Trustees for The Mason Tenders District Council Welfare Fund, Pension Fund, Annuity Fund and Training Program Fund v. Smalls Electrical Construction, Inc.
1:17-cv-03792
S.D.N.Y.Sep 19, 2017Background
- Plaintiffs are ERISA trustees for multi-employer benefit trusts and a labor union; defendant is a New York corporation party to a CBA, PLA, and trust agreements requiring employer contributions to the Funds.
- Plaintiffs served two Notices and Demands for Arbitration (Feb 4 and Mar 1, 2016) alleging defendant failed to make required contributions; an arbitration hearing occurred May 16, 2016, at which defendant did not appear.
- The arbitrator awarded plaintiffs $19,617.91 based on plaintiffs’ evidence; award memorialized in an arbitration decision.
- Plaintiffs filed this action under Section 301 of the LMRA to confirm the arbitration award on May 19, 2017; defendant was served but never appeared or opposed the confirmation motion.
- Plaintiffs moved to confirm the award; the court treated the unopposed motion as one for summary judgment and reviewed the submitted record.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed | Award should be confirmed because defendant is bound by the agreements, arbitration was properly invoked, hearing occurred, and award entered for $19,617.91 | No opposition filed; no arguments presented | Confirmed: court grants motion and directs entry of judgment for $19,617.91 |
| Whether there are grounds to vacate the award under FAA §10 | No evidence of fraud, partiality, misconduct, or excess of arbitrator power; therefore no grounds to vacate | No opposition / no evidence of vacatur grounds | No vacatur: court finds none of the statutory vacatur bases apply |
| Whether summary judgment is appropriate on an unopposed confirmation motion | Treat motion as summary judgment; record supports entitlement to judgment as a matter of law | Defendant failed to respond or contest material facts | Summary judgment appropriate: record shows no triable issue of material fact |
| Whether failure to appear in arbitration affects confirmation | Plaintiffs note defendant did not appear at arbitration, supporting default at arbitration | Defendant did not appear to contest or explain absence | Court notes defendant’s nonappearance and relies on arbitration record to confirm award |
Key Cases Cited
- D.H. Blair & Co., Inc. v. Gottdiener, 462 F.3d 95 (2d Cir. 2006) (unopposed confirmation motions should be treated like summary judgment based on the record)
- Barbier v. Shearson Lehman Hutton Inc., 948 F.2d 117 (2d Cir. 1991) (judicial review of arbitration awards is narrowly limited)
- Oxford Health Plans LLC v. Sutter, 133 S. Ct. 2064 (U.S. 2013) (FAA permits vacatur only in very unusual circumstances)
- Florasynth, Inc. v. Pickholz, 750 F.2d 171 (2d Cir. 1984) (confirmation is a summary proceeding making an arbitration award a court judgment)
- Vermont Teddy Bear Co., Inc. v. 1-800 Beargram Co., 373 F.3d 241 (2d Cir. 2004) (court must independently assess whether movant met summary judgment burden even if motion is unopposed)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (moving party bears burden to show absence of any genuine issue of material fact)