Trustees Of The New York City District Council Of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund v. Stop & Work Construction, Inc.
1:17-cv-05693
S.D.N.Y.Jan 5, 2018Background
- Stop & Work Construction, Inc. executed a collective-bargaining Independent Building Construction Agreement (and an extension) requiring contributions to multiemployer ERISA trust funds and arbitration of disputes.
- Petitioners (trustees of ERISA funds, a charity fund, a labor-management corp., and the union) audited respondent and claimed delinquent contributions for work within the Agreement jurisdiction.
- Arbitrator Roger E. Maher held a hearing (June 8, 2017) and issued an award (June 10, 2017) finding respondent liable for $54,129.81 plus post-award interest at 5.75% (breakdown: principal, interest, liquidated damages, fees, audit costs, etc.).
- Respondent did not pay the award and did not file any opposition in this confirmation action despite extensions from the Court.
- Petitioners moved to confirm the arbitration award, obtain judgment for the award amount, recover $795 in attorney’s fees and $75 in costs, and obtain post-judgment interest under 28 U.S.C. § 1961(a).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed | Award is valid, draws its essence from the Agreement, and respondent failed to pay | No opposition filed | Court confirmed the award — arbitrator’s decision draws its essence from the CBA standard and is entitled to deference |
| Proper standard of review for arbitration confirmation | Deferential review; only confirm if award is not irrational or his own brand of justice | — | Court applied Misco/Steelworkers standard; reviewed limitedly and found award permissible |
| Effect of respondent’s failure to respond / default | Petition should be decided on submitted record (akin to summary judgment) | — | Court treated petition akin to summary judgment (per D.H. Blair) and found no genuine dispute of material fact |
| Recovery of attorney’s fees and costs | Agreement authorizes fees and fees requested ($795) are reasonable | — | Court awarded $795 and $75 costs pursuant to Agreement; fees supported by contemporaneous invoice |
| Post-judgment interest | Mandatory under 28 U.S.C. § 1961(a) | — | Court awarded post-judgment interest on full judgment amount as required |
Key Cases Cited
- United Paperworkers Int'l Union v. Misco, Inc., 484 U.S. 29 (1987) (arbitration awards receive highly deferential review; courts may not reconsider merits)
- United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593 (1960) (award is legitimate if it "draws its essence" from the collective-bargaining agreement)
- D.H. Blair & Co. v. Gottdiener, 462 F.3d 95 (2d Cir. 2006) (motions to confirm/vacate arbitration awards are like summary-judgment motions; default is generally inappropriate)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment standard)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (materiality and genuine dispute standard for summary judgment)
- United States Steel & Carnegie Pension Fund v. Dickinson, 753 F.2d 250 (2d Cir. 1985) (confirmation standard: "barely colorable justification")
- Lewis v. Whelan, 99 F.3d 542 (2d Cir. 1996) (post-judgment interest is mandatory under 28 U.S.C. § 1961(a))