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

Background

The petitioners were the Trustees of several funds associated with the New York City District Council of Carpenters and the New York City District Council of Carpenters, which the opinion called the Union. The Union represented carpenters and was the certified bargaining representative for certain employees of Integrated Business Installations, LLC, a construction company.

The company entered an agreement in 2007 that bound it to a collective bargaining agreement. Under that agreement, the company had to make contributions to the Funds for each hour worked by its employees and provide its books and payroll records when the Funds requested an audit. The Funds sought an audit in August 2017, but the company refused.

The petitioners later determined that the company owed an estimated contribution deficiency of $2,325,588.51 and began arbitration. Arbitrator Roger E. Maher held a hearing on June 16, 2020. Although the company had notice, it did not appear. On June 17, 2020, Arbitrator Maher found that the company violated the collective bargaining agreement by failing to permit examination of its books and records and ordered it to pay $3,042,722.30.

The petitioners served the company with this federal action on July 23, 2020. The company again did not appear or respond. The petitioners sought confirmation of the arbitration award, attorneys’ fees and costs, and pre- and post-judgment interest.

Legal standard

The court explained that an unopposed petition to confirm an arbitration award is treated as an unopposed motion for summary judgment. Confirmation is generally a limited proceeding that converts a final arbitration award into a court judgment. The court may not reconsider the arbitrator’s decision on the merits; it asks whether the arbitrator acted within the authority granted by the collective bargaining agreement. Only a minimally supportable justification for the arbitrator’s result is required for confirmation.

Rulings

The court found no basis to vacate the award. The collective bargaining agreement made disputes about contributions to the Funds subject to arbitration. The court found that Arbitrator Maher acted within his authority when he determined that Integrated Business Installations violated the agreement by failing to produce its books and records. The arbitrator also found that the company owed $2,325,588.51 in contributions, along with interest, fees, and other costs. The court concluded that the award had more than the required minimal support and granted the petition to confirm it.

The court also awarded $665 in attorneys’ fees and costs for the federal action: $595 in attorneys’ fees for 1.7 hours of work and $70 in service fees. It found the award justified because the company had not complied with the arbitration award, had given no reason for its failure to do so, and had not participated in either proceeding. The court also noted that the collective bargaining agreement authorized reasonable attorneys’ fees and costs for court proceedings to collect delinquent contributions.

The court granted pre-judgment interest at 6.75%, the rate awarded by the arbitrator, from June 17, 2020, through the date of judgment. It awarded post-judgment interest at the statutory rate beginning on the date judgment was entered and continuing until the company paid the full award. The court directed the Clerk of Court to close the case. Judge Mary Kay Vyskocil entered the order.