Trustees for The Mason Tenders District Council Welfare Fund, Pension Fund, Annuity Fund, and Training Program Fund v. Super, LLC
1:16-cv-06387
S.D.N.Y.Jun 22, 2017Background
- Petitioners: Trustees of multiemployer Mason Tenders District Council benefit Funds and the Union sought to confirm a labor arbitration award against Super, LLC for unpaid fringe benefit contributions, dues, PAC contributions, interest, liquidated damages, and costs totaling $200,470.73 (award dated Aug. 12, 2015).
- Super signed a Project Labor Agreement (PLA) subcontractor affidavit and a separate MTDC Independent Agreement, both incorporating the Funds’ Trust Agreements and arbitration procedures obligating employer contributions and permitting audits.
- Funds audited Super’s payroll records, identified delinquencies for the period May 16, 2013–Feb. 27, 2015, and after unsuccessful collection efforts sent a notice of intent to arbitrate and demanded payment.
- Arbitrator Joseph A. Harris scheduled an arbitration for Aug. 4, 2015; Super did not appear, and the hearing proceeded as a default. The arbitrator relied on the audit and documentary evidence and issued a default award in favor of the Funds.
- Super did not pay the award, failed to appear in the confirmation action filed in federal court, and did not respond to the petition to confirm the arbitration award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed | Award is supported by valid arbitration agreement, audits, notice, and arbitrator’s default award; confirm judgment | No opposition or appearance asserted | Court confirmed the arbitration award and entered judgment for $200,470.73 plus statutory interest |
| Whether petitioners met summary judgment burden despite defendant’s absence | Documentary record and declaration establish agreements, compliance with procedures, and audit basis for award | No response; argued implicitly by absence | Court treated petition as unopposed summary judgment motion and found petitioners met their burden |
| Whether arbitrator’s decision must be reviewed broadly or narrowly | Arbitrator’s findings based on audit provide sufficient justification; defer to arbitration | No challenge to arbitrator’s rationale | Court held limited review standard applies; "barely colorable" justification satisfied |
| Whether remedies (interest, liquidated damages, fees, costs) are recoverable | Trust Agreements authorize recovery of contributions, interest, liquidated damages, attorneys’ fees and costs | No opposition | Court awarded principal plus interest from Aug. 12, 2015; confirmed all components of the Award |
Key Cases Cited
- D.H. Blair & Co., Inc. v. Gottdiener, 462 F.3d 95 (2d Cir.) (confirmation treated like summary judgment; arbitrator’s award entitled to deference)
- Willemijn Houdstermaatschappij, BV v. Standard Microsystems Corp., 103 F.3d 9 (2d Cir.) (court’s role in confirming/vacating arbitration awards is severely limited)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S.) (movant bears burden to show absence of genuine material fact for summary judgment)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S.) (materiality and genuineness standards for summary judgment)
- Vermont Teddy Bear Co. v. 1-800 Beargram Co., 373 F.3d 241 (2d Cir.) (failure to respond does not permit granting summary judgment without reviewing movant’s evidence)