Trustees for The Mason Tenders District Council Welfare Fund v. Construction

Background

The petitioners were the Trustees for the Mason Tenders District Council Welfare Fund, Pension Fund, Annuity Fund, and Training Program Fund, Anna Gutsin, and Robert Bonanza. The Funds provide fringe benefits to eligible employees when employers are required to contribute under collective bargaining agreements. Air Construction was bound by the New York City Agency Renovation and Rehabilitation Project Labor Agreement, which required it to make contributions to employee-benefit plans.

The petitioners began arbitration in December 2019, alleging that Air Construction failed to make required payments from June 18, 2018, through August 5, 2018. Air Construction received notice of the arbitration hearing but did not appear. On February 1, 2020, arbitrator Joseph A. Harris issued a default award concluding that Air Construction owed delinquent fringe benefits and related amounts totaling $28,485.53.

Court’s Analysis

The petitioners sought confirmation of the award under Section 301 of the Labor Management Relations Act, a federal law allowing certain labor-related claims in federal court. Air Construction was served with the petition on February 9, 2021, but again did not appear or respond.

Because the petition was unopposed, the court treated it as an unopposed motion for summary judgment. The court explained that confirming an arbitration award is generally a limited proceeding that turns the award into a court judgment. The court does not reconsider the arbitrator’s decision on the merits; it asks whether the arbitrator acted within the authority granted by the collective bargaining agreement and whether there is at least a minimally reasonable basis for the award.

The court found that the project labor agreement authorized the petitioners to take legal action, including arbitration, to collect unpaid benefits. It concluded that Arbitrator Harris acted within the scope of his authority and that the award had more than the required minimal justification. Air Construction’s failure to appear did not prevent confirmation because the record showed it received sufficient notice.

Disposition

The petition to confirm the arbitration award was GRANTED. The court entered judgment in the petitioners’ favor for $28,485.53, plus statutory interest accruing from the date of the order until Air Construction paid the full award. The Clerk of Court was directed to close the case.