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

Background

The petitioners—the trustees of several funds and the Carpenter Contractor Alliance of Metropolitan New York—brought the case under Section 301 of the Labor Management Relations Act to confirm and enforce an arbitration award against Blackstar Mechanical Group 740 Inc. The dispute arose under a collective bargaining agreement between Blackstar and the New York City District Council of Carpenters.

The agreement required Blackstar to provide books and payroll records so the funds could audit whether required benefit contributions had been made. It also required arbitration of disputes between the parties. The funds attempted to audit records covering October 6, 2020, to the date of the audit request, but Blackstar did not provide all requested records. The funds then started arbitration before Arbitrator Jeffrey G. Stein.

Blackstar received notice of the arbitration hearing but did not attend. After considering testimony and other evidence, Arbitrator Stein found that Blackstar violated the agreement by failing to allow inspection of its books and records. He ordered Blackstar to produce the records and awarded $2,900, consisting of $1,500 in attorneys’ fees, $400 in court costs, and a $1,000 arbitration fee. The award also provided for 9.5% annual interest.

Court proceedings and analysis

The petitioners filed this case on April 17, 2023. Blackstar was served with the summons and petition and received two court orders giving it opportunities to respond. The court warned that, if Blackstar did not respond, it would treat the petition as an unopposed motion for summary judgment. Blackstar never opposed the petition or otherwise appeared.

For an unopposed request to confirm an arbitration award, the court treats the request similarly to a motion for summary judgment. The court still must determine whether the undisputed facts show that the petitioners are entitled to judgment. Review of an arbitration award is limited: the court asks whether the arbitrator was interpreting and applying the agreement, acted within the authority granted by it, and did not disregard the agreement’s plain language.

Judge John P. Cronan concluded that Arbitrator Stein’s findings followed the collective bargaining agreement and were within his authority. The court found no indication that the arbitration decision was arbitrary, exceeded the arbitrator’s jurisdiction, or violated the law. The court therefore granted the petition and confirmed the arbitration award.

Attorneys’ fees and costs for the court case

The petitioners separately requested $1,364 in attorneys’ fees and $77 in costs for bringing the confirmation case. The court held that an award of fees and costs was proper because Blackstar had not appeared or defended the case and had not justified its failure to follow the arbitration award. The funds’ Collection Policy also allowed recovery of costs incurred to enforce their audit rights.

The petitioners’ lawyers billed 4.4 hours at $310 per hour. The court found the time reasonable and not duplicative, but reduced the hourly rate for associate Maura Moosnick from $310 to $275 and the hourly rate for law clerk Matthew Vani from $310 to $225. The court awarded $1,024 in attorneys’ fees and $77 in costs, for a total of $1,101 for the court litigation.

Interest and disposition

The court awarded pre-judgment interest on the $2,900 arbitration award at 9.5% per year, running from January 25, 2023, through the date judgment was entered. It also awarded post-judgment interest at the statutory rate under 28 U.S.C. § 1961(a), beginning on the date judgment was entered.

The final order granted the petition, confirmed the $2,900 arbitration award, ordered Blackstar to provide access to the requested books and records, awarded $1,101 in attorneys’ fees and costs for the court case, and awarded the specified pre- and post-judgment interest. The clerk was directed to enter judgment and close the case.