Trustees for The Mason Tenders District Council Welfare Fund, Pension Fund, Annuity Fund, and Training Program Fund v. Tri State Construction & Masonry Inc.
1:20-cv-02642
S.D.N.Y.Aug 3, 2020Background
- The Mason Tenders Funds (welfare, pension, annuity, training) and the Union sought to collect unpaid benefit contributions and dues from Tri-State Construction & Masonry, Inc. (TSM) under a Project Labor Agreement (PLA).
- TSM’s president executed an affidavit binding TSM to the PLA; Funds audited TSM for Sept. 1, 2013–Dec. 31, 2016 and found unpaid fringe contributions and related amounts.
- The Funds served a Notice of Arbitration; a hearing was held March 25, 2019, which TSM did not attend; the Arbitrator proceeded on default and considered the Funds’ audit and testimony.
- The Arbitrator issued an award (Mar. 30, 2019) ordering TSM to pay $166,443.34 (delinquent contributions, dues/PAC, interest, audit costs, liquidated damages, attorneys’ and arbitration fees).
- TSM did not oppose confirmation of the Award in federal court or otherwise appear; Petitioners moved for summary judgment to confirm the Award.
- The District Court granted summary judgment, confirmed the Award in full, and directed Petitioners to submit a proposed final judgment.
Issues
| Issue | Petitioners' Argument | TSM's Argument | Held |
|---|---|---|---|
| Whether the arbitral award should be confirmed | The Award is supported by audit, deficiency report, and testimony and falls within the PLA’s arbitration provision | No opposition; TSM did not appear or contest | Confirmed: award enforced and judgment directed |
| Whether the arbitrator exceeded his authority / award drew its essence from the PLA | Arbitrator applied the PLA and had contractual authority to order contributions and remedies | No opposition | Held that arbitrator acted within scope; award draws its essence from PLA |
| Whether evidentiary record supports the award | Auditors’ report and delinquency manager testimony sufficiently proved unpaid amounts and interest | No opposition | Held adequate evidence; arbitrator provided at least a colorable justification |
| Whether summary judgment was appropriate to confirm the award | Confirmation is proper where no genuine dispute of material fact exists and TSM failed to contest | No opposition | Summary judgment granted; petition to confirm awarded in full |
Key Cases Cited
- Major League Baseball Players Ass’n v. Garvey, 532 U.S. 504 (arbitral awards entitled to great deference unless arbitrator exceeds authority)
- United Steelworkers v. Enter. Wheel & Car Corp., 363 U.S. 593 (award must draw its essence from collective bargaining agreement)
- D.H. Blair & Co. v. Gottdiener, 462 F.3d 95 (standard for confirming arbitration awards)
- United Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29 (FAA used as guidance in labor arbitration contexts)
- Porzig v. Dresdner, Kleinwort, Benson, N. Am. LLC, 497 F.3d 133 (Second Circuit on deference to arbitral awards)
- Leed Architectural Prods., Inc. v. United Steelworkers of Am., Local 6674, 916 F.2d 63 (arbitrator limited to powers conferred by agreement)
- Nat’l Football League Mgmt. Council v. Nat’l Football League Players Ass’n, 820 F.3d 527 (Section 301 jurisdiction and labor arbitration enforcement)
- City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114 (treating confirmation/vacatur applications akin to summary judgment)