Drywall Tapers and Pointers of Greater New York Local Union 1974 v. Construction

Background

The petitioners were Drywall Tapers and Pointers of Greater New York Local Union 1974, affiliated with the International Union of Allied Painters and Allied Trades, AFL-CIO, and the Trustees of the Drywall Tapers and Pointers Local Union 1974 Benefit Funds. KPM Construction was bound by a collective bargaining agreement with the Union. The agreement required KPM to pay specified fringe benefits to the Funds on behalf of covered employees and sent disputes through a grievance process to the Joint Trade Board for final, binding decisions.

The Union claimed that KPM had failed to pay required fringe benefits for seven Union members. After KPM did not appear at the April 27, 2023 hearing, the Joint Trade Board found KPM responsible for violating the agreement. The Board ordered KPM to pay the unpaid fringe benefits and a $14,000 fine. The opinion states in one place that the benefits amount was $10,310.22, while the petition and final judgment used $10,312.22. KPM did not pay the award, seek to vacate or modify it, appear in this action, or respond to the petition.

Court’s Analysis

The petitioners sought confirmation under the Employee Retirement Income Security Act, the Labor Management Relations Act, and the Federal Arbitration Act. The court treated the petition as a motion for summary judgment. Summary judgment is a decision entered when there is no genuine dispute over an important fact and the moving party is entitled to judgment under the law.

The court explained that review of an arbitration award is very limited. A court generally confirms an award unless it has been vacated, modified, or corrected, and the party opposing confirmation faces a high burden. Even though KPM did not oppose the petition, the court still examined whether the petitioners’ evidence showed they were entitled to judgment.

Ruling

Judge Paul A. Engelmayer found that the Joint Trade Board acted within the authority granted by the collective bargaining agreement and that the award had at least a minimally reasonable basis. The court therefore confirmed the arbitral award in favor of the petitioners.

The court also awarded the petitioners $1,975 in attorneys’ fees and costs for bringing the action. The conclusion directed entry of judgment for $24,312.22, plus interest at 5.25% from the date of the award through the date of judgment, and directed the Clerk of Court to close the case and enter judgment.