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

Background

The petitioners were the trustees of several funds, the Carpenter Contractor Alliance of Metropolitan New York, and the New York City District Council of Carpenters. They brought the case under Section 301 of the Labor Management Relations Act to confirm and enforce an arbitration award against Regal USA Concrete Inc.

Regal became a member of the Cement League and, through that membership, agreed to a collective bargaining agreement with the Union covering July 1, 2015, through June 30, 2019. Supplemental agreements extended the agreement through June 30, 2023. The agreement required Regal to make contributions to the funds for covered work and to make its books and payroll records available for audits.

An audit covering July 1, 2020, through December 31, 2020, identified a principal contribution deficiency of $2,543.64. After Regal refused to pay that amount, the petitioners initiated arbitration under the collective bargaining agreement and the funds’ collection policies. Regal received notice but did not attend the May 19, 2022 hearing or request more time. Arbitrator Steven C. Kasarda issued a written award on May 24, 2022.

The award required Regal to pay $9,324.71, consisting of $2,543.64 in principal, $187.73 in interest, $508.73 in liquidated damages, $2,965.90 in audit costs, $30.70 in promotional fund contributions, $188.01 in late-payment interest, $1,500 in attorneys’ fees, $1,000 in arbitrator’s fees, and $400 in court costs. Regal did not comply with the award.

Confirmation of the Arbitration Award

The court explained that confirming an arbitration award generally converts the award into a court judgment. Review is limited: the court must determine whether the arbitrator was at least arguably interpreting and applying the contract, acted within the authority granted by the agreement, and did not disregard the contract’s plain language. When a confirmation petition is unopposed, courts generally treat it similarly to a motion for summary judgment, but the petitioner must still show that the undisputed facts support judgment as a matter of law.

The court found that the arbitrator properly determined that Regal was bound by the collective bargaining agreement, was required to make timely benefit contributions, and was subject to arbitration when a dispute arose. The arbitrator found that Regal had legally sufficient notice, treated Regal as being in default after it failed to appear, reviewed testimony and evidence, and found Regal liable based on substantial and credible evidence.

The court also found that the award’s amounts were authorized by the collective bargaining agreement and the 2022 collection policy. Those provisions allowed recovery of delinquent contributions, interest, liquidated damages, attorneys’ fees, and costs. The court noted that the award did not clearly identify whether the arbitrator used the 2016 or 2022 collection policy to assess audit costs and other fees, but both policies required Regal to pay those costs and fees when collection proceeded to arbitration or litigation. The court therefore confirmed the award.

Attorneys’ Fees, Costs, and Interest

The petitioners requested $2,714.50 in attorneys’ fees and $230.94 in costs for the federal confirmation proceeding. The court held that fees and costs were proper because Regal failed to appear or defend the case, did not justify its failure to follow the arbitration award, and was required by the collective bargaining agreement and collection policy to pay reasonable collection-related fees and costs.

The court found that counsel reasonably spent 11.7 hours on the case. It approved the partner’s requested rate of $410 per hour and the legal assistants’ rates of $120 per hour for work before January 1, 2023, and $155 per hour for later work. It reduced the associate rates: Maura Moosnick’s rate was reduced to $225 per hour for work before January 1, 2023, and set at $275 per hour for later work; Matthew Vani’s rate was reduced to $225 per hour for all of his work.

The court awarded $2,432.50 in attorneys’ fees and $228.94 in costs, covering service and postage. It also awarded post-judgment interest beginning on the date judgment was entered, at the statutory rate.

Disposition

The court granted the amended petition. It directed the Clerk to enter judgment for $11,986.15, comprising the $9,324.71 arbitration award, $2,432.50 in attorneys’ fees, and $228.94 in costs. The Clerk was also directed to close the case.