council and did not employ a shop steward. The District Council mailed Prime Contractors notice of an arbitration hearing scheduled for May 4, 2022. Prime Contractors did not attend the hearing or request that it be postponed.

On May 6, 2022, the arbitrator ruled for the District Council. The arbitrator awarded $31,337.60, consisting of $16,420 for 320 hours of wages for eight employees and $14,857.60 for 320 hours of benefits for those employees.

Court’s Review of the Arbitration Award

The District Council petitioned the court to confirm the award and moved for summary judgment. Prime Contractors did not appear in the case or oppose the motion.

The court explained that confirming an arbitration award generally turns the award into a court judgment rather than reopening the underlying dispute. Judicial review is highly limited. The court’s task was to determine whether the arbitrator was at least arguably interpreting and applying the labor agreement, acted within the arbitrator’s authority, and did not disregard the agreement’s plain language.

The court found that the undisputed evidence supported the award. The arbitrator had relied on evidence that Prime Contractors failed to hire the District Council’s workers and on an uncontested estimate that dismantling the scaffolding would require 320 work-hours. The court found a legally supportable basis for the award.

The court also found no statutory ground for vacating, or setting aside, the award. The record did not show corruption, fraud, improper bias, misconduct, prejudice, or action beyond the arbitrator’s authority. The court also found no evidence that the arbitrator deliberately disregarded the law.

Attorneys’ Fees and Costs

The District Council requested $1,830 in attorneys’ fees for 6.1 hours of work by Spivak Lipton LLP and $532.50 in filing and service costs. The court explained that it may award fees when a party refuses without justification to follow an arbitration decision. Because Prime Contractors did not appear and offered no justification for failing to attend the arbitration or follow the award, the court found a fee award appropriate.

The court found the attorney’s $300 hourly rate and 6.1 hours of work reasonable. It also found the requested costs reasonable, consisting of a $402 filing fee and $130.50 for personal service on the New York Secretary of State.

Pre-Judgment Interest and Disposition

The court awarded pre-judgment interest on the $31,337.60 arbitration award at nine percent per year from June 9, 2022, through entry of judgment. The court entered judgment for the District Council in the amount of $33,700.10, consisting of the arbitration award, attorneys’ fees, and costs, plus the specified pre-judgment interest. Judge Katherine Polk Failla granted the District Council’s motion for summary judgment, directed the Clerk to terminate pending motions and remaining dates, and closed the case.